Vol. 03, No. 11, November 2023

                               e - ISSN : 2807-8691 | p- ISSN : 2807-839X

The Influence Of Environmental Concern On Purchase Intention Is Mediated By Brand Trust And Willingness To Pay For Electric Cars

Andrianus

Master Management, Universitas Bunda Mulia, Indonesia Email: [email protected]

ABSTRACT

Keywords

Environmental Concern, Brand

Trust, Willingness to Pay, Purchase Intention.



INTRODUCTION

Global climate change is now one of the environmental issues that is

of great concern, especially in Indonesia. One of the causes of climate change is caused by transportation. This study aims to analyze the effect of environmental concerns on brand trust, willingness to pay, and purchase intention related to electric car products in Indonesia. This study uses an associative research approach with quantitative data methods. Data was collected through distributing questionnaires to car users in Indonesia via Google Forms. The data analysis technique in this study uses Structural Equation Modelling (SEM) with Smartpls 3.0 software. The results obtained in this study are a positive and significant influence for environmental concern, brand trust, willingness to pay on purchase intention, and brand trust mediates between environmental concern and purchase intention. Also, willingness to pay mediates environmental concern on purchase intention. There are also limitations in this study, such as industry limitations and a limited sampling scope. Thus, further research can examine other aspects, such as high prices, lack of charging station facilities, and limited public understanding of the benefits of electric cars.

One of the biggest problems facing humans today is global climate change (Prawesti, 2022). The transportation sector, especially motorized vehicles that use fossil fuels, is responsible for most gas emissions that cause the greenhouse effect. Sustainable transportation is a key focus in climate change mitigation efforts to reduce these negative impacts. Electric cars have become an attractive alternative for reducing greenhouse gas emissions. According to the McKinsey Company, the trend of using electric vehicles will continue to increase after the pandemic ends (Simanjuntak et al., 2021).

According to IDNtimes (2022), the disadvantages of electric cars include high prices, uneven charging stations, long charging times, concerns about lack of power during long trips, and high battery costs. A statement issued by the Association of Indonesian Automotive Industries (GAIKINDO) regarding the challenges faced by electric car production and the market in Indonesia reinforces this reality. Currently, electric cars are still expensive, which is one of the obstacles. According to Yohannes Nangoi, General Chair of GAIKINDO, the price of electric cars initially reached IDR 1 billion and then fell gradually. However, Nangoi said that obstacles in the production and market of electric cars in Indonesia were related to problems with electric car components. Therefore, he considered that to reduce prices, components must be located. Apart from that, to get a share of the electric car market in Indonesia that will be assembled, GAIKINDO is collaborating with large manufacturers such as Toyota, Wuling, Hyundai, and others because the market is still small (Sidabutar, 2020).


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The use of electric vehicles will dominate in big cities because the government provides incentives to buy electric cars (Simanjuntak et al., 2021). New challenges and opportunities for business people lie in consumers' awareness of purchasing goods with greener, more responsible and sustainable manufacturing standards and demands. The electric car market in Indonesia brings new colors to the automotive industry. Sales of electric cars are expected to increase compared to the previous year, showing brighter prospects for 2023. One of them is that the government is encouraging and providing subsidies for electrified vehicles, including electric cars and motorbikes (Simanjuntak et al., 2021). Sales of electric cars will increase rapidly in 2023 due to the many incentives provided by the government to buy electric cars and policies that emphasize all local governments and private companies to start using electric vehicles. This will increase sales and market uptake of electric vehicles (Arifin et al., 2023). The following is data related to electric car sales.

Based on research data, it shows electric car sales data from 2019. The data shows growth, which in 2023 shows a quite significant increase where the number of electric car sales in the first half of 2023 has exceeded last year's 15,437 units.

