Impact of Deceptive Advertising on Consumer

Buying Behavior
 Abstract

This study explains that impact of deceptive advertising on buying behavior of customer.
The data is collected through Questionnaires. 92% was received back among the 100%
questionnaires. Most of the study shows that there is no as such impact of advertising on
the buying behavior of customer, and there is no relationship between deceptive
advertising and the buying behavior of customer.

ii
 Table of Contents
Declaration .........................................................................Error! Bookmark not defined.

Dedication ..........................................................................Error! Bookmark not defined.

Abstract ............................................................................................................................... ii

Acknowledgement .............................................................Error! Bookmark not defined.

Chapter 1: Introduction to the Study................................................................................... 1

1.1 Introduction ................................................................................................................... 1

1.2 Background of the Study .............................................Error! Bookmark not defined.

1.3 Research Objectives/Hypothesis ................................................................................... 2

1.4 Scope of Study .............................................................................................................. 2

1.5 Limitations of Study ..................................................................................................... 3

1.6 Methodology and Methods ..........................................Error! Bookmark not defined.

1.7 Structure of the Thesis .................................................Error! Bookmark not defined.

Chapter 2:Literature Review ............................................................................................... 4

2.1 Introduction ................................................................................................................... 4

2.2 Deceptive Advertising .................................................Error! Bookmark not defined.

2.3 Consumer buying behavior ..........................................Error! Bookmark not defined.

2.4 Relationship between deceptive advertising and consumer buying behavior ..... Error!
Bookmark not defined.

2.5 Key findings from the review and knowledge gaps...................................................... 4

2.6 Hypothesis: ................................................................................................................... 6

2.7 Theoretical Framework ................................................Error! Bookmark not defined.

Chapter 3: Research Methodology.................................................................................... 10

3.1 Methodology ............................................................................................................... 10

Chapter 4: Data Analysis .................................................................................................. 13

4.1 Analysis and Results ................................................................................................... 13

4.2 Discussion ................................................................................................................... 23

Chapter 5: Conclusion and Recommendation................................................................... 24

5.1 Conclusions and Recommendations ........................................................................... 24

References ......................................................................................................................... 25

Questionnaire .................................................................................................................... 29
 List of Tables
Table 1: Is the advertisement completely accurate? ......................................................... 13
Table 2: Is the advertisement completely misleading? ..................................................... 14
Table 3: Is the advertisement completely truthful?........................................................... 14
Table 4: Is the advertisement completely deceptive? ....................................................... 15
Table 5: Is the advertisement completely factual? ............................................................ 15
Table 6: Is the advertisement completely distorted?......................................................... 16
Table 7: Does the advertisement completely describes the product? ............................... 17
Table 8: Does the advertisement deceptively exaggerates the product? ........................... 17
Table 9: If this product was available in market I would intend to buy it? ...................... 18
Table 10: I am strongly for buying this product? ............................................................. 18
Table 11: I am strongly against buying this product? ....................................................... 19
Table 12: If you don’t see the product in any of the stores in your neighborhood, would
you buy it?......................................................................................................................... 21
Table 13: If you are exposed to the product in any of the stores in your neighborhood,
would you buy it?.............................................................................................................. 21
Table 14: If you have used the product would you buy it again? ..................................... 22
Chapter 1: Introduction to the Study

1.1 Introduction

In most of countries, expenditures are higher than revenues. In order to fill that gap,

Government can increase revenues by increasing tax rates, printing money and borrowing

from external or internal sources. Increased tax rates tend to increase prices of goods and

services. Money printing has also some serious disadvantages. The most serious

disadvantage among all of them is inflation. So government has no other option but to

borrow.

