THE IMPACT OF GREENWASHING IN H&M ON CUSTOMER PURCHASE BEHAVIOR AND THE MODERATING ROLE OF BRAND LOYALTY

• Main Author: Aliffathiyya P, Nadhira
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75599
• Institution: Institut Teknologi Bandung

The global situation around waste is getting alarming as 33% of solid waste is not being processed in an environmentally friendly manner including fashion waste. Addressing this issue, the awareness regarding the importance of sustainable living is increasing and purchase behavior is shifting towards a more sustainable purchase. This behavior shift is being captured by companies as they started to reevaluate their marketing approach and production methods to be more sustainable including fast fashion retailers like H&M. However, as the campaign for sustainability in H&M continues, so do critics and skeptics around the claims for greenwashing. Therefore, the objective of this research is to uncover the impact greenwashing have on consumer’s purchase behavior and the moderating role of brand loyalty. The research employed a quantitative approach, utilizing online surveys with questionnaires targeted at Generation Z in Jakarta who are H&M consumer and have knowledge of sustainability. Descriptive statistics analysis and PLS-SEM methods were used to analyze the collected data. The findings indicate the significant negative influence of greenwash on consumer purchase behavior as well as the positive significant moderating role played by brand loyalty in the Indonesian consumers. This study is expected to contribute to the development of ethical marketing campaign to reduce the detrimental effects of greenwashing and to use customer loyalty to promote sustainable consumer behavior as well as contribute to the academic literature on consumer skepticism and the value of credible sustainability practices.