Skip to main content
SpringerLink
Log in

The Role of Authentic (vs. Hubristic) Pride in Leveraging the Effectiveness of Cost Transparency

  • Original Paper
  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Notes

  1. As an additional analysis, we conducted one-way ANOVA to examine the levels of happiness, sadness, and upset (filler items). We found non-significant differences in the levels of sadness (F(2, 397) = 1.82, p = 0.164) and upset across emotion conditions (F(2, 397) = 2.06, p = .129). However, we found significant differences in the levels of happiness, such that participants in the authentic and hubristic pride conditions reported higher levels of happiness than those in the neutral condition (Mauthentic = 6.06 vs. Mneutral = 4.40, t = 10.39, p < 0.001; Mhubristic = 5.78 vs. Mneutral = 4.40, t = 8.65, p < 0.001).

  2. As an additional analysis, we conducted one-way ANOVA to examine the levels of sadness, and upset (filler items). We found non-significant differences in the levels of sadness (F(3, 396) = 1.26, p = .390) and upset across emotion conditions (F(3, 396) = 1.87, p = .133).

  3. As an additional analysis, we conducted one-way ANOVA to examine the levels of sadness, and upset (filler items). We found non-significant differences in the levels of sadness (F(2, 296) = 1.35, p = 0.261) and upset across emotion conditions (F(2, 296) = 1.49, p = .227).

References

  • Albu, O. B., & Flyverbom, M. (2019). Organizational transparency: Conceptualizations, conditions, and consequences. Business & Society, 58(2), 268–297.

    Google Scholar 

  • Algoe, S. B., & Haidt, J. (2009). Witnessing excellence in action: The ‘other-praising’emotions of elevation, gratitude, and admiration. Journal of Positive Psychology, 4(2), 105–127.

    Google Scholar 

  • Barbera, M., Northey, G., Septianto, F., & Spanjaard, D. (2018). Those prices are HOT! How temperature-related visual cues anchor expectations of price and value. Journal of Retailing and Consumer Services, 44, 178–181.

    Google Scholar 

  • Bateman, A., & Bonanni, L. (2009). What supply chain transparency really means. https://hbr.org/2019/08/what-supply-chain-transparency-really-means.

  • Beets, S. D., & Beets, M. G. (2019). An absence of transparency: The charitable and political contributions of US Corporations. Journal of Business Ethics, 155(4), 1101–1113.

    Google Scholar 

  • Bhaduri, G., & Ha-Brookshire, J. E. (2011). Do transparent business practices pay? Exploration of transparency and consumer purchase intention. Clothing and Textiles Research Journal, 29(2), 135–149.

    Google Scholar 

  • Bolton, L. E., Warlop, L., & Alba, J. W. (2003). Consumer perceptions of price (un) fairness. Journal of Consumer Research, 29(4), 474–491.

    Google Scholar 

  • Boyd, H. C., & Helms, J. E. (2005). Consumer entitlement theory and measurement. Psychology & Marketing, 22(3), 271–286.

    Google Scholar 

  • Bureau, J. S., Vallerand, R. J., Ntoumanis, N., & Lafreniere, M.-A. K. (2013). On passion and moral behavior in achievement settings: The mediating role of pride. Motivation and Emotion, 37(1), 121–133.

    Google Scholar 

  • Campbell, W. K., Bonacci, A. M., Shelton, J., Exline, J. J., & Bushman, B. J. (2004). Psychological entitlement: Interpersonal consequences and validation of a self-report measure. Journal of Personality Assessment, 83(1), 29–45.

    Google Scholar 

  • Carter, R. E., & Curry, D. J. (2010). Transparent pricing: Theory, tests, and implications for marketing practice. Journal of the Academy of Marketing Science, 38(6), 759–774.

    Google Scholar 

  • Carver, C. S., Sinclair, S., & Johnson, S. L. (2010). Authentic and hubristic pride: Differential relations to aspects of goal regulation, affect, and self-control. Journal of Research in Personality, 44(6), 698–703.

    Google Scholar 

  • Cavanaugh, L. A., Bettman, J. R., & Luce, M. F. (2015). Feeling love and doing more for distant others: Specific positive emotions differentially affect prosocial consumption. Journal of Marketing Research, 52(5), 657–673.

    Google Scholar 

  • das Neves, J. C., & Vaccaro, A., (2013). Corporate transparency: A perspective from Thomas Aquinas’ summa theologiae. Journal of Business Ethics, 113(4), 639–648.

