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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

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THE INFLUENCE OF DIGITAL FALSE ADVERTISING ON CONSUMER


BEHAVIOR OF SELECTED GRADE 12 STUDENTS IN SAN PEDRO
COLLEGE OF BUSINESS ADMINISTRATION

A Research Presented to the


Senior High School Department of
San Pedro College of Business Administration
San Pedro City, Laguna

In Partial Fulfilment of the Requirements for


Accountancy, Business, and Management Strand

BERSABA, Nicole C.

MARASIGAN, Anne Mae P.

QUILONDRINO, Edgar Gian C.

SOLOMON, Mike H.

May 2020

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Acknowledgement

First and foremost, thanks and praises to God, the Almighty, for His guidance and
blessings on the researcher's journey to successfully complete study.

We would like to express our heartfelt gratitude to our research advisor, Mr. Omar
Jacalne, for allowing us to conduct this study and for providing guidance during the process.
Working and studying under his direction was a great honor and privilege. His determination
and keen interest in assisting his student were primarily responsible for completing our work.

We are indebted to our parents for their prayers, devotion, and sacrifices, as well as for
allowing us to plan for our future. We'd like to express our gratitude for their prompt
understanding. We would never have been able to achieve this level of success without them.

Finally, we would like to express our gratitude to all of the respondents who completed
our surveys; without your assistance and cooperation, we would not be able to complete our
work. Thank you all for your unwavering support!

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Table of Contents

Title Page .........................................................................................................................

Acknowledgement ...........................................................................................................

Approval Letter ................................................................................................................

Table of Contents .............................................................................................................

Chapter 1: The Problem and Its Background

Background of the Study ...........................................................................................................6

Statement of the Problem............................................................................................................9

Objectives ..................................................................................................................................10

Hypothesis .................................................................................................................................10

Research Design ........................................................................................................................11

Scope and Limitations ...............................................................................................................11

Significance of the Study............................................................................................................12

Definition of Terms .................................................................................................................. 13

Chapter 2: Review of Related Literatures and Studies

Related Literature (Foreign).......................................................................................................14

Related Literature (Local)...........................................................................................................16

Related Studies (Foreign)...........................................................................................................17

Related Studies (Local) ..............................................................................................................22

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Synthesis ....................................................................................................................................24

Chapter 3: Methodology

Research Design ........................................................................................................................25

Study Area..................................................................................................................................26

Procedure 1.................................................................................................................................26

Procedure 2.................................................................................................................................27

Procedure 3.................................................................................................................................27

Sample Population .....................................................................................................................28

Data Gathering Procedure...........................................................................................................29

Statistical Treatment...................................................................................................................30

Chapter 4: Presentation, Analysis, and Interpretation of Data

Presentation of Data ...................................................................................................................33

Analysis and Interpretation ........................................................................................................41

Chapter 5: Summary, Conclusions, and Recommendations

Summary ....................................................................................................................................47

Conclusion .................................................................................................................................50

Recommendation .......................................................................................................................50

Cited References ........................................................................................................................

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Abstract

The impact of digital false advertising on consumer behavior is examined in this


research. Its aim is to learn about the different forms of digital false advertising that influence
consumer behavior, as well as how digital false advertising affects consumer behavior. As a
result, the impact of digital false advertising on consumer behavior demonstrates that
consumers are affected by ads when they watch them. It's also widely agreed that deciding
whether or not the ads are false is easy. Consumers consider price, accuracy, consistency, and
ingredients before buying a product, according to the effect of digital false advertising on
consumer behavior in terms of the factors that influence respondents to buy a product and
believe in advertisements. According to the results, false advertising also causes financial
damage. Data was obtained from a sample of 80 Grade 12 students at San Pedro College of
Business Administration who were chosen at random. Structured questions were used because
they help in the collection of additional information. The researchers used the weighted mean
and z-test formulas to interpret and analyze the data. The results will be shown using tables,
statistics, and graphs. The null hypothesis was dismissed after the researchers used the z-test
formula to test the hypothesis. According to the findings, digital false advertising has a major
impact on consumer behavior among Grade 12 Senior High School students at San Pedro
College of Business Administration.

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CHAPTER 1

The Problem and Its Background

Background of the study

The most popular way of telling potential customers about a product is through

advertising (Kariyawasam and Wigley, 2017). Advertising is used to help companies prosper as

well as impact customer behavior and purchase decisions. The whole transformation brought

about by information technology has a significant effect on people's everyday lives. Because of

its unique characteristics of accessibility, interactivity, and personalization, the Internet has

evolved enormously in terms of both applications and users. In terms of industry, the Internet

has revolutionized the way we conduct ourselves. It enables suppliers to provide an infinite

variety of goods and services to all customers worldwide at any time. The Internet has become

a successful advertising medium (Silk et al., 2010). Several businesses have turned to the

Internet to sell their goods and services, and the Internet is widely regarded as the world's most

important direct marketing medium (Faber et al., 2004; Ko et al., 2004; Korgaonkar and Wolin,

2002). Consumers now have more say about how they access knowledge about goods and

services thanks to the Internet. Consumers are the ones that determine what, where, when, and

how much commercial content they choose to access online, and there are many factors that

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lead to this pull (Korgaonkar and Wolin, 2002). Advertisers are constantly tracking people's

online activities and using the data to display them individually tailored ads.

Because of its widespread influence, advertising has evolved into a means of

communication and a powerful tool for promoting services and goods for any company in any

market. The main goal of an advertising is to attract customers' interest, create a strong picture

of the product in their minds, and provide facts to assist them in making a purchasing decision.

Because of its high visibility, advertising has a greater effect on viewers' minds than other

marketing methods (Katke, 2017). Advertisement is successful in raising brand awareness and

encouraging positive attitudes among consumers (Briggs & Hollis, 1997). Online advertising

establishes a cost-effective and ongoing partnership with customers by allowing them to learn

about products and services whenever and wherever they choose, with the intent to buy or

rebuy (J Suresh Reddy, 2013). With the help of advertising on the internet, you can compare a

wide range of goods and services (VikasBondar, 2010). According to recent research, the

internet has risen to prominence as a domain for sales medium. Online advertising is playing an

increasingly important role in transforming consumer buying habits and tastes, as well as

introducing new ways to purchase goods (V.Kumar & Denish Shah, 2014). Current allegations

of deceptive ads center on exploiting consumers; in many cases, the falsehoods are difficult to

detect (Aslam, 2014).