External debt is one of the most important sources of capital inflow to cover budget

deficit. External debt is that part of total public debt which is taken from Foreign

Governments or International Financial Institutions. Pakistan is facing very serious debt

problems. The burden of repayment of loan along with interest has increased over a

period of time. In 1970, Pakistan’s external debt was $3.4 billion which increased to

$9.93 billion in 1980. From 1991 to 1999, it increased to $32.89 billion. In 2010, it

reached to $54.60 billion. By the end of 2014 Pakistan’s external debt was $64.33 billion

(Government of Pakistan & World Bank figures) .The above figures is very high in

comparison with low income countries.

Gross National Income (GNI) per capita is the market value of all goods and services

produced by the residents of a country divided by midyear population. It acts as a proxy

to economic prosperity of a country. It contemplates the usual earnings of every

individual of a country. Knowing about country’s Gross National Income (GNI) per-

capita means understanding about the standard of living of individual of country. Gross

1
National Income (GNI) per-capita could have a relationship with various variables but the

focus of this study is on its relationship with external debt.

However strategy makers and academicians do not have any consent on the relationship

between Gross National Income (GNI) per capita and external debt. Geiger (1990),

Chowdhury (1994), Karagol (1999), Were (2001), Kalima (2002), Pattillo et al. (2004),

and Schclarek (2004) study the role of External borrowing in economic growth of various

countries. The results of these Studies explain scattered findings differed from country to

country. Hence concluded that external debt might have a long run relationship with

economic growth and it might increase economic growth of a country if it is kept in a

reasonable level. On the other hand, for some countries, higher public debt especially

public external debt could have a negative impact on Gross National Income (GNI) per

capita and economic growth. Higher external debt may have debt overhung effect on

country.

Therefore it is very much necessary to find out relationship between external debt and

Gross National Income (GNI) per-capita of Pakistan so that stakeholders may come to

know about the relationship of external debt with Gross National Income (GNI) per-

capita in Pakistan.

1.2 Research Objectives

The objective of this study is to find out the relationship between external debt and Gross
National Income (GNI) per-capita of Pakistan for the period of 1970 to 2011.

1.3 Importance of Study

The results of this study are vital for policy makers, politicians and general public. First

of all this help the policy makers to know about the relationship between external debt

2
and Gross National Income (GNI) per-capita. On the basis of which they would be able to

make effective policies regarding external debt.

Secondly, these results help the politicians to either support or oppose policies which are

in favor of/against external debt.

Thirdly, public including media and public advocates can also use these results either to

support or oppose government policies regarding increased/decreased debt to GDP ratio.

1.4 Scheme of study

This study consists of five chapters. Chapter 1 includes introduction, objective and

significance of study. Chapter 2 includes review of literature. Chapter 3 focuses on

methodology and data sources. Chapter 4 consists of analysis and finding. Finally chapter

5 includes the conclusion and recommendation.

3
Chapter 2: Literature Review

2.1 Theoretical framework

Past literature on relationship between External Debt and Gross National Income (GNI)

has diverse findings. Most of the researchers (Rahim M & Bashar M (2012), Moki M

(2012), Frimpong M & Abayie O (2006), Iya I. B, Gabdo, Y and Aminu, U (2013),

Cooray N and Kumara H (2013) ) have found that there is a negative relation between

external debt and Gross National Income (GNI). They argue that higher External Debt

intimidates the ability of a country to pay back its loans, as a result of which lenders

becomes unwilling to advance loans. It also discourages Gross Gross National Income

(GNI) growth by discouraging potential investors to invest in the country. However some

researchers (Umara A & Musa S (2013), Babu O, Kiprop S & Kalio M (2014),Azam M,

Emirullah C, Prabhakar A and Khan Q (2013), Peng S & Ling Ng Y (2015),Kumar M

and Woo J (2010),Iqbal Z and Zahid G M (1998) ) have observed a positive relation

between External Debt and Gross National Income (GNI). They argue that External Debt

accelerates the growth of Gross National Income (GNI) by increasing country

productivity. As a result of higher output, the ability of country to repay its debt increase

automatically and hence there is no chance debt overhung effect.

