Gray Shades of Green: Causes and Consequences of Green Skepticism

Abstract

Consumer skepticism of corporate environmental activities is on the rise. Yet research on this timely, intriguing, and important topic is scarce for both academics and practitioners. Building on attribution theory, we develop and test a theoretically anchored model that explains the sources and consequences of green skepticism. The study findings reveal that consumers’ perceptions of industry norms, corporate social responsibility, and corporate history are important factors that explain why consumers assign different motives to corporate environmental actions. In addition, the results show that while intrinsic motives exert a strong negative effect on green skepticism, extrinsic motives have no discernible effect. Furthermore, the findings indicate that green skepticism prompts consumers to seek more information about the products, sparks negative word of mouth to friends and acquaintances, and forestalls purchase intentions. The study offers several implications for corporate and public policy makers and presents fruitful research directions.