Next Article in Journal
The Impact of CSR and Financial Distress on Financial Performance—Evidence from Chinese Listed Companies of the Manufacturing Industry
Previous Article in Journal
Agroforestry: An Appropriate and Sustainable Response to a Changing Climate in Southern Africa?
Open AccessArticle

Is Honesty the Best Policy? Examining the Role of Price and Production Transparency in Fashion Marketing

1
Department of Design, Housing, and Apparel, College of Design, University of Minnesota, St. Paul, MN 55108, USA
2
Department of Textile and Apparel, Technology and Management, Wilson College of Textiles, North Carolina State University, Raleigh, NC 27606, USA
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(17), 6800; https://doi.org/10.3390/su12176800
Received: 22 June 2020 / Revised: 31 July 2020 / Accepted: 19 August 2020 / Published: 21 August 2020
Transparency is one of the most prominent demands of consumers today. Numerous fashion brands are responding to this demand for transparency by sharing information on the cost-breakdown of products and manufacturing processes. Research shows that transparency can become a vital tool for product, process, and business model innovation. Nonetheless, little is known about the role of transparency and how it affects consumers’ perceptions of a brand in a fashion context. By applying the signaling theory, the purpose of this study is to investigate how consumers react to fashion brands that provide price or production transparency. The study further examines whether the extent of information disclosure and perceived fairness of the information also play a role. An experiment of nine scenarios using a fictitious fashion brand was developed, and data were collected from 349 American consumers through Amazon Mechanical Turk (MTurk). The findings suggest that both price transparency and production transparency positively affect the overall brand equity and consumers’ purchase intentions as long as the information is perceived to be fair regardless of the extent. This study extends our current understanding of the role of transparency as an extrinsic signal and also suggests that brand transparency may be another key dimension of brand equity. View Full-Text
Keywords: transparency; price; production; supply chain; signaling theory; brand equity transparency; price; production; supply chain; signaling theory; brand equity
Show Figures

Figure A1

MDPI and ACS Style

Kim, N.L.; Kim, G.; Rothenberg, L. Is Honesty the Best Policy? Examining the Role of Price and Production Transparency in Fashion Marketing. Sustainability 2020, 12, 6800. https://doi.org/10.3390/su12176800

AMA Style

Kim NL, Kim G, Rothenberg L. Is Honesty the Best Policy? Examining the Role of Price and Production Transparency in Fashion Marketing. Sustainability. 2020; 12(17):6800. https://doi.org/10.3390/su12176800

Chicago/Turabian Style

Kim, Naeun L.; Kim, Gwia; Rothenberg, Lori. 2020. "Is Honesty the Best Policy? Examining the Role of Price and Production Transparency in Fashion Marketing" Sustainability 12, no. 17: 6800. https://doi.org/10.3390/su12176800

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop