In-Depth Notes on Perceived Deception in Online Shopping

Abstract

• Study investigates the negative influence of perceived deception by online retailers on consumer satisfaction and loyalty intentions.
• Investigates the moderating role of product type, consumer attitude toward the Internet, and demographics.
• Data from 398 consumers shows satisfaction fully mediates the effect of deception on loyalty, with variations based on education and other factors.

Introduction

• Online shopping is integral to daily life; however, deceptive practices (e.g., misleading advertisements) are increasing.
• Overview of consumer complaints about online fraud has grown significantly from 1997 to 2005.
• Online deception can be subtle, making it hard to detect due to the impersonal nature of online interactions.

Literature Review

• Deception as a Phenomenon: It occurs in various forms and raises ethical concerns.
• Deceptive practices impact consumer behavior in traditional retail and increasingly in online settings.
• Studies highlight the consequences of deception on consumer satisfaction.
• Recent research has begun examining these effects specifically in online contexts.

Hypotheses Development

• Perceived Deception: Represents false beliefs about products due to unethical acts by retailers.
• Satisfaction: Contentment of consumers with their prior experiences influences future loyalty.
• Loyalty Intentions: Defined as the intention to repurchase and recommend the retailer.
• Multiple hypotheses formed to investigate relationships between perceived deception, satisfaction, and loyalty intentions.

Direct and Indirect Effects

• Hypothesis 1: Perceived deception negatively affects satisfaction.
• Hypothesis 2: Perceived deception negatively affects loyalty intentions.
• Hypothesis 3: Satisfaction positively influences loyalty intentions.
• Study confirms satisfaction mediates the relationship between perceived deception and loyalty intentions.

Moderating Effects

• Two key moderation aspects are explored:
  • Type of Product: The effect of deception varies based on whether products are goods or services.
  • Consumer Demographics: Education, age, and gender play varying roles in the perception and impact of online deception on satisfaction and loyalty.
  • Each demographic impacts how seriously deception is perceived and the subsequent reaction.

Findings from Moderating Effects

• Negative influence of perceived deception is stronger for:
  • Physical products than services.
  • Consumers with a positive attitude towards the Internet.
  • Older and more educated consumers.
  • Female consumers compared to male consumers.

Methodology

• Sample: 398 online consumers with diverse demographics were surveyed.
• The questionnaire assessed perceived deception, satisfaction, loyalty intentions, and attitudes toward the Internet.
• Confirmatory Factor Analysis (CFA) was used for measuring reliability and validity of constructs.

Results and Analysis

• The model fit well with the data indicating satisfaction is crucial in understanding consumer loyalty in the context of perceived deception.
• The study found no direct impact of perceived deception on loyalty intentions across the entire sample.
• Variations surfaced when testing specific demographics, showing some links between perceived deception and loyalty intentions.

Managerial Implications

• Findings emphasize the importance of understanding consumer perceptions of deception to enhance satisfaction and loyalty.
• Recommendations for online retailers include:
  • Communicating credible and truthful information effectively on their websites.
  • Implementing ethical marketing strategies tailored to various consumer demographics, especially those most sensitive to perceived online deception.

Limitations and Future Research Directions

• Focused primarily on product-related deception with scope for broader aspects.
• Future studies could explore additional forms of deception and their impact on other consumer segments.
• Further investigation into the causal relationships through longitudinal studies is suggested.