Journal of Business on Hospitality and Tourism PISSN 2527-9092

Vol 07 No 03, 2021: 273-279 EISSN 2527-6921

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Submitted 11th December 2020

Accepted 31th December 2021

THE EFFECT OF GREEN PRODUCT AND GREEN

PROMOTION ON INCREASED CONSUMER
LOYALTY AT STARBUCKS COFFEE
Erina Subiantoro¹, Lexi Pranata Budidharmanto²
Universitas Ciputra, Surabaya. Indonesia

¹[email protected]
²[email protected]

ABSTRACT

The increasing of public awareness of the environment has made companies implement
green product and green promotion strategies to increase consumer loyalty. Therefore, the
purpose of this study is to determine the influence between green product and green
promotion on consumer loyalty at Starbucks Coffee. This study used a sample of 203
respondents which were processed by multiple linear regression. The results showed that
the green product and green promotion partially had a positive and significant effect on
consumer loyalty. Green products have the biggest influence on consumer loyalty. This
shows that green products have an important role in increasing consumer loyalty at
Starbucks Coffee. Also the green promotion can increase the consumer loyalty too.

Keywords: green product, green promotion, consumer loyalty

INTRODUCTION

The Ministry of Industry stated that at the end of 2019 the growth of the
food and beverage industry had increased by eight percent (Zuraya, 2019). As for
the beverage business itself, the development could be higher. Starbucks as one of
the well-known global coffee shop businesses, is also one of the companies that
implements loyalty programs to maintain and increase consumer loyalty (Sari and
Nurhayati, 2019). According to Kotler and Keller (2016: 153), consumer loyalty is
defined as a strong role for consumers to buy a product or services they like which
makes them repurchase the product with the same brand. Beside buying and
enjoying the coffee, Starbucks consumers prefer to buy this product because the
products sold are promoted to have ingredients that are safe and also
environmentally friendly. According to Sari and Setiawan (2017), safe and
attractive products make consumers more loyal and selective in choosing a product.

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Journal of Business on Hospitality and Tourism PISSN 2527-9092
Vol 07 No 03, 2021: 273-279 EISSN 2527-6921
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Currently, public awareness regarding environment is starting to increase,

given the many environment threats and disasters (Romdhoni et al. 2020). Public
awareness has led business people to start adjusting their business and responding
to environmental damage that has occurred. Many companies are now creating
business concepts and products that are more environmentally friendly.
Environmental friendly products that have no impact on environmental damage are
known as Green Products. According to Suhaily and Darmoyo (2019), green
products are categorized as goods that are made and produced with recycled
packaging. Examples of environmentally friendly products, namely reusable
packaging are products that are easily biodegradable and free from chemicals.
Starbucks is one of the company that cares about the environment that has
implemented environmentally friendly products. Starbucks has innovated to use
products that can be recycled and also minimize the use of plastic.
A company's marketing strategy for selling products can’t be separated from
the promotion. Meanwhile, the promotion carried out by the company to change the
public's view of environmentally friendly products is called green promotion
(Kusuma et al. 2017). Starbucks has also implemented green promotion in its
marketing strategy in a variety of ways, one of the most popular is the tumbler day
which is held every month. They offer drinks at half price by bringing your own
tumbler. The promotion is expected to educate consumers to reduce plastic use and
raising awareness about the environment.
The previous research by Jabeen and Kavitha (2020) stated that green
marketing strategies which include green products, green places, green promotions,
green people and green packages have an effect on consumer loyalty. This research
has some similarities, but the results may show differences because the object under
study is also different. A few researchers have focused more on green marketing,
while this research focuses on green products and green promotion on consumer
loyalty. The researchers by Suhaily and Darmoyo (2019) stated that green products
and green promotion have no significant effect on consumer loyalty.

Green Product

Rath in Hanifah et al. (2019) reveal green products are products that
produced with environmentally friendly technology and are not harmful to the
environment. Meanwhile, according to Suhaily and Darmoyo (2019), green
products are categorized as goods that are made and produced with recycled
packaging. Examples of environmentally friendly products, namely reusable
packaging are products that are easily biodegradable and free from chemicals.
These environmentally friendly products are included in the green marketing
strategy to change consumer attitudes towards a product (Jabeen and Kavitha,
2020).

From the information above, it can be concluded that green products are
products that do not cause harm to humans and the environment, products that do
not use excessive resources and also do not involve animals, and do not produce
waste that is difficult to decompose (Febriani, 2019). Customers who care about the

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Journal of Business on Hospitality and Tourism PISSN 2527-9092
Vol 07 No 03, 2021: 273-279 EISSN 2527-6921
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environment usually prefer environmentally friendly products, because they pay

more attention to health and also the environment (Suki, 2015). Sari and Setiawan
(2017) reveals that safe and attractive products make consumers more loyal and
selective in choosing a product. Iswanto (2019) revealed that green product can
make a positive image of a company and it can also increase consumer loyalty.
Therefore, this study aims to show the influences of green product on consumer
loyalty at Starbucks Coffee.

Green Promotion

Green promotion is a promotion carried out by companies to change

people's views regarding environmentally friendly products (Kusuma et al. 2017).
According to Palaguna and Ekawati (2016), green promotion is included in
advertisements that are used to carry out marketing strategies regarding
environmental issues so that they can be distinguished from the promotion of other
products by customers. Green promotion is also a campaign made by a
company by carrying out programs and activities to love the environment, the
campaign can improve the image of a company (Agustin et al. 2015). The success
of selling environmentally friendly products is supported by the existence of green
promotions that is carried out by a company (Febriani, 2019). Green promotion is
also part of the green marketing strategy in promotional activities to change
consumer attitudes towards the environment and increase consumer loyalty (Jabeen
and Kavitha, 2020). So, this study aims to show the influences a green promotion
on customer loyalty at Starbucks Coffee.

