Perceived brand transparency: A conceptualization and measurement scale

Abstract

Amid product scandals, corporate malpractices, and the proliferation of misinformation, consumers are becoming increasingly more skeptical about the brands they purchase. Transparency is often hailed as a strategic imperative to reassure consumers and increase brand trust; however, its deployment can be complex. With additional transparency, consumers may become overloaded with information, and the brand may be exposed to unwanted external scrutiny. Consequently, before disclosing strategically sensitive information, brands need more insight into how increasing transparency might translate into strategically desirable consumers' brand evaluations. Addressing this need, we examine how transparency initiatives translate into consumers' evaluation of brands by delineating the dimensions of the perceived brand transparency construct, namely, observability, comprehensibility, and intentionality. Next, we use this conceptualization to develop and validate a scale to measure perceived brand transparency. We close with a brand transparency research agenda, as well as practical guidance for managers considering investing in strategic transparency initiatives.