When marketers engage in deceptive or false ads, customers' choices are influenced

because they are persuaded unfairly to believe in the advertisers' advertisements, which

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influences their decision. Consumers are either compelled to buy products at a higher price or

of lower quality than they desired, or to purchase the incorrect product or service, as a result of

deceptive advertisements (Kariyawasam and Wigley, 2017). Consumers' rights are violated

when ads claim that a product or service has special qualities. Consumers are often

manipulated, making them more insecure and less likely to make reasonable decisions.

Advertising laws have made the use of deceptive or misleading advertising illegal in most

jurisdictions. It's against the law to misrepresent a product's quality or specifications related to

its structure, manufacture, price, or origin. The word "false" applies to a factual

misrepresentation. False information will lead to an unacceptable number of people making bad

decisions based on it (Doborji andHamed, 2016). Consumers are persuaded to purchase a

product because it is advertised as the best, rather than because it is the best of the alternatives.

Many consumers, on the other hand, can detect patterns of imitation in a product's features as

compared to other similar products, and they perceive them as deceptive. Consumers are likely

to suffer emotional and financial damages as a result of deceptive or misleading advertisements

(Sheehan, 2013). They make emotional and mental decisions about goods and services based

on deceptive advertising. Consumers have limited money, and when they purchase goods based

on deceptive ads, they lose those resources. When people are powerless, lonely, and have low

self-esteem, they suffer mental, physical, and medical losses (Gensler et al., 2013; Weber,

2015).

There are several ads available on almost all outlets where customers can view them.

Consumer behavior has been influenced by several deceptive and fraudulent ads. When

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consumers come across misleading ads, they become more cautious (Lamabadusuriya 2014).

When they consume advertising for goods and services, they are subjected to several false or

misleading statements. If consumers find that companies are not being honest or dishonest in

their ads, they are likely to leave the brands to which they are loyal. This helps to understand

why businesses with true ads still have a large market share. According to the results of an

Emirati professor report on misleading advertising, misleading advertisements impact or

influence the consumer's purchasing behaviour. Their findings indicate that deceptive and fake

advertising alters consumer behaviour by making them distrust all forms of advertising,

including legitimate ones (Kariyawasam and Wigley, 2017). They must go through a lengthy

customer buying process in which they must validate details before deciding whether or not to

purchase the service or product.

Statement of the Problem

1. What is the demographic profile of the students, in terms of;

1.1 Age

1.2 Gender

2. What type of online advertising influence the consumer's decision?

2.1 Banner Advertising

2.2 Video Advertising

2.3 Social Media Advertising

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3. How can consumers recognize false claims when making purchase decisions?

4. What is the possible effect that influence and makes the consumer vulnerable when an

advertisement is assumed to be real when it is actually false?

Objectives

Generally, this study aimed to know how false digital advertisements influence the consumer’s

behavior. To further address this topic, here are the other objectives that will be discussed such

as:

1. To know the demographic profile of the respondents.

2. To find out what type of digital false advertising influence the consumer’s behavior.

3. To know the influence of digital false advertising on consumer’s behavior.

Hypothesis

Ho. There is no significant influence in digital false advertising on consumer behavior of grade

12 senior high school of san pedro college of business administration.

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Research design

Deceptive Ads

False Common
Misleading
Advertisement Consumer
Ads
Behavior

Incorrect
Interpretation

Figure 1. Research Design of the Study on Influence of Digital False Advertising on

Consumers behavior

Scope and Limitations

This study attempts to know and is primarily focused on the influence of digital false

advertising on consumer’s behavior of selected Grade 12 students in San Pedro College of

Business Administration. This study will be conducted via online survey through the terms of

Google Form. The researchers limited the respondents by selecting 100 online consumers in

Grade 12 students in San Pedro College of Business Administration. They will be involved in

the provision of the information to the questionnaires requiring answers and comprehensive

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answers to the said study, The Influence of Digital False Advertising on Consumer Behavior of

Grade 12 Students in San Pedro College of Business Administration.

Significance of the Study

The result of the study will benefit the following different group of people:

Respondents. This study will help to have an insight on the influence of false digital

advertisement toward consumer behavior and will serve as an eye opener and give us

realization that digital advertisement can fool our mind to make us believe that the product has

a good quality.

Consumers. This study can serve as guide in decision making towards purchasing.

Seller and Future Sellers. This study will help the sellers to understand that possible impact

of false digital advertisement toward consumers. This study can advise them to have an

advertisement in a best possible way.

Future Researcher. This study can be used as their reference data in conducting new research

and also serves as their basis that will give them a background or an overview through the rest

of the study.

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Definition of Terms

Advertiser. A person or organization who pays for the placement of an advert.

Advertisements. Are messages paid for by those who send them and are intended to inform or

influence people who receive them.

Advertising. A means of communication with the users of a product or service. 

Consumer. a person (or group) who pays to consume the goods and or services produced by a

seller.

Deceptive Advertising. Any advertising or promotion that misrepresents the nature,

characteristics, qualities or geographic origin of goods, services or commercial activities"

(Lanham Act).

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CHAPTER 2

Review of Related Literatures and Studies

This chapter presents empirical literature on influence of digital false advertising on

consumer’s behavior. The review of related literature and studies was conduct by the following

objectives of this study; to know the demographic profile of the respondents, to find out what

type of digital false advertising influence the consumer’s behavior, to know the influence of

digital false advertising on consumer’s behavior. This provides an overview of the literature

that informs the research and that has implications for the findings. To obtain a wider view of

the study, a review of related literature and studies will be conducted. Books as well as

published and unpublished research, dissertations and the use of internet are included in this

review. These materials are in one way or another related to the present study.

