Journal of Applied Business and Economics Vol. 26(1) 2024 19 Green Marketing or Greenwashing: How Consumers Evaluate Environmental Ads Nguyen T. Pham Monmouth University Paul G. Barretta Wagner College Over the past few years, there has been a significant increase in the number of cases related to greenwashing. This research investigates how consumers develop green skepticism to react to greenwashing practices. In two studies, we demonstrate that environmental ads (either vague or specific ads) are more effective in persuading weak-attitude consumers resulting in lower green skepticism than strong-attitude consumers. In contrast, strong-attitude consumers exhibit a backfiring behavior when presented with vague ads, evidenced by their higher level of green skepticism and lower WTP for products featured in the ads. More interestingly, specific ads are effective among strong-attitude consumers, lowering their green skepticism and increasing their WTP. Our research has theoretical and managerial implications for green marketing communication. Keywords: green marketing, greenwashing, green skepticism, environmental attitude strength INTRODUCTION Green marketing was first introduced in the 1980s and has increased its importance as a business strategy. Research has shown that companies’ sustainability efforts could help build long-term relationships with shareholders (Torelli et al., 2020), increase customer loyalty (Rosenbaum & Wong, 2015), and improve purchase intention (Kumar et al., 2021). The 2021 Global Sustainability Study conducted with 10,281 consumers from 17 countries revealed that 63% of consumers have modestly to significantly purchased more sustainable products (Simon Kucher & Partners, 2021). Companies strive to integrate sustainability into their operational and strategic activities in response to consumers’ growing demand for green product alternatives (Ghaffar et al., 2023; Winston, 2021). Consumers walking down the aisles of a grocery store will see countless environmentally friendly products ranging from food to household supplies. Environmental or green messages refer to advertisements creating an impression that products are more environmentally friendly than their conventional counterparts (Banerjee et al., 1995). Many companies have been known for creating positive environmental impacts and living up to their sustainability commitments, such as Impossible Foods, Beyond Meat, and Patagonia who received the United Nations’ Champions of the Earth awards in 2018 and 2019, respectively (UN Environment Programme, 2023). However, some companies, under pressure from consumers to disclose information about the sustainability of their operations and products, have spent more resources on advertising being environmentally friendly than on