Advancing on the analysis of causes and consequences of green skepticism

Abstract

With the increasing trend toward sustainable purchasing, companies invest vast sums of money advertising their sustainability. Yet there are also companies doing the exact opposite for fear of consumer skepticism toward sustainability claims. Consumer skepticism can have adverse effects on company image and performance. Therefore, for the success of a company's sustainability campaign, it is essential that they are familiar with the factors resulting in consumer skepticism. This research has investigated these factors. Through a survey-based approach and analysis using structural equation modeling, it has been found that a main cause of consumer skepticism is previous incidents of greenwashing. Furthermore, consumers are more skeptical of large companies than smaller companies. The research also indicates that consumer skepticism towards a company is industry-specific, with the oil industry being the least trusted. The effect of demographics was also studied, finding that women are more skeptical. Contrary to previous literature, collectivist cultures were found to be more skeptical than individualistic cultures. This research has also explored consumer perspectives towards silent sustainability, finding that highly skeptical consumers prefer companies to limit their sustainability advertisements. Companies silent about their sustainability invoke less consumer skepticism than those advertising sustainability. This research has filled major research gaps in the field of consumer skepticism and silent sustainability and carries important implications for companies advertising in today's market, as well as for policy makers.