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The impact of deceptive advertising on Customer loyalty: A case of Telecommunication industry in Karachi, Pakistan

Author

Listed:
  • Iqbal, Saira
  • Siddiqui, Dr. Danish Ahmed

Abstract

This study examined the impact of deceptive advertising on customer loyalty in the telecommunication industry of Karachi, Pakistan. This research was quantitative in nature. The sample size was 250, questionnaires were distributed electronically and manually. Exploratory Factor Analysis (EFA) was used to analyze the data with the help of SPSS. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) using AMOS, conducted to ensure the model and testing the hypothesis. The outcome of the present study verifies that word of mouth has a strong significant influence on customer loyalty. Hence customer satisfaction and customer trust are causing word of mouth in a positive and significant way. So it shows that there is a positive and strongly significant influence of customer satisfaction and trust on customer loyalty with the mediation of word of mouth. On the other hand, deceptive ads are causing word of mouth in a negative way. Hence it is concluded that deceptive ads have a negative influence on customer loyalty with the mediation of word of mouth. This study suggested that in order to increase customer loyalty and build a long-term relationship with the customer's telecom companies should focus on accurate information and rendering the level of competitive services to their customers.

Suggested Citation

  • Iqbal, Saira & Siddiqui, Dr. Danish Ahmed, 2019. "The impact of deceptive advertising on Customer loyalty: A case of Telecommunication industry in Karachi, Pakistan," MPRA Paper 93038, University Library of Munich, Germany, revised 07 Apr 2019.
    • Handle: RePEc:pra:mprapa:93038
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    File URL: https://mpra.ub.uni-muenchen.de/93038/1/MPRA_paper_93038.pdf
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    References listed on IDEAS

    as
    1. Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    2. Syed Akif Hasan & Muhammad Imtiaz Subhani & Ana Mateen, 2011. "Effects of Deceptive Advertising on Consumer Loyalty in Telecommunication Industry of Pakistan," Information Management and Business Review, AMH International, vol. 3(5), pages 261-264.
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    Cited by:

    1. Ahmed Michail Awad Ahmed & Abdul Kadir Bin Othman, 2024. "The Effect of False Advertising on Consumer Online Purchase Behavior with the Mediating Effect of e-WOM: Consumers in Malaysia," Information Management and Business Review, AMH International, vol. 16(2), pages 115-128.
    2. Donato, Shane B. & Andres, Jemima Faye V. & Ang, Chin-chin A. & Collado, Jan Cyrel Joy J. & Infante, Rhiana Mashielle E. & Ibarra, John Michael C., 2024. "Expectation vs. Reality: Food Service, Price, and Promotion of a Fast-Food Restaurant," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 1498-1516, April.

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    More about this item

    Keywords

    Deceptive advertising; customer satisfaction; loyalty. word of mouth; customer trust.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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