Green Confusion: Impact of Greenwashing on Consumer Attitudes and Decision-Making

Abstract

Consumers' increased focus on sustainability is evident in the current marketing scenario, prompting businesses to align their branding and marketing strategies with eco-friendly offerings. This practice has helped many companies build consumer trust. However, many companies are misusing sustainability values and making misleading and unsubstantiated claims about the environmental benefits of their products. This trend is known as Greenwashing. This study aims to identify the prevalence and impact of greenwashing on consumers’ psychology and behaviour in purchase decision-making. It tries to investigate the influence of greenwashing on creating consumer confusion vs. consumer trust. For the purpose of the study, multiple variables are examined, such as consumer attitudes, confusion, trust, knowledge about environmental issues, and the presence of third-party certifications and authentications. This paper utilises a mixed-methods approach; the primary data is collected through a structured questionnaire, and 124 responses are recorded. It is combined with secondary data collection from existing literature, environmental reports, and companies’ sustainability claims. The findings suggested that greenwashing negatively affects consumer psychology and behaviour. Authorities and policymakers play a crucial role in devising practical tactics to counter false sustainability claims. This study is significant for fostering ethical marketing practices, empowering consumers to make informed decisions, and encouraging businesses to set sustainable goals and ensure corporate accountability.