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.
Highlights
The immense ventures and endeavors have been observed on deceptive advertising which includes identifying and measuring deception but a very slim focus is given on its effects on Consumer loyalty
It is perceived that deception in advertising leads to first purchase by the consumer, tricked by the false claims made by the marketer in advertising but eventually after the first use consumer realizes the real quality/ value of the product/ service in most cases and explores the fallacy of the claims made by the marketer in advertisements
Deceptions and exaggerations are attributably present when the all outlined telecom network/ service providers talk about their network coverage, network quality, and customer service in their advertisements, as the coefficients of these constructs in terms of what telecom networks/ service providers provide is significantly lesser than the coefficients of what they promise
Summary
The immense ventures and endeavors have been observed on deceptive advertising which includes identifying and measuring deception but a very slim focus is given on its effects on Consumer loyalty. It is perceived that deception in advertising (false claims) leads to first purchase by the consumer, tricked by the false claims made by the marketer in advertising but eventually after the first use consumer realizes the real quality/ value of the product/ service in most cases and explores the fallacy of the claims made by the marketer in advertisements. This realization of fallacy hinders the customer from being loyal to that particular brand.
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