Thus, this research uses one of their electric vehicles, namely the Wuling Air EV, as an example. The Wuling Air EV electric car has many advanced features and unique features, and the OTR Jakarta price is 243 million rupiah for the Standard Range variant and 299 million rupiah for the Long Range variant. With a Value Offer Tax (VAT) of 1%, the price range for the Wuling Air EV type L will be 273 million rupiahs after subsidies. Wuling Motor's Brand and marketing director said Air EV sales of 8,000 units exceeded estimates. Therefore, the company will adjust its production capacity to meet public demand. Wuling Air electric cars previously dominated sales in Indonesia in 2022. Referring to wholesale data from the Association of Indonesian Automotive Industries (Gaikindo), the total number of electric cars sold last year reached 10,327 units.

Wuling Air electric vehicles will be Wuling Air's official vehicle partner for the 2023 ASEAN Summit. These electric vehicles will not only provide environmentally friendly transportation for all delegates but will also offer various conveniences to facilitate the mobility of delegates during this very important conference. Wuling sent fifty units of the Air Ev Long Range variant to the 2023 ASEAN Summit. This car has a range of up to 300 kilometers when fully charged. To ensure comfortable mobility for delegates, this electric vehicle also has advanced safety features. Includes a sturdy frame and two airbags that protect the driver and first-row passengers. Then, the braking system is supported by disc brakes on the front and rear wheels, ABS, EBD, Hill Hold Control (HHC), TPMS, Sound Module for pedestrian Warning, Electronic Stability Control (ESC) and Electric Parking Brake with AVH.

The trend in the electric vehicle market raises questions and critical views about product quality and manufacturer credibility, in addition to generating positive perceptions among the public (De Canio, 2023; Zahedi et al., 2019). Currently, people adjust promotions to the facts of the product being offered. Consumers want to know whether a product's features or materials are environmentally friendly, whether it meets their standard environmental requirements, or whether the product is being promoted (Akkaya, 2021). Manufacturers must be able to provide accurate and honest product information while committing to responsible product development (Nekmahmud et al., 2022; Pandey & Yadav, 2023).

In research entitled The Impacts of Fear and Uncertainty of COVID-19 on Environmental Concerns, Brand Trust, and Behavioral Intentions toward Green Hotels, it is revealed that environmental concerns have a positive and significant influence on brand trust and brand trust also has a positive and significant influence on willingness to pay (Calvo-Porral & Lévy-Mangin, 2017; Jian et al., 2020). According to Jian et al., (2020) it was also stated that there are still research limitations, namely only on the hotel industry with a limited sample. In research titled Impact of Social Media Marketing Features on Consumer's Purchase Decision in the Fast-food Industry: Brand Trust as a Mediator, it is also revealed that brand trust has a positive and significant influence on purchase intention (Hanaysha, 2022). It was also found that brand trust is a significant mediator in the relationship between social media variables (interactivity and informativeness) and consumer purchasing decisions (Atulkar, 2020; Confente et al.,


Andrianus 2020). However, Hanaysha (2022) revealed that there are still limitations to the industry studied, namely only fast food with random samples, so it is still an Analysis of other industries that is needed in further research (Costa et al., 2021; Tandon et al., 2020). In addition, research titled Green Buying Behavior in India: An Empirical Analysis reveals that environmental concerns do not affect purchase intention (Chaudhary, 2018), but this research has limitations in the sample, namely only around the student environment, where the author also reveals that the sampling Randomization can strengthen the results of future research.

The author wants to learn more about the factors that influence consumer buying interest in green products using the example of electric vehicles that are popular in Indonesia today. This is done to adapt to current market trends in green advertising. Thus, the author designed research with the title" The Influence of Environmental Concern on Purchase Intention is Mediated by Brand Trust and Willingness to Pay for Electric Cars.”


METHODS

This research uses an associative research design with a focus on causal relationships between certain variables. Based on the theory put forward by Sugiyono (2018), a causal relationship refers to a cause-and-effect relationship, and this research aims to investigate the relationship between environmental concern, brand trust, willingness to pay, and purchase intention. The research method applied is a quantitative method with data collection through distributing questionnaires using Google Forms.

