Consumers’ Reaction to Greenwashing in the Saudi Arabian Skincare Market: A Moderated Mediation Approach
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1. Introduction
The consumption of environment-friendly products and reducing waste are important steps to achieve the United Nations’ sustainable goals [1,2]. In fact, recent years have seen a substantial shift in the personal care and beauty industry, with a growing emphasis on ethical brands [3]. As a result, consumers are becoming more conscientious about the ingredients of their skincare products and the environmental benefits (such as the use of natural ingredients, sustainable packaging, and cruelty-free practices) associated with its usage [3,4]. Hence, environment-friendly skincare products play a pivotal role in satisfying the demand for environmentally conscious choices. These products are promoted as not only protecting skin health but also contributing to a greener planet, reducing the environmental footprint of beauty routines. It is not uncommon for skincare brands to highlight about their commitment to sustainability, aligning themselves with the growing demand for natural and clean beauty products [5,6]. From high-end luxury lines to more environment-friendly options, companies in the skincare sector are capitalizing on the opportunities for increased profits and enhanced brand reputation. This environment-friendly trend is prominently displayed through skincare campaigns, product launches, and social media promotions [7], showcasing the industry’s dedication to ecological values and its intention to transition towards more sustainable practices.
Meanwhile, on the contrary, researchers such as Sadiq et al. [1] reported significant skepticism and reluctance among consumers regarding purchasing environmentally friendly cosmetic products. This could be because consumers’ distrust and actions tend to be perceived as greenwashing. Greenwashing refers to brands withholding, deceiving, or providing false information about their environmental commitment, product orientation, or process orientation [8,9]. Companies frequently use terms like “natural”, “organic”, and “environment-friendly” [10], which could be misleading, deceptive, or incomplete [10,11]. As such, these actions are commonly performed to appease customers or boost company profitability [12].
Despite the considerable body of research in green marketing, there is a marked paucity of scholarly inquiry specifically dedicated to understanding consumers’ perspectives on greenwashing and their levels of green skepticism [12]. Thus, based on the conceptual model, this study explores whether and how consumers’ greenwashing influence consumers’ intention to purchase environmental products by integrating the moderating roles of information quality and brand reputation.
Cosmetics can be classified into several categories, i.e., ranging from high-end decorative cosmetics (e.g., nail polish, lipsticks, makeup etc.) [13] to everyday skincare products (e.g., hair care, facial care, hand care, and body care) [14]. The prior literature indicates that consumers show varying degrees of skepticism depending on the cosmetics category. Therefore, this research focuses exclusively on everyday skincare products.
Hence, this study aims at addressing the following research questions: a. whether greenwashing and green skepticism exert substantial adverse influences on consumers’ intention to purchase environmentally friendly skincare products?; and b. do information quality and brand reputation actually decrease the negative effect of green skepticism on intention to purchase?
Sadiq et al. [1] and Amber and Fogarassi [15] noted that despite a large number of studies in developed and emerging nations [1,16,17,18], research on consumers’ intentions toward environment-friendly skincare purchases in Middle East Asian countries has been modest [19,20]. For instance, Husain [19] examined the cosmetic usage and experiences of 106 Saudi female undergraduate students drawn from a single province of Saudi Arabia, which was limited in its scope. Similarly, Kaliyadan et al. [20] examined 413 Saudi adult females between the ages of 18 and 50 to determine their attitudes, awareness, and practices related to organic cosmetics. There are two limitations to this study: 1. this study focuses only on female respondents; 2. statistical techniques such as percentages are used to show the results; and 3. this study focuses on the awareness and attitudes of the respondents.
Accordingly, the limitations of the aforementioned studies [19,20] and much of the previous literature on environment-friendly skincare products are mainly centered on South and North America, Europe, and Asia (for example, Ruiz-Mafe et al. [21] and India [1]). Due to this, there is a lack of comprehensive empirical research that takes into consideration both genders (i.e., male and female) in Gulf countries, specifically Saudi Arabia. According to a recent survey, a significant portion of Saudi consumers (78%) express concern about climate change, indicating a burgeoning interest in sustainable choices [22]. Furthermore, the rising population of working women in Saudi Arabia [23] is amplifying the demand for various skincare products, reflecting an increasing societal consciousness towards appearance and self-care [22]. Hence, we chose Saudi Arabia as our study context.
