Exploring Greenwashing: The Impact on Consumer Trust and Brand Equity in China

Abstract

Greenwashing, presenting misleading or overstated environmental assertions, has become a prominent issue worldwide, especially in China, where sustainability is gaining paramount importance. As customers become increasingly environmentally aware, they are also more discerning in recognising deceptive techniques, presenting significant obstacles for businesses striving to establish themselves as sustainable brands. This research examines the influence of greenwashing on customer trust and brand equity within the Chinese setting using a quantitative methodology. A structured survey was conducted with 500 Chinese customers, and statistical analyses were performed using SPSS to investigate the links among greenwashing, consumer trust, and brand equity. The results indicate that greenwashing methods substantially undermine customer trust and reduce brand equity. The study shows that consumer awareness of greenwashing can favourably affect these characteristics since informed consumers are more adept at critically assessing business claims. These findings highlight the significance of authenticity and transparency in green marketing strategies and the need for organisations to participate in credible and genuine sustainability initiatives. The report highlights the strategic importance of firms cultivating consumer trust by refraining from misleading environmental assertions and adopting stringent sustainability standards. Future study directions encompass investigating the influence of cultural factors on views of greenwashing, analysing the psychological mechanisms underlying consumer trust, and performing comparison studies across other markets to enhance knowledge of greenwashing's worldwide ramifications.