IIM Lucknow faculty research exposes the risks of greenwashing for brands

Lucknow: Indian Institute of Management Lucknow faculty found about the harm that deceptive greenwashing can do in terms of negatively affecting consumer trust, brand perception, and buying behaviour.

What is greenwashing?

Greenwashing has become a common practice among brands to attract consumers, build a positive perception and manipulate buying behaviour.

Unlike earlier studies conducted which were not able to assess how it can affect consumer attitude towards a brand, the research team from IIM Lucknow bridged this gap by studying the psychology of how consumers interpret and react to greenwashing.

How was the research conducted?

The team developed a framework using Attribution Theory and the Elaboration Likelihood Model.

This framework, with an emphasis on ‘situational involvement’, meaning the degree of personal relevance a consumer assigns to environmental issues, helped in analysing ‘why’ and ‘how’ people react to greenwashing.

The research team tested the developed framework on 353 consumers from the United States of America and analysed the data using structural equation modelling, a method mostly used in the social and behavioural science fields.

Who conducted the research?

Conducted in collaboration with researchers from the University of Hail, Saudi Arabia, University of Turin, Italy, Princess Nourah bint Abdulrahman University, Saudi Arabia, and Institute of Management Studies Ghaziabad, India, the research has been published in the prestigious journal Business Strategy and the Environment.

Key findings of the study include:

- Greenwashing does not just fool people; it damages brand trust and discourages sustainable shopping.

- When consumers grow sceptical about a brand exaggerating or faking green credentials, their positive feelings about the brand drop.

- People with greater environmental knowledge are more likely to critically assess eco-claims made by the brands and react more strongly.

Speaking about the real-world impact of the research, Dr Sushant Kumar, assistant professor, Marketing Management, IIM Lucknow, said, “Greenwashing is dangerous for brands, but consumers appreciate green claims. A business’s green claims should be substantiated by evidence that can be verified by consumers.”

Conducted by Dr Sushant Kumar from IIM Lucknow, Dr Anis Ur Rehman from University of Hail, Dr. Rsha Alghafes from Princess Nourah bint Abdulrahman University, Dr. Laura Broccardo from University of Turin, and Dr Ajay Kumar Patel from Institute of Management Studies (IMS) Ghaziabad, the study proves greenwashing is a risky marketing strategy and brands that aim to be truly sustainable must ensure transparency and honesty in their messaging.

Importance of research

The insights are valuable for businesses, regulators, and eco-conscious consumers alike, paving the way for more authentic green branding.

As the next step of the research, the team plans to explore several other aspects of consumer behaviour, such as the recommendation of a brand or product involved in greenwashing.

The team also plans to study the consumers’ sentiments while consuming green brands and later discover false claims by the brand.