How does greenwashing affect green branding equity and purchase intention? An empirical research

Abstract

Purpose The purpose of this paper is to explore the relationship among greenwashing, green brand equity, brand credibility, green brand associations and purchase intention. Design/methodology/approach As an object to study, two brands were chosen: a high-involved brand and a low-involved brand. Data were collected from 500 consumers by survey method, and structural equation modeling was run to test the research hypotheses. Findings As a result, it was found that green brand associations and brand credibility positively affect green brand equity, and green brand equity has a positive and strong impact on purchase intention of consumers. In addition to that greenwashing negatively affects green brand associations and brand credibility, and therefore, indirectly influence green brand equity and purchase intention. Research limitations/implications Previous studies conceptualize greenwashing and examine its effects on company performance and skepticism. This study is a first attempt to explore the effects of greenwashing on green branding strategies. Practical implications Managers should be aware of that greenwashing not only negatively affects purchase intention but also generates negative outcomes for the relationship with the brands. Originality/value There is no other study, at least to the author’s knowledge, testing the effects of greenwashing on green brand perceptions and green purchase intention.