INFLUENCE OF PERCEIVED CUSTOMER VALUE IN MEDIATING THE EFFECT OF GREEN MARKETING ON WILLINGNESS TO PAY FOR ORGANIC PRODUCTS IN GREEN TOURISM VILLAGE BILEBANTE

The increasing environmental awareness has propelled green marketing, integrating environmentally friendly aspects in product marketing to enhance value in the eyes of consumers. In a tourism village, this strategy can elevate perceived customer value and encourage consumers to pay more to support sustainable business practices. This study aims to analyze the influence of perceived customer value in mediating the effect of green marketing on willingness to pay for organic products in Green Tourism Village Bilebante. This research employs an associative quantitative approach. Data were collected from 97 respondents using Likert scale questionnaires and analyzed using path analysis through SmartPLS. The research findings indicate that green marketing has a positive but not significant influence on willingness to pay. However, green marketing significantly enhances perceived customer value, which in turn positively and significantly affects willingness to pay. Moreover, perceived customer value mediates the effect of green marketing on willingness to pay. Theoretically, this study reveals that green marketing affects perceived value by customers and their willingness to pay, albeit inconsistently. These findings support the theory that perceived value is crucial in purchasing decisions and can enhance customer loyalty. Practically, Green Tourism Village Bilebante is advised to strengthen green marketing strategies through transparency and effective communication regarding the environmental benefits of their products to enhance perceived value and willingness to pay.