The variables that are the focus of the research are environmental concern as an independent variable, purchase intention as a dependent variable, and brand trust and willingness to pay as intervening variables. Environmental concern is measured with four indicators, brand trust with five indicators, purchase intention with six indicators, and willingness to pay with three indicators. Answer criteria are measured using a Likert scale with predetermined score weights.

This research population includes men and women aged 18 to 50 years, including students, private employees, and self-employed employees in several of the most populated cities in Indonesia, namely Jabodetabek, Bandung, Yogyakarta, Semarang, Surabaya, and Bali. Sampling was carried out using a purposive sampling method, with the criteria being that respondents liked electric vehicle products, cared about environmental preservation, and were aged between 19 and 50 years.

Primary data was obtained by distributing online questionnaires via Google Forms to respondents who met the criteria. Apart from that, secondary data was also collected from previous research journals, websites, and articles to support the analysis.

The data analysis technique uses Structural Equation Modeling (SEM) with Partial Least Square (PLS) analysis tools. The analysis begins with validity and reliability tests through Likert scale measurements. Validity was tested by looking at the loading and Average Variance Extracted (AVE) values, while reliability was tested using Cronbach's Alpha and Composite Reliability. Next, an inner model analysis was carried out to test the hypothesis, with the coefficient of determination (R Square) as one of the main parameters used to evaluate the success of the model.

Thus, this research combines a quantitative approach with PLS analysis tools to test the causal relationship between the variables determined in this research.


RESULTS

Descriptive Analysis Results Related to Respondent Profiles and Indicators

  1. Respondent Profile Analysis

    1. Respondent Profile Based on Interest in Electric Cars



      Yes No

      Figure 1. Interest in Electric Vehicles

      Source: Primary Data (n = 150)

      In Figure 1 above, the researcher has grouped the data of respondents who have filled out the research questionnaire, where most respondents who have filled out the research questionnaire are 145 people or 96.7%, who have an interest in electric vehicles and those who have no interest in electric vehicles. Electric vehicles by five people or 3.3%. From this data, we can then show that those who are interested in electric vehicles are greater than those who have no interest.

    2. Respondent Profile Based on Age


      18-25 Years Old

      >25 Years Old

      Figure 2. Age of Respondents

      Source: Primary Data (n = 150)

      In Figure 2 above, the researcher has grouped the data of respondents who have filled out the research questionnaire. Of the 150 respondents who have been collected, 139 of them are respondents with an age range of > 25 years, and the remaining 11 respondents have an age range of 18 - 25 years. The research carried out is limited and has strict criteria; one of the criteria that respondents must have is that they are over 17 years old.

    3. Respondent Profile Based on Last Education


      Senior High School University

      Figure 3. Last Education

      Source: Primary Data (n = 150)

      In Figure 3 above, the researcher has grouped the data of respondents who have filled out the research questionnaire. Where of the 150 respondents who have been collected, 138 of them are respondents with a tertiary education, and the other 12 respondents had a high school education.

    4. Respondent Profile Based on Occupation



      Private Sector Employee Self-employed

      Figure 4. Respondent's Occupation

      Source: Primary Data (n = 150)

      In Figure 4 above, the researcher has grouped the data of respondents who have filled out the research questionnaire, where of the 150 respondents collected, 62 of them are entrepreneurs—followed by private employees with 88 people.

    5. Respondent Profile Based on Domicile


      Figure 5. Respondent's domicile

      Source: Primary Data (n = 150)

      In Figure 5 above, the researcher has grouped the data of respondents who have filled out the research questionnaire, of which the first 150 respondents, the majority, live in JaBoDeTaBek, 54.7% or 82 people. Next is Surabaya, with 8.7% or 13 people, followed by Semarang, Bandung, Yogyakarta, Makassar, Pontianak, Medan, and surrounding areas.

  2. Descriptive Analysis of Indicators

    1. Descriptive Analysis of Environmental Concern Variable Indicators


      Table 1. Descriptive Statistics of Environmental Concern


      Code

      Statement

      Mea



      n

      EC1

      Maintaining and protecting the environment is very important.

      4,727

      EC2

      Changes in social behavior are very necessary to protect nature

      and the environment.

