CHAPTER4 FINDINGANDDISCUSSION 4.1.DemographicProfile 1.AgeDistribution Theagedistributiongraphshowsthatasignificantmajorityoftherespondents (58.2%)fallwithinthe18-24agegroup,followedbythe25-34agegroup(31.1%). Thepresenceofthe35-44(9.7%)and35-54(0.3%)agegroups,albeitsmaller, indicatesthatthesurveyreachedabroadrangeofadultparticipants.Thisdistribution alignswellwiththetargetpopulationofluxuryconsumers,whotypicallystart engagingwithluxuryproductsintheirlateteensandcontinuethroughoutadulthood, especiallythoseintheirearly30swhohavemoredisposableincome.Thediversityin agegroupsvalidatesthatthesurveycapturedopinionsacrossaspectrumof consumersatdifferentlifestages,essentialforunderstandingtheluxurymarketin Asia. 26 2.GenderDistribution Thegenderdistributiongraphrevealsafairlybalancedparticipationwith 46.7%femalerespondentsand35.2%malerespondents.Anadditional18.1%ofthe participantspreferrednottodisclosetheirgender.Thisdistributiondemonstratesan inclusiveapproach,ensuringthatthesurveyreflectsperspectivesacrossdifferent genders.Thenearlyequalrepresentationoffemalesandmalesissignificant,given thatluxuryconsumptionbehaviorscanvarybygender,makingitcrucialtohaveboth perspectivesrepresentedintheanalysis. 3.NationalityDistribution Thenationalitydistributiongraphshowsthatoverhalfoftherespondents (50.5%)arefromIndonesia,followedbysmallerpercentagesfromotherAsian countriessuchasthePhilippines(4.1%),Korea(6.1%),SriLanka(5.1%),Japan (4.3%),andSingapore(2.8%).Thisrepresentationvalidatesthatthesurvey successfullytargetedadiversesetofparticipantsfromvariousAsiancountries,which iscrucialforunderstandingthebroaderAsianluxurymarket.Thediversityin nationalitieshelpsensurethatthefindingsarenotlimitedtoonespecificcountry, providingamorecomprehensiveunderstandingofluxuryconsumptionpatterns acrossAsia. 27 Thesedemographicprofilesvalidatethattherespondentsarewell-matched withthetargetpopulation,consistingofdiverseluxuryconsumersfromvariousAsian countries,thusprovidingasolidfoundationforanalyzingconsumerbehaviortowards sustainableluxuryproducts. 4.2.DescriptiveVariable 4.2.1VariableSustainableLuxuryValue Table4.1DescriptiveanalysisoftheSustainableLuxuryValue No QuestionItemSustainable LuxuryValue(X1) STS T S NSSS Total Score Ideal Score Percent age(%) Culture      Myculturalbackground significantlyinfluencesmy perceptionofsustainable luxurygoods. 1119 3 3 17 0 15 91623196082,8% Culturalnormsandpractices arekeydeterminantsinmy decisiontopurchase sustainableluxuryitems1120 7 3 16 7 12 11543196078,7% 28 Self-oriented (personal) values Personalenjoymentand pleasurearecrucialfactorsin mydecisiontobuy sustainableluxuryproducts.824 7 3 13 4 15 31576196080,4% Valuessuchasstimulation, hedonicenjoyment,and universalisticconcernsare importantinmychoiceof luxurygoods 729 7 2 14 4 14 01557196079,4% Others-oriented (social) values Socialvalueslikepower, achievement,andsecurity greatlyinfluencemychoiceof sustainableluxuryitems.1523 6 6 16 9 11 91530196078,1% Thedesiretoconformto socialnormsortoact benevolentlystronglyaffects mysustainableluxury purchases 1517 7 8 15 5 12 71538196078,5% Economy Thepotentialforresaleorthe optiontobuypreloveditems significantlyimpactsmy purchasingdecisionsfor luxurygoods 823 6 5 15 2 14 31572196080,4% Total 