    Google Scholar 

  • Edelman. (2018). 2018 Edelman Earned Brand.

  • Edelman. (2019). In brands we trust?

  • Egels-Zandén, N., Hulthén, K., & Wulff, G. (2015). Trade-offs in supply chain transparency: The case of Nudie Jeans Co. Journal of Cleaner Production, 107, 95–104.

    Google Scholar 

  • Everlane. (2020). Everlane: About. https://www.everlane.com/about

  • Fajardo, T. M., Townsend, C., & Bolander, W. (2018). Toward an optimal donation solicitation: Evidence from the field of the differential influence of donor-related and organization-related information on donation choice and amount. Journal of Marketing, 82(2), 142–152.

    Google Scholar 

  • Ferguson, J. L., & Scholder Ellen, P. (2013). Transparency in pricing and its effect on perceived price fairness. Journal of Product & Brand Management, 22(5/6), 404–412.

    Google Scholar 

  • Grimmelikhuijsen, S. G., & Meijer, A. J. (2012). Effects of transparency on the perceived trustworthiness of a government organization: Evidence from an online experiment. Journal of Public Administration Research and Theory, 24(1), 137–157.

    Google Scholar 

  • Griskevicius, V., Shiota, M. N., & Neufeld, S. L. (2010a). Influence of different positive emotions on persuasion processing: A functional evolutionary approach. Emotion, 10(2), 190–206.

    Google Scholar 

  • Griskevicius, V., Shiota, M. N., & Nowlis, S. M. (2010b). The many shades of rose-colored glasses: An evolutionary approach to the influence of different positive emotions. Journal of Consumer Research, 37(2), 238–250.

    Google Scholar 

  • Haidt, J. (2003). Elevation and the positive psychology of morality. In C. L. M. Keyes & J. Haidt (Eds.), Flourishing: Positive psychology and the life well-lived (pp. 275–289). Washington DC: American Psychological Association.

    Google Scholar 

  • Hart, D., & Matsuba, M. K. (2007). The development of pride and moral life. In J. L. Tracy, R. W. Robins, & J. P. Tangney (Eds.), The self-conscious emotions: Theory and Research (pp. 114–133). New York: Guilford.

    Google Scholar 

  • Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach (2nd ed.). New York: Guilford Press.

    Google Scholar 

  • Hess, D. (2008). The three pillars of corporate social reporting as new governance regulation: Disclosure, dialogue, and development. Business Ethics Quarterly, 18(4), 447–482.

    Google Scholar 

  • Hira, A., & Benson-Rea, M. (2017). Governing corporate social responsibility in the apparel industry after Rana Plaza. New York: Palgrave Macmillan.

    Google Scholar 

  • Ho, S.-Y., Tong, E. M., & Jia, L. (2016). Authentic and hubristic pride: Differential effects on delay of gratification. Emotion, 16(8), 1147–1156.

    Google Scholar 

  • Horberg, E. J., Oveis, C., & Keltner, D. (2011). Emotions as moral amplifiers: An appraisal tendency approach to the influences of distinct emotions upon moral judgment. Emotion Review, 3(3), 237–244.

    Google Scholar 

  • Hultman, J., & Axelsson, B. (2007). Towards a typology of transparency for marketing management research. Industrial marketing management, 36(5), 627–635.

    Google Scholar 

  • Iacobucci, D. (2010). Structural equations modeling: Fit indices, sample size, and advanced topics. Journal of Consumer Psychology, 20(1), 90–98.

    Google Scholar 

  • Kahneman, D., Knetsch, J. L., & Thaler, R. (1986). Fairness as a constraint on profit seeking: Entitlements in the market. The American Economic Review, 76(4), 728–741.

    Google Scholar 

  • Kang, J., & Hustvedt, G. (2014). Building trust between consumers and corporations: The role of consumer perceptions of transparency and social responsibility. Journal of Business Ethics, 125(2), 253–265.

    Google Scholar 

  • Kemper, J. A., & Ballantine, P. W. (2019). What do we mean by sustainability marketing? Journal of Marketing Management, 35(3–4), 277–309.

    Google Scholar 

  • Khosroshahi, H., Rasti-Barzoki, M., & Hejazi, S. R. (2019). A game theoretic approach for pricing decisions considering CSR and a new consumer satisfaction index using transparency-dependent demand in sustainable supply chains. Journal of Cleaner Production, 208, 1065–1080.

