Consumer Behavior

The Effect of Price Transparency on Brand Perception and Purchase Intention

Authors: Xiao Tong (The University of Alabama) , Jin Su (Univeristy of North Carolina at Greensboro)

Abstract

This study examines the impact of transparent pricing on consumers’ perceptions of the brand and intentions to purchase its products. Our study also explores the moderating role of product price and country of origin on the effectiveness of price transparency. We collected a total of 210 responses, 191 responses were considered valid and were used in the study. The results of this study showed that when a company provides consumers with detailed price information for its products, consumers tend to perceive its products to be of higher quality. Transparent pricing can also help the company create a higher perceived value for its products and generate a more favorable brand attitude. The results also suggest that price transparency strategy is an effective way to generate a more favorable brand attitude, especially for high-end brands made in the US and for low-end brands not made in the US.

Keywords: corporate social responsibility reputation, brand evaluation, price transparency

How to Cite: Tong, X. & Su, J. (2020) “The Effect of Price Transparency on Brand Perception and Purchase Intention”, International Textile and Apparel Association Annual Conference Proceedings. 77(1). doi: https://doi.org/10.31274/itaa.11742