2.2 External Debt and Gross National Income per capita: positive relation

Rahim M & Bashar M (2012) analyze the relationship between External Debt and Gross

Domestic Product of Bangladesh for the period of 1972-2010, using econometric

techniques of time series. They find that the correlation between external debt and gross

4
domestic product is positive. They also confirm that both the variables are in a long run

relationship and both of them Granger cause each other. Moki M (2012) also observes a

significant positive relation between National Debt and Economic Growth of African

countries by investigating the impact of National Debt on Economic Growth of African

countries for the period 1980-2010, using Multiple Regression Analysis.

Frimpong M & Abayie O (2006) analyze the relationship between External Debt and

Economic Growth of Ghana for the period 1970-2009. They use Augmented Dickey

Fuller (ADF) test, Co integration test and Vector Error Correction model (VECM) for

finding out short and long run relationships between External Debt and Economic

Growth of Ghana. They discover that External Debt has a positive impact on Gross

Domestic Product growth of Ghana. However the impact of debt servicing on Gross

Domestic Product growth is negative. The study of Iya I. B, Gabdo, Y and Aminu, U

(2013), on the relationship between External Debt and Economic Growth of Nigeria for

the period 1992 to 2012 further supports the theory of positive relation between External

Debt and Gross Domestic Product. It employed Ordinary Least Square (OLS),

Stationarity test, Co integration technique and Error Correction Model (ECM) for

estimating data. The major finding is that there is a positive relationship between external

debt and economic growth of Nigeria and hence the increase in per capita Gross

Domestic Product of the country is because of the level of External Debt in Nigeria.

Mencinger J, Aristovnik A and Verbic M (2014) use growth model amplified with a debt

variable in order to find out the impact of high level of debt on the Economic Growth of

member countries of European Union. The data was taken for the period 1995-2010.

They notice non linear positive relationship between Public Debt ratio and Per Capita

5
increase. Cooray N and Kumara H (2013) study the relation between Debt and Economic

Growth of Srilanka for the period starting from 1960 and ends at 2010. They apply time

series analysis in order to observe the relationship between the two variables. They

observe that the threshold level for Debt in Srilanka is 59.42. If the debt is in the limit, it

exerts a positive influence on economic growth. However if the debt to GDP ratio is

above 59.42, then economic growth is negatively affected by debt. The study of kumari p

(1996), also support the theory of positive association between External Debt and Gross

Domestic Product. She analyzes the importance of External Debt for higher Economic

Growth in India for the period 1967-1990. The results of econometric techniques showed

that External Debt does contribute toward Economic Growth but without domestic efforts

and its efficient use, it would not have significant positive impact on economic growth.

2.3 External Debt and Gross National Income per capita: negative relation.

There are some research papers which have confirmed a strong negative relation between

External Debt and Gross Domestic Product. Umara A & Musa S (2013) exolore the

impact of external and domestic debt on economic growth of Nigeria for the period 1970-

2010, using ordinary least square (OLS), Granger Causality and Co integration

techniques. They conclude that External Debt has a negative impact on Economic

Growth of Nigeria while Domestic Debt has a positive impact on Economic Growth of

Nigeria.

Babu O, Kiprop S & Kalio M (2014) investigate the impact of External Debt on

Economic Growth of East African Countries. They use yearly data from 1970-2010.

After running panel fixed effect model, they conclude that External Debt negatively

6
affect Gross Domestic Product per capita in the East African Countries. They suggest that

External Debt must be reduced to promote Economic Growth in East African Countries.

According to Azam M, Emirullah C, Prabhakar A and Khan Q (2013), External debt is a

burden on economy. They conduct a study on the relationship between External Debt and

Economic Growth of Indonesia. They used ordinary least square method for analysis.

They found External Debt is negatively affecting Economic Growth of Indonesia for the

period 1970-2008 and thus confirming that External Debt is a burden on Indonesian

economy. They suggested that External Debt needs to be controlled.

