Analysis Of Communication Tools Effect In Green Marketing Using Structural Equation Modeling And System Dynamics Approach (Study Case: Rei Property)

Abstract

Changing climates and environmental issues have been more serious than in past times, including people who have mostly been exposed frequently. Specifically at the present time, consumers are considering pursuing greener options to be implemented in their behavior that can do well for the environment and life itself. In order to respond to the consumer’s environmental needs, companies should develop new corporate strategies that focus on green alternatives, one of the ways to do that is by using green marketing methods in products and services. Green marketing requires new management and market strategies to address the challenges associated with developing for ecological products. One of the functions of green marketing is communication that needs to be maintained from supplier to the consumers, in order to have a reliable relationship. This research aims to determine whether communication tools are influenced by various type of communication tools in green marketing. For this research, conceptual models have been proposed using survey methods for data collection. The sample for this research is from consumers who have experienced and acknowledged green property products, specifically D.I Yogyakarta city. This study uses structural equation modeling (SEM) to verify the proposed hypothesis and is processed by AMOS 23 Graphics Software. There are 6 variables which are advertising, sales promotion, public relation, direct marketing, personal selling and interactive marketing as an exogenous variable. As for the endogenous variable is the communication tool. Each variable consisting a few indicators. After the proposed model is acceptable, the next phase is doing a model simulation using Powersim 9 Software to examine the impact value of the communication tool every year. The result of this research shows that all six variables. Advertising, Sales Promotion, Interactive Marketing and Personal Selling have significant impact on communication tools of green marketing.