THE Covid-19 pandemic has raised consumer awareness and understanding of sustainable living, and the importance of green businesses and marketing activities.
Eco-friendly products, according to a study by Assoc Prof Dr Lim Kim Yew (pic) and Dr Ng Chee Pung from the Faculty of Business and Communications at INTI International University, and a team of researchers from Asia Pacific University of Technology & Innovation (APU), are more trusted by consumers.
Consumers are less likely to buy products that are not marketed as eco-friendly, a recent press release from INTI read.
While it was reported by the World Health Organization (WHO) that household consumption is responsible for about 60% of global emissions and 80% of water pollution, environmental considerations have become more significant to consumers, Lim noted.
“As consumers, we are easily swayed by products that appear to be eco-friendly. The sad truth, however, is that most of them are marketed with false claims,” he said, adding that based on the research titled “Trust in Green Advertising: Mediating Role of Environmental Involvement”, marketers seem to be scrambling to profit from the surge in environmental, social and governance (ESG) awareness brought on by the pandemic.
According to Lim, many unscrupulous businesses have been called out for greenwashing.
Greenwashing is the process of giving a false impression or making misleading claims about how a product is more environmentally friendly than it actually is to improve the company’s reputation for sustainability practices.
“Many green advertisements are still lacking in truth. “Studies have shown that consumers who are environmentally conscious are mostly skeptical about these product claims,” Lim explained.
The team’s study also revealed that environmental claims have an impact on consumer trust and the credibility of the advertiser is important in determining the efficacy of advertisement.
Although gaining consumer confidence promotes customer-business relationships, greenwashing is not the solution, said Lim.
It is commendable for company owners to embrace sustainability but they must do it properly, he stressed, while calling on policymakers to revise current communication and multimedia content regulations to ensure higher advertising standards.
“These regulations must prevent false and misleading environmental claims from being made in advertising and communication materials,” concluded Lim.