Consumer Loyalty

Consumer loyalty is defined as a strong role for consumers to buy products

or services that they like frequently, so that purchases with the same brand
repeatedly (Kotler and Keller, 2016: 153). Consumer loyalty can be used to measure
the development of sales and purchases. One way to increase consumer loyalty is
to know the characteristics of consumer loyalty (Maulina, 2019).

Meanwhile, according to Suhaily and Darmoyo (2019), defining consumer

loyalty is the willingness of consumers to maintain a relationship with the company.
Maintaining consumer loyalty in order to remain loyal is not easy, therefore every
company must maintain its quality. Customers who are increasingly loyal can
increase profits and also profits of a company. So, companies must be smart in
maintaining customer loyalty so that customers do not change their minds to go to
other companies (Fardani, 2015).

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Journal of Business on Hospitality and Tourism PISSN 2527-9092
Vol 07 No 03, 2021: 273-279 EISSN 2527-6921
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Figure 1: Research Model

Green
Product H1
(X1)

Loyalitas
Konsumen
(Y)

Green
Promotion H2
(X2)

METHODOLOGY
This research uses quantitative research which a method of survey by
distributing questionnaires online to respondents. The sample using a purposive
sampling with the respondent criteria is respondents aged 17 to 35 years and know
about green products and green promotion of Starbucks Coffee. The sample was
obtained by using the Jacob Cohen formula with a total of 203 respondents.

Data Analysis
The questionnaire was measured using a five-point Likert scale. The data
analysis using multiple linear regression, partial t, the coefficient of determination
R² and classical assumption.

RESULTS AND DISCUSSION

RESULT
Characteristic of Respondent
From the 203 respondents who have been obtained the results of the online
questionnaire, the majority of respondents are women aged 17-25 years and work
are students. With the acquisition of a percentage women is 78.3%, age 17-25 years
69.5 and students 50.2%.

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Journal of Business on Hospitality and Tourism PISSN 2527-9092
Vol 07 No 03, 2021: 273-279 EISSN 2527-6921
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Analyzed Result
This research has been tested the validity and reliability of using SPSS 25.
All the data has been declared valid by the acquisition of a calculated r value bigger
than r table. The data is also said to be reliable with the acquisition of a Cronbach
alpha (α) value bigger than 0,6. The results of the normality test state that all data
are normally distributed, with a significant value of 0,007 which is bigger than 0,05.
In the regression model it was stated that there was no multicollinearity with the
result of VIF value was not more than 10,00, the purpose of using the
multicollinearity test is to determine the existence of a strong correlation or
relationship between independent variables. For the heteroscedasticity test, all the
data stated that heteroscedasticity did not occur with significant values of green
product is 0,688 and green promotion is 0,579, the purpose of using
heteroscedasticity test is to aims whether in the regression model there is a
dissimilarity variant from the residual value to one observation to another
observation. All variables have a linear model with linearity criteria lower than
0.05.
Based on the partial t test there is a results with significant value is less than
0,05, which means that the variables are green product and green promotion have
an influence relationship on the dependent variable consumer loyalty. Obtained the
regression equation with the formula Consumer Loyalty (Y) = 3,983 + 0,291 X1 +
0,181 X2 + 0,05. It is mean that constant number of 3,983 shows the green product
(X1) and green promotion (X2) if the value is 0, then the consumer loyalty (Y)
value is 3,983. There is a green product coefficient (β1) of 0,291 with a positive
value, meaning if the green product increases by 1 time or 1%, then consumer
loyalty will increase by 0,291 or 29,1%. The value of green promotion coefficient
(β2) is 0,181 with a positive value, that’s means if green promotion increased by 1
time, then consumer loyalty will increase by 0,181 or 18,1%.
The results of the determination coefficient test state that there is a R² value
of 0.222, which means that the green product and green promotion variables have
an effect on consumer loyalty by 22.2%. While the rest is influenced by other
factors or variables apart from this research.

DISCUSSION
Result of this study shows that green product and green promotion have a
significant influenced to consumer loyalty. Green product can increase consumer
loyalty by 29,1%. Then green promotion can increase consumer loyalty by 18,1%.
The result of this study is supported by the research of Jabeen and Kavitha, 2020
that state green product and green promotion have an influence on consumer
loyalty. They also state green product have the biggest influence on consumer
loyalty.
The limitation in this research is focus on the object that is Starbucks Coffee
and the respondent is taken by people that knows green product and green
promotion at Starbucks Coffee. The variable of this research also focus on a few
parts that is taken from the green marketing strategies. Further researchers can use
other variables that are also related to green marketing, such as green place and
green price to the future research.

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Vol 07 No 03, 2021: 273-279 EISSN 2527-6921
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CONCLUSION

There is a significant influence between green product and green promotion

on consumer loyalty at Starbucks Coffee. Green product have a biggest influence
to increase consumer loyalty. This researchers have a suggest besides using a
questionnaire method, it is advisable to use the interview or field survey by
observing the surrounding conditions, so that as a result the information and data
obtained can be more complete. The further researchers can use another object that
have a green product and green promotion too. Also can use a few factors that can
be effect on consumer loyalty.

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