Related Literatures (Foreign)

Consumers are faced with a very large numbers of advertisements every day in different

media. This makes the job of the policy makers very difficult to judge the misleading nature of

all such messages. The task can be made simpler if such questions are reserved only for critical

case, the majority of the work should concern itself not with the questions whether an

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advertisement does mislead, but whether it has the capacity to mislead (Preston, 1977). When

consumers believe and advertisement to be true when is actually false, consumers may be

“harmed” (Attas, 1999). According to a Millward Brown Interactive study from1997, "online

advertising using banners has tremendous communications strength." They claimed the study

proved that “banners can affect traditional marketing indicators of advertisement identification,

brand perception, brand perceptions, and buying intent, all from a single exposure,” as they put

it. Individuals prefer their beliefs to be true, and if consumer is misled by advertisement, then

the consumer may be claims and inconspicuous claims lead to s significantly higher levels of

false beliefs (e.g., lack of side effects, low price and speed of relief) than did the true or no

information claims. The findings are consistent with a body research, showing that consumers

constantly misconstrue some types of advertisement claims and that the implication drawn from

questionable claims are treated as factual (Preston, 1967). In addition, false beliefs often persist

even following the presentation of corrective information (Aderson, 1983). Also certain

advertisements make claims that seem to be exaggerated on the face. It therefore is not in-

genuine to understand that the possibility of such claims being called deceptive is very slim.

Russo (1976) and his co-workers (RussoMetcalf, and Stephens 1981) emphasized that holding

a false belief after being exposed to the does not imply that the advertisements caused the

belief.

The relationship marketing literature recognizes another potential element of customer

loyalty, services relationship commitment (Bendapudi and Berry 1997; Morgan and Hunt

1994). Drawing on the organizational behavior literature (Meyer and Allen 1997), marketing

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scholars have variously defined commitment as ‘a desire to maintain a relationship’ (Moorman,

Deshpand6, and Zaltman 1993; Morgan and Hunt 1994), a pledge of continuity between parties

(Dwyer, Schurr, and Oh 1997), the sacrifice or potential for sacrifice if a relationship ends

(Anderson and Weitz 1992), and the absence of competitive offerings (Gundlach, Achrol, and

Mentzer 1995). These various sources create a “stickiness” that keeps customers loyal to a

brand or company even when satisfaction may be low.

Related Literatures (Local)

Hundreds of ads bombard the average citizen during the day. Advertisements can

interject and affect our lives through multiple media due to improved technical capabilities of

transmitting media and the wide role it plays in the daily lives of consumers. Ads are still

obvious, whether people are browsing the web on their smartphones or laptops, watching TV,

listening to the radio, or driving past a large billboard. Although most advertisements simply

influence customer purchasing decisions, others have a more negative impact on people's daily

lives. The increasing power of advertising in the lives of certain women has become very clear.

Ads are becoming more common and "creative," but the degree of deceit that is manifested in

the areas of beauty, fashion, and weight loss is not overshadowed by the ingenuity of some ads.

Excessive retouching distorts people's perceptions of truth and appearance, allowing celebrities

and models to stand on "pedestals of perfection" that aren't real (Vergara, 2011). "There must

be truth in ads," according to the Federal Trade Commission (2001), "and non-deceptive

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advertisers must provide facts to back up their arguments, and advertisements cannot be

unfair." Furthermore, an advertising is deemed misleading if it includes or omits information

that is likely to trick customers into behaving rationally, such as purchasing or using the

product.

Related Studies (Foreign)

The ideals of truthfulness and accuracy have driven advertising as a marketing tool.

There are numerous researchers who study advertisement as a marketing tool in a company.

Advertising is a method of passing information from one person to another in order to ensure

that customers are aware of what is being sold (Bleier and Eisenbeiss, 2015). However, the

advertising industry has evolved. There are several media available for spreading

advertisements from one location to another. Marketers are turning to online video ads as a new

way to connect with customers all over the world. As a consequence, it's crucial to understand

how people feel about online video advertising. Another study of instructional video

advertisements discovered that the awareness element of the online video advertising affected

the consumer's decision to purchase the product (Huarng et al., 2010). After seeing the online

video ads, customers actually make a business purchase (Alijani et al., 2010). Subjective factors

such as entertainment and information were thought to influence attitudes toward online video

advertisements in a positive way (Lee et al., 2001).. Current allegations of deceptive ads center

on market manipulation, but the falsehoods are often undetectable (Aslam, 2014). If a company

knowingly and deliberately provides information about a product that is not genuine or honest,

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it is said to be misleading or providing false information (Aslam, 2014). Misleading ads,

according to the European Commission (Hasan et al., 2011), is a lucrative practice that involves

providing false facts, lying or deceiving customers into choosing anything they would not have

chosen otherwise. An advertising is misleading if it deceives or is delivered to a person in a

deceptive way, has financial consequences, or is likely to overcome rivals in the market,

according to the Consumer Protection from Unfair Trading Regulations (Janet, 1985). Without

a question, social media networks are one of the most important driving factors in digital

marketing. Companies have now discovered that products only sell when they are spoken

about. Thanks to search engines, customers rely heavily on their own research to come to a

decision about a product or service (Denton 2018).

It also applies to giving false information to vulnerable customers in order to sway their

decisions or responses (Janet, 1985). When consumers are faced with a new environment, they

are vulnerable to ads. They consider advertising messages to be a source of information that

helps them make purchasing decisions (Janet, 1985). When consumers are unable to detect

misleading advertisements, they are helpless (Aslam, 2014). Consumers should ensure that they

collect as much knowledge as possible in the era of greater access to information. The act of

gathering information, or "searching," is an important part of the purchasing process; the adage

"buyer beware" still applies. Advertising is made up of messages that describe the features of a

product or service. False advertising refers to statements made about a product or service with

the intent of deceiving customers into making a decision about the product or service (Hasan et

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al., 2011). Given the large number of false advertisement statements, the key question is

whether consumers can recognize false claims when making purchase decisions (Aslam, 2014).

If consumers place their interest in advertisements, they are more likely to be duped.

Consumers become more susceptible to any kind of advertisement as they become aware of

false advertising, depending on their level of emotion. The way they perceive the product and

the immediate environment in which the arguments are made is influenced by deceptive ads.

