The Impact of Greenwashing on Consumer Trust and Brand Loyalty: The Moderating Role of Industry Type

Muhammed Zakir Hossain, Sahib Hossain and Umma Nusrat Urme
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Muhammed Zakir Hossain: Associate Professor, Department of Business Studies, State University of Bangladesh, Bangladesh
Sahib Hossain: Senior Lecturer, Department of Business Administration, University of Scholars, Bangladesh
Umma Nusrat Urme: Assistant Professor, Southeast Business School, Southeast University, Bangladesh

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Abstract: This research investigates the influence of greenwashing on consumer trust and brand loyalty, emphasizing the variations of these relationships across diverse industries. A quantitative methodology was employed to gather data from 300 participants through a survey to assess perceptions of greenwashing, consumer trust, and brand loyalty within the food, fashion, and hospitality industries. Structural Equation Modeling (SEM) was utilized to evaluate the proposed hypotheses, revealing that greenwashing has a significant negative impact on both consumer trust (β = -0.68) and brand loyalty (β = -0.45). Trust was identified as a mediator in the relationship between greenwashing and brand loyalty (β = -0.49), underscoring the essential function of trust in sustaining consumer loyalty. The study indicated that the effects of greenwashing are more significant in the fashion industry than in the food industry, emphasizing the moderating influence of industry type. The findings indicate that transparency and authenticity in sustainability assertions are crucial for companies seeking to establish enduring consumer trust and loyalty. This study enhances comprehension of greenwashing's impact on consumer behavior and offers practical insights for businesses in sustainability-focused sectors.

Keywords: Sustainability; Structural Equation Modeling; Brand Loyalty; Consumer Trust; Greenwashing (search for similar items in EconPapers)
Date: 2025-04-22
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Published in European Journal of Innovative Studies and Sustainability, 2025, 1 (3), pp.121-133. ⟨10.59324/ejiss.2025.1(3).10⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05736614

DOI: 10.59324/ejiss.2025.1(3).10

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