Ezeabasili V, Isu H & Mojekwu J (2011) conclude that External Debt and Economic

Growth move together in long run but in opposite direction. They study the link amid

External Debt and Economic Growth of Nigeria for the period 1975-2006. They use

Johenson Co integration test, Vector Error Correction Model (VECM) and Granger

Causality test for analysis of data. They confirm the existence of one co integration

equation, showing long term relation but the relation was proved to be negative. However

interdependency was found between external debt and economic growth of Nigeria.

Moreover Peng S & Ling Ng Y (2015) also examines the impact of public debt on the

Economic Growth of Malaysia for the period 1991-2013, in order to find out its

contribution toward Economic Growth. They observe that public debt is negatively

affecting Gross Domestic Product’s growth. The rest of variables which include budget

deficit, consumptions and servicing of external debt, are also found as decreasing

function of Gross Domestic Product.

The impact of external debt on the accumulation of physical capital as well as its impact

on the growth of total factor productiveness is negative, that’s why its relation with

7
Economic Growth is also negative (Easterly W (2003)). According to Kumar M and Woo

J (2010) there is an indirect relation between Debt and Economic Growth and thus adding

more to the validity of the theory of negative relation between External Debt and

Economic Growth.

Iqbal Z and Zahid G M (1998) examine the effect of major macro-economic variables on
the growth of Gross Domestic Product of Pakistan for the period 1960-1997. They use
multiple regression tests for the analysis of data. They note that Increase in the
accumulation of physical capital and Liberalization has a positive impact on Economic
Growth of Pakistan. However External Debt has a significant negative impact on
Economic Growth of Pakistan. Akhtar N (2010) also analyzes the impact of Public Debt
on Economic Growth and Investment of Pakistan for the period of 1972-2009. He uses
Auto Regressive Distributed Lag (ARDL) approach of Co integration. The findings
confirm that both external and domestic debt has a negative relation with per capita Gross
Domestic Product and Investment mainly due to inefficient usage of debt in Pakistan. The
negative relation between Public Debt and Economic Growth of Pakistan both in short
and long run has also been confirmed by Ali R & Mustafa U (2008), using data for the
period of 1970 to 2010.

2.4 Findings from literature review

Summing up, the past work on this topic reveals that External Debt could either have a

positive or a negative impact on Gross National Income (GNI). There is lack of

consensus on the exact relationship between External Debt and Gross National Income

(GNI). Moreover the literature shows that there is a scarce work and lack of consent on

relationship between External Debt and Gross National Income (GNI) of developing

countries like Pakistan and thus highlighting the importance of this study. In most of

studies the relationship is checked through Multiple Regression, Johnson Co integration

and Vector Error Correction Model (VECM) but this study also uses Granger causality

8
test and Engle Granger tests apart from Vector Error Correction Model (VECM) and

Augmented Dickey Fuller (ADF) test. Contrary to the past work, the focus of this study is

on the bivariate analysis of External Debt and Gross National Income of Pakistan.

2.5 Research Questions:

 Is there any long run relationship between External Debt (ED) and Gross National

Income (GNI) per-capita of Pakistan?

 Whether causality runs from Gross National Income (GNI) per-capita to External

Debt (ED) or from External Debt (ED) to Gross National Income (GNI) per-

capita?

 Whether short run relationship quickly convert into long run relationship or not?

2.6 Research Hypothesis:

 H0 = There is no long run relationship between External Debt and Gross National

Income (GNI) per-capita of Pakistan.

 H1 = There is long run relationship between External Debt and Gross National

Income (GNI) per-capita of Pakistan.

It is expected that both the variables External Debt (ED) and Gross National Income

(GNI) of Pakistan are in a long run relationship which means they move together in the

long run.

9
Chapter 3: Research Methodology

3.1 Data and Methodology

This study uses time series annual data covering the time span of 1970-2011. The study is

focusing on annual data because Hakkio and Rush (1991) argue that long run relationship

is better explained through long span of data. Furthermore logarithmic form of data is

used for better results. The data consist of variables ie Gross National Income (GNI) per

capita and External Debt. Gross National Income (GNI) per capita is the market value of

all goods and services produced by the residents of a country divided by midyear

population. External debt is that part of total public debt which is taken from Foreign

Governments or International Financial Institutions. The data has been taken from World

Development index (WDI), Index Mundi and the official website of State Bank of

Pakistan.

