Abstract
Sellers and marketers use different strategies to maximise profits, focusing on personalised advertising experiences influencing customer behaviour. However, the advertising industry's varied approaches include unethical practices, such as deception, explored in this chapter. Through a two-part research study, the initial phase involved participants completing a survey. Findings indicated that consumer awareness of deceptive advertising can impact shopping habits. Follow-up interviews with 15 participants provided insights into how deception influenced their behaviour changes. The study, involving 284 individuals, revealed that consumers share negative experiences, potentially harming companies. Proposed implications based on the research include stricter oversight with legislative updates, promoting ethical advertising, redefining advertising literacy, and developing educational programs to address these issues.
TopIntroduction
Consumer culture changes over time; we live in a consumerist era, surrounded by technologies that boost sales. The internet has changed the perception of marketing and the implementation of marketing strategies. Marketing 4.0 has emerged, characterised by the interplay of several technologies that enable a better understanding of consumers (Dash et al., 2021). Marketing 4.0 is based on online and offline technologies to reach consumers; the exact definition is difficult to pin down, as it evolves constantly due to the constant development of technologies (Polívka & Dvorakova, 2022). Deception, knowingly transmitting misleading messages, poses conflicts (Xie et al., 2022) between self-interest and moral values. Two critical perspectives emerge the deceivers and the targets. Perspective-taking, the ability to understand others' viewpoints, is vital in shaping attitudes toward marketplace deception. Moral self-awareness becomes crucial, influencing ethical tolerance. Low moral self-awareness increases tolerance through perceived self-other overlap, while high moral self-awareness leads to distancing from deceptive acts. This study provides nuanced insights into consumers' ethical judgments in the complex landscape of marketplace deception.
Unfortunately, advertising techniques can mislead consumers and change their shopping habits. Misleading advertising cannot be considered a marketing trend. It can be part of a trend, consciously or unconsciously, in marketing and the advertising industry.
Misleading information is a constant problem in business ethics and permeates all marketing communications. Regulators pressure consumers to spot misleading ad information (Wilson et al., 2021). This chapter will investigate consumer knowledge of unethical advertising practices and their effects on customer behaviour and purchasing patterns. This will give unfavourable evidence about deceptive advertising techniques. Based on adverse effects, we want to find out how they affect consumers. We aim to determine if consumers share their negative experiences with the product and the brand with other customers and if they change their shopping habits because of negative experiences with products or brands. Gupta (2023) classifies consumers into two categories: sophisticated and naive. Sophisticated consumers update their beliefs about a product's quality based on price and advertising messages.
Key Terms in this Chapter
Big Data: Data users leave behind when using different apps connected to the Internet. Collecting these data in real time allows us to identify crucial user characteristics that can be used for customising marketing content and strategies. Marketing is only one possible way to use big data.
Blockchain: Used to transfer and track user data on the Internet in real-time in a non-dependent and secure channel, these data are decentralised. They are used together with Big Data technology. We can also use Blockchain technology for other purposes.
Greenwashing: A form of misleading advertising that gives consumers the impression that they positively impact the environment by using a product. The impact is non-existent or minimal and is portrayed as crucial and the main factor for purchase.
Advertising Literacy: A form of literacy that enables consumers to understand the content of advertisements and identify unfair advertising practices.
Unethical Advertising: Unethical advertising practices advertise a product or product feature in a controversial way to persuade a customer to buy it.
Marketing 4.0: We refer to marketing focusing on the individual consumer, leading to better sales results. Marketing 4.0 is based on several digital technologies.
Targeting: Targeting a specific consumer based on their interests and past shopping habits.