The Influence of Greenwashing Practices on Consumer`s Company Perception

This paper examines the factors that affect the willingness to buy of consumers in the context of vague, false and hidden information greenwashing practices to understand how deceptive or misleading environmental claims influence consumer behavior. The research contributes to a clearer comprehension of the dynamics between corporate communication, consumer perception, and market behavior in the context of sustainability. It also helps in delineating the fine line between authentic green marketing and greenwashing, thus guiding companies to be more ethical and transparent in their environmental claims. In this study, a survey was conducted to identify the factors that influence consumers’ willingness to buy products in the presence of greenwashing practices. The questionnaire was designed to capture the nuances of false, vague, and hidden information types of greenwashing. Following the data collection, the data analysis was performed using tests for normality and statistical difference, and then ordered logistic regression for each type of greenwashing was conducted separately. This approach allowed to model the ordered nature of the dependent variable—willingness to buy—which was categorized into ordinal levels. To interpret the results of the ordered logistic regression, the proportional odds ratios were calculated. Additionally, the average marginal effects were computed. The results of our study revealed significant differences in the perception of various greenwashing practices. Specifically, we found that: - Older aged consumers have lower willingness to buy products associated with hidden information greenwashing. Older consumers are less likely to purchase when they perceive that crucial environmental information is being concealed. - Women, in particular, exhibit a lower willingness to buy in scenarios of false greenwashing, where misleading or untrue environmental claims are made about a product. - Individuals with higher education levels tend to show a lower willingness to buy when faced with hidden information greenwashing. This suggests that a more educated consumer base is more critical of the lack of transparency and may be better equipped to identify and react to such practices.