The following section offers an outlook on Saudi Arabia’s environmentally friendly product market, followed by a model conceptualization and hypothesis development. The subsequent methodology section sets the stage for the survey instrument, sampling method, and data collection. This is followed by the analysis section, which tests the model and presents the results, which are then discussed in the next section. Implications and future research directions are drawn from the discussion.
5. Discussion
The findings from our analysis offer valuable insights into the complex dynamics surrounding consumers’ perceptions of greenwashing, green skepticism, and their intentions to purchase environment-friendly skincare products. The direct effect results indicate that greenwashing significantly negatively impacts purchase intention, reinforcing the idea that consumers are discerning and respond negatively to deceptive green marketing practices. This aligns with the existing literature on environment-friendly skincare products [9,12], emphasizing the importance of authenticity in sustainability claims for consumer trust [11] and positive purchasing behavior.
Moreover, our examination of the mediation effect through green skepticism suggests that while greenwashing has a positive indirect effect on green skepticism, this mediation pathway did not reach statistical significance. This finding implies that green skepticism might not be the sole mediator in the relationship between greenwashing and purchase intention. Considering the multifaceted nature of consumer responses to environmental claims, the non-significant indirect effect prompts further exploration into additional factors that may contribute to the mediation process.
In the context of moderation, our results present interesting insights. Information quality was identified as a significant positive moderator in the relationship between green skepticism and purchase intention. This suggests that even when consumers perceive the information regarding the environmental attributes of products to be of high quality, the negative impact of green skepticism on purchase intention is mitigated.
Conversely, brand reputation did not emerge as a significant moderator in this relationship, indicating that the credibility and trustworthiness associated with a brand might not play a substantial role in influencing the strength of the relationship between green skepticism and purchase intention, aligning with the findings of [29,44,58] A possible explanation for this phenomenon is that familiarity with a brand leads consumers to trust it inherently, shifting their focus from the brand itself to the information it provides. Additionally, reluctance to switch brands may stem from the perceived risks associated with new brands, attributed to a lack of trust during the transition [37,64].
These findings contribute to the growing body of literature on consumer behavior in the context of sustainability and green marketing. However, they also highlight the intricacies and variability in consumer responses, emphasizing the need for a more comprehensive understanding of the factors shaping purchasing decisions in the realm of environment-friendly skincare products in Saudi Arabia.
6. Implications and Limitations
6.1. Academic
Our study’s findings hold significant academic implications for consumer behavior, marketing, and sustainability.
Firstly, by revealing the negative impact of greenwashing on consumers’ purchase intentions for environment-friendly skincare products, this research substantiates the importance of authenticity and transparency in sustainability claims. Academically, it contributes to the ongoing discourse on ethical marketing practices, urging scholars to explore ways to enhance the credibility of green marketing strategies.
Secondly, in addition, academics need to reevaluate the assumed mediation role of green skepticism in the context of greenwashing, indicating that there may be variation between consumer segments or industries.
Thirdly, identifying information quality as a significant positive moderator sheds light on the crucial role of accurate and reliable information in influencing consumers’ responses to green marketing. This academic insight underscores the need for a nuanced understanding of information processing mechanisms and their impact on skepticism and purchasing intentions. It opens avenues for scholars to delve into the cognitive processes that drive consumer decision making in sustainable product contexts, considering the role of information in shaping attitudes and behaviors. Moreover, as our study considers both self-green claims and third-party environment-friendly certifications as information influencing consumer perceptions, it would be worthwhile to explore consumers’ perceptions by distinguishing between information sourced from third parties and information provided directly by the brand. This approach could shed light on potential variations in how Saudi Arabian consumers perceive and respond to information depending on its origin [65,66,67].
Fourth, the non-significant moderating effect of brand reputation in the relationship between green skepticism and purchase intention adds a layer of complexity to the existing literature on branding and consumer trust. The academic implications here include a call for further investigation into the specific dimensions of brand reputation that might influence consumer responses in green marketing contexts. Scholars can explore whether certain aspects of brand credibility, such as past environmental initiatives or corporate social responsibility efforts, play a more pronounced role in mitigating skepticism and fostering positive purchase intentions.
