Green advertising is defined as the advertising that emphasizes the environmental friendliness of the product. Attributes such as degradability, recyclability, lower pollution et cetera are considered to be environmentally friendly. The research reported in this article addresses how the strength of a green claim, for example, the extent of pollution reduction claimed in an advertisement for a new automobile and the consumer's country disposition, that is, the consumer's attitude toward the country of origin of the automobile, interactively affected the product evaluation in terms of its greenness and company image in terms of its green consciousness. Product evaluation and company image were more favorable for consumers with highly positive country disposition than for consumers with less positive country disposition when the green claim was moderate in strength. However, when the green claim was extremely low or extremely high in strength, the reverse was true. Theoretical rationale for these findings draws upon several areas of research, for example, latitude of acceptance/rejection, assimilation/contrast effects, social cognition, country of origin, and Heider's balance theory. Managerial implications of the findings and future research directions are discussed. (C) 1997 John Wiley & Sons, Inc.