    Google Scholar 

  • Kim, J.-Y., Natter, M., & Spann, M. (2009). Pay what you want: A new participative pricing mechanism. Journal of Marketing, 73(1), 44–58.

    Google Scholar 

  • KPMG. (2017). The KPMG Survey of Corporate Responsibility Reporting 2017.

  • Kuah, A. T., & Weerakkody, V. (2015). Commentary: Is cost transparency necessarily good for consumers? European Journal of Marketing, 49(11/12), 1980–1986.

    Google Scholar 

  • Kunter, M. (2015). Exploring the pay-what-you-want payment motivation. Journal of Business Research, 68(11), 2347–2357.

    Google Scholar 

  • Kupor, D., & Laurin, K. (2020). Probable cause: The influence of prior probabilities on forecasts and perceptions of magnitude. Journal of Consumer Research, 46(5), 833–852.

    Google Scholar 

  • Lacey, R., Suh, J., & Morgan, R. M. (2007). Differential effects of preferential treatment levels on relational outcomes. Journal of Service Research, 9(3), 241–256.

    Google Scholar 

  • Lerner, J. S., Li, Y., Valdesolo, P., & Kassam, K. S. (2015). Emotion and decision making. Annual Review of Psychology, 66, 799–823.

    Google Scholar 

  • Li, F., Larimo, J., & Leonidou, L. C. (2020). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, Advance Online Publication.

  • Lim, W. S., Mak, V., Tang, C. S., & KC, R. P. (2018). Adopting Cost Transparency as a Marketing Strategy: Analytical and Experimental Exploration. Working Paper SSRN 3252823: National University of Singapore.

  • Lowe, B. (2015). Commentary: “Should consumers request cost transparency?” Cost transparency in consumer markets. European Journal of Marketing, 49(11/12), 1992–1998.

    Google Scholar 

  • Madsen, P. (2009). Dynamic transparency, prudential justice, and corporate transformation: Becoming socially responsible in the internet age. Journal of Business Ethics, 90(4), 639–648.

    Google Scholar 

  • Mantovani, D., de Andrade, L. M., & Negrão, A. (2017). How motivations for CSR and consumer-brand social distance influence consumers to adopt pro-social behavior. Journal of Retailing and Consumer Services, 36, 156–163.

    Google Scholar 

  • Martin, T. (2018). Real effects of price transparency: Evidence from steel futures. SSRN 3299384: Bocconi University.

  • McFerran, B., Aquino, K., & Tracy, J. L. (2014). Evidence for two facets of pride in consumption: Findings from luxury brands. Journal of Consumer Psychology, 24(4), 455–471.

    Google Scholar 

  • McKinsey & Company. (2019). The State of Fashion 2019.

  • Menéndez-Viso, A. (2009). Black and white transparency: Contradictions of a moral metaphor. Ethics and Information Technology, 11(2), 155–162.

    Google Scholar 

  • Miao, L., & Mattila, A. S. (2007). How and how much to reveal? The effects of price transparency on consumers' price perceptions. Journal of Hospitality & Tourism Research, 31(4), 530–545.

    Google Scholar 

  • Michie, S. (2009). Pride and gratitude: How positive emotions influence the prosocial behaviors of organizational leaders. Journal of Leadership & Organizational Studies, 15(4), 393–403.

    Google Scholar 

  • Mohan, B., Buell, R. W., & John, L. K. (2018). Lifting the veil: The benefits of cost transparency. Harvard Business School NOM Unit Working Paper.

  • Morales, A. C. (2005). Giving firms an “E” for effort: Consumer responses to high-effort firms. Journal of Consumer Research, 31(4), 806–812.

    Google Scholar 

  • Ngo, L. V., Northey, G., Tran, Q., & Septianto, F. (2020). The Devil might wear Prada, but Narcissus wears counterfeit Gucci! How social adjustive functions influence counterfeit luxury purchases. Journal of Retailing and Consumer Services, 52, 101671.

    Google Scholar 

  • Paramita, W., Septianto, F., & Tjiptono, F. (2020). The distinct effects of gratitude and pride on donation choice and amount. Journal of Retailing and Consumer Services, 53, 101972.