This is known as "situational contexts" (Hackley, 2010). Seeking the truth in the case of

deceptive ads can be a difficult task that requires some motivation and talent. Consumers aren't

always involved in deducing deception arguments, nor are they capable of doing so. They

would be more vulnerable to misleading advertising if they are not concentrated on the moment

of advertisement touch. Consumers understand quantity, according to studies by Mir (2011)

and Hosseini et al. (2016), and it affects how they respond to false ads. Ingredients that make a

product appealing to customers, for example, may be exaggerated. When consumers recognize

misleading advertisement statements, they react differently; studies have looked at their

dispositional and developmental characteristics to see how they react. The characteristics that

vary with age, family, gender, and lifestyle are known as dispositional differences (Janet,

1985). Mir (2011) asserted that the amount of effort required by consumers to remember

knowledge-based factors while processing information from a given advertisement is related to

their age. Developmental variations are those that are dependent on the consumer's experience

and expertise as it evolves over time.

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The degree at which individuals join to and value commercial messages as sources of

knowledge for directing their consumption behaviors is referred to as consumer vulnerability to

ads (Barr and Kellaris, 2000, p. 230). Consumers who are able or unable to accept misleading

rights are considered defenseless (Armstrong, Gurol and Russ, 1979). The verbal messages that

communicate material information about product or service attributes are referred to as

advertising statements. Armstrong and Kotler (2010). When it comes to misleading ads,

statements are made with the intent of leading customers to read beyond the literal message and

draw the incorrect inference about the product or service advertised (Hastak and Mazis, 2011).

Given the large number of misleading statements, one key question is whether customers can

recognize false claims (Vladeck, 2000). Consumers who rely on commercials for information

and belief values are more likely to be duped (Oslon and Dover, 1978). When consumers are

aware of misleading advertisement and its practices, they can underachieve, depending on their

emotional status, which influences how they view content and their immediate surroundings.

Customer loyalty can only be earned by honest and insightful ads; as a result, most

deceptive advertising isn't about building long-term relationships with customers (Faerber and

Kreling, 2014; Soroa-Koury and Yang, 2010). Customers are pleased and committed to a

company for a variety of reasons. Companies who want to build loyalty must always make sure

that their ads contains accurate and up-to-date information. Advertisers mislead customers by

describing false features of goods, according to a study on how consumers view advertisements

and how they detect deception (Faerber, et al. 2014). Consumers are misled by businesses that

use vague messages and claims in their commercials. When a product is presented in

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misleading advertising, consumers' demands are not met. Customers' minds are flooded with

negative brand pictures (Sharma and Sharma, 2014). Some research has looked at

advertisements with a focus on packaging, labeling, media statements, salespeople, customer

contact, and other sales-related communications. Many academics have emphasized the

principle of deceit, with the majority of them arguing that deception typically helps the sellers

(Faerber and Kreling, 2014; Xie, Madrigal and Boush, 2015).

Consumers act in specific ways to fulfill their needs by buying, selecting, using, and

reviewing goods and services. When they want to purchase a product or service, they go

through many phases and procedures (Evans, 2010; Patil, 2017). The customer's reaction is

determined by the service they get. They are likely to be frustrated if they come across

deceptive marketing tactics. It's possible that customers would abandon the brand entirely.

Many customers have spread negative word-of-mouth about a product they didn't like (Parguel

et al., 2015; Faerber and Kreling, 2014). Consumers are persuaded to purchase a product

because it is advertised as the best, rather than because it is the best of the alternatives. Many

consumers, on the other hand, can detect patterns of imitation in a product's features as

compared to other similar products, and they perceive them as deceptive. Consumers are likely

to suffer emotional and financial damages as a result of deceptive or misleading advertisements

(Sheehan, 2013). They make emotional and mental decisions about goods and services based

on deceptive advertising. Consumers have limited money, and when they purchase goods based

on deceptive ads, they lose those resources. When people are powerless, lonely, and have low

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self-esteem, they suffer mental, physical, and medical losses (Gensler et al., 2013; Weber,

2015).

Related Studies (Local)

Misleading/false advertisement: In 2009, Digitel, owner of Sun Cellular, filed before the

NTC a complaint for unfair trade practices against Red Mobile, another telecommunications

company. One of Red Mobile’s advertisements gave false information about the coverage of

Sun Cellular’s services (cellular sites), and made it appear that Sun Cellular had less sites than

it actually has.1 In 2011, news came out that PLDT will be acquiring Digitel which owns Sun

Cellular. With this deal, PLDT will control about 70 percent of total mobile subscribers,

leaving Globe with 30 percent. This merger can improve efficiency and benefit from economies

of scale and scope. But it may also be a means to enhance market power. It is recommended

that government regulations ensure market contestability and regulate anti-competitive business

practices so as not to suppress competition (Aldaba 2011).

Because of knowledge asymmetries, unfair trade practices, unfair standard contract

terms, high search and switching costs, and imperfect decision-making processes, Cseres

(2008) found that consumers do not always take advantage of successful competition.

Furthermore, while consumers were envisioned as the primary winners of liberalized markets,

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this concept only holds true if consumers are attentive to price and output, allowing them to

search out the best price-quality combination on offers. For example, if demand is inelastic and

switching costs are high, or if unfair trade or abusive practices prohibit them from acting in

their best interests, they will be unable to take advantage of the benefits of a competitive

market. Cseres cited empirical studies in recently liberalized markets that revealed a high level

of consumer apathy, indicating that many customers are not taking advantage of beneficial

switching and, in some cases, are switching to higher-cost suppliers despite the optimal balance

of quest, switching costs, and expected benefits. Imperfect customer information, according to

Cseres, can affect market competition and lead to "micro-competition" issues, particularly

when sellers with market power exploit information asymmetries, resulting in violence

(Vickers cited by Cseres). Market dominance exists when buyers are ill-informed about their

options before making a purchase and succumb to the seller's pressure by entering into a

contract with unfair contract terms. As a result, customer information issues can have

consequences for market analysis. Imperfect information can cause a market that appears to be

competitive to act in an uncompetitive manner, harming customers by enforcing unreasonable

(unfair) rates or other unfair trade conditions, distorting consumers' otherwise welfare-

maximizing choices. As a result, retailers take advantage of customers' ignorance of their rights

or inability to comprehend common contract terms or complicated products in order to conduct

direct comparisons and track service delivery. Finally, Cseres claimed that customer

expectations seem to vary based on the situation in which they must make decisions.