      4,627

      EC3

      Willingness to protect the environment.

      4,693

      EC4

      Environmental pollution control regulations.

      4,633

      Based on table 1 above, it shows that the mean value for the EC2 and EC3 indicators is below average, which means that respondents lack the behavior and willingness to protect the environment.

    2. Descriptive Analysis of Brand Trust Variable Indicators.

      Table 2. Descriptive Statistics of Brand Trust


      Code

      Statement

      Mean


      BT1

      Brand liking is created by convincing people that a brand can

      have relevant benefits and can fulfill their needs and desires to


      4,047


      form a positive brand attitude towards them.


      BT2

      Brand trust is a company's identity.

      3,993

      BT3

      Brand trust is expected to meet customer expectations.

      3,973

      BT4

      Brand trust is expected to provide quality service to customers.

      3,980

      BT5

      The perceived quality reaches and can be felt by customers.

      4,020


      Based on table 2 above, it shows that the mean values for the BT2, BT3 and BT4 indicators have values below the average, which means that respondents have less trust in the brand.

    3. Descriptive Analysis of Purchase Intention Variable Indicators Table 3. Descriptive Statistics of Purchase Intention


      Code Statement Mean

      PI1 Interest in purchasing environmentally friendly products that are beneficial to the environment.

      4,573


      PI2

      The desire to buy environmentally friendly products that are

      committed to the environment.

      4,160


      Have an interest in buying environmentally friendly products


      PI3

      that pay more attention to the environment than other

      products.

      4,473

      PI4

      Dare to pay more for environmentally friendly products.

      4,420

      PI5

      Desire to buy environmentally friendly products in the future

      4,027

      PI6 Interest in buying products that have a positive contribution in the future.

      4,607



      Based on Table 3 above, it shows that the mean value for the PI2 and PI5 indicators has a value below the average, which means that the respondents are less willing to buy.

    4. Descriptive Analysis of Willingness to Pay Variable Indicators Table 4. Descriptive Statistics of Willingness to Pay


      Code Statement Mean

      WTP1 I would pay more for an electric vehicle brand that makes an effort to protect the environment.

      WTP2 When you change vehicle equipment, you are willing to pay more to buy an electric vehicle.

      WTP3 I feel proud to have an environmentally friendly electric vehicle in my home even though the costs are higher.

      4,420


      4,027


      4,607



      Based on table 4 above, it shows that the mean value of the WTP2 indicator is below the average, which means that respondents do not agree with paying more to replace an electric vehicle by paying more.

  3. Data Analysis Results

    1. Convergent Validity Test


      Table 5. Outer loading

      Brand Trust Environmental

      Concern

      Purchase intention

      Willingness to pay

      BT1

      0,894


      BT2

      0,947




      BT3

      0,968




      BT4

      0,955




      BT5

      0,928




      EC1


      0,883



      EC2


      0,832



      EC3


      0,842



      EC4


      0,844



      PI1



      0,781


      PI2



      0,844


      PI3



      0,868


      PI4



      0,867


      PI5



      0,760


      PI6



      0,805


      WTP1




      0,898

      WTP2




      0,775

      WTP3




      0,839


      From the results of the outer loading value table shown above, each reflective indicator construct for each variable in the questionnaire has a value above 0.5, thus indicating that the construct indicators used for measurement in the research questionnaire are valid.


      Table 6. Average Variance Extracted (AVE)


      Average Variance Extracted (AVE)

      Brand Trust

      0,881

      Environmental Concern

      0,723

      Purchase Intention

      0,672

      Willingness to pay

      0,704


      Based on the results of the Average Variance Extracted (AVE) above, it shows that all the average variables used in this research or reflective constructs produce a value above 0.5 with a value for the purchase intention variable with a value of 0.672, the environmental concern variable with a value of 0.723, The willingness to pay variable has a value of 0.704 and the highest value is found in the brand trust variable with a value of 0.881 so that it can meet the convergent validity requirements. Then, after carrying out the convergent validity test, the next stage is to carry out the discriminant validity test which will be displayed in the following cross loading table.

