UNRAVELLING THE IMPACT OF GREENWASHING ON GREEN EQUITY AND PURCHASE INTENTION OF GENERATION Z.

Abstract

As environmental issues have become a major concern in today's world, consumers have become more and more conscious about the products and services they purchase. And this in turn has made the organizations to be acting environmentally responsible and being green in their initiatives. The study explores the impact of greenwashing on green equity and purchase intention of Generation Z, particularly within the hospitality sector in India. Greenwashing refers to making vague or misleading claims about the environmental practices or the environmental benefits of a product, service brand or a company. Greenwashing is often used as a tactic to lure in customers who are environmentally conscious. Companies hope to gain an edge over competition by painting a rosy picture of green initiatives. Despite the perceived benefits, research on its impact green equity and purchase intention by GenZ, is limited. Green equity consists of a brand's assets and liabilities related to its environmental commitments and concerns, which can enhance or diminish the value of a product or service. Hence the overall aim of the study would be to understand the relationship between these factors and how deceptive marketing practices can undermine genuine efforts towards sustainability, thereby affecting consumer trust and satisfaction. This study employed a quantitative research design, utilizing a structured questionnaire distributed through a standardized online survey. The sampling method used was clustered random sampling, with a sample size of 150 Indian consumers who prioritize eco-friendly practices and products when selecting vacation destinations or lodging, travel and tourism spots, meeting events etc. Data collection was conducted via an online survey, using a structured questionnaire designed to capture the constructs of greenwashing, green brand equity, and purchase intention. The scales for greenwashing which was focused on consumer viewpoint, were measured using five items each, adapted from Chen and Chang (2013) while the scales for green brand equity were measured with four items, adapted from Chen (2010). Purchase Intention scale by MacKenzie et al., (1986) was employed to measure consumers likelihood of purchasing a product and it was measured using three items. Each item was rated on a Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree), allowing for the quantification of consumer attitudes and intentions towards eco-friendly practices and products. The study reveals that greenwashing significantly undermines green equity, especially within the hospitality sector and in the selection of vacation or tour spots, travel destinations, meeting and events places etc. Greenwashing has a negative effect on green equity. Greenwashing also has a negative impact on purchase intention. The research was carried out within a specific geographical area , among generation Z and in particular among the hospitality sector, which may limit the generalizability of the findings to a wider context and different industries. Moreover, this study was a questionnaire-based study which captures the data at one single point of time, but there could be further studies at different points of environment regulations. This study provides practical recommendations for tourism and hospitality managers to tackle greenwashing, reduce its negative impacts, and effectively promote their green initiatives. The study shows that the possible short-term gains from such practices are at the cost of long-term green equity of the brand.  Companies can use this research as a guide for implementing strategies to positively enhance the brand value of green products, particularly in the ecotourism sector and have long term commitment to sustainability goals.