A Revisiting the Relationship Between Greenwashing Perceptionand Consumer Purchase Intentions: Assessing the Mediating Roleof Word of Mouth and the Moderating Role of EnvironmentalKnowledge

Abstract

environmentally friendly products. It also examines how ecological information may moderate the relationship between perceived greenwashing and purchase intention, thereby affecting both the direction and magnitude of this relationship. A quantitative approach was employed, using partial least squares structural equation modeling to analyze data from 275 respondents. The findings indicate that perceived greenwashing decreases consumers’ propensity to buy green products. However, word-of-mouth significantly influences perceptions and purchase intentions. Results show that environmental literacy does not effectively moderate the relationship between perceived greenwashing and word-of-mouth. In essence, the negative effect of perceived greenwashing on purchase intention remains consistent for individuals with both low and high environmental knowledge, while word-of-mouth is a relevant factor across all categories. This study has important implications for both businesses and policymakers, reinforcing the connection between good corporate leadership and environmentally responsible purchasing behavior. Businesses must be alert to the damaging impact that greenwashing can have on their reputation and financial performance, and proactive in preventing it. Furthermore, companies can improve word-of-mouth through better branding and product labeling to influence buyers’ perceptions regarding greenwashing and their purchase intentions. These strategies provide practical ways for businesses and policymakers to promote sustainable consumption, close loopholes for misleading environmental claims, and better understand the complex dynamics of consumer behavior in the context of greenwashing.