Factors influencing Generation Z muslims’ purchase decisions of green halal pharmaceutical products

Rachma Ardia Putri; Mohammad iqbal Irfany

doi:10.29244/hass.3.2.14-20

Authors

Rachma Ardia Putri Faculty of Economics and Management, IPB University, Jl. Agatis. Dramaga Campus IPB, Bogor, West Java, 16680, Indonesia
Mohammad iqbal Irfany Faculty of Economics and Management, IPB University, Jl. Agatis. Dramaga Campus IPB, Bogor, West Java, 16680, Indonesia

DOI:

https://doi.org/10.29244/hass.3.2.14-20

Keywords:

Consumer behavior, Generation Z, Green halal pharmaceutical, Halal-green lifestyle, Halal brand image

Abstract

Pharmaceutical products play a significant role in people’s lives to overcome disease or maintain health. However, pharmaceutical supply chain has a high proportion of greenhouse gas emissions and contributes to climate change. Green Halal Pharmaceutical (Green HPC) Products are innovative solution for pharmaceutical industry and a primary opportunity for the global Islamic economy. There is limited academic literature discussing the combination of halal and green pharmaceutical products. Therefore, this study aimed to identify consumer characteristics and analyze the factors influencing Generation Z (Gen Z) Muslims’ purchasing decisions for Green HPC products in Indonesia. The direct and indirect relationship between halal brand image, health consciousness, environmental knowledge, and religiosity variables on attitudes and halal-green lifestyles, assumed to influence consumer buying interest and purchasing decisions, was also examined. A quantitative approach and purposive nonprobability sampling were used to recruit 300 Muslim Gen Z respondents in Indonesia. Descriptive analysis was adopted to examine respondents’ characteristics, while Structural Equation Modeling–Partial Least Squares (SEM-PLS) was conducted using SmartPLS 3. The importance of the role of pharmaceutical products was not in line with the large number of studies in the area. Therefore, this study explained consumer behavior towards Green HPC and focused on Gen Z as entry-level consumers. The results showed that nine out of ten hypotheses were supported. Purchase decisions of Green HPC were primarily influenced by purchase intention, while environmental knowledge affected purchase decisions indirectly through halal-green lifestyle, attitudes, and purchase intention.

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