GREENWASHING AND BRAND TRUST: THE MEDIATING ROLE OF GREEN AWARENESS AMONG GENERATION Z CONSUMERS OF AQUA DANONE

Abstract

Previous studies have explored the relationship between greenwashing and brand trust; however, limited research has investigated this relationship with green awareness as a mediating variable. This is particularly relevant among Generation Z consumers in Samarinda, Indonesia. An emerging urban area influenced by its proximity to Indonesia’s new capital, Nusantara. This location presents a strategic opportunity to study the behavior of Generation Z consumers due to its growing economic activity and dynamic market in Indonesia. This study aims to fill this gap by focusing on a younger demographic that is highly aware of environmental issues but remains critical of corporate sustainability claims. This study aims to analyze the effect of greenwashing on brand trust through green awareness as a mediating variable among Generation Z consumers of AQUA Danone. Using a quantitative approach, survey data were collected from 100 Generation Z respondents and analyzed with Partial Least Squares-Structural Equation Modeling (PLS-SEM) using SmartPLS software. The results indicate that greenwashing had no effect on brand trust; however, green awareness significantly mediated the relationship between greenwashing and brand trust, indicating an indirect pathway that influences consumer perceptions. These results highlight the essential role of green awareness in transforming the potential negative impact of greenwashing into opportunities to build brand trust. Therefore, companies should focus on enhancing environmental education and ensuring transparency in their sustainability campaigns to foster stronger trust among Generation Z consumers.