DECEPTIVE POINT-OF-SALE MARKETING TACTICS IMPACT ON CONSUMER PURCHASE INTENTIONS WITH AN ATTITUDE AS A MEDIATOR (original) (raw)
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Journal of Economic, Administrative and Legal Sciences Volume (4), Issue (7): 30 June 2020 P: 159 - 182, 2020
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Impact of Perceived Deception on Consumer Behaviour: The Case of Detergent Powder
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Advertising attempts to persuade potential customers to purchase or consume a product or service. Thus, advertising plays a very important role in forming consumer behaviour. But advertisements can be used as a means of deception also. Being misled by an advertisement, consumers may respond negatively to further advertising. This paper estimates the impact of exposure to deceptive advertising on consumption of the advertised product and its substitutes. This paper studies the market for washing products, in which deceptive advertising is rampant. Strengths of the paper include matching of specific advertisements to individual respondents based on their TV watching behaviour, quantification of the deceptiveness of ads based on explicit FTC guidelines for this product category, and various methods to control for targeting of ads. In reviewing the consumer behaviour literature and recent empirical work, a conceptual model of consumer behaviour was developed. A unique individuallevel data that includes consumption and television viewing has been assessed in this study. Respondents were asked to fill in questionnaire based on three types washing powders used by consumers. It is a repeated cross-sectional survey, in which, each wave is an independently drawn multistage stratified probability sample of females. Moreover, screenshots of these TV commercials were shown to help them in the recall. They were asked to report their view points on various questions regarding the purchase behaviour, their frequency of purchases on the bases of various attributes regarding the purchase decisions. Exposure to deceptive statements is then used to predict consumption, controlling for demographic factors and other variables used by marketers to target their ads. Using analysis, antecedent conditions of consumers' perceived deception and the behavioural effects of consumer perceived deception were explored. Implications for management and suggestions for further research are provided towards the end.