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Developing Perceived Greenwash Index and Its Effect on Green Brand Equity: A Research on Gas Station Companies in Turkey

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  • Mutlu Yüksel Avcilar
  • Banu Külter Demirgünes

Abstract

Today, companies are searching for the ways to be perceived as more sensitive to the environment in order to enhance their green brand equity, because of consumers’ increasing environmental concern. Companies have reacted to increasing environmental consciousness of consumers by introducing and developing eco-friendly products. However, there are still consumers being suspicious about the environmental performance of companies and their products. Greenwash or disclosure of deceptive green claims decreases the popularity of the real green product and decreases the effectiveness of green marketing. This study proposed four constructs -greenwashing, green perceived risk, green confusion and green trust- as the predictors of the green brand equity of gas station companies. The study offers a negative relationship between greenwash perception and green brand equity. Besides, the effects of green confusion, green perceived risk and green trust on green brand equity are tested. The study also develops perceived greenwash index, so that it reveals a direct effect of greenwash on green brand equity. The empirical analysis was carried out based on the data obtained from 400 customers of the gas station companies, which are located in Ankara, the capital city of Turkey. The survey result was analyzed by using Partial Least Squares (PLS-PM) analysis method. The results reveal that consumer’s greenwash perception has a positive effect on green confusion and green perceived risk, whereas green confusion and green perceived risk have negative effects on green trust. Expectedly, green trust has a positive effect on green brand equity. The result also indicates that consumer’s greenwash perception negatively and directly affects green brand equity.

Suggested Citation

  • Mutlu Yüksel Avcilar & Banu Külter Demirgünes, 2017. "Developing Perceived Greenwash Index and Its Effect on Green Brand Equity: A Research on Gas Station Companies in Turkey," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 222-239, January.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:1:p:222-239
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    References listed on IDEAS

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    1. Béatrice Parguel & Florence Benoît-Moreau & Fabrice Larceneux, 2011. "How Sustainability Ratings Might Deter "Greenwashing": A Closer Look at Ethical Corporate Communication," Post-Print halshs-00561187, HAL.
    2. Béatrice Parguel & Florence Benoît-Moreau & Fabrice Larceneux, 2011. "How Sustainability Ratings Might Deter ‘Greenwashing’: A Closer Look at Ethical Corporate Communication," Journal of Business Ethics, Springer, vol. 102(1), pages 15-28, August.
    3. Yu-Shan Chen, 2010. "The Drivers of Green Brand Equity: Green Brand Image, Green Satisfaction, and Green Trust," Journal of Business Ethics, Springer, vol. 93(2), pages 307-319, May.
    4. Ching-Hsun Chang & Yu-Shan Chen, 2014. "Managing green brand equity: the perspective of perceived risk theory," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1753-1768, May.
    5. repec:dau:papers:123456789/4687 is not listed on IDEAS
    6. Thomas P. Lyon & John W. Maxwell, 2011. "Greenwash: Corporate Environmental Disclosure under Threat of Audit," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(1), pages 3-41, March.
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    Cited by:

    1. Szerena Szabo & Jane Webster, 2021. "Perceived Greenwashing: The Effects of Green Marketing on Environmental and Product Perceptions," Journal of Business Ethics, Springer, vol. 171(4), pages 719-739, July.

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    More about this item

    Keywords

    Greenwash; green brand equity; green consumer confusion; green perceived risk; green trust; gas stations;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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