A study was recently concluded involving a team from the University of San Francisco and Harvard Business School on whether transparency plays a part in improving marketing returns. It started accidentally when an online retailer forgot to place the cost infographic in two of its five colour-based URLs for leather wallets. The cost-transparent wallets did better by forty-four percent. Further marketing research was conducted to establish that this was not due to other considerations, but indeed transparency leads to improved results. Transparency promotes agreement and trustworthiness, two qualities essential ahead of a negotiation. It also improves communications as customers are better informed about the products. Transparency can provide competitive edge especially if others are not following the same. A San Francisco based online clothing firm- Everlane- also adds variable costs along with images of production process. Belgian fashion retailer Honest By even does supply chain information. All may not be able to follow suit due to supplier agreements, or high R&D costs. If everyone were to follow this, it may no longer be an advantage, but simply manage to weed out those unable to do so.

Source:https://knowledge.insead.edu/blog/insead-blog/the-persuasive-power-of-transparency-7736

Uploaded Date:30 November 2017