Recent research shows that transparency and effective communication are paramount for brands seeking to gain and maintain consumer trust.
Dr Kate Sansome of the University of Adelaide’s Adelaide Business School has spearheaded a study that reveals consumers’ desire for brand transparency on issues that affect them. “As sociopolitical issues gain prominence in the news and on social media, there is an expectation for brands to be forthright about them. For instance, with rising cost-of-living pressures, consumers expect transparency on this matter,” Dr Sansome notes. She conducted this research alongside Professor Jodie Conduit and Dr Dean Wilkie, also from the Adelaide Business School.
The research indicates that transparency is not merely about providing voluminous information but involves openness, clarity, timeliness, and the provision of well-supported, evidence-based data. Facilitating open dialogue and addressing consumers’ inquiries promptly is crucial, especially on contentious or adverse matters, particularly for brands in sectors that traditionally carry a negative reputation.
According to Dr Sansome, true transparency involves straightforward and understandable communication, being proactive rather than reactive, and substantiating claims with statistical data, factual information, and visual evidence. The study highlights the effectiveness of using infographics or narrative techniques to elucidate decision-making processes, thereby enhancing consumers’ comprehension of the motives and justifications behind these decisions.
Dr Sansome points out that consumer trust in brand communication is waning due to misinformation, deepfakes, misleading assertions, and apparent hypocrisy. “There is a growing scepticism, particularly among the youth, who often suspect that a brand concealing certain topics has something to hide.”
She further explains that consumers’ perceptions of specific brands or product categories can affect their views on brand transparency. The research underscores that in industries like mining or fast fashion, which are often stigmatised, consumer scepticism can obstruct recognising a brand’s attempts at transparency, regardless of the underlying intentions.
This study challenges traditional views that confine transparency to a managerial or governance framework—primarily focusing on regulatory compliance or logistical and pricing data—and also considers the subjective nature of how consumers interpret brand communication and their areas of interest.
“For businesses, our findings shed light on the necessity for transparency on issues that extend beyond mere pricing and supply chain details, tailored in a manner that aligns with consumer expectations,” Dr Sansome elaborates. She argues that merely posting extensive information in PDF format on a website does not suffice; instead, transparency should be viewed as an ongoing, dynamic interaction with consumers, characterised by clear, prompt, evidence-based, and explanatory communication.
Dr Sansome emphasises the need for further research to devise strategies that enable brands to transparently share their advances in sustainability without jeopardising their brand equity or exposing themselves to substantial reputational risks. “With increasing regulations aimed at combating ‘greenwashing,’ brands are now practicing ‘greenhushing,’ choosing silence over risking scrutiny or backlash. As consumers grow more discerning, brands need to be prepared for this scrutiny and scepticism, which is especially challenging for brands in stigmatised industries when communicating their sustainability efforts.”
More information: Kate Sansome et al, Consumerbased conceptualisation of brand transparency: scope, characteristics and contextual determinants, European Journal of Marketing. DOI: 10.1108/EJM-12-2022-0885
Journal information: European Journal of Marketing Provided by University of Adelaide