    Google Scholar 

  • Parris, D. L., Dapko, J. L., Arnold, R. W., & Arnold, D. (2016). Exploring transparency: a new framework for responsible business management. Management Decision, 54(1), 222–247.

    Google Scholar 

  • Poels, K., & Dewitte, S. (2019). The Role of Emotions in Advertising: A Call to Action. Journal of Advertising, 48(1), 81–90.

    Google Scholar 

  • Pohling, R., & Diessner, R. (2016). Moral elevation and moral beauty: A review of the empirical literature. Review of General Psychology, 20(4), 412–425.

    Google Scholar 

  • Richins, M. L. (1997). Measuring emotions in the consumption experience. Journal of Consumer Research, 24(2), 127–146.

    Google Scholar 

  • Rigdon, E. E. (1996). CFI versus RMSEA: A comparison of two fit indexes for structural equation modeling. Structural Equation Modeling: A Multidisciplinary Journal, 3(4), 369–379.

    Google Scholar 

  • Romani, S., Grappi, S., & Bagozzi, R. P. (2016). Corporate socially responsible initiatives and their effects on consumption of green products. Journal of Business Ethics, 135(2), 253–264.

    Google Scholar 

  • Scherer, K. R., & Tannenbaum, P. H. (1986). Emotional experiences in everyday life: A survey approach. Motivation and Emotion, 10(4), 295–314.

    Google Scholar 

  • Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784–1810.

    Google Scholar 

  • Sengabira, C., Septianto, F., & Northey, G. (2019). Committed to help: The effects of frequency of corporate donations on luxury brand evaluations. Asia Pacific Journal of Marketing and Logistics, Forthcoming.

  • Septianto, F. (2016). “Chopin” effect? An exploratory study on how musical tempo influence consumer choice of drink with different temperatures. Asia Pacific Journal of Marketing and Logistics, 28(5), 765–779.

    Google Scholar 

  • Septianto, F. (2017). Work more and indulge more: Exploring the self-licensing effect of hard work on likelihood to purchase hedonic products. Journal of Retailing and Consumer Services, 34, 235–239.

    Google Scholar 

  • Septianto, F. (2020). Do past scandals influence the present performance? The moderating role of consumer mindset. Journal of Business Research, 106, 75–81.

    Google Scholar 

  • Septianto, F., An, J., Chiew, T. M., Paramita, W., & Tanudharma, I. (2019). The similar versus divergent effects of pride and happiness on the effectiveness of loyalty programs. Journal of Business Research, 99, 12–22.

    Google Scholar 

  • Septianto, F., Northey, G., Chiew, T. M., & Ngo, L. V. (2020a). Hubristic pride & prejudice: The effects of hubristic pride on negative word-of-mouth. International Journal of Research in Marketing, Advance Online Publication.

  • Septianto, F., Sung, B., Seo, Y., & Tugiman, N. (2018). Proud volunteers: the role of self-and vicarious-pride in promoting volunteering. Marketing Letters, 29(4), 501–519.

    Google Scholar 

  • Septianto, F., & Tjiptono, F. (2019). The interactive effect of emotional appeals and past performance of a charity on the effectiveness of charitable advertising. Journal of Retailing and Consumer Services, 50, 189–198.

    Google Scholar 

  • Septianto, F., Tjiptono, F., & Arli, D. (2020b). Authentically, proudly ethical: The effects of authentic pride on consumer acceptance of unethical behavior. European Journal of Marketing, Advance Online Publication.

  • Simintiras, A. C., Dwivedi, Y. K., Kaushik, G., & Rana, N. P. (2015). Should consumers request cost transparency? European Journal of Marketing, 49(11/12), 1961–1979.

    Google Scholar 

  • Sims, R. (2009). Toward a better understanding of organizational efforts to rebuild reputation following an ethical scandal. Journal of Business Ethics, 90(4), 453.

    Google Scholar 

  • Singh, N. (2015). Commentary: What’s behind the price tag: understanding cost transparency? European Journal of Marketing, 49(11/12), 1987–1991.

    Google Scholar 

  • So, J., Achar, C., Han, D., Agrawal, N., Duhachek, A., & Maheswaran, D. (2015). The psychology of appraisal: Specific emotions and decision-making. Journal of Consumer Psychology, 25(3), 359–371.

    Google Scholar 

  • Solis, B., & Lavoy, D. (2015). The Engagement Gap: Executives and employees think differently about employee engagement. https://www.jostle.me/uploads/theEngagementGapWhitePaper.pdf.

