Role of Greenwashing in Influencing Brand Attitude and Consumption: Identifying Sustainable Business Strategies

ABSTRACT With firms' increasing adoption of green marketing strategies, greenwashing is also becoming more prevalent. Despite the negative consequences of greenwashing, limited studies have investigated its impact on attitude and consumption. Earlier studies have used greenwashing as a one‐dimensional construct and do not distinguish between different greenwashing practices. Based on the integrated framework of the Attribution Theory and the elaboration likelihood model, this study examines the effects of situational involvement with greenwashing practices on perceived greenwashing, green skepticism, and ultimately, brand attitude and purchase intention. Additionally, it investigates the moderating effect of environmental knowledge. Using a cross‐sectional research design, the study uses structural equation modeling to analyze the data collected from 353 US consumers. Findings suggest that greenwashing practices influence attitude and purchase intentions. The mediating role of green skepticism was also established. Additionally, the study highlights environmental knowledge's moderating role in the relationships studied. The results have implications for sustainable business practices and improving positive brand attitudes and green consumption by understanding customer perception of greenwashing.