Supply chain transparency increases consumer willingness to buy
For[edit | edit source]
- In a study of Nudie Jeans, a clothing company committed to supply chain transparency, website visitors who viewed a production guide were "more than twice as likely to purchase products at Nudie’s webshop" and purchased more products for a higher total order value. The study did not indicate whether this effect was causal, or whether it was just a correlation (perhaps people who buy more are more likely to read the production guide).
- According to the Nudie Jeans study, "Bradu et al. (2014) provide perhaps the most compelling argument in favor of transparency influencing consumers’ willingness to buy." In an experiment with 1064 Danish consumers, Bradu et al. demonstrated that "a transparency label significantly affects consumer willingness to buy chocolate bars." However, the study was limited by the fact that it was done in an online "laboratory" setting instead of in an actual store. (Also, the Bradu study is locked in a closed-access journal.)
- A study by MBA students at MIT ran a Facebook advertising campaign for a clothing brand, Alta Gracia. The study showed that one of two treatment sustainability advertisement messages had a significantly higher click-through rate than a control message without any sustainability message. Because Alta Gracia did not yet have an online store, the researchers could not test purchase behavior.
See Also[edit | edit source]
- Consumers are willing to pay more for ethically produced products
- Consumers rarely make use of supply chain transparency to pressure disclosing firms