Hence, in broader academic terms, our study contributes to the ongoing dialogue on sustainable consumption and ethical consumerism. It urges researchers to consider the diverse and evolving nature of consumer attitudes toward sustainability, emphasizing the need for updated frameworks and theories that capture the contemporary nuances of green marketing. The academic community can build upon these findings to develop comprehensive models that integrate multiple variables and their interactions in understanding consumer behavior in the ever-evolving landscape of sustainable and environment-friendly product markets.
6.2. Practical and Strategic
Our study’s practical and strategic implications offer valuable insights for Saudi businesses, marketers, and policymakers aiming to navigate the intricate landscape of green marketing and consumer behavior in the skincare industry.
Firstly, Saudi businesses operating in the environment-friendly skincare sector should recognize the detrimental impact of greenwashing on consumer purchase intentions [68]. Our findings underscore the importance of transparent and genuine sustainability practices [69]. Companies should invest in robust communication strategies to convey their environment-friendly initiatives accurately, ensuring alignment with consumer expectations. By doing so, businesses can build trust, enhance brand loyalty, and differentiate themselves in a competitive market.
Secondly, strategically, our identification of information quality as a significant moderator emphasizes the pivotal role of accurate and reliable information in influencing consumer responses. Skincare brands must invest in clear and accessible communication channels, providing consumers with detailed and trustworthy information about the environmental attributes of their products [70].
Thirdly, leveraging informative and transparent marketing campaigns can enhance consumer perceptions, mitigate skepticism, and positively impact purchase intentions. Businesses should also consider collaborations with third-party certifications or environmental organizations to authenticate their green claims, offering an external validation that reinforces credibility. While brand reputation did not emerge as a significant moderator in our study, its strategic implications remain noteworthy.
Fourth, skincare companies should not solely rely on their reputation but continually invest in building and reinforcing positive associations with their brand. Consistent and authentic sustainability efforts, coupled with effective communication, can contribute to a positive brand image and foster consumer trust over the long term.
Thus, from a policy perspective, our findings suggest that regulatory bodies and policymakers should consider reinforcing guidelines and standards for green marketing claims, ensuring a more transparent and standardized approach. Clearer regulations can help curb deceptive practices, creating a level playing field for businesses while protecting consumers from misleading information. Policymakers should also encourage industry-wide initiatives that promote genuine sustainability practices, fostering a culture of responsibility within the skincare sector.
6.3. Limitations and Avenues for Future Research
While our study contributes valuable insights, it is not without limitations that warrant acknowledgment.
Firstly, the generalizability of our findings may be limited to the context of Saudi Arabia, and caution should be exercised when extending the results to different cultural or market settings. Future research could explore the cross-cultural variations in consumer responses to greenwashing in the skincare industry to provide a more comprehensive understanding. The focus on environment-friendly skincare buyers aimed to gain detailed insights into their preferences yet acknowledged limitations, such as potential selection bias. Future research should consider a broader consumer base for a more comprehensive understanding of skincare market dynamics and diverse perspectives.
Secondly, the conceptual model employed in our study focuses on specific variables within the skincare industry, and future research could extend this framework to other product categories or industries to explore potential variations in consumer responses to greenwashing.
Thirdly, another avenue for future research involves examining the temporal stability of consumer responses to greenwashing. Given the evolving nature of consumer attitudes and the dynamic landscape of sustainability practices, longitudinal studies could provide insights into how perceptions and behaviors change over time.
Fourth, we explored participants’ responses when supporting multiple brands, acknowledging the potential presence of greenwashing practices. Furthermore, we did not assume universal awareness of greenwashing among the brands used by participants, recognizing that awareness levels may vary among respondents, aligning with the definition provided. Future research may address this limitation.
Despite these limitations, our study lays the groundwork for further investigations into the complex interplay between greenwashing, consumer skepticism, and purchasing intentions in the skincare industry. By addressing these limitations and building on our findings, researchers can continue contributing to the growing body of knowledge in sustainable marketing and consumer behavior.
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