109391372079,7% Thedataillustratedinthetabledisplaysasurveywhichisaboutthefactors thataffecttheimpressionandpurchasebehaviorintheareaofeco-consciousluxury goods.Theoutcomes,therefore,demonstratethattheculturalissues,personalvalues, socialnorms,andtheeconomicfactorsallhaveagreatinfluenceonthedecisions.To beginwith,culturalfactorsareveryinfluentialascanbeseenin82,8%ofrespondents 29 thatthinkculturalbackgroundisthemajorfactorwhichinfluencestheiropinionabout sustainableluxuryitems,and78,7%ofrespondentsindicatedthatculturalnormsand practicesareessentialelementsoftheirpurchasedecisions.Suchanexampleshows howculturalcontextmattersinthedecision-makingprocessofabuyer. Forthesecondtime,thepersonalvaluesareveryimportantinthattheyhavea highpercentageof80,4%,sayingthatpleasureandenjoymentaretheessentialfactors inmakingsustainableluxuryinabuyingdecision.Moreover,mostofthemregardas thekeycomponentsofaluxuriouslifestyleself-actualization,hedonisticpleasure,and socialissues,whichmeansthatpersonalissuesplaythemajorroleinluxury purchasing.Fourthly,socialfactorssuchaspower,achievementandsecurityarethe reasonwhyonly79,4%oftherespondentstakethesustainablegoodsinto consideration,whichisanevidenceoftheroleofsocialimageandstatusin sustainabilitychoices.Additionally,78,1%oftheserespondentsagreethattheneedto beacceptedbytheirpeers,ortodogoodfirst,alsoplaysarolewhentheybuythese luxuryproducts. Lastly,economicaspectsliketheresaleopportunityorthefactthatthe productscanbeboughtprelovedaresomeoftheinfluencingfactorsofthesurvey whichshowsthatthefinancialconsiderationsareverysignificantinthesustainable luxurymarket.Tosumup,thesurveyshowsthatthesefactors:cultural,personal, socialaswellaseconomicaffectthebuyingdecisionsofsustainableluxuriousgoods. Thisshowsthatthereis80,4%agreementamongrespondentswhichmeansa significantagreementamongthemonthekeyfactors.Suchinformationcanbevitalin assistingmarketersandbrandsinchoosingthegreenmarketingstrategyandtailoring sustainableluxuryproductstothespecifictargetaudience. 4.2.2SustainableAttitude Table4.2DescriptiveanalysisoftheSustainableAttitude N o QuestionItemSustainable Attitude(Z) StsTsNSSsTotal Score Ideal Score Percent g(%) SustainableSpending      30 .Ibelievethatsustainableliving justifiesahigherpricetagfor luxurygoods. 632481421641602 196081,7% 2.Iamwillingtopayextrafor productsthatarelabeledas sustainable 1433611481361535 196078,3% SustainableSkepticism Ithinkthatconcernsabout animalrightsareoften overstatedinthecontextof luxurygoods. 1229771381361533 196078,2% 4.Iamskepticalaboutthe sustainabilityclaimsmadeby luxurybrands 1233681431361534 1,96078,3% SustainableResponsibility Companiesshouldreceive governmentsubsidiesfor committingtosustainability.1427641671201528 196078,0% 6.Corporateresponsibilityin sustainabilityisacrucialfactor whenIchooseluxurybrands1235771431251510 196077,0% SustainableSupport Iprefertosupportluxurybrands thatinvestinsustainable practices 1433781561111493 196076,2% 8.Iamlikelytopurchasefroma brandthatactivelysupports sustainableinitiatives. 1732831421181488 196075,9% SustainableMobility Iwouldsupportincreasedprices onluxuryfashiongoodsifitled tomoreenvironmentallyfriendly transportationandproduction practices. 