    2. Discriminant Validity Test

      Table 7. Cross Loading

      Brand Trust

      Environmenta l Concern

      Purchase intention

      Willingness to pay









      BT1

      0,894

      0,340

      0,671

      0,629

      BT2

      0,947

      0,403

      0,664

      0,631


      BT3

      0,968

      0,363

      0,693

      0,673


      BT4

      0,955

      0,385

      0,677

      0,654


      BT5

      0,928

      0,388

      0,662

      0,652


      EC1

      0,306

      0,883

      0,443

      0,422


      EC2

      0,351

      0,832

      0,525

      0,475


      EC3

      0,389

      0,842

      0,459

      0,451


      EC4

      0,307

      0,844

      0,391

      0,378


      PI1

      0,467

      0,575

      0,781

      0,670


      PI2

      0,800

      0,374

      0,844

      0,759


      PI3

      0,494

      0,458

      0,868

      0,797


      PI4

      0,551

      0,416

      0,867

      0,898


      PI5

      0,798

      0,311

      0,760

      0,775


      PI6

      0,425

      0,545

      0,805

      0,839


      WTP 0,551

      0,416

      0,867

      0,898


      WTP 0,798

      0,311

      0,760

      0,775


      WTP 0,425

      0,545

      0,805

      0,839


      1


      2


      3


      Based on the discriminant validity value displayed in the table above, it shows that the cross-loading value of each variable indicator is greater than other latent variables. This is shown by the comparative value of the purchase intention variable to purchase intention being greater than the comparative value of the purchase intention variable to the brand trust and environmental concern variables, as well as the willingness to pay variable which has a greater value when the WTP indicator in measuring willingness to pay is compared to WTP measure other indicators.


      Brand

      Trust

      Environmenta

      l Concern

      Purchase

      intention

      Willingness

      to pay

      Brand Trust 0,939




      Environmental 0,401

      0,850



      Purchase 0,717

      0,540

      0,822


      Willingness to 0,690

      0,512

      0,667

      0,839

      Table 8. Fornell Lacker Criterion


      Concern


      intention pay

      Based on the discriminant validity values displayed in the table above, it shows that the

      Fornell Lacker Criterium value shows that the relationship between brand trust is greater than brand trust to environmental concerns than brand trust to purchase intention. And, the relationship between environmental concern and purchase intention is greater, as well as the relationship between willingness to pay and willingness to pay is greater than the relationship with other variables.

    3. Reliability Test



      Table 9. Reliability Test



      Cronbach's Alpha

      Composite Reliability

      Brand Trust

      0,966

      0,974

      Environmental

      Concern

      0,873

      0,913

      Purchase intention

      0,903

      0,926

      Willingness to pay

      0,788

      0,877


      Based on the values displayed in the Composite Reliability and Cronbach's Alpha tables, it can be concluded that each variable in this study passed the reliability test and was declared reliable because the Composite Reliability and Cronbach's Alpha values for each variable were above 0.7, which means they have met the specified requirements. has been established.

      Based on the validity and reliability tests that have been carried out, the entire data is declared valid and reliable for testing so that you can then carry out an analysis of the coefficient of determination and t-statistics to see the influence between the variables tested in the research.

    4. Coefficient of determination (R Square)

      R Square

      R Square Adjusted

      Brand Trust 0,160

      0,155

      Purchase 0,942

      0,941

      Willingness to 0,262

      0,257

      Table 10. Coefficient of determination


      intention pay

      Based on the value in the r test table above it can be concluded that the brand trust

      variable is influenced by the environmental concern variable by 0.160 or 16%, and the rest is influenced by other variables not included in the research. Meanwhile, the purchase intention variable is influenced by environmental concern, brand trust and willingness to pay variables of 0.942 or 94.2%. In contrast, the remainder is influenced by other variables not included in this research. Then the willingness to pay variable is influenced by the environmental concern variable by 0.262 or 26.2%, where other variables influence the rest.