Individuals are unable to develop consistent and rational preferences as a result of knowledge

inequalities and unfair trade practices. Consumers can only search for and process a limited

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amount of data. As a result, people struggle to optimize their wellbeing in particular situations,

and they take shortcuts when making decisions, resulting in decisions that could be

counterproductive to their own welfare.

Synthesis

Advertisement have been capable of persuading and manipulating its audience. But

there's a possible aspect of customer loyalty, services relationship engagement that is

recognized in marketing. Hundreds of advertisements appeared due to improved technological

capabilities of transmitting media and the broad role it plays in the everyday lives of

consumers, advertisements can interject and influence our lives through multiple media.

Although the majority of ads simply affect consumer buying decisions, some have a more

negative effect on people's everyday lives. The growing influence of advertisement in the lives

of certain people has become obvious. Excessive retouching distorts people's expectations of

reality and beauty, allowing citizens buy an unreal product. Consumers are more likely to be

deceived if they put their confidence in advertising. Consumers aren't often interested with, and

aren't often capable of, deducing deception arguments. When consumers notice deceptive

advertising claims, they respond in a different way. Consumers are convinced to buy a product

because it is labeled as the best, not because it is the best of the options. As a result of deceptive

or misleading marketing, consumers are likely to experience emotional and financial damage.

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Furthermore, while consumers were imagined as the primary beneficiaries of liberalized

markets, this idea only holds true if consumers pay attention to price and output, allowing them

to find the best price-quality combination on offers.

CHAPTER 3

Methodology

This chapter discusses research methodology that will be use in this research. It pertains to

research design, population, and sample size, data collection methods, research procedures and

data analysis and the presentation methods to be utilized in this research.

Research Design

In the empirical part of this study, a quantitative approach was employed. Quantitative

research is an inquiry into a sociable problem, describe phenomena by gathering numerical data

that are analyzed using mathematically structured methods (Aliaga and Gunderson 2002). In

this study, the researchers reviewed the statements of the problem, objectives and hypothesis

and discovered that descriptive method was the most proper to use. It is whether focused in

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determining, describing, or identifying a situation. An effect or result that can on one or more

variable in a study that would and can be happen. Moreover, the data that came from the

respondents could be abundantly analyzed and interpreted in the next chapter of this study.

Study Area

The study will be conducted in San Pedro College of Business Administration with a

population of 403 Grade 12 Students. To find out who are the respondents that the researchers

need to conduct a survey, simple random method and Slovin’s Formula was used. This method

was done by assigning numbers to the participants of whole population and then gather them in

a sample frame. As a result, the researchers have selected random consumers who will served

as their respondents. The respondents will be given an individual copy of survey questionnaire.

Procedure 1

The research process of the study was conducted in two stage. The primary stage

consisted of development, administration and writing or listing of the conceptual literatures.

The secondary stage was to conduct, verify the research instruments and interpret the data. As

to research strategy, quantitative research and qualitative research are two distinctive methods

for collecting data. The researchers will apply and use quantitative method. Quantitative

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research methods can be take as a research strategy as it’s emphasize objective measurements

and the statistical, mathematical, or numerical analysis of data, which is adapted to provide a

deep understanding for digital false advertising influence the consumer’s behavior. Deductive

process is when the hypothesis is developed based on an already existing theory. It begins with

a social theory that the researcher is interested in and move to its inferences with data (Blaikie

2009).

Procedure 2

It is implied that various methods exist to approach a particular research problem, and the

researcher should give their own set of methods considerable thought. The research will be

conducted at pertinent time where most respondent would be available to complete and answer

the survey questionnaires. The questionnaires address the main problem of the study which is to

evaluate the consumer’s behavior towards digital false advertising. Therefore, the suitable

research tool is quantitative research methodology. Questionnaires allow the researcher to

gather a significant amount of data at relatively little cost. The questionnaire starts with the

cover page that introduces the researchers and the purpose of this study. It also contains

instructions and directions to complete and completely answer the questions. Questionnaire

distributed by post can be posted to the target group, and the latter can choose to answer

whenever it is most convenient for them (Gilbert 2001).

Procedure 3

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Measurement validity and measurement reliability are a traits that is important to achieving the

quantitative measurement. Validity and reliability of a measuring instruments influences the

amount which the researchers can gain something or some knowledge about the circumstances

that is being studied. Validity is about the extent to which a measurement tool or instrument

adequately measures the concept, construct, or variable of interest (Perron & Gillespie, 2015).

It is the degree to which the results of the questionnaire are truthful. So that it requires research

instrument to accurately measure the theories under the study (Pallant 2011). Once the survey

questionnaires were returned, the researchers will start to validate and examine the data and

eventually interpret a conclusion and recommendation.

Sample population

In this study, the researchers used the Slovin Formula to find out the amount of

number of the respondents. The simple random was used in this study. This method was done

by beginning to assigned numbers to the participants of the population and then gathering them

in a sample frame. The respondents were chosen by the accuracy of their capability in this

study. . They will take part in supporting information to survey questionnaires that requiring

answers and comprehensive responses to the above-mentioned subject, The Influence of Digital

False Advertising on Consumer Behavior. The computation for finding the sample is as

follows:

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Where:

N = 100

e = 5%

N
n=
1+ N e 2
100
n=
1+100 ¿ ¿
100
n=
1+100 ( .0025 )

100
n=
1.25
n=80

Data Gathering and Analysis

Data collection is the process of collecting data in a systematic way. Structured questions

were used because they help provide more information. If it is administered properly,

questionnaires can prove to be an excellent method to obtain quantitative data about people’s

behavior (Bell 1999). The purpose of questionnaire allow the researcher to gather a significant

amount of data at relatively little cost (Gilbert 2001). The data was quantitative in nature and

respondents were given structured statements. The respondents asked to respond to the

statements were they need to identify the question and if they are Agree or Disagree. The

questionnaire was divided into three (3) parts where the first part looked at the demographic

profiles of the respondents and in response to the objective of this study to know the

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demographic profile of the respondents. The second part is it looked at the type or kind of

advertising that influence the respondents the most and the other section of second part is can

be answer by yes or no. The third part of the questionnaire contains of questions about the

consumer’s attitude, behavior, and preferences towards digital false advertising.