832771411341537 196078,4% 31 10.Mydecisiontopurchaseluxury fashionitemsisinfluencedby thebrand'scommitmentto sustainabletransportationand productionmethods 1625691351471548 196079,0% Total 15,30819,60078,1% Thesurveyresultsrelatedtothesustainableattitudesofconsumersofluxury goodsrevealedthemultifacetedanglesintheprocessofintegratingsustainabilityinto theirpurchasingdecisions.Themajorityofrespondents(81,7%)believethat sustainablelivingisworthyofpayingahigherpricetagforluxurygoods,which demonstratesagreatwillingnesstospendmoreontheproductsthatareinlinewith theirmoralvalues.Itisthemanifestationofalargerconsumertrendwhere sustainabilityisnotonlyachoicebutalsoaconsiderablemotiveforahigherspending levelintheluxurysector. Moreover,78,3%ofrespondentsalsostatetheirwillingnesstopaymorefor productswhicharelabeledassustainableorascertainedthroughcertificationsorclear labelingofsustainabilityattributes,whichindicatesthatconsumersmakemore informedchoices.Ontheotherhand,78,2%oftherespondentshaveamixedfeeling towardthecredibilityofsustainabilityclaimsbyluxuriousbrandswhichisthesame percentagewhoareskepticalabouttheanimalrightspriorityoftheluxurysector.This suggeststhatthereisagreatdemandfortransparencyandgenuinenessinpromotion andcommunicationofsustainabilitytechniquesbyluxurycompaniestoearntrustas wellasverifytheirsustainabilityclaims. Withrespecttocorporatesustainability,84%ofthepeoplesurveyedsaythat companiesshouldgetgovernmentsubsidiesiftheychoosetopursuesustainability. Thisshowsthatthereisademandforpolicyinterventionsthatpromotecompaniesto besustainable.Moreover,78%ofconsumersbelievethatcorporateresponsibilityin environmentalsustainabilityisakeyfactorthattheyconsiderwhenchoosingluxury brands,thuspointingtothefactthattheethicsofthecorporationshaveasignificant impactonconsumerdecision-makingprocesses. 32 Thesurveyaswellshowsverystrongsupportforthebrandthatisinvolvedin thesustainablepractices;77%ofpeoplearewillingtoshopfromthistypeofbrands and76,2%arelikelytobuyfromthem.Thisimpliesthatitisthebrandsthatwillbe themaindriversinthesustainablemovementandtheonesthatcanchangeconsumer loyaltyandbehaviorthemost. Inthecaseofsustainablemobility,theattitudesareslightlymorecautious, with75,9%supportinganincreaseinpricesifitresultsinenvironmentallyfriendlier transportationandproductionpracticesand78,4%,respectively,beinginfluencedbya brand'sdevotiontosustainabletransportationandproductionmethods.Thisillustrates thattheattentiontoandsupportofsustainabilitygoesbeyondtheendproducttoalso includethewholesupplychain. Asaresult,thesurveyshowsthatluxurybuyersareinlinewithsustainable values,theyarereadytopaymoreforsuchgoodsandtheytendtobecriticalwhenit comestoclaimsandpracticesofluxurybrands.Suchanewattitude,however,shows thatthereisachanceforluxurybrandstomaketheirsustainabilityfeaturesmore prominentandtoactuallyintegratethesepracticesintotheirbusinessmodelssothat theymaycatertotheconsumerswhoareincreasinglyawareoftheneedfor sustainableproduction. SustainablePurchaseDecision Table4.3DescriptiveanalysisoftheSustainablePurchaseDecision No QuestionItemSustainable PurchaseDecision(Y) StsTsNSSs Total Scor e Ideal Score Percent g(%) SustainablePurchaseDecision . WhenIpurchaseluxuryfashion items,Iprioritizehighperformance andqualityasmuchastheir sustainabilityfootprint. 