Green Marketing and Purchase Decision of Sustainable Housing: Testing the Mediating Role of Perceived Value

Purpose: This study examines whether green marketing influences sustainable housing purchase decisions and investigates the mediating role of perceived value in explaining this relationship. The study focuses on Grand City Pasuruan, a sustainable housing development in East Java, Indonesia. Research Methodology: A quantitative cross-sectional survey was conducted involving 120 owners and prospective buyers selected through purposive sampling. Data were analyzed using variance-based structural equation modeling (PLS-SEM) with SmartPLS 4.0. The measurement model was assessed through reliability, convergent validity, and discriminant validity tests, while hypothesis testing was performed using 5.000-subsample bootstrapping. Results: The findings reveal that green marketing does not significantly influence purchase decisions (β=0.123; p=0.228) or perceived value (β=0.385; p=0.072). Furthermore, perceived value does not significantly mediate the relationship between green marketing and purchase decisions (p=0.092). However, perceived value has a significant positive effect on purchase decisions (β=0.400; p<0.001). Conclusions: Green marketing alone is insufficient to drive sustainable housing purchases in secondary-city markets. Consumers require credible environmental information and tangible value perceptions before making purchasing decisions. Limitations: This study is limited to one housing project, one geographical setting, and a cross-sectional design. Contributions: This study contributes by clarifying the boundary conditions of green marketing effectiveness and highlighting perceived value as a critical mechanism in sustainable housing purchase decisions.