The impact of authenticity and transparency of eco-labeling in cosmetic product purchase decision

Abstract

The research examines relationship between the perceived green authenticity and eco-label transparency of cosmetic products, and whether the green trust mediates these connections based on the principles of Signaling Theory and Commitment-Trust Theory. The data has been collected through a structured online questionnaire from 250 cosmetic product users based in Pokhara Valley, Nepal and analyzed using PLS-SEM. Results show that perceived green authenticity (β = 0.275, p < 0.001) and perceived green transparency (β = 0.601, p < 0.001) both exert significant positive direct effects on purchase decision, and both strongly predict green trust (β = 0.514 and β = 0.456, respectively; p < 0.001). However, green trust does not significantly influence purchase decision (β = 0.116, p = 0.282) or mediate the authenticity/transparency-purchase relationships, indicating that Nepalese cosmetic consumers respond more to the immediate credibility of eco-label evidence, than to accumulated emotional trust in the brand. These findings offer practical guidance aligned with SDG 12 for cosmetic firms designing transparent, evidence-based sustainability communication grounded in eco-friendly practices. For improving sustainability governance and expediting sustainable consumption, the findings specifically highlight eco-label transparency as the principal factor influencing sustainable purchasing decisions in developing markets. The study advances the ‘Discover Sustainability agenda by empirically demonstrating how eco-label credibility shapes sustainable consumer behavior and facilitates sustainability transitions in a South Asian developing economy context.