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Published in: Journal of Business Ethics 2/2021

10-09-2020 | Original Paper

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

Authors: Felix Septianto, Joya A. Kemper, Fandy Tjiptono, Widya Paramita

Published in: Journal of Business Ethics | Issue 2/2021

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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.

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Footnotes
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).
 
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Metadata
Title
The Role of Authentic (vs. Hubristic) Pride in Leveraging the Effectiveness of Cost Transparency
Authors
Felix Septianto
Joya A. Kemper
Fandy Tjiptono
Widya Paramita
Publication date
10-09-2020
Publisher
Springer Netherlands
Published in
Journal of Business Ethics / Issue 2/2021
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-020-04613-2