In the examination of relationship between External Debt and Gross National Income, the

study uses various models of time series econometrics. These models include co-

integration and error correction model as used by Rahim M & Bashar M (2012) for the

purpose of examining relationship between external debt and Gross domestic product of

Bangladesh. The analysis phase starts with the assessment of data for stationarity through

Augmented Dickey-Fuller (ADF) test. The hypotheses of Augmented Dickey-Fuller

(ADF) test are as under.

H0 = unit rout exist

H1 = unit rout does not exist

10
H0 will be accepted if probability (P) value is greater than 5% and H1 will be accepted if

probability (P) value is less than 5%. Both the series needs to be non stationary at level

and stationary at same integrating order. Once the data proves to be non stationary at

level and stationary at same difference then the next step is to run Granger Causality test.

The purpose of Granger Causality test is to observe which variable causes which and

which variable should be taken as independent and which as dependant. According to

Engle Granger (1987), at least one-directional-causality must exist between two series if

they are non stationary at level but become stationary at first difference. So if Gross

National Income (GNI) per capita granger cause External debt, External debt will be

taken as dependant variable and if external debt Granger cause Gross National Income

(GNI) per capita, then Gross National Income (GNI) per capita will be taken as

dependant while running directional regression.

The next step is to run Bi variate test of co integration developed by Engle Granger

(1987) as used by Paul, S., & Bhattacharya, R. N. (2004). the first step of Engle Granger

test is to run directional regression and the second step is to generate a new series as

ut=resid (residual) and then run Augmented Dickey-Fuller (ADF) test. If the residuals

are stationary at level, there will be a long run relationship between the two series. If the

variables are fond in a long run relationship then Error Correction Model (ECM) is used

for observing short term dynamic of the two series. The purpose of Error Correction

Model (ECM) in the underlying study is notice the conversion of short term relationship

into long run. The Error Correction Model (ECM) is explained as under.

D(LNED) C D(LNGNI) UT(-1)

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Where D(LNED) is the first difference of natural log of external debt, C is the error

correction coefficient, D(LNGNI) is the first difference of natural log of Gross National

Income (GNI) per capita and UT(-1) is the error term at lag. If the coefficient error term

Ut(-1) is negative and its probability is also negative then short run relationship is quickly

converting in long run relationship.

12
Chapter 4: Data Analysis

4.1 Analysis and Results

In this chapter data has been analyzed using SPSS 16.0 software. The study included 45
male and 48 female respondents. Similar questions were asked from both the genders
while showing them advertisements of male and female products. Men showed a
judgmental behavior while women were confused between things. A five likert scale was
used using two variables (male and female). After the interpretation of the results, a
discussion was done to relate the literature and this study. The literature and my study
agreed on a few points while there were matters in which the results came totally
opposite.

Table 1:Is the advertisement completely accurate?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 4 10 6 15 9 45

percentage 8.88 22.22 13.33 33.33 20 100

Female 3 8 13 18 6 48

percentage 4.25 16.66 27.08 37.5 12.5 100

The above table ahows that most of the male re agreed (15) with the percentage of 33.33,
while on the other hand most of the female also agreed on this with the percentage of
37.5.

13
Table 2: Is the advertisement completely misleading?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 2 22 9 5 6 45

percentage 4.45 50 20.45 11.36 13.6 100

Female 3 28 10 4 2 48

percentage 6.25 58.33 20.83 8.33 4.16 100

The above table shows that most of the male are disagreed (22) with the percentage of 50,
while on the other hand most of the female also disagreed on this with the percentage of
58.33.

