The Dynamics of Green Behaviour in Developing Countries: Financial Attitude, Price Sensitivity and Greenwashing Effects

This research investigates the influence of environmental awareness on green purchase behaviour, considering the mediating effect of financial attitude and the moderating roles of price sensitivity and greenwashing. Utilising the Value-Belief-Norm theory (VBN), a conceptual framework is developed to examine the complex relationships between these variables. The study employs a cross-sectional questionnaire using a Likert scale to measure environmental consciousness, financial attitudes, price sensitivity, greenwashing perceptions and green purchasing behaviour among consumers in Egypt and Jordan. Structural Equation Modelling is conducted to analyse the relationships. The findings reveal that financial attitude significantly mediates the relationship between environmental consciousness and green purchase behaviour, while price sensitivity and greenwashing significantly moderate the indirect relationship between environmental consciousness and green purchase behaviour through financial attitude. The study extends VBN through contextualising its abstract ideas by the research variables and testing it in two developing economies. In addition, it enhances the understanding of the barriers and enablers of green purchase behaviour and offers actionable recommendations for businesses to improve transparency and affordability of green products, while guiding policymakers on designing targeted incentives and regulations to foster sustainable consumption.