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.