Influence of Greenwashing on Customer Satisfaction, Perceived Quality of Environmentally-Friendly Products, and Green Word-of-mouth: In Cosmetics Industry

Abstract

Greenwashing began in the 1960s when hotels started asking customers to reuse towels to save the environment and save costs for laundry. In many industries including the cosmetics industry, the green market has been growing as companies need to include the concept of sustainability in their business plans. In the past ten years, the market for natural and organic cosmetics has been expanding. Therefore, it is needed to ascertain customers' perception of greenwashing. We evaluated the influence of greenwashing on perceived ecological sustainability, customer contentment, and the dissemination of favorable word-of-mouth for environmentally friendly products. Descriptive and quantitative methods were used to investigate the correlation of variables from the data collected using non-probability and purposive sampling from 200 participants.