When greenwashing meets sustainability: A study on consumer choices

Abstract

In the contemporary market environment, customers' understanding of how their purchases affect the environment has significantly increased. This awareness has resulted in a significant growth in the market for genuine environmentally friendly goods and services. However, the prevalence of misleading marketing practices, frequently called “greenwashing"—where businesses falsely advertise themselves as ecologically conscious—has emerged as a significant threat to consumer purchase intentions. Building upon the Stimulus-Organism-Response (SOR) theory, this study seeks to investigate how greenwashing perception impacts customers' purchase intentions by exploring the moderating effect of environmental knowledge. Conducting a comprehensive survey with a sample size of 315 participants from Ho Chi Minh City, the data were analyzed using SmartPLS to validate our hypotheses. The results indicate that greenwashing significantly deters customers' willingness to make a purchase intention, wherein environmental knowledge modifies this relationship. Notably, our study holds considerable practical value for companies in various sectors seeking to boost consumer purchase intentions by highlighting the significance of authentic environmental initiatives and clear communication in influencing consumer behaviors. Overall, this study serves as a base for further investigation. and useful tactics for companies in the green product industry by expanding our knowledge of the complex connections between consumer behavior and greenwashing beliefs