From greenwashing to brand avoidance: the roles of perceived risk, trust and negative word-of-mouth

Abstract

Purpose: This study explores the intricate relationships between greenwashing (GW), negative word-of-mouth (NWoM) and brand avoidance (BA), emphasizing the pivotal roles of green perceived risk (GPR) and green trust (GT). By analyzing these dynamics, the study sheds light on the effect of GW on consumer reactions and behaviors toward brands engaging in green marketing practices. Design/methodology/approach: The current study used a survey dataset of 512 customers in Saudi Arabia and applied partial least squares-structural equation modeling (PLS-SEM) to assess the paths within the proposed model. Findings: The findings of this study indicate that consumers’ perceptions of GW can harm brands. Specifically, GW positively influences BA through both GPR and GT. Moreover, GW directly affects NWoM and indirectly via GPR. Practical implications: The study provides actionable insights for practitioners, emphasizing the importance of avoiding deceptive green marketing (i.e. GW) to build consumer trust and reduce negative behaviors like BA and NWoM. By adopting transparent practices and leveraging third-party environmental certifications, brands can enhance credibility, mitigate risks and maintain customer loyalty in sustainability-focused markets. Originality/value: Drawing on signaling theory and expectancy violation theory, this study builds a new framework to highlight the harmful effects of GW on brands. By integrating these theories, the framework effectively explains how GW can trigger extreme responses such as NWoM and BA, thereby contributing to research that has previously overlooked the connections between these factors.