Signals vs. Reality: Consumer Responses to Green Claims in Quick Commerce

Abstract

The strengthened supply chain has made delivery fast to consumers. However, quick deliveries compromise sustainability by emitting carbon and impacting environment by rapid shipping practices. In this context, the study aimed to examine consumer perceptions of the green claims made by quick commerce companies. A model was built using signalling theory, elaboration likelihood model (ELM), agenda-setting theory (AST) and cognitive load theory (CLT). A longitudinal study was conducted across two phases using a self-administered questionnaire for data collection. Data were collected from 512 respondents in Phase 1 and 478 respondents in Phase 2. Initially, the study examined how signals sent to consumers affect credibility, complexity and visibility regarding green claims. It was found that signals were positively influencing credibility (CRD), visibility (VIS) and complexity (COX). Next, the study explored the relationship between these three factors and consumer responses to green claims (RCR). Results indicated that COX, VIS and CRD were positively influencing RCR. Finally, the study examined the moderating role of environmental actions taken by companies (EBC). It was found that consumers are also changing and getting more educated about green claims and greenwash. It was observed that companies' environmental actions moderated credibility and complexity, which positively influenced consumer response towards green claims during Phase 1. However, such influences were not moderated by environmental actions during Phase 2. The consumers were aware and were not affected by some actions claiming companies' green practices. Visibility was moderated during both phases by company action. Thus, if companies can show through signals that they are engaged in green practices, consumers will accept it. However, in the long run, even visibility will require fact-checks.