The relationship between transparency and customer-based brand equity in the FMCG industry

Abstract

This research sought to determine whether transparency is a significant driver, relative to other drivers, of customer-based brand equity within the food and beverage sector of the FMCG industry. More emphasis is placed on transparency and ethical challenges encountered by organisations today, than in earlier years. Transparency is also seen as one of the critical components in business and social structures. However, unethical behaviours and lack of transparency indicate that organisations are unaware of the effect of their actions on consumer behaviour and perceptions or they are attempting to engage consumers' perceptions with signalling efforts which are not always as authentic, transparent and credible. The research adopted a deductive, qualitative approach among users of food and beverage products in the FMCG industry, and the philosophy employed was positivism. Primary data was collected through an online questionnaire and was distributed using convenience and snowball sampling. 186 responses were valid and retained for the research. Correlation and multiple regression analysis were applied to these responses to test the hypotheses. The results indicated that brand trust, brand image, brand credibility and transparency had significant positive relationships with CBBE. Despite the significant relationships between the independent variables and CBBE, only brand credibility was identified as a significant driver of CBBE in the proposed regression model, relative to the context of the food and beverage sector in the FMCG industry. This research found that transparency does not significantly impact CBBE; however, further research would suggest using alternative drivers and industries. Additionally, the influence of transparency on the drivers and dimensions of CBBE could further be explored.