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Decoding Digital Greenwashing: A Quantitative Analysis of Signaling Theory, Brand Trust, and Purchase Intention among Generation Z Consumers in the Fast-Fashion Sector

Year: 2026

Type: article

Abstract: The global fast-fashion industry faces increasing scrutiny as the proliferation of digital greenwashing—the deployment of vague or unsubstantiated environmental claims—intersects with the heightened digital literacy of Generation Z consumers. While corporate entities increasingly utilize sustainability-themed marketing to construct brand legitimacy, the psychological impact of deceptive signaling on consumer-brand relationships remains underexplored in the quantitative literature. This study addresses this gap by operationalizing Signaling Theory (Spence, 1973) to examine how perceived greenwashing is associated with brand equity and consumer behavior. Utilizing a cross-sectional survey design, data were collected from a sample of Generation Z consumers (N = 268) who actively engage with fast-fashion digital platforms. Pearson correlation analysis indicated that Perceived Greenwashing was strongly and negatively associated with Brand Trust (r = −.68, p < .001), suggesting that deceptive environmental signals are associated with elevated consumer eco-skepticism. A mediation analysis utilizing Hayes’ PROCESS macro (Model 4) with 5,000 bootstrapped resamples provided evidence of partial mediation: Brand Trust carried a significant indirect effect of Perceived Greenwashing on Purchase Intention (indirect effect = −0.46, 95% CI [−0.58, −0.35]), while a significant direct effect remained (β = −0.12, p < .05), together accounting for 48.1% of the variance in Purchase Intention (R² = .481, f² = .927). These findings suggest that for this digitally native cohort, deceptive green signaling is associated with significant erosion of brand trust and purchase intent, pointing to a managerial imperative for transparent, verifiable sustainability communication. Limitations of the cross-sectional design and directions for future experimental research are discussed.

Source: Social Reports

DOI: 10.66638/eg0dpq69

Authors: Bingqi Zhao, Abdul Abu Bakar

Institution: Kuala Lumpur University of Science & Technology

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: hybrid

OpenAlex ID: W7154082337

FWCI:

Cites: 8

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Related to: 10