From cheap to chic: a quantitative study on using comparative transparency as a tool for brand attribute upgrading

Sammanfattning: This thesis constitutes the first attempt to investigate the concept of comparative transparency, a novel type of brand alliance, inspired by comparative advertising and enabled by the growing trend of business transparency in the apparel industry. Broadly, the present study is designed to investigate whether a weak brand can capitalize on the positive attributes of a strong brand merely by being presented as having common manufacturers in an online retailing context. More specifically, this study aims to investigate the effects on consumers' brand- and product quality perceptions following the application of comparative transparency. While no significant effects were observed for high price brands, the results of a quantitative 2x2 between-subject experiment revealed initial evidence for that low price can expect increases in perceived (1) brand effort, (2) brand ability, (3) product quality, and (4) acquisition value when sharing information on other strong premium brands that utilizes the same manufacturer as the focal brand. Moreover, it was concluded that these effects could be explained by signaling theory and that product price moderated the effect of comparative transparency on perceived product quality. Conclusively, this thesis offers insights into a novel branding strategy related to brand alliances and transparency, as well as implications for managers and practitioners on how to effectively leverage one's transparency efforts.