7 1 8351551771653196084,3% . Iamwillingtopayahigherprice foraluxuryfashionitemifithasa proventrackrecordofbetter environmentalsustainability.10 2 2711411481571196080,2% 33 . Thecostofaluxuryfashionitemis justifiedtomeifthebrandhas investedinsustainableproduction practices. 10 2 6541651371569196080,1% . Iconsiderthedurabilityandthe expectedlifespanofluxuryfashion productsaspartoftheir sustainabilityfootprint. 14 1 9711421461563196079,7% . It'simportantformethatluxury fashionbrandsprovideclear informationaboutthesustainability oftheirmaterialsandproduction processes. 6 3 2601711231549196079,0% . Aluxuryfashionbrand'sactiverole inreducingenvironmentalimpact significantlyinfluencesmy purchasingdecision. 6 2 3711521401573196080,3% . Ivaluetransparencyregardingthe sustainabilityofthesupplychain whenImakedecisionsabout purchasingluxuryfashionitems.9 1 8721431501583196080,8% . Thepotentialforaluxuryfashion itemtoberesoldorrecycledisan importantaspectofits sustainabilityfootprintforme.8 2 2631521471584196080,8% . Iammoreinclinedtopurchase fromluxuryfashionbrandsthat haveverifiablecertificationsfor sustainability. 8 1 9761641251555196079,3% 0.Environmentalfriendlinessisas importantasaestheticappealwhen Ichooseluxuryfashionitems7 2 4751591271551196079,1% Total 157511960080,3% Thesurveyresultspresentedonsustainablepurchasedecisionsamongluxury fashionconsumersindicateastrongagreementonsustainabilityvaluesandthe 34 consumers’behavior,thusshowingtheimportanceofsustainabilityintheluxury industry.Slightlymorethanhalfofconsumers,withanagreementrateof84,3% percent,emphasizesustainabilityasoneofthefactorstheyconsiderwhenmakinga purchasedecision.Thesurveydemonstratesthat80,2%ofcustomerslovethe performanceandqualityasmuchastheyconcernthemselveswiththeproduct’s environmentalfootprint.Thismeansthatbeinggreendoesn’tdiminishtheessenceof luxeproducts.Whatismore,almostfouroutoffiveoftherespondentsarewillingto payfortheluxuryapparelthatisproducedintheenvironmentallysustainableway whichconsequentlyprovesthattheconsumersarereadytomaketheinvestmentin theethicallyproducedgoods. Sustainabilityandlifetimeofaproductarealsoofgreatimportanceaccording tothesurvey,where80,1%oftherespondentsstatedaboutdurabilityandlifespanas sustainabilityfootprint.Thisshowsashifttowardsmorepermanentandsustainable consumption.Anopenandhonestapproachtomaterialsandproductionprocesses sustainabilityisalsoappreciatedby79,7%ofthem,whichrevealsthatthecustomers wanttobeinformedandmaketheirpurchaseswithsuchdata.Thesustainability-related factorintheluxurybrandactivitywhichisinvolvedinthereductionofenvironmental impacthas79%ofrespondents’support,whichmeansthatpeopleareinfavorof brandsthatarereallywillingtotakestepstobecomesustainable.Furthermore,thefact thatmorethan80,3%oftheconsumerswereconcernedaboutthepossibilityofusedor recycledluxuryitemsisalsoasignthatconsumersareincreasinglyembracingthe circulareconomywithintheluxuryfashionindustry. Vaguecertificationsthathave'sustainability'writtenoverthemconvincingly steer80,8%ofconsumerstowardsshopping,whichcouldmakethirdpartyverification evenmorepowerful,asitwillraiseconsumertrustandbuyingdecisions.Whatisalso essentialistheindicationthatbeautyisconsideredasequallyimportantasethical valuesfor84%ofsurveyrespondentsthusimplyingthatvaluesofluxuryfashion consumersarebecomingethicallybased.Tosumup,thedatawehaveforsureshows thatsustainabilityisathoroughlyimportantfactorinthechoiceofluxuryfashion consumers.Asluxurybrandsevolvealongwiththesetrendstheyhavetomake adjustmentsandstandbehindtheirsustainabilitypledges,meetingthehigh expectationsofthewell-informedaswellasdemandingcustomers. 