Greenwashing in the digital era: impact of social media exposure on consumer trust and brand equity

Abstract

This study investigates the impact of perceived greenwashing on consumer trust and brand equity in social media environments. Drawing on signalling theory and attribution theory, the research examines how misleading environmental claims influence consumer perceptions and brand-related outcomes. The present study employed a mixed-method research design that integrated quantitative modeling through Structural Equation Modeling (SEM) with qualitative interpretation based on sentiment assessment of social media content. The empirical dataset consisted of survey responses obtained from 312 participants, complemented by 2,400 user-generated posts and comments retrieved from Instagram and X (Twitter) for comprehensive analysis. The results indicate that perceived greenwashing has a significant negative effect on consumer trust, which in turn positively influences brand equity, confirming a mediating relationship. Additionally, digital sustainability literacy moderates the relationship between greenwashing and consumer trust, reducing its negative impact among more informed consumers. Sentiment analysis reveals a predominance of negative consumer attitudes toward greenwashing practices. The study contributes to the literature by integrating mediation, moderation, and sentiment analysis within a unified framework and provides managerial implications for transparent sustainability communication in digital environments.