The Impact of Deceptive Advertising on Customer Loyalty: A case of Telecommunication Industry in Karachi, Pakistan

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.