Consumer Responses to Eco-Friendly Product Claims: The Role of Information Asymmetry and Online Reviews

Abstract

Manufacturers have to offer truthful information about their ecofriendly goods to win over consumers. However, some producers lie to consumers by claiming that their goods are completely green. Therefore, we need to conduct studies on consumer behavior and their response to information about green goods. This research investigates the relationship between the asymmetry of information about green products, the quality of online reviews, consumers’ trust to believe, review adoption, and their purchase behavior. The survey included 300 consumers who purchased green goods. Partial least squares structural equation modeling evaluated the data for the research, and social media channels shared an online questionnaire for the research. The results show that online review quality positively affects propensity to trust reviews, review adoption, and purchase behavior. We also found that information asymmetry positively influences online review quality, adoption, and green product purchasing behavior. The propensity to trust reviews was beneficial for both purchase behavior and review adoption, and review adoption was helpful for the purchase of green products. Our findings show that information asymmetry highlights the importance of consumer reviews to consumers’ decisions to purchase green products. Therefore, consumer feedback and knowledge asymmetry both influence the use of green products. Manufacturers of environmentally friendly goods must adjust their products, production methods, packaging, and advertising to balance perceived value and consumer trust while developing their green marketing strategy.