Effects of Deceptive Advertising on Consumer Loyalty in Telecommunication Industry of Pakistan

Hasan, Syed Akif and Subhani, Muhammad Imtiaz (2011): Effects of Deceptive Advertising on Consumer Loyalty in Telecommunication Industry of Pakistan. Forthcoming in: Information Management and Business Review

Abstract

This study is an attempt to interrogate the effects of deceptive advertising on consumer loyalty in telecommunication industry of Pakistan. Four variables, Call Charges (CC), Network Coverage (NC), Network Quality (NQ) and Customer Service (CS) were used to measure deception in Telecom Ads and then its effect on consumer loyalty while the consumer preference is used as the proxy of consumer loyalty. 10,000 random individuals from telecom industry were selected to conclude the results. Testing specification confirmed that the deception overwhelmingly exists in telecom ads and none of the telecom companies were providing exactly the same quality of service in terms of Call Charges, Network Coverage, Network Quality and Customer Service, as they promise in their advertisements, while, the consumers are inclined towards the services where the deceptions are seemingly meager.

• Item Type: MPRA Paper
• Language: English
• Keywords: Advertising, Deceptive Advertising, Consumer Loyalty, Telecommunication
• Subjects: L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising

References

Aaker, D. A. (1974). Deceptive advertising, Consumerism: Search for the consumer interest, Free Press: New York.

Assael, H. (1998). Consumer behavior and marketing in action, Cincinnati, OH: South-Western.

Boush, D. M. (1994). Adolescent skepticism toward TV advertising and knowledge of advertiser tactics. Journal of Consumer Research, 21, 165-175.

Campbell, M.C. (1995). When attention-getting advertising tactics elicit consumer inferences of manipulative intent: the importance of balancing benefits and investments. Journal of Consumer Psychology, 4, 222-234.

Gupta, S. (1988). An Integrated Model of Inter-purchase Time, Brand Choice, and Purchase Quantity. Journal of Marketing Research, 25, 342-355.

Howard, J. A. (1974). The Dialogue That Might Have Happened, in Advertising and the Public Interest. American Marketing Association, 27-33.

Jerry, C. O. (1978). Cognitive Effects of Deceptive Advertising. Journal of Marketing Research, 15, 29-38.

Urban, G. L. (2004). The emerging era of customer advocacy. MIT Sloan Management Review, 45, 77-82.