Research Commentary—Information Transparency in Business-to-Consumer Markets: Concepts, Framework, and Research Agenda

Abstract

The Internet has brought about significant changes in the availability of market information in many industries. E-commerce technologies provide sellers with opportunities to design electronic mercantile mechanisms that reveal, conceal, bias, and distort market information, depending on their goals and market position (e.g., suppliers versus intermediaries). In particular, in information-intensive industries where electronic markets play an important role, many firms are using advanced technologies to put innovative strategies into play that are based on the provision of differential information to their customers. We examine the role of information transparency in electronic markets. We contend that there is an opportunity to develop research on sellers' strategies regarding information disclosure to customers and competitors. For that purpose, we develop a set of concepts and a framework to guide future research. We then propose an interdisciplinary agenda for research on the emerging and increasingly important topic of transparency strategy, which we define as the set of policies and decisions that a firm makes to disclose, conceal, bias, or distort market information.

Blinds up or down?

“…Different terms have been used to describe the fundamental aspects of transparency. Disclosure and availability, for example, are frequently used to describe a key characteristic of transparency (Bushman et al, 2004;Granados et al, 2010;McGaughey, 2002). Clarity, simplicity and understandability have also been used to capture a key property of transparency (Briscoe and Murphy, 2012;McGaughey, 2002;Street and Meister, 2004).…”

“…In the information systems literature, researchers have explored transparency in the context of business to consumer relationships and digital markets (e.g. Granados et al, 2010).…”

Technology Adoption and the Accountability Factor: A Case for the Re-Intermediation of Travel Agencies in Small Island Developing States

“…The internet offers an effective means of developing a single and sustainable electronic infrastructure for information gathering and business transactions for both travelers and suppliers (Granados, Gupta, & Kauffman, 2010). They argue that a natural outcome is one to one marketing and mass customization.…”

The Effect of Information Deception in Price Comparison Site on the Consumer Reactions: An Empirical Verification

“…Information transparency refers to the extent of availability and accessibility of market information which is essential to transaction success of online consumers in e-marketplace [11]. Information transparency is the intentional information disclosure by sellers to meet the benefits of consumers; it means the more and the highly qualified information disclosure in product, price, inventory, cost, and process to help consumers [11].…”

“…Website could intentionally conceal the negative information, provide vague information about cost or about complaining process, and provide the false information as imaginary positive stories of products [10]. When ID had been detected by consumers, ID could increase the perceived risk of transaction and distrust of sellers [8,11,12], and then it could form the unfavorable attitude and could decrease purchase intention [8,[12][13][14].…”