Misleading advertisement and consumer behavior in ECommerce

1. Deceptive Advertisement and
Consumer Behavior
[E-COMMERCE]

2. INTRODUCTION TO
ADVERTISEMENT
An advertisement (or "ad" for short) is anything that
draws good attention towards these things.
In today's world, advertising uses every possible media
to get its message through. It does this via television,
print (newspapers, magazines, journals etc
Their objective is to change the thinking pattern
(or buying behavior) of the recipient, so that he or she is
persuaded to take the action desired by the advertiser.

3. OBJECTIVE OF MY STUDY
• To Know the psychology of the consumers
• To Know about the Deceptive advertisements
• To Know that how the consumers are misleaded
through advertisement
• To analyse what should be done in order to avoid
Deceptive Advertisements.

4. LIMITATION OF MY STUDY
• The Study is conducted within a short duration
• Unable to share many examples of misleading
advertisement
• Most of the data were collected through Internet

5. RESEARCH METHODOLOGY
The Research is conducted through Questionnaire
method. The Data required are collected from
books and also from the Internet.

6. • Deceptive advertising, also known as false
advertising, refers to a manufacturer's use
of confusing, misleading, or blatantly untrue
statements when promoting a product.
• The Federal Trade Commission (FTC)
officially defines deceptive advertising as "a
representation, omission or practice that is
likely to mislead the consumer"

7. • ‘free delivery’ actually involves a fee or charge
• A product weighs 800g instead of 1 Kg
• A made in India labeled product actually a
product which is Made in China)
• Goods are not offered at sale prices, but
advertised as such
• ‘60% Discount on everything’ – really
only applies to certain things

8. Fake News
Websites
“Free" Trials
Membership
Plans
Mouse Print
• make the sites look official
• Cancellation policies and other
details are buried in the “terms
and conditions”
• claiming to offer free trials of
products are deceptive if hidden
charges
• charge merchandise to buyer’s
accounts without their consent
• for example, "Five DVDs for only
Rs.10”
• a retailer attracts buyers by
promising to match its competitors’
lower prices

9. Bait & Switch
Advertising
High-Pressure
Sales Tactics
Deceptive Form
Contracts
Artificially
Inflating Prices
Failure to
Disclose

10. • “We, therefore, hold that "commercial
speech" is a part of the freedom of speech
and expression guaranteed under Article
19(1) (a) of the constitution” – The Supreme
Court of India.

11. • Aim to influence or persuade customers into
buying products that they promote
Deceptive
Advertising
• Hide or fudge prices of products/ services
advertisedMisleading Prices
• Compare the products advertised against the
products of other leading brands
Failure to maintain
standards
• Misrepresent or obfuscate the actual weight of
the packets or adopt a different standard of
measurement
Labeling issues
• Aim to reinforce or sustain the banned
products/ advertisements
Surrogate
Advertisements

12. • Consumer Protection Act, 1986- Section 6 of the
Act grants consumers the right to be informed about the quality,
quantity, potency, purity, standard and price of goods …etc.,
• Cigarettes and other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce, Production,
Supply and Distribution)
• Section 6 of the Cable Television Networks
(Regulations) Act, 1995 provides that no person shall
transmit or re-transmit through a cable service any advertisement
unless such advertisement is in conformity with the advertisement
code prescribed

13. Consumer Psychology of
Advertisement
“If person buys a mobile phone of “X” brand.
often if he watch advertisement of mobile
phone of “Y” brand in attractive manner but
of bad quality, the person want to purchase
mobile phone of “Y” brand”

14. 0
5
10
15
20
25
30
35
40
45
50
15-25 25-35 35-45 Above 45
Respondents 20 50 10 20
NoofPeople Respondents (AGEWISE)
ACCORDING TO MY STUDY

15. 20%
0%
80%
0%
Respondents
Suggestible Advertisement
Magazine &
Newspaper
Bill Board
TV Ads
Internet Ads
ACCORDING TO MY STUDY

16. 0
5
10
15
20
25
30
35
40
45
50
Less
than
other
More
than
other
About
Same as
others
Respondents 20 30 50
AxisTitle Respondents Influence on Advertisement
ACCORDING TO MY STUDY

17. 0
10
20
30
40
50
Food
Products
Cosmetics
Healthy
Products
Services
Washing
Products
50
40
10
0
0
Respondents
ACCORDING TO MY STUDY
Respondents View on Deceptive Advertisement

18. Yes
70%
No
30%
Percentage of respondents easily identify the
Deceptive Advertisement
ACCORDING TO MY STUDY

19. Care
40%
Don't Care
60%
Percentage Respondents about care
of Deceptive Advertisements
ACCORDING TO MY STUDY

20. 50%
30%
10%
10%
Respondents state of mind while they
mislead through Deceptive Advertisements
Feeling
Disappointed
Feeling Stupid
Don’t Care
Feeling Stolen
ACCORDING TO MY STUDY

21. 70
0
30
0
0
10
20
30
40
50
60
70
80
Marketing
Technique
Should be
forbiden
Unethical All Companies
use it
Respondents opinion about the Deceptive
Advertisement
Respondents
ACCORDING TO MY STUDY

23. Conclusion
• According to my survey, the most of the
educated consumers said it is an marketing
technique to promote their sales. There is
no need for new amendments for
advertisements. Government can regulate
the companies strictly to follow their
procedure for proper advertisement to
protect consumers.

24. Thank You
PRESENTED BY R.Venkadesh, III BBA
SYED HAMEEDHA ARTS AND SCIENCE COLLEGE
KILAKARAI.