Table 3: Is the advertisement completely truthful?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 7 5 14 15 3 45

percentage 15.9 11.36 31.81 34.09 6.81 100

Female 3 15 15 12 3 48

percentage 6.25 31.25 31.25 25 6.25 100

14
The above table shows that most of the male are agreed (15) with the percentage of
34.09, while on the other hand most of the females are neutral(15) in their decision on
this with the percentage of 31.25

Table 4: Is the advertisement completely deceptive?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 6 13 16 6 3 45

percentage 13.33 28.88 35.55 13.33 8.88 100

Female 2 18 22 3 3 48

percentage 4.16 37.5 45.83 6.25 6.25 100

The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

Table 5: Is the advertisement completely factual?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 5 3 15 19 3 45

percentage 8.88 8.88 33.33 22.22 6.66 100

15
Female 2 9 19 17 1 48

percentage 4.16 18.75 39.58 35.41 2.08 100

The above table shows that most of the male are neutral in their decision (15) with the
percentage of 33.33, while on the other hand most of the females are neutral(19) in their
decision on this with the percentage of 39.58

Table 6: Is the advertisement completely distorted?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 5 18 14 7 1 45

percentage 11.11 33.11 31.11 15.55 2.22 100

Female 6 18 13 9 2 48

percentage 12.5 37.5 27.08 18.75 4.16 100

The above table shows that most of the male are disagree in their decision (18) with the
percentage of 33.11, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

16
Table 7: Does the advertisement completely describes the product?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 4 10 11 9 11 45

percentage 8.88 22.22 24.44 20 24.44 100

Female 2 10 12 20 4 48

percentage 4.16 20.83 25 41.66 8.33 100

The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

Table 8: Does the advertisement deceptively exaggerates the product?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 4 11 10 13 7 45

percentage 8.88 24.44 22.22 28.88 15.55 100

Female 2 8 19 13 6 48

percentage 4.16 16.66 39.58 27.08 12.5 100

17
The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

Table 9: If this product was available in market I would intend to buy it?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 6 3 3 21 12 45

percentage 13.33 6.66 6.66 46.66 26.66 100

Female 2 9 7 27 3 48

percentage 4.16 18.75 14.58 56.25 6.25 100

The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

Table 10:I am strongly for buying this product?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

18
Male 1 8 9 19 8 45

Percentage 2.22 17.77 20 42.22 17.77 100

Female 3 10 20 11 4 48

Percentage 6.25 20.83 41.66 22.91 8.33 100

The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

Table 11: I am strongly against buying this product?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 10 22 8 4 1 45

Percentage 22.22 48.88 17.77 8.88 2.22 100

Female 2 30 9 3 4 48

Percentage 4.16 62.5 18.75 6.25 8.33 100

19
The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

20
Table 12: If you don’t see the product in any of the stores in your neighborhood,
would you buy it?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 3 12 9 16 5 45

percentage 6.66 26.66 20 35.55 11.11 100

Female 6 9 14 16 3 48

percentage 12.5 18.75 29.16 33.33 6.25 100

The above table shows that most of the male are neutral in their decision (16) with the
percentage of 35.55, while on the other hand most of the females are neutral(22) in their
decision on this with the percentage of 45.83

Table 13: If you are exposed to the product in any of the stores in your
neighborhood, would you buy it?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 2 5 10 24 4 45

percentage 4.44 11.11 22.22 53.33 8.88 100

21
Female 2 11 8 24 3 48

percentage 4.16 22.91 16.66 50 6.25 100

The above table shows that most of the male are agreedl in their decision (24) with the
percentage of 50, while on the other hand most of the females are agreed (24) in their
decision on this with the percentage of 50

Table 14: If you have used the product would you buy it again?