35 4.3.Result 4.3.2OuterModel a.ConvergentValidity Ifanindicator'sloadingfactorispositiveandgreaterthan>0.7,itis consideredvalid.Howimportanteachindicationoritemisinmeasuringacertain variableisshownbytheloadingfactor'smagnitude.Anindicatorwithahigh loadingfactorindicatesthatitisthemostdominantmeasureofthevariable concerned.Inaddition,theSquareRootofAverageVarianceExtracted(AVE) shouldbetakenintoaccount.AccordingtoFornellandLarcker(1981),to guaranteethatthelatentvariablecanaccountformorethanhalfofthevariation intheindicatorsused,theAVEvalueneedstobegreaterthan0.5Thetablebelow showstheloadingfactorandAVEvaluesforeachindicator: Table4.4LoadingFactor Variable Indicato r Loading Factor Descriptio n Sustainable Luxury Value(X) X.1 0,946 Valid X.2 0,758 Valid X.3 0,763 Valid X.4 0,771 Valid X.5 0,809 Valid X.6 0,792 Valid X.7 0,760 Valid Sustainable Attitude(Z) Z.1 0,952 Valid Z.2 0,754 Valid Z.3 0,771 Valid 36 Z.4 0,751 Valid Z.5 0,755 Valid Z.6 0,734 Valid Z.7 0,757 Valid Z.8 0,740 Valid Z.9 0,742 Valid Z.10 0,739 Valid Purchasing Decision(Y) Y.1 0,959 Valid Y.2 0,798 Valid Y.3 0,783 Valid Y.4 0,797 Valid Y.5 0,774 Valid Y.6 0,801 Valid Y.7 0,783 Valid Y.8 0,820 Valid Y.9 0,753 Valid Y.10 0,785 Valid Source:Processedprimarydata(2024) Table4.5Averagevarianceextracted(AVE) Variable Averagevarianceextracted (AVE) SustainableLuxuryValue(X) 0.644 SustainableAttitude(Z) 0.596 PurchasingDecision(Y) 0.651 Source:Processedprimarydata(2024) 37 Theloadingfactorvaluesgeneratedbyeachindicatorareallgreaterthan 0.7,andtheAVEvaluesareallgreaterthan0.50,asshowninthetableabove.As aresult,thevalidityoftheseindicatorsasmeasuresoftheirlatentvariablesis declaredvalid. b.DiscriminantValidity TheFornell-LarckerCriterionisamethodusedtoassessdiscriminant validity,particularlyinthecontextofStructuralEquationModeling(SEM). Discriminantvalidityisessentialtoensurethateachconstructinthemodelis distinctanddoesnotexcessivelycorrelatewithotherconstructs,indicatingthat eachconstructmeasuresauniqueconcept.AccordingtotheFornell-Larcker Criterion,discriminantvalidityisconfirmedifthesquarerootoftheAverage VarianceExtracted(AVE)foreachconstructisgreaterthanthecorrelations betweenthatconstructandanyotherconstructinthemodel.Thisimpliesthata constructsharesmorevariancewithitsownindicatorsthanwithotherconstructs. Table4.7FLC  X Z Y X 0,802   Z 0,476 0,807  Y 0,495 0,4680,772 Source:Processedprimarydata(2024) Diagonal(X=0.802,Z=0.807,Y=0.772):Representsthesquarerootofthe AVEforconstructsX,Z,andY.Thisisameasureoftheinternalconsistencyof eachconstruct.ThesquarerootofAVEis0.802.Thisisgreaterthanthe correlationsX-Z(0.476)andX-Y(0.495),indicatingthatconstructXmeetsthe discriminantvaliditycriterion.ThesquarerootofAVEis0.807.Thisisgreater thanthecorrelationsZ-X(0.476)andZ-Y(0.468),indicatingthatconstructZ alsomeetsthediscriminantvaliditycriterion.ThesquarerootofAVEis0.772. ThisisgreaterthanthecorrelationsY-X(0.495)andY-Z(0.468),indicatingthat constructYalsomeetsthediscriminantvaliditycriterion. 