This study seeks to address the impact of perceived greenwashing on the intention to purchase environmentally friendly products. We have explained how ecological information may moderate the link between perceived greenwashing and purchase intention and hence affect both the direction and magnitude of the former. Quantitative approach was implied through partial least square structural equation modeling in analyzing the data of 275 respondents. The findings spectacle perceived greenwashing decreases consumers’ propensity to buy green products. However, word-of-mouth significantly influences perceptions and intentions to purchase a product. Results show that environmental literacy is not a good moderator amongst perceived greenwashing and word-of-mouth. In essence, the negative effect of perceived greenwashing on purchase intention is constant for individuals with low and high knowledge of environmental issues, while word-of-mouth is a relevant factor in this regard for any category. This study has great implications, both for business and policy makers. They also reinforce the idea of the connection of good corporate leadership with environmentally responsible purchase habits. Thus, businesses have to be alert to the destroying impact green washing can have on their reputation and financial results as well as proactive in preventing it. Besides, companies can improve word-of-mouth by better branding and labeling of products to influence buyers’ perception about green washing and their buying intention. These represent pragmatic ways in which businesses and policymakers seek to drive sustainable consumption, plug loopholes for spurious environmental claims, and tease out some of the more compound dynamics around consumer behavior in the context of greenwashing.
Bibi et al. (Tue,) studied this question.
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