FACTORS THAT AFFECT THE PERCEIVED VALUE AND PERCEIVED RISK OF INDONESIAN GEN Z AND MILLENNIALS TOWARD THE PURCHASE INTENTION OF CIRCULAR FASHION PRODUCTS

• Main Author: Ertantawaty Nur Aulia, Framita
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64781
• Institution: Institut Teknologi Bandung

Circular fashion is a fashion based on the combination of the principles of a circular economy and sustainable development to overcome the negative impact on the environment and social emergencies. Currently, Indonesian Millennials and Gen Z are starting to have concern for the environment and society which is manifested in their purchasing decisions based on values and principles. Therefore, fashion brands should implement a green marketing strategy to gain their trust with increase the perceived value and reducing the perceived risk of products with environmental considerations in order to increase purchase intention. So this paper researches factors which influence the perceived value and perceived risk of Indonesian Gen Z and Millennials toward the purchase intention of circular fashion. This research uses a mixed model of Theory of Planned Behavior (TPB), Elaboration-Likelihood Model (ELM), and Prospect Theory (PT). The data analysis technique is PLS-SEM analysis. The total respondents in this research are 221 people. The research found that Promotion, Quality & Functionality, and Certification & Warranty significantly influence perceived value. While Quality & Functionality and Green Characteristics significantly influence perceived risk. And Purchase Intention is indirectly influenced by Perceived Value and Perceived Risk through Attitude. Keywords: Purchase Intention, Circular Fashion, Theory of Planned Behavior (TPB), Elaboration-Likelihood Model (ELM), Prospect Theory (PT)