The Effect of Greenwashing on Customer’s Perception of Competitor’s Green Marketing

Abstract

Objectives

The main objectives of this study were the investigation of the impact of greenwashing on the development of green trust, assessment of the influence of green trust as a greenwashing mediator on consumer brand perception and purchase intention, and analysis of the impact of greenwashing on the development of brand perception and its potential to harm the brand perception of competitor’s green marketing.

Summary

Firstly, previous studies surrounding the topic are analyzed and a conceptual framework, which includes 3 hypotheses, is drawn. To provide relevance to the paper, a convenience sample survey is conducted. Lastly, the hypotheses are tested, and the conclusions are drawn in relation to the International Business sector.

Conclusions

It is found that although greenwashing has a negative effect on green trust which mediates brand perception, it doesn’t influence purchase intention. Greenwashing has a significant negative effect on customers’ perception of competitor’s green marketing. The findings of this study will help signify the need for legislation on green marketing and provide managerial incentives for supporting and upholding anti-greenwashing measures in the fashion industry to reduce the impact of greenwashing spillovers