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All Journal International Journal of Environmental, Sustainability, and Social Science
A.A Made Indra Wijaya Kusuma
Unviersitas Warmadewa, Indonesia
Economics, Econometrics & Finance Environmental Science Social Sciences

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Paying More for Green Bali: A Willingness to Pay Premium Model for Bottled Water Products A.A Made Indra Wijaya Kusuma; Pande Gde Bagus Naya Primananda; Rhenasya Oktiani Mustika
International Journal of Environmental, Sustainability, and Social Science (IJESSS) Vol. 7 No. 4 (2026): International Journal of Environmental, Sustainability, and Social Science (Jul
Publisher : PT Keberlanjutan Strategis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38142/ijesss.v7i4.1967

Abstract

This study aims to analyze the effect of perceived value on willingness to pay a premium for environmentally friendly bottled drinking water (AMDK) products in Bali, by examining the role of environmental awareness as a mediating variable and price sensitivity as a moderating variable. This study uses a quantitative approach with an explanatory design. Data were collected through a survey of 130 bottled drinking water consumers in the Sarbagita region (Denpasar, Badung, Gianyar, and Tabanan) using purposive sampling and accidental sampling techniques. Data analysis was performed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with the help of SmartPLS 4 software. The results showed that perceived value did not have a significant direct effect on willingness to pay a premium, but had a positive and significant effect on environmental awareness. Furthermore, environmental awareness was proven to have a positive and significant effect on willingness to pay a premium, and fully mediated the relationship between perceived value and willingness to pay a premium. Meanwhile, price sensitivity was not proven to moderate the effect of perceived value on willingness to pay a premium. These findings imply that AMDK producers need to strengthen consumers' perceived environmental value and increase environmental awareness through education and sustainable marketing communications to encourage consumers' willingness to pay premium prices for environmentally friendly products.
Co-Authors Pande Gde Bagus Naya Primananda Rhenasya Oktiani Mustika