Professional Documents
Culture Documents
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BERSABA, Nicole 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
Acknowledgement ...........................................................................................................
Objectives ..................................................................................................................................10
Hypothesis .................................................................................................................................10
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Synthesis ....................................................................................................................................24
Chapter 3: Methodology
Study Area..................................................................................................................................26
Procedure 1.................................................................................................................................26
Procedure 2.................................................................................................................................27
Procedure 3.................................................................................................................................27
Statistical Treatment...................................................................................................................30
Summary ....................................................................................................................................47
Conclusion .................................................................................................................................50
Recommendation .......................................................................................................................50
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION
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Abstract
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CHAPTER 1
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.
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
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
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
(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
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
1.1 Age
1.2 Gender
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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
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:
2. To find out what type of digital false advertising influence the consumer’s behavior.
Hypothesis
Ho. There is no significant influence in digital false advertising on consumer behavior of grade
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Research design
Deceptive Ads
False Common
Misleading
Advertisement Consumer
Ads
Behavior
Incorrect
Interpretation
Consumers behavior
This study attempts to know and is primarily focused on the influence of digital false
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
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
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
Advertisements. Are messages paid for by those who send them and are intended to inform or
Consumer. a person (or group) who pays to consume the goods and or services produced by a
seller.
(Lanham Act).
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CHAPTER 2
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.
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.
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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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
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
that is likely to trick customers into behaving rationally, such as purchasing or using the
product.
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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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
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
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
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
their age. Developmental variations are those that are dependent on the consumer's experience
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The degree at which individuals join to and value commercial messages as sources of
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
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
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
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
(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).
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
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
(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
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
Synthesis
Advertisement have been capable of persuading and manipulating its audience. But
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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markets, this idea only holds true if consumers pay attention to price and output, allowing them
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
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
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
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
Procedure 3
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Measurement validity and measurement reliability are a traits that is important to achieving 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
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 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
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.
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
P= ( Nf ) 100 %
Where,
P = percentage
f = frequency
N = number of the respondents
∑ n1(xi∗wi)
Where,
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n = number of respondents
x = value
w = weight
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
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
1.1 Age
1.2 Gender
1.3 Strand
Table 1
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
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.
Table 4
Types of
Question Digital Frequency Percentage Rank
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
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1. How can consumers recognize false claims when making purchase decisions?
Table 5
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%
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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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%
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
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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
1. What is the possible effect that influence and makes the consumer vulnerable when an
Table 6
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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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
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
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
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
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
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,
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
Researchers have a population mean of 100 and claim that there is no significant
the researchers measure the average mean of the responses of the consumers at 7.025 and
Hypothesis
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
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
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CHAPTER 5
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
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
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
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
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
The researchers used z-test formula in testing the hypothesis and rejected the null
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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
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
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
interpretations.
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.
Advertising agencies and sellers should create a positive impact to their consumer
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Consumer
Consumers should control their selves on spending beyond their income. Avoid being an
impulsive buyer.
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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