“FEEL THE GREEN”: HOW GREEN MARKETING STRATEGY INFLUENCES THE BUSINESS PERFORMANCE OF RESTAURANTS IN BADUNG REGENCY
Keywords:
business performance, consumer behaviour, green marketing, restaurant, BadungAbstract
Green marketing has become a strategic issue to improve companies' business performance in the current era of rapidly increasing industrialisation and rising environmental concerns. A business cannot focus on economic or profit orientation alone; instead, it must consider the dimensions of environmental impact and social effects. Currently, sustainable business processes are experiencing challenges from consumers who are increasingly aware of sustainability, which has encouraged companies to adopt environmentally friendly business practices. In recent decades, green marketing has emerged as a strategy that promotes sustainable products and services and encourages corporate social responsibility. In Indonesia, especially in Badung Regency, the rapid development of the restaurant industry has created a climate of intense competition in the region. Restaurant business owners must start thinking about creating a culinary industry climate that positively impacts the environment and affects long-term business continuity. Based on this. Green marketing is one area that provides a stimulus to achieve sustainability goals and provides a fundamental change in the management paradigm in terms of both marketing and business functions. This study aims to analyse the impact of green marketing and consumer behaviour on business performance in Badung, Indonesia. The research uses quantitative methods, namely a research approach that prioritises numerical data (numbers) and statistical analysis to test hypotheses. The main result reveals that green marketing positively and substantially influences a restaurant's performance. Furthermore, results show that consumer behaviour has positively and significantly mediated the impact of green marketing on business performance. This mechanism provides deeper insight into how green marketing improves sustainable business performance.
Keywords: Business Performance; Consumer Behaviour; Green Marketing; Restaurant; Badung
JEL Classification: D13, I31, J22, K31
References
Adrita, U. W., & Mohiuddin, M. F. (2020). Impact of opportunity and ability to translate environmental attitude into ecologically conscious consumer behavior. Journal of Marketing Theory and Practice, 28(2), 173–186. https://doi.org/10.1080/10696679.2020.1716629
Alhamdi, F. (2025). The effect of green marketing on consumer behavior among Saudi women. Uncertain Supply Chain Management, 13, 455–472. https://doi.org/10.5267/j.uscm.2024.9.004
Beauprai, S. (1982). Mini-Reviews. Hispanic Journal of Behavioral Sciences, 4(1), 134–137. https://doi.org/10.1177/07399863820041013 (Original work published 1982)
Chang, & Chen. (2013). Green Organizational Identity and Green Innovation. Management Decision, 51(5), 1056–1070. https://doi.org/10.1108/MD-09-2011-0314
Dangelico, R. M., & Vocalelli, D. (2017). “Green Marketing”: An analysis of definitions, strategy steps, and tools through a systematic review of the literature. Journal of Cleaner Production, 165, 1263–1279.
Elkington, J. (2018). Green Swans: The Coming Boom in Regenerative Capitalism. Fast Company Press.
Feing, S., Lakshmanan, P., Zhang, Y., Zhang, T., Liang, T., Zhang, W., Chen, X., & Wang, X. (2023). A comprehensive continental-scale analysis of carbon footprint of food production: Comparing continents around the world. Journal of Cleaner Production, 426, 138939. https://doi.org/10.1016/j.jclepro.2023.138939
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
García-Salirrosas, E. E., & Rondon-Eusebio, R. F. (2022). Green marketing practices related to key variables of consumer purchasing behavior. Sustainability, 14, 8499. https://doi.org/10.3390/su14148499
GRI. (2021). Standar GRI. Global Reporting Initiative. https://www.globalreporting.org/how-to-use-the-gri-standards/gri-standardsbahasa-indonesia-translations/
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
Kumar, A. (2020). Green marketing and consumer willingness to pay: A meta-analysis of sustainable product adoption. Journal of Consumer Behaviour, 19(4), 345–360.
Lei, S., & Kim, H. (2022). Cost implications of green marketing strategies. Sustainable Business Review, 15(1), 45–60.
Naibaho, K. E. T., Romindo, Pasaribu, V., Matondang, J., & Theiresia, M. (2024). Pentingnya Memulai Green Marketing dalam Mendukung UMKM Tenun Ulos. Jurnal Dedikasi, 4(2), 222–227.
Nyilasy, G., Gangadharbatla, H., & Paladino, A. (2014). Perceived greenwashing: The interactive effects of green advertising and corporate environmental performance on consumer reactions. Journal of Business Ethics, 125, 693–707. https://doi.org/10.1007/s10551-013-1944-3
Ottman, J. A., et al. (2006). Green Marketing Myopia: Ways to Improve Consumer Appeal for Environmentally Preferable Products. Environment, 48(5), 22–36. Heldref Publications.
Polonsky, M. J. (2011). Transformative green marketing: Impediments and opportunities. Journal of Business Research, 64(12), 1311–1319. https://doi.org/10.1016/j.jbusres.2011.01.016
Rahmawati, R., Nurhasan, R., & Rismanto, H. (2021). Pengaruh Green Marketing terhadap Keputusan Pembelian (pada Konsumen Air Mineral Ades di Garut). Journal of Knowledge Management, 15(1), 14–26.
Rayon, Y. A., & Widagda, I. G. N. J. A. (2021). Pengaruh Green Marketing terhadap Purchase Decision yang Dimediasi oleh Brand Image (Studi pada AMDK Ades di Kota Denpasar). E-Jurnal Manajemen Universitas Udayana, 10(5), 479. https://doi.org/10.24843/eijmunud.2021.v10.i05.p04
Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Taneja, S., & Ali, L. (2021). Determinants of customers’ intentions towards environmentally sustainable banking: Testing the structural model. Journal of Retailing and Consumer Services, 59. https://doi.org/10.1016/j.jretconser.2020.102418
Teista, F., Iraldo, F., Tessitore, S., & Frey, M. (2011). Strategies and approaches in green advertising: An empirical analysis of the Italian context. International Journal of Environment and Sustainable Development, 10(4), 375–395.
Zhang, Y., & Berhei, H. M. (2022). The impact of green investment and green marketing on business performance: The mediating role of corporate social responsibility in Ethiopia’s Chinese textile companies. Sustainability, 14, 3883. https://doi.org/10.3390/su14073883
