Explaining product costs increased stated purchase intention in four laboratory experiments involving socially responsible product claims, according to research published in the Journal of Business Research.
Gauthier Casteran’s study examines whether consumers interpret a company’s disclosure as evidence that it cares about a social or environmental issue. The experiments measured intentions and perceptions in controlled settings, not sales in a real store.
The research appeared in the journal’s October 2026 volume. Its central question is relevant to brands that explain why a product costs more, especially when they link a portion of the cost to responsible production.
How cost explanations affect motives
Cost transparency means giving customers some information about what goes into a price. Depending on the product, a company might explain spending on materials, labor or a particular environmental measure. The research focuses on products carrying corporate social responsibility, or CSR, labels.
Casteran found that transparency was associated with stronger purchase intentions through perceptions of the company’s intrinsic motives, such as a genuine concern for the issue. The reported effect was stronger for firms with greater CSR engagement and varied with consumers’ familiarity with pricing tactics.
The study also reports weaker effects for neutral cost disclosure than for transparency connected to sustainability. That does not establish that any unverified sustainability claim will win trust, or that disclosure proves a product is environmentally sound.
Intention is not a sales receipt
Participants in an experiment can say they are more inclined to buy without later making a purchase. Prices, household budgets, product quality and competing offers all matter when a real decision is made.
The results also concern the labels, explanations and participants used in these experiments. A business selling a different product or serving a different market should not assume the same response.
For an individual brand, a small test could compare clear cost information with its existing product description. The business should measure completed purchases and returns as well as clicks or stated interest, and avoid treating short-term movement as proof of lasting loyalty.
Evidence still matters
A detailed breakdown can make a price easier to understand, but detail is not a substitute for evidence. Businesses should be able to substantiate environmental and social statements and explain the boundaries of any claim.
Our previous article on reviews and environmental claims examined a separate experiment in China. It also measured consumers’ judgments, not whether the products’ claims were true.