Statistical Treatment

The study will use statistical method such as weighted mean, percentage, and frequency

distribution to analyze and interpret the data that is gathered. The researchers will use the

frequency and percentage distribution to describe the respondent’s age, gender, and their

answer on the questionnaires. This study will use Z-Test for two proportion for significant

difference.

Formula for Frequency Distribution:

r =HV −LV

Where,

r = Range

HV-Higher Value

LV-Lower Value

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k =1+3.32logN

Where,

N = number of population

k = class size

r
i=
k

Where,

i = Class Interval

Formula for Percentage Distribution

P= ( Nf ) 100 %
Where,
P = percentage
f = frequency
N = number of the respondents

Formula for Weighted Mean

∑ n1(xi∗wi)

Where,

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n = number of respondents
x = value
w = weight

Formula for Z-Test

x −μ
z=
σ /√ n

Where,
x = sample mean
μ = population mean
σ = population standard deviation
n = sample size

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CHAPTER 4

Presentation, Analysis and Interpretation of Data

This chapter outlines the results as acquired from the data analysis. This include results relating

to the respondent’s demography and the specific research objectives aimed at establishing the

influence of false digital advertising on consumers decisions.

Statement of the Problem 1

1. What is the demographic profile of the students, in terms of;

1.1 Age

1.2 Gender

1.3 Strand

Table 1

Age Distribution of the Respondents

Age Frequency Percentage

17 27 33.7%

18 45 56.3%

19 6 7.5%

20 2 2.5%

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TOTAL 80 100%

This table represents the findings for demographic profile in terms of the respondent’s

age, out of 80 respondents from selected Grade 12 students in SPCBA. This category is

relevant because it is believed that age influences consumer behavior in deceptive advertising.

As written in the table, the major rate of our respondents was 56.3% which belong to “18 years

old”. The researchers had 80 respondents and 45 belongs to 18y/o. The next concerning age are

students from “17 years old”, with 33.7% of respondents which total to 27 out of 80 people

who answered the questionnaire. The last affected people were “19-20 years old”, with 10% (8

on 80 respondents).

Table 2

Gender Distribution of the Respondents

Gender Frequency Percentage

Male 28 35%

Female 52 65%

Total 80 100%

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This table shows the findings for frequency and percentage distribution of the

respondents in terms of their gender. The data presented shows high rate participation from

“female” at 65% whereas only 35% were answered by “male”. The gender of the participants

can be used for further analysis. The researchers had 52 answers from female and 28 response

from male.

Statement of the Problem 2

1. What type of online advertising influence the consumer's decision?

2.1 Banner Advertising

2.2 Video Advertising

2.3 Social Media Advertising

Table 4

Types of Digital Advertising Distribution

Types of
Question Digital Frequency Percentage Rank
Advertising

What type of Banner


digital 1 1.2% Rank 3
Advertising
advertisement
do you think is Video
29 36.3% Rank 2
the most Advertising
effective and Social Media
informative? 50 62.5% Rank 1
Advertising

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Types of
Question Digital Frequency Percentage Rank
Advertising
What type of Banner
digital 68 85% Rank 1
Advertising
advertisement
Video
do you think is 6 7.5% Rank 2
Advertising
the least
effective? Social Media
6 7.5% Rank 2
Advertising
Types of
Question Digital Frequency Percentage Rank
Advertising
What type of Banner
4 5% Rank 3
digital Advertising
advertisement
Video
do you think is 46 57.5% Rank 1
Advertising
the most
informative? Social Media
30 37.5% Rank 2
Advertising

These tables show findings for frequency and percentage distribution to see what is the

most suggestible among three (3) types of advertising for the respondents. This allowed the

researchers to know that “Social Media Advertising” ranked as the highest percentage with

62.5% which indicates that it is the most effective and informative for 50 respondents that

agreed with this. However, “Video Advertising” was shown to be the most informative at the

rate of 57.5% with 46 answers from the participants. “Banner Advertising” ranked highest as

the least effective advertisement with 85% (68 answers). This implies that “Social Media and

Video Advertisements” are the most effective type of digital advertisement compared to other

types and influences consumer behavior.

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Statement of the Problem 3

1. How can consumers recognize false claims when making purchase decisions?

Table 5

False claims when making purchase decision

Questions Options Percentage

Questions Percentage
Options
YES 86.3%
YES 56.2%
Do you think you are
influenced when
Do you yourecognize
easily watch NO 13.7%
advertisement?
false advertisement NO 43.8%
claims?
TOTAL 100%
TOTAL 100%

Questions Options Percentage

YES 76.2%
Do you feel emotional
distressed when you are
deceived by NO 23.8%
false/deceptive
advertisements?
TOTAL 100%

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Questions Options Percentage

YES 77.5%
When you are new to a
place or environment do
you rely to advertisements NO 22.5%
as source of information?

TOTAL 100%

Questions Options Percentage

YES 22.5%
Would you still buy a
product from the company
after being deceived by NO 77.5%
advertisement?