    5. Path Coefficient



      Figure 6. Path Coefficient

      The image above shows how to measure the t-statistic value that is produced, and which will be used in testing the significance between the variables contained in this research.

  4. Significance Test Direct influence

    Table 10


    Original

    T Statistics

    P

    Sample (O)

    (|O/STDEV|)

    Values

    Brand Trust -> Purchase intention 0,090

    2,630

    0,009

    Environmental Concern -> Brand 0,401

    5,153

    0,000

    Environmental Concern -> Purchase 0,055

    2,157

    0,031

    Environmental Concern -> 0,512

    5,941

    0,000

    Willingness to pay -> Purchase 0,877

    31,252

    0,000

    Trust intention

    Willingness to pay intention

    Based on table 10 it can be explained as follows:

    1. The table above shows the p-value of the brand trust variable on purchase intention of 0.009

      ≤ 0.05, and the statistical t value of 2.630 ≥ 1.96 shows a significant value, so H0 is rejected, and H2 is accepted. This indicates that brand trust has a positive and significant influence on purchase intention.

    2. The table above shows the p-value for the environmental concern variable on the brand trust of 0.000 ≤ 0.05, and the statistical t value of 5.153 ≥ 1.96 shows a significant value, so H0 is rejected and H1 is accepted. This indicates that environmental concern has a positive and significant influence on brand trust.

    3. The table above shows the p-value for the environmental concern variable on purchase intention of 0.031 ≤ 0.05, and the statistical t value of 2.157 ≥ 1.96 shows a significant value, so H0 is rejected and H3 is accepted. This indicates that environmental concern has a positive and significant influence on purchase intention.

    4. The table above shows the p-value for the environmental concern variable on willingness to pay of 0.000 ≤ 0.05, and the statistical t value of 5.941 ≥ 1.96 shows a significant value, so H0 is rejected and H4 is accepted. This indicates that environmental concern has a positive and significant influence on willingness to pay.

    5. The table above shows the p-value for the variable willingness to pay for purchase intention of 0.031 ≤ 0.05, and the statistical t value of 31.252 ≥ 1.96 shows a significant value, so H0 is rejected and H5 is accepted. This indicates that willingness to pay has a positive and significant influence on purchase intention.

Indirect influence

Table 11



Original

Sample (O)

T Statistics

(|O/STDEV|)

P Values

Environmental Concern -> Brand Trust -> 0,036

2,164

0,031

Environmental Concern -> Willingness to 0,449

6,237

0,000

Purchase intention


pay -> Purchase intention


From the table above, brand trust which is the mediating variable for the environmental concern variable on the purchase intention variable shows a p-value of 0.031 ≤ 0.05, and a statistical

t-value of 2.164 ≥ 1.96 so that it meets the criteria. It can be said that The influence of environmental concern on purchase intention is mediated by brand trust. Then, it can also be seen that willingness to pay, which is the mediating variable for the environmental concern variable on the purchase intention variable, shows a p-value of 0.000 ≤ 0.05 and a statistical t-value of 6.237 ≥ 1.96, so it meets the criteria. It can be said that the influence of environmental concern on purchase intention is mediated by willingness to pay.

Discussion

  1. The Influence of Environmental Concern on Brand Trust

    The results of this research show that environmental concern has a positive and significant effect on brand trust. Thus, environmental concern can increase trust in a brand because when someone cares about the environment, it will certainly lead to one of the products being purchased, thereby creating trust in the brand. The results of this study are also supported by research (Jian et al., 2020).

    However, the results of this study also emphasize the importance of transparency in a company's environmental commitments, as consumers tend to have more trust in brands that not only talk about sustainability but also consistently demonstrate concrete actions in supporting the environment. Therefore, companies not only need to communicate their commitment to the environment but also need to take concrete steps to fulfill these promises to build strong brand trust in the eyes of consumers.