Gender Strongly Disagree Neutral Agree Strongly Total

disagree Agree

Male 0 5 10 19 11 45

Percentage 0 11.11 22.22 42.22 24.44 100

Female 4 3 12 22 7 48

Percentage 8.33 6.25 25 45.83 14.58 100

The above table shows that most of the male are agreed (19) with the percentage of 4.22,
while on the other hand most of the females are agreed(22) in their decision on this with
the percentage of 45.83

22
4.2Discussion

According to the literature many countries are affected significantly by the impact of
advertising. The impact may be positive or negative, this depends on the customer. There
is no as such relation between these two. According to the literature the problem is
arising because people are not clear about the advertising is deceptive or not. The
previous studies also shows that deceptive advertising was not cleared. According to my
research I could not find any relation between these two, because the study is basically
about the impact of advertising on the buying behavior of customer and their buying
intentions. The financial factors are not included in this. Literature also mentioned that
repetitive exposure of the deceptive advertisements to the consumers was more
influential than shown only while in this research five different advertisements were
shown to the respondents but only once so they were not influenced. But it is possible
that the repetitive exposure might have influenced them. So every study shows different
result. It depends on various factors such as the culture, perception of consumers and
there definition of deception. Also the quantity of deceptive content also plays a vital
role.

23
Chapter 5: Conclusion and Recommendation

5.1 Conclusions and Recommendations

After the analysis I have come to know that printed advertisements are completely
accurate and people who watch and read them (both male and female respondents) are
satisfied with the product. The advertisements are not completely misleading for both
genders. Males believe that the advertisements are completely truthful while females
totally disagree on this point. Both males and females are unable to decide whether the
advertisements are completely deceptive or not. Males agree that the advertisements are
completely factual while females are unable to decide this. But the interesting thing is
that both genders disagree that the advertisements are completely distorted. Females
agree while males strongly agree that the advertisements completely describe the product.
Males gave their opinion that the advertisements completely exaggerate the product while
females are unable to judge this factor. Both agree that they intend to buy the product if it
is available in market. Males strongly want to buy the product while females remain
undecided. Both say that if the product is not available in the neighborhood stores, they
still agree on buying it. But if they are exposed to the product in their neighborhood, they
will definitely buy it. If used once, both males and females will buy it again.

So from the findings of our research, I have come to this conclusion that deceptive
advertising has no impact on buying behavior of consumers regardless of gender whether
its males or females. I do not have sufficient evidence to reject null hypothesis.

It is recommended to the advertisers that they should not use too much deceptive
measures in the advertisements, as it may affect them in the longer run. This study
indicated that there is no impact of deceptive advertising on the buying behavior of
consumers but the consumers are more concerned about the features and quality of
products so the companies should focus more on this factor rather than increasing the
advertising expenditure. Companies are running advertising campaigns continuously just
to create awareness of their product and to keep it in the minds of people so
advertisements should not be completely deceptive because this may offend the
consumer.

24
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 Questionnaire

This Questionnaire is an effort to find out the impact of deceptive advertising (having
false or misleading claims) on buying behavior (intention to buy) of male and female
consumers.

Please take a look at these print advertisements and after choosing the relevant
advertisement that you find false or misleading respond accordingly.

 Gender :
 Age:
Deceptive Marketing Questions
Strongly disagree Neutral agree Strongly
disagree agree
 Is the above mentioned advertisement’s content
Completely Accurate
 Is the above mentioned advertisement’s content
Completely Misleading
 Is the above mentioned advertisement’s content
Completely Truthful
 Is the above mentioned advertisement’s content
Completely Deceptive
 Is the above mentioned advertisement’s content
Completely Factual
 Is the above mentioned advertisement’s content
Completely Distorted
 Does the above mentioned ad completely describes
the product
 Does the above advertisement deceptively
exaggerates the performance of the product

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 Purchase intentions Questions

Strongly disagree Neutral agree Strongly

disagree agree
 If this product was available in market I would
intend to buy it
 I am strongly for buying this product
 I am strongly against buying this product
 If you don’t see the product in any of the stores
in your neighborhood, would you buy it?
 If you are exposed to the product in any of the
stores in your neighborhood, would you buy it?
 If you have used the product would you buy it
again?

30