TOTAL 100%

This first statement in this table depicts whether or not the respondents were affected by

advertisements. As stated, 86.3% of students were affected, while 13.7% were not influenced at

all. In the second statement, the researchers wanted to know whether respondents agreed or

disagreed that false advertising is easily detectable. This table shows that 56.7% of students

believe and agreed that it is simple to detect misleading advertising. On the other hand, 43.8%

of respondents said that spotting fake advertising is difficult. When respondents were deceived

by false advertising, the third statement depicts the emotional impact. The researchers

discovered that 76.2% of them were emotionally disturbed as a result of false/deceptive

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statements, while 23.8% said that they were not. The researchers wanted to know if being new

to a location or community affects how easily people believe advertising. According to the

table, 77.5% of respondents agree that ads are a reliable source of information, while 22.5%

disagree. The aim of the last question was to learn how customer loyalty works in the face of

false advertising. Furthermore, the table reveals that 77.5% of students will no longer purchase

a product from a business after being misled by false advertising. Furthermore, a smaller

percentage of those questioned said they will still purchase a product despite being tricked at

the rate of 22.5%.

Statement of the Problem 4

1. What is the possible effect that influence and makes the consumer vulnerable when an

advertisement is assumed to be real when it is actually false?

Table 6

Consumer’s agreement about false advertising

Verbal
Statement Mean Rank
Interpretation

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1. Consumers consider
features such as price,
consistency, quality, and 3.60% Rank 1 Strongly
ingredients before buying a Agree
product.
2. Consumers consider
buying a product that is Strongly
advertised by their favorite 3.52% Rank 2 Agree
influencers/artists without
reviewing the product.
3. Family/friends/media
influences your purchasing 2.72% Rank 5 Agree
decisions.
4. Advertisement changes
your opinion about a 3.07% Rank 4 Agree
product that you consider
buying.
5. Believing in
advertisement depends on 3.36% Rank 3 Strongly
your perception and attitude. Agree
6. It depends on
advertisement when you Strongly
become an impulsive buyer 3.36% Rank 3 Agree
or a limited buyer.

This table summarizes the mean of responses from selected Grade 12 students at San

Pedro College of Business Administration on what factors affect their decision to purchase a

product and believe in advertising. The results of the questionnaire responses were tallied,

indicating that statement number 1 had the highest mean of 3.60, statement number 2 had the

second highest mean of 3.52, and statements 5 and 6 tied for third place with 3.36. Statement

number 4 came in second to last with a score of 3.07, and statement number 3 came in last with

a score of 2.72. It demonstrates that before purchasing a product, consumers consider features

such as price, consistency, quality, and ingredients, and that advertisements influence consumer

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behavior in terms of being impulsive or limited buyers. When it comes to believing in

advertising, it also depends on the consumer's view and attitude.

General Analysis

Before conducting our survey, we found some references about facts in false advertising.

To begin with, Aslam (2014) argued that consumers are hopeless because they are unable to

recognize misleading advertising. Consumers should make every effort to obtain as much

information as possible; the act of collecting information, or "searching," is an important part

of the buying process. Current claims of misleading advertising rely on market manipulation,

but the lies are often undetectable. A company is said to be misleading or offering false

information if it intentionally and purposely offers information about a product that is not true

or honest. These observations are in line with the data we're gathering. We've noticed that

when people watch commercials, they're affected. According to the respondents, it is also

simple to determine whether or not the ads are fake.

According to Faerber and Kreling, 2014; Soroa-Koury and Yang, 2010, customer loyalty

can only be won through truthful and informative marketing, as a result, most misleading

advertising isn't about establishing long-term relationships with consumers. For a variety of

reasons, customers are satisfied and loyal to a brand. Companies who wish to create customer

loyalty must always ensure that their advertisements provide a reliable and current details.

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Consumer loyalty was also tested in our study, with the findings showing that respondents

would not buy from a company that had previously deceived them by false ads.

Moreover, Mir (2011) and Hosseini et al. (2016) stated that quantity is something that

consumers are aware of, and it has an impact on how they respond to false advertisements. For

example, ingredients that make a product attractive to consumers can be exaggerated. The

findings in determining the effect of digital false advertising on consumer shows that

consumers consider price, accuracy, consistency, and ingredients before believing in

advertisements and buying a product. Advertisements, on the other hand, appear to influence

consumer behavior in terms of impulsivity and small purchases. When it comes to trusting

advertisements, the study found that it is influenced by the consumer's experience and attitude.

Concerned about the effects of false advertising, Sheehan (2013) stated that deceptive or

misleading ads are likely to cause emotional and financial harm to consumers. Deceptive

advertisement influences their emotional and mental decisions about products and services.

Consumers have limited money, and when they buy products based on misleading

advertisements, they waste those financial resources. Janet (1985) also stated that when

consumers are exposed to a new environment, they are vulnerable to advertisements.

Advertising messages are viewed as a source of knowledge that aids them in making buying

decisions. The findings in knowing the influence of digital false advertising on consumer’s

behavior revealed that when consumers are new to a location, they rely on advertisements as a

source of information, making them vulnerable to false advertising. Customers who are

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powerless, lonely, or have low confidence are harmed psychologically, physically, and

medically when they are duped by false ads. According to data research, consumers are

emotionally distressed when they are deceived by deceptive ads. It was also discovered that

when people are new to a city, they depend on advertising. According to the findings, false

advertising causes financial damage.

In order to know our main objective; to know the type of advertisement that influences

consumer behavior, we can observe their differences based on different researchers' studies.

According to Huarng et al., 2010, the knowledge component of online video ads influenced the

consumer's decision to buy the product. Customers make a company purchase after seeing the

online video advertisements. Subjective variables like entertainment and facts were thought to

have a positive impact on attitudes towards online video advertising. While social media

networks are one of the most significant driving forces in digital marketing, according to

Denton (2018). Companies have now realized that goods only sell when they are discussed. On

the other hand, according to a Millward Brown Interactive study from 1997, "Online

advertising with banners has enormous communications power,". The research, they said,

proved that “banners can affect conventional marketing measures of advertising recognition,

brand perception, brand preferences, and purchasing intent, all from a single exposure.”

However, regarding our survey of what type of digital advertising influences consumer’s

behavior shows that in comparison to Banner Ads, the results for the most suggestible form of

digital advertising show that Social Media Advertising and Video Advertising are the most

effective.

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Hypothesis Testing

The z-test will be used to validate the hypothesis. As a result, for most general research,

including this analysis, a level of probability of 5% or less is typically considered necessary.

