The Role of Authentic (vs. Hubristic) Pride in Leveraging the Effectiveness of Cost Transparency
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ORIGINAL PAPER
The Role of Authentic (vs. Hubristic) Pride in Leveraging the Effectiveness of Cost Transparency Felix Septianto1,2 · Joya A. Kemper2 · Fandy Tjiptono3 · Widya Paramita4 Received: 1 April 2020 / Accepted: 28 August 2020 © Springer Nature B.V. 2020
Abstract In the era of consumer distrust of corporations, transparency is becoming a must rather than an option. While prior research has explored why businesses should disclose their costs and how consumers may react to such cost transparency, it is still unclear how marketers can best communicate cost transparency. The present research offers a practical examination of how and when cost transparency is effective, specifically, by examining the moderating role of authentic and hubristic pride on the effectiveness of cost transparency. Across two experimental studies, the effectiveness of cost transparency is leveraged using authentic pride, whereas hubristic pride decreases it. Further, we empirically demonstrate the mediating role of moral elevation. Overall, the results demonstrate that marketing messages that elicit authentic pride can increase the effectiveness of cost transparency. Hence, the current research highlights how marketers and brands can effectively combine specific emotional appeals with cost transparency to obtain favorable consumer evaluations. Keywords Cost transparency · Pride · Moral elevation Transparency is one of the key means of establishing and maintaining positive relationships between consumers and corporations, especially in gaining and maintaining trust (Kang and Hustvedt 2014). There is a growing trend and consumer demand for greater knowledge about where and how products are made (Bhaduri and Ha-Brookshire 2011), * Felix Septianto [email protected] Joya A. Kemper [email protected] Fandy Tjiptono [email protected] Widya Paramita [email protected] 1
UQ Business School, University of Queensland, 39 Blair Dr, St Lucia, QLD 4067, Australia
2
Department of Marketing, The University of Auckland Business School, 12 Grafton Road, Auckland 1010, New Zealand
3
School of Marketing and International Business, Victoria University of Wellington, 33 Bunny St, Pipitea, Wellington 6011, New Zealand
4
Faculty of Economics and Business, Universitas Gadjah Mada, Jalan Sosiohumaniora 1, Yogyakarta 55281, Indonesia
with a focus on issues such as employee welfare and environmental impact (Bateman and Bonanni 2009) and sustainable practices (Kemper and Ballantine 2019). As a key aspect of corporate social responsibility (CSR) (Khosroshahi et al. 2019; Kang and Hustvedt 2014), transparency is also of interest to business ethics scholars (Madsen 2009; das Neves and Vaccaro 2013; Vaccaro and Sison 2011). From an instrumental perspective, business transparency can lead to strengthened relationships with customers and stakeholders (Vaccaro and Sison 2011; Parris et al. 2016). From an ethical perspective, business transparency also aligns with the concept of moral justification, including the deontological
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