Exploring the Impact of Green Branding and Greenwashing on Sustainable Consumer Behavior

Abstract

Our study aims to comprehend the intention to purchase environmentally friendly products, particularly electric motorbikes, using the Stimulus Organism Response theory. Using convenience sampling, we collected data via LimeSurvey from 508 electric motorbike users. The data were analyzed using structural equation modeling in SmartPLS. Our findings show that (1) greenwashing significance influences brand credibility. (2) Greenwashing significantly affects perceived value. It happens when consumers feel betrayed by companies because of greenwashing. (3) We find that green brand image and credibility are complementary. (4) Green brand image significantly affects perceived value. The green brand value of a product can influence consumers' perceptions through value creation. (5) Perceived value positively influences green purchase intention. Perceived value that incorporates ecological aspects significantly affects green purchase intention. (6) Brand credibility positively affects green purchase intention. Low risk and trustworthiness augment brand credibility and influence future buying behavior. Our study provides significant insights and evidence-based solutions to address the detrimental effects of greenwashing on brands by closely examining its complex dynamics, underlying mechanisms, and intricacies.