Lifting the Veil: the Benefits of Cost Transparency

Bhavya Mohan, Harvard Business School, USA
Ryan Buell, Harvard Business School, USA
Leslie John, Harvard Business School, USA
Across a field study and six laboratory experiments, we identify how firms benefit from revealing cost information to consumers. Disclosing the variable costs associated with a product’s production heightens consumers’ attraction to the firm, which in turn, increases purchase interest (studies 1-5). Further experiments explore boundary conditions (study 6-7).
[ to cite ]:
Bhavya Mohan, Ryan Buell, and Leslie John (2015) ,"Lifting the Veil: the Benefits of Cost Transparency", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 224-228.