How can brands address growing consumer scepticism?

Transparency and effective communication are critical for brands to gain and keep consumer trust according to new research.

Brand transparency

The 成人大片鈥檚 Dr Kate Sansome, from the Adelaide Business School has led a study which suggests that consumers want brands to be transparent about topics that impact them.

鈥淎s sociopolitical issues become topical in the news and social media, brands are expected to be transparent about them; for example, as consumers face cost-of-living pressures, they will expect brands to be transparent about this issue,鈥 says Dr Sansome, who conducted the study with the Professor Jodie Conduit and Dr Dean Wilkie from the Adelaide Business School.

鈥淥ur research shows that it鈥檚 not just about brands sharing extensive information, but about being open, clear, timely, and providing well-explained, evidence-based information. Open dialogue and answering consumers鈥 questions are important for transparency, even on sensitive or negative issues, particularly for brands in industries with聽a negative reputation.鈥

Dr Sansome says that being transparent means communicating in a simple and easy-to-understand聽manner, being upfront before聽external pressure, and backing up claims with statistics, facts, and visual evidence. The study suggests that brands that use tools like infographics or storytelling to explain their decisions give consumers a better understanding of their intentions and reasons behind their actions.

鈥淐onsumers are becoming more uncertain of brand communication due to misinformation, deep fakes, misleading claims, and perceived hypocrisy,鈥 Dr Sansome says.

鈥淪cepticism is growing, where a majority of young people believe a brand is hiding something if it avoids certain topics.

鈥淐onsumers鈥 perceptions of certain brands or product categories can influence how they interpret brand transparency. Our research shows that in stigmatised industries like mining or fast fashion, consumer scepticism can make it difficult for people to recognise聽a brand's efforts to be transparent, regardless of its聽intentions.鈥

"Our research shows that it鈥檚 not just about brands sharing extensive information, but about being open, clear, timely, and providing well-explained, evidence-based information."Dr Kate Sansome, Adelaide Business School, The 成人大片

Dr Sansome says her study highlights a need for brands to improve how they communicate transparency to聽consumers in order for them to make informed decisions.

The study provides a deeper insight than traditional research, which mainly views transparency through a managerial or governance lens and focuses on information to meet regulatory requirements or supply chain or pricing information. Unlike these approaches, Dr Sansome鈥檚 research accounts for the subjectivity in how consumers evaluate brand communication聽and聽the topics of relevance to consumers.聽

鈥淔or brands and businesses, these findings provide insight into consumers' need for brands to be transparent on topics beyond pricing and supply chain information聽and presented in a way that meets their expectations,鈥 Dr Sansome explains.

鈥淧roviding exhaustive information in PDF form on a website is insufficient. Transparency聽is a continuous, evolving dialogue with consumers, with clear, timely, evidence-based and explanatory communication.鈥

Dr Sansome says further research is needed to explore strategies enabling brands to share their sustainability progress transparently without compromising brand equity or facing聽significant reputational risks.聽

鈥淲ith the rise of regulations targeting 鈥榞reenwashing,鈥 brands increasingly practise 鈥榞reenhushing,鈥 opting for silence rather than risking scrutiny or backlash,鈥 Dr Sansome says. 鈥淎s consumers become more discerning, brands must prepare for scrutiny and scepticism and challenges particularly for brands in stigmatised industries in communicating progress towards sustainability.鈥

The study was published in and was conducted through qualitative interviews with experts, such as brand managers, government officials, third-party accreditors, and in-depth consumer interviews.聽

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