38 c.ReliabilityTest Cronbach'sAlphaandCompositeReliabilityvaluesareusedtomeasure reliabilityinPLS.IfCronbach'sAlphavalueisadvisedtobeabove0.6andthe CompositeReliabilityvalueisabove0.7,itisconsideredreliable.Thevaluesfor Cronbach'sAlphaandCompositeReliabilityinTable4.4areshownbelow: Table4.7Cronbach’sAlphadanCompositeReliability Variabel Cronbach' salpha Composite reliability (rho_a) Composite reliability (rho_c) SustainableLuxuryValue (X) 0,9060,9190,926 PurchasingDecision(Y)0,9400,9450,949 SustainableAttitude(Z)0,9240,9300,936 Source:Processedprimarydata(2024) Table4.4aboveshowsthatallresearchvariableshadComposite Reliabilityvalues>0.7andCronbach'sAlphavalues>0.6.Theconclusion thatallvariableshaveahighdegreeofreliabilityisbasedonthefactthateach variablehassatisfiedCronbach'sAlphaandCompositeReliability requirements. 4.2.3InnerModel Conductingtheinnermodeltestcomesnext,followingthecompletionofthe outsidemodeltest.Observingthelinksbetweenconstructs,thelevelofrelevance,and theR-squarevalueintheresearchmodelunderusearethegoalsoftheinnermodelor structuralmodelassessment. a.R-Square ThefirststepinevaluatingthePLSstructuralmodelistolookateach dependentlatentvariableR-square.R-Squareisatoolusedtoevaluatetheextent towhichtheexogenousconstructsmayaccountfortheendogenousconstruct.An 39 R-Squarevalueof0.75denotesarobustmodel,0.50denotesamoderatemodel, and0.25denotesaweakmodel.Table4.5belowdisplaysthestudy'sR-Square values: Table4.8R-SquareTestResults Variabel R-square R-square adjusted PurchasingDecision(Y)0.315 0.311 SustainableAttitude(Z)0.226 0.224 Source:Processedprimarydata(2024) Table4.5aboveindicatesthattheinfluenceofXandZonYis representedbyanR-Squarevalueof0.315or31.5%,withanAdjusted R-Squarevalueof0.311or31.1%.TheR-SquarevaluefortheeffectofXonZ is0.226or22.6%,withanAdjustedR-Squarevalueof0.224or22.4%.. b.GoodnessofFitModelTest Theevaluationofthemodel'sgoodnessoffitisthenextstepinthetesting processfortheoutermodel.TheStandardizedRootMeanSquareResidual (SRMR)valueofthePLSmodelindicateshowwellitfitsdata.IftheSRMR valueislessthan0.10,thePLSmodelisdeemedtohavesatisfiedtheGoodness ofmatchrequirements;ifitislessthan0.08,themodelissaidtobeaperfect match.Table4.6belowshowstheSRMRvalueforthisstudy: Table4.9GoodnessofFitModel SaturatedmodelEstimatedmodel SRMR 0.042 0.042 Source:Processedprimarydata(2024) TheSRMRvalueofthemodelis0.042forboththesaturatedmodeland theestimatedmodel,accordingtoTable4.6'sPLSmodelGoodnessofFittest results.Thesaturatedmodelandestimatedmodel'sSRMRvaluesarelessthan 40 0.10and0.08,respectively,indicatingthatthemodelsatisfiestheGoodnessof matchrequirementsandisdeemedaperfectmatch,appropriatefortestingthe studyhypotheses. c.HypothesisTestingResults Thesignificancetestsofeachexogenousvariable'sdirectandindirect impactsonendogenousvariablesareincludedinhypothesistesting.Thepurpose ofeachofthesetestsistoevaluatetheresearchhypothesis.Thepurposeof hypothesistestingistomakethelinksbetweenthestudy'svariablesmoreclear. ThePLSsoftwareisusedforhypothesistesting.Theoutputobtainedfromthe routecoefficientsoutputservesasthefoundationfortestinghypothesesdirectly.