Is It Greenwashing? Environmental Compensation Claims in Advertising, Perceived Greenwashing, Political Consumerism, and Brand Outcomes

Abstract

Companies increasingly employ environmental compensation claims in their advertisements. This practice, however, has been criticized as being a form of greenwashing. In two studies, we examined associations between the exposure to abstract and concrete compensation claims, consumers’ perceived greenwashing, environmental boycotting and buycotting intentions, and brand evaluation as well as purchase intentions. Further, we investigated the moderating role of consumers’ environmental knowledge. In Study 1, findings from a two-wave panel survey (N W2 = 511) indicated that exposure to abstract compensation claims was positively related to perceived greenwashing, whereas exposure to concrete compensation claims was not. Environmental knowledge did not influence perceptions of greenwashing in either claim. Using experimental data, Study 2 (N = 423) showed that concrete compensation claims can also lead to perceived greenwashing but to a lesser extent than abstract ones. Furthermore, environmental knowledge helped consumers detect greenwashing in both claims. In both studies, perceived greenwashing positively predicted consumers’ intention to join environmental boycotts but not buycotts. In addition, Study 2 showed that perceived greenwashing was negatively associated with purchase intentions. Theoretical and practical implications are discussed.