  2. The Influence of Brand Trust on Purchase Intention

    The results of this research show that Brand Trust has a positive and significant effect on Purchase Intention. Thus, this research has provided strong evidence that the brand trust that is built between consumers and brands has a significant impact on purchase intention. According to Hanaysha (2022), when consumers feel confident in the quality and consistency of a brand, they are more likely to consider purchasing the product or service offered by that brand. This creates an important opportunity for companies to understand that building strong trust can be the key to stimulating consumer purchasing interest.

    In addition, the results of this research also encourage companies to allocate further resources and efforts in strengthening and maintaining positive relationships with consumers. According to Chae et al. (2020), in the context of increasingly fierce competition, having strong brand trust can help brands differentiate themselves from competitors and create strong emotional bonds with customers. This also underscores the importance of maintaining brand integrity and providing positive experiences to consumers, as this can help maintain and strengthen their purchase intentions in the long term (Chae et al., 2020).

  3. The Influence of Environmental Concern on Purchase Intention

    The results of this research show that environmental concern has a positive and significant effect on purchase intention. This research reinforces the importance of environmental factors in consumer purchasing decisions. According to Alzubaidi et al (2021) the higher the level of consumer environmental awareness, the greater the possibility that they will have the intention to purchase products or services that are considered environmentally friendly. This reflects an increasingly clear shift in consumer behavior towards paying more attention to the environmental impact of their purchases (Fraccascia et al., 2023).

    In addition, the importance of consistent communication and action in terms of environmental sustainability. Consumers tend to have more trust in brands that not only claim commitment to the environment but also have concrete evidence in their actions Chaudhary (2018).

  4. The Influence of Environmental Concern on Willingness to Pay.

    The results of this research show that environmental concern has a positive and significant influence on willingness to pay. Thus, the results of this study are in line with research that has been conducted, where individuals who care about environmental issues tend to have a greater willingness to pay more for products or services that are considered environmentally friendly (Xu et al., 2020). This research is also supported by research by González-Rodríguez et al (2020), which found that environmentally friendly products or services are often considered to have added value, such as reducing negative impacts on the environment or benefits for health. People who care about the environment may see these goods and services as investments that benefit the environment and society, and they may be willing to pay a high price. Furthermore, this research is also in line with research conducted by Al Mamun et al. (2023),who found that environmental concern reflects the extent to which individuals care about environmental issues and nature conservation. People who have a high level of environmental concern tend to be more sensitive to environmental issues and are more likely to support products or services that are considered environmentally friendly.

  5. The influence of willingness to pay on Purchase Intention.

The results of this research show that willingness to pay has a positive and significant influence on purchase intention. Thus, a person's willingness to pay more can increase an individual's purchase intention, especially for electric vehicles. The results of this research are in line with previous research, which found that the greater a person's willingness to pay more for a product or service that is considered environmentally friendly, the more likely they are to have the intention to purchase that product (Chaudhary, 2018) This research is also supported by research by Khoiriyah et al. (2018)where consumers are willing to pay more or pay a premium over the price of products that are considered environmentally friendly. The results of this research are also in line with research, which states that the willingness to pay more often reflects the level of importance and value that consumers place on products that support sustainable practices. The willingness to pay more is related to products or services that have better environmental attributes (Gomes et al., 2023).


CONCLUSION

This research provides a comprehensive picture of the relationship between environmental concern, brand trust, purchase intention, and readiness to pay more, especially in the context of electric vehicles. Research findings confirm that high levels of environmental concern positively influence consumer trust in brands, creating a sense of comfort and confidence, which in turn influences purchasing decisions. In addition, awareness of environmental issues has also been shown to influence consumer purchasing intentions, with higher preferences for products or services that pay attention to sustainability. The importance of environmental awareness in a business context is not only ethical but also has strategic implications, especially in building strong relationships with consumers who are increasingly concerned about sustainability. Furthermore, this research details that environmental concern not only influences purchase intentions but also influences consumers' willingness to pay more, especially for environmentally friendly products such as electric vehicles. Thus, these findings provide in-depth insight into how companies can respond to the needs of consumers who are increasingly aware of environmental issues through sustainable and competitive marketing strategies.


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