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

Author

Listed:
  • Hasan, Syed Akif
  • Subhani, Muhammad Imtiaz

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.

Suggested Citation

  • Hasan, Syed Akif & Subhani, Muhammad Imtiaz, 2011. "Effects of Deceptive Advertising on Consumer Loyalty in Telecommunication Industry of Pakistan," MPRA Paper 34756, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:34756
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    File URL: https://mpra.ub.uni-muenchen.de/34756/1/MPRA_paper_34756.pdf
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    References listed on IDEAS

    as
    1. Boush, David M & Friestad, Marian & Rose, Gregory M, 1994. " Adolescent Skepticism toward TV Advertising and Knowledge of Advertiser Tactics," Journal of Consumer Research, Oxford University Press, vol. 21(1), pages 165-175, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Advertising; Deceptive Advertising; Consumer Loyalty; Telecommunication;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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