The Impact of Greenwashing on Brand Reputation, Brand Credibility, and Green Brand Equity: Evidence from the Household Appliances Market

Abstract

As customer consciousness of environmental topics increases, green marketing is quickly emerging as a crucial strategy for companies to achieve a competitive advantage. In addition, the rapid expansion of green practices has created concerns among consumers about companies that covertly capitalize on green trends and initiate a discussion about their potential effects on environmental quality. As a result, companies have skillfully used “green” phrases and labeling on any occasion to trick buyers into thinking they are purchasing more environmentally friendly products than they are. Therefore, the question arises: does the practice of greenwashing affect brand reputation, brand credibility, and green brand equity? We assess the proposed model using partial least squares structural equation modeling (Smart PLS software, version 4). Data were collected from 336 customers of green household appliances in Egypt. The results show that greenwashing has a negative effect on green brand equity, brand reputation, and brand credibility. In addition, green brand equity has a positive impact on brand reputation. Brand reputation has a positive influence on brand credibility. Finally, green brand equity has a mediation role in the relationship between greenwashing and brand reputation. The findings have discussed many initiatives intended to lessen the damaging impacts of greenwashing. Additionally, we provide several insightful avenues for the household appliance market.