The Benefits of Disclosure : Walter Carl has posted his research report on the effect of disclosure on word-of-mouth marketing campaigns, and while I have only had time to read the summary it appears to support the case for transparency.

Among the key findings:

"For approximately 75 percent of the conversational partners (the people with whom the word-of-mouth marketing agents engaged in word-of-mouth communication) it did not matter that they were talking with someone affiliated with a marketing organization. Instead what mattered was that they trusted the agent was providing an honest opinion.

"None of the key outcome metrics (credibility, inquiry, use, purchase, and pass-along/relay) were negatively affected by the agent disclosing their affiliation.

"For about 5 percent of the conversational partners who were not aware of the agent’s affiliation with the marketing organization there was a negative 'backlash' effect when they found out.

As for the conclusions:

"Disclosure has practical business benefits. It does not interrupt the 'natural' flow of conversation.Word-of-mouth marketing organizations should adopt a clear policy that requires disclosure.

"This policy should be implemented with a combination of both education about the practical business benefits of disclosure as well as enforcement procedures."