Using survey data from young adults in the UK and Australia, the study reveals that the widespread use of green claims in marketing makes it difficult for consumers to identify genuinely eco-friendly companies. The results show that perceived greenwashing in tourism advertising increases eco-label confusion but, when environmental norms are strong, also correlates with a higher willingness to pay more – suggesting that such norms guide consumers amid excessive green claims.
Article by Aline Vianne Barr
Companies have long recognized that advertising green products, services, and corporate images can improve their public reputation. Due to the rapid growth and widespread use of products and services labeled as environmentally friendly, it has become increasingly difficult for consumers to assess the truthfulness of these claims – especially since some companies rely on misleading advertising that portrays a product or service as more environmentally beneficial than it actually is ("greenwashing"). Greenwashing includes practices such as vague claims, false claims, or emphasizing pro-environmental aspects while masking the harmful environmental impact of a product or service.
The study analyzes the relationship between greenwashing perceptions and eco-label confusion in the context of tourism marketing. It also explores the consequences of eco-label confusion on young adults' willingness to pay more when certified eco-labels are present in the tourism sector. The data stems from a comparative study of young adults aged 16 to 26 from the UK and Australia. The surveys were conducted simultaneously in both countries between October 6 and October 20, 2021.
Four categories were measured as part of the study: perceived greenwashing, eco-label confusion, green norms (a sense of personal obligation to live sustainably), and willingness to pay more. The first three categories were assessed by having participants rate statements on a five-point scale, ranging from "disagree strongly" to "agree strongly".
The category "willingness to pay more" was measured by asking participants to imagine booking a vacation online where two hotels are identical in location, amenities, service, and ratings, except that one hotel has an eco-label certifying it as environmentally friendly and the other does not. Participants were then asked how much additional money they would be willing to pay per night for the hotel with the environmental certification. The same scenario was used for flights to New York, asking again how much additional money participants would be willing to pay for the flight with the environmental certification.
The results of the study show that perceived greenwashing was positively associated with eco-label confusion among young adults. When every company markets its products or services as "green" – regardless of accuracy – consumers may struggle to distinguish which eco-labels are credible and which are not. However, this confusion does not necessarily reduce young consumers' willingness to pay more for products with certified eco-labels. The study provides initial evidence that environmental norms can buffer against the negative effects of eco-label confusion and greenwashing. Among young Australians, for instance, confusion led to a lower willingness to pay more when environmental norms were not salient – but a higher willingness when such norms were present. Similarly, individuals who strongly endorse environmental norms were more likely to pay more despite perceiving greenwashing. Taken together, these findings highlight the importance of considering country-specific and cultural differences in consumer research. More importantly, they underscore the pivotal role of environmental norms in guiding consumer behavior, especially in an era where an increasing number of brands claim to be saving the planet through green marketing.
Study author Jörg Matthes concludes: "When companies label their products as sustainable even though they are not, it can confuse consumers and even lead to environmental labels on products no longer being taken seriously."
