University of Twente Student Theses
Understanding the Impact of Business Transparency on Consumer Trust and Buying Intention
Morsink, M.R. (2024) Understanding the Impact of Business Transparency on Consumer Trust and Buying Intention.
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| Abstract: | Information transparency is becoming more important as a key factor influencing consumer trust and buying intentions in a Business-to-Consumer (B2C) setting. Although prior studies suggest that transparency has a positive effect on consumer trust and buying intentions, there are still gaps remaining regarding the proportion of the individual and joint effects of these elements of transparency. This research investigates how different elements of transparency (product, price, inventory and process transparency) influence consumers' trust and buying intention. To address the gaps, this research employs a quantitative, deductive approach. The data for this research was collected by using an online survey, resulting in 226 valid responses. Regression analysis is conducted to investigate the relationship between the information transparency elements and their effect on consumer trust and buying intention. Key findings show that transparency of product, price, inventory, and process information positively influences consumer trust and correlates with buying intention. Additionally, trust mediates the direct effect of transparency on buying intention, indicating that higher transparency causes higher consumer trust and so the consumers’ buying intentions. This research contributes to literature on information transparency strategy by providing new insights into the individual and combined effects of transparency elements. Practical implications for businesses include developing effective transparency strategies to improve the relationship with the consumer to improve competitive advantage. The findings show the importance of transparency, presenting multiple elements of information transparency to improve the positive impact on consumer trust and indirectly on buying intention. Lastly, this research contributes to the understanding of information transparency in B2C settings, offering valuable implications for both academic literature and business practices, and helping organizations to optimize their transparency strategies to enhance consumer trust and buying intention. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/103433 |
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