The Impact of Authenticity and Transparency of Eco-labeling in Cosmetic Product Purchase Decision

The study analyzes impact of perceived green authenticity and transparency of eco-labels on consumers' purchasing decisions of cosmetic items. The mediating effect of green trust in the relationship is also examined. Utilizing a quantitative, cross-sectional methodology, data is collected from 250 cosmetic users in Pokhara Valley, Nepal, administered through structured questionnaire. The study has employed PLS-SEM in SmartPLS for analysis. Findings reveal perceived green authenticity (β = 0.275, p < 0.001) and perceived green transparency (β = 0.601, p < 0.001) have significant direct positive influences on purchasing decisions and are strong predictors of green trust (β = 0.514 and β = 0.456, respectively; p < 0.001). Nonetheless, green trust does not substantially influence purchase decisions (β = 0.116, p = 0.282) and does not mediate the links between authenticity/transparency and purchase decisions. The results disclose that customer basically respond to the instantaneous credibility and transparency of eco-label information rather than to a thoughtful emotional trust in the brand within the cosmetic sector. The practical consequences necessitate the cosmetic companies to importantly design and emphasize credible, transparent sustainability communication and genuine environmental measures to effectively influence purchasing behavior of consumers buying cosmetics.