Purpose This study investigates the psychological mechanisms underlying consumers’ perception of greenwashing (PG). We draw on three theories: Signaling Theory, the Persuasion Knowledge Model (PKM), and the Elaboration Likelihood Model (ELM). Our framework proposes that poor corporate signal quality (ambiguity and inconsistency) induces Green Consumer Confusion (GCC). While the Theory of Planned Behavior is noted as a complementary lens, the study’s theoretical emphasis is on information processing mechanisms articulated by PKM and ELM. Design/methodology/approach The empirical investigation begins with the measured psychological state of GCC and examines its downstream consequences, with Green Perceived Risk (GPR) moderating this mediated pathway. Specifically, the study proposes that confusion fosters Perceived Consumer Skepticism (PCS), which in turn increases PG. Upstream signal characteristics are theorized, but not directly measured. A moderated mediation analysis was conducted using survey data from 260 consumers in major Chinese cities. Findings The results revealed that GCC was positively associated with PG, both directly and indirectly, via PCS mediation. Crucially, GPR moderated the first stage of this process; the positive association between GCC and PCS was significantly stronger for consumers with high GPR, and the overall indirect effect of GCC on PG (via PCS) was conditional on GPR levels. Originality/value This study advances the greenwashing literature by elucidating the integrated cognitive-attitudinal route from signal distortion to distrust. It offers key managerial insights for enhancing signal clarity and consistency, along with policy recommendations for institutional oversight to mitigate information asymmetry and consumer risk in sustainable markets.
Lin et al. (2026) studied this question.