The Perils of Greenwashing: Impact on Consumer Trust and Brand Loyalty

A study conducted by the Indian Institute of Management, Lucknow has warned against the practice of greenwashing, citing its detrimental effects on consumer trust and brand loyalty. Greenwashing, where companies exaggerate their eco-friendly credentials, can erode customer trust and discourage sustainable shopping.

The research, carried out in collaboration with international institutions, sought to understand the psychology of consumer reactions to deceptive green marketing. It revealed that greenwashing not only misguides consumers but also damages brand image and trust, based on an analysis of data from 353 American consumers.

Experts emphasize the importance of substantiated green claims, as consumers with higher environmental awareness are more critical of eco-claims. The study serves as a caution to brands to be transparent and honest with their sustainability initiatives, ensuring consumers remain confident in their buying decisions.

(With inputs from agencies.)