Environmental marketing claims : consumer interpretation and policy implications

Environmental claims communicate the concept of green brands. The purpose of this paper is to examine if environmental claims yield satisfactory results. Secondly, what policy measures would best encourage the adoption of environmental claims by businesses? Finally, how should businesses address practical and theoretical implications?The results suggests that in order to avoid misleading consumers, policy makers need to evaluate the public’s understanding of the meaning of claims, disallow the use of nonstandard claims by businesses, establish an education program and mandate their usage. There is also an indication that the usage of recognisable third party environmental labelling may be a more reliable.