Trusting Green Signals: A Structural Model of Eco-Label Effectiveness and Sustainable Consumption

Shubhangi Vijay Bhale*

PhD Scholar, Department of Commerce,

Christ (Deemed to be) University (Central Campus), Bengaluru

Dr. Elizabeth Renju Koshy

Assistant Professor, Department of Professional Studies, Christ (Deemed to be) University (Central Campus), Bengaluru

Dr. Umasankar M

Associate Professor, Department of Professional Studies, Christ (Deemed to be) University (Central Campus), Bengaluru

Corresponding Author: Shubhangi Vijay Bhale shubhangi.vijaybhale@res.christuniversity.in

ABSTRACT

This study investigates how Eco-Label Trust (ELT) and Eco-Label Knowledge (ELK) influence Green Purchase Behavior (GPB) among Generation Z and early millennial consumers in India, while examining the moderating roles of Social Media Influence and Peer Influence. Grounded in the Elaboration Likelihood Model (ELM) and Signaling Theory, the study conceptualizes Social Media as a second-order construct comprising Influencer endorsements and User Reviews, and Peer Influence as comprising Peer Discussion and Peer Pressure. A quantitative cross-sectional survey was administered to 200 respondents in the cosmetics sector. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were conducted using R (lavaan, psych, semTools). Results confirm that ELT (β = 0.318, p < .001) and ELK (β = 0.186, p < .01) significantly predict GPB, with ELT emerging as the dominant predictor. Social Media significantly strengthened both relationships (ELT × SM: β = 0.342, p < .001; ELK × SM: β = 0.211, p < .001), while Peer Influence produced weaker but statistically significant moderation. Multi-group gender analysis - preceded by full measurement invariance testing - revealed that female consumers demonstrated stronger eco-label responsiveness and greater sensitivity to social influence mechanisms across all structural pathways. Findings advance green marketing theory by integrating informational, digital, and interpersonal determinants of sustainable consumption within a single moderated framework, and offer actionable guidance for eco-label strategy, influencer communication, and sustainability policy in emerging digital markets.

Keywords: eco-labels, green purchase behavior, social media influence, peer influence, elaboration likelihood model, signaling theory, sustainable consumption, cosmetics, India