  • Stronge, S., Cichocka, A., & Sibley, C. G. (2016). Narcissistic self-esteem or optimal self-esteem? A latent profile analysis of self-esteem and psychological entitlement. Journal of Research in Personality, 63, 102–110.

    Google Scholar 

  • Sullivan, J., Wilson, A., & Nadgrodkiewicz, A. (2013). The role of corporate governance in fighting corruption. Journal of Accounting and Public Policy, 44(1), 1–21.

    Google Scholar 

  • Thomson, A. L., & Siegel, J. T. (2017). Elevation: A review of scholarship on a moral and other-praising emotion. The Journal of Positive Psychology, 12(6), 628–638.

    Google Scholar 

  • Tracy, J. L., & Robins, R. W. (2004). Putting the self into self-conscious emotions: A theoretical model. Psychological Inquiry, 15(2), 103–125.

    Google Scholar 

  • Tracy, J. L., & Robins, R. W. (2007a). Emerging insights into the nature and function of pride. Current Directions in Psychological Science, 16(3), 147–150.

    Google Scholar 

  • Tracy, J. L., & Robins, R. W. (2007b). The psychological structure of pride: A tale of two facets. Journal of Personality and Social Psychology, 92(3), 506.

    Google Scholar 

  • Turilli, M., & Floridi, L. (2009). The ethics of information transparency. Ethics and Information Technology, 11(2), 105–112.

    Google Scholar 

  • Tyler, T. R. (1988). What is procedural justice-criteria used by citizens to assess the fairness of legal procedures. Law & Society Review, 22, 103.

    Google Scholar 

  • Vaccaro, A., & Madsen, P. (2009). Corporate dynamic transparency: The new ICT-driven ethics? Ethics and Information Technology, 11(2), 113–122.

    Google Scholar 

  • Vaccaro, A., & Sison, A. J. G. (2011). Transparency in business: The perspective of Catholic social teaching and the “Caritas in Veritate”. Journal of Business Ethics, 100(1), 17–27.

    Google Scholar 

  • Vredenburg, J., Kapitan, S., Spry, A., & Kemper, J. A. (2020). Brands Taking a Stand: Authentic Brand Activism or Woke Washing? Journal of Public Policy & Marketing, Advance Online Publication.

  • Wetzel, H. A., Hammerschmidt, M., & Zablah, A. R. (2014). Gratitude versus entitlement: A dual process model of the profitability implications of customer prioritization. Journal of Marketing, 78(2), 1–19.

    Google Scholar 

  • Winterich, K. P., & Haws, K. L. (2011). Helpful hopefulness: The effect of future positive emotions on consumption. Journal of Consumer Research, 38(3), 505–524.

    Google Scholar 

  • Yang, P., & Zhang, Q. (2018). How pride influences product evaluation through construal level. European Journal of Marketing, 52(7/8), 1750–1775.

    Google Scholar 

  • Zheng, L., Zhu, Y., & Jiang, R. (2019). The mediating role of moral elevation in cause-related marketing: A moral psychological perspective. Journal of Business Ethics, 156(2), 439–454.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. UQ Business School, University of Queensland, 39 Blair Dr, St Lucia, QLD, 4067, Australia

    Felix Septianto

  2. Department of Marketing, The University of Auckland Business School, 12 Grafton Road, Auckland, 1010, New Zealand

    Felix Septianto & Joya A. Kemper

  3. School of Marketing and International Business, Victoria University of Wellington, 33 Bunny St, Pipitea, Wellington, 6011, New Zealand

    Fandy Tjiptono

  4. Faculty of Economics and Business, Universitas Gadjah Mada, Jalan Sosiohumaniora 1, Yogyakarta, 55281, Indonesia

    Widya Paramita

Authors
  1. Felix Septianto
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Joya A. Kemper
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Fandy Tjiptono
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Widya Paramita
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Felix Septianto.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Ethical Approval

All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee, and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.

Informed Consent

Informed consent was obtained from all individual participants taking part in the study.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Septianto, F., Kemper, J.A., Tjiptono, F. et al. The Role of Authentic (vs. Hubristic) Pride in Leveraging the Effectiveness of Cost Transparency. J Bus Ethics 174, 423–439 (2021). https://doi.org/10.1007/s10551-020-04613-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-020-04613-2

Keywords

Search

Navigation