The focus of the investigation was on the impact of false digital advertising on consumer

behavior. The variables that were assessed in this study were to verify the influence of false

digital advertising on consumer behavior.

Researchers have a population mean of 100 and claim that there is no significant

influence in digital advertising on consumer’s behavior. With sample mean of 80 respondents,

the researchers measure the average mean of the responses of the consumers at 7.025 and

standard deviation of 0.28 at 95% confidence level.

Hypothesis

Ho. = 100 (claim)

Ha. ≠ 100

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x −μ
z=
σ /√ n
3.27−100
z=
0.28 / √ 80
3.27−100
z=
0.28/8.94427191
3.27−100
z=
−8.66427191
−−96. 73
z=
−8.66427191
z=11.16

0.28 0.28

-1.96 0.95 1.96


11.16

Ho. is rejected

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Since the researchers rejected the null hypothesis, they conclude that there is not enough

evidence to support the claim that there is no influence in false digital advertising on consumer

behavior of grade 12 students.

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CHAPTER 5

Summary, Conclusions and Recommendations

This chapter summarizes the research work that was done, the conclusions that were reached,

and the recommendations that were made as a result of the study. This allows for a discussion

that is relevant to the study's particular goal, and the discussion will be informed by previous

studies' literature reviews.

Summary

The general goal of this study is to determine how false digital advertising affects

consumer behavior. To further address this subject, the study is driven by the following

objectives: to learn about the demographic profile of the respondents, to learn about the types

of digital false advertising that influence consumer behavior, and to learn about the impact of

digital false advertising on consumer behavior. To better understand the false advertising and

learn more about the topic, a review of literature and studies was conducted. The context of the

research problem is the control that consumers have in deciding whether or not ads are false, as

well as the effects this has on consumer behavior. The variables were defined using a

descriptive research design. In addition, it is also used to determine frequency with which

something occurs or relationship between variables. Students from San Pedro College of

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Business Administration's Grade 12 Senior High School were chosen as the study's

participants. Simple random sampling was used in this study because it was thought to be the

most reliable way to address the research question that needed to be answered. The total

number of respondents who took part in this study was 80. Structured questions were used

because they support in the gathering of further data. Researchers can collect a large amount of

data at a lower cost by using questionnaires. The information was qualitative, and respondents

were given structured elements and a four-point likert scale. To interpret and analyze the

results, the researchers will use the weighted mean and z-test formulas. Tables, figures, and

charts will be used to display the results.

The results of the demographic profile showed that the majority of the respondents were

female, with only 35% being male. According to the results, the majority of respondents are

between the ages of 17 and 18. This indicates that female respondents were more likely than

male respondents to experience misleading advertising. The finding of what type of digital

advertising influence consumer’s behavior shows that in comparison to Banner Ads, the results

for the most suggestible form of digital advertising show that Social Media Advertising and

Video Advertising are the most effective.

The findings in knowing the influence of digital false advertisement on consumer’s

behavior shows that consumers are influenced when they watch advertisements. The

respondents also agreed that determining whether or not the advertisements are false is easy.

Consumers are emotionally disturbed if they are fooled by misleading commercials, according

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to data analysis. It was also discovered that when people are new to a city, they depend on

advertising. Consumer loyalty was also assessed, with the results showing that respondents

would not purchase from a brand that has already misled them by misleading and deceptive

advertising.

The results in understanding the impact of digital false advertising on consumer behavior

in terms of the factors that influence respondents to purchase a product and believe in ads show

that consumers weigh price, accuracy, quality, and ingredients before purchasing a product.

Advertisements, on the other hand, continue to affect consumer behavior in terms of being an

impulsive or small buyer. When it comes to believing in ads, the analysis also showed that it is

dependent on the consumer's perspective and attitude.

The findings in knowing the influence of digital false advertisement on consumer’s

behavior revealed that consumers become vulnerable to false advertising when new to a place

because they rely on advertisements as a source of information and knowledge. It shows that

customers who are powerless, lonely, or have low trust are affected mentally, physically, and

medically when fooled by false advertising. According to the findings, false advertising causes

financial damage on consumers.

The researchers used z-test formula in testing the hypothesis and rejected the null

hypothesis because there is a significant influence in digital false advertising on consumer

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behavior of Grade 12 Senior High School Students in San Pedro College of Business

Administration.

Conclusions

Based on the analysis conveyed, it can be concluded that advertisers must exercise

extreme caution when stating facts about their goods. It is not recommended to use a statement

that cannot be confirmed. Being aware to false and deceptive advertisement can lessen the

probability of being deceived. Types of advertisements help consumers to decide whether to

buy a product or not therefore it influence consumer’s decision making and loyalty to a

product. In addition, most of the people won’t buy a product anymore after being deceived and

feel distrust to the company. Concerning in consumer’s behavior, it depends whether they are

harmed mentally, physically, medically, and financially.

The result of this study can be useful to advertisers as they will know what are the

possible effects and views of the consumers regarding false and deceptive claims that is used.

Recommendations

Advertisers

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Advertisers need to ensure that the digital advertisement tools adopted create a most

interesting and brand awareness among its consumers. While utilization of these provides

feedback, the firm should ensure that the feedback is taken seriously to retain consumers and

building the name of the company. In first place consumer is the key for the success of the

company therefore all of their advertisement must states a truthful information and consumers

can be mesmerized by their message.

Advertising companies should not focus on misleading claims with incorrect

interpretations.

Advertisers should be focused on the level of competitive services to generate positive

consumer value and attitude towards the advertised product or services.

Sellers

Sellers should pay attention to what their consumers are looking for on a certain product.

They should know what is true or not about the product they sell.

Advertiser and seller

Advertising agencies and sellers should create a positive impact to their consumer

through giving a honest information about the product they sell.

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Consumer

Consumers should control their selves on spending beyond their income. Avoid being an

impulsive buyer.

Consumer should be more observant on what the advertisement presenting because it is

the best way for the consumer to secure their earnings and protect them from being mislead.

Future Researchers

Although attempts have been made in this study. Futures researchers shouldn't only

focus on the effects of false advertising on consumer, also focus on how to prevent unethical

advertising.

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