The Impact of Green Advertising and the Mediating Role of Perceived Credibility on Consumers' Purchase of Lontar-Based Products in Indonesia

This study examines how green advertising, green future estimation, and perceived credibility shape willingness to pay more for eco-friendly packaging made from lontar leaves in Indonesia, aiming to explain the psychological mechanisms linking sustainability messages to consumers’ decisions to pay a price premium. Data were collected through a survey of 401 consumers who are familiar with and/or have used eco-friendly packaging and were analyzed using PLS-SEM (SmartPLS). The results indicate that perceived credibility and green future estimation have significant positive effects on consumers’ willingness to pay more, whereas green advertising does not exert a direct effect. Nevertheless, green advertising significantly enhances perceived credibility and green future estimation, which together fully mediate its effect on willingness to pay more through a parallel mediation mechanism. These findings highlight the importance of credible, clear, relevant, and evidence-based green advertising to encourage acceptance of price premiums and support the transition from plastic to lontar-leaf packaging in Indonesia’s green packaging market.