The Impact of Deceptive Advertising on Consumers Trust and Market Dynamic: A Mix Method Study in the Indian Contexts

Deceptive advertising has emerged as a significant concern in the modern marketing ecosystem, where intense competition and digital platforms have amplified the spread of misleading content. This thesis investigates the various forms of deceptive advertising—ranging from exaggerated claims and manipulated imagery to false endorsements and omitted disclaimers—and examines their direct and indirect consequences on consumer trust, decision-making behavior, and market competition. The study focuses on the Indian context, where the rise of digital marketing, influencer promotions, and minimal advertising regulations have enabled widespread adoption of these tactics. Using a mixed- method research design, data was gathered through structured surveys, in-depth interviews, and secondary sources from regulatory and industry bodies. Quantitative insights reveal that over 70% of consumers have encountered deceptive ads, leading to reduced brand loyalty, skepticism, and even brand switching. Qualitative responses further highlight emotional responses such as betrayal, confusion, and mistrust, especially among older and rural demographics. In parallel, ethical competitors are often forced into defensive strategies like corrective advertising or loss-leading promotions, resulting in increased marketing expenditure and diluted brand positioning. The thesis also explores how consumer protection agencies and advertising councils have responded with frameworks and policies—though gaps remain in enforcement and consumer awareness. The findings highlight a strong need for ethical advertising standards, enhanced regulatory oversight, and active consumer education. Recommendations include leveraging transparency, clear disclaimers, AI-driven ad monitoring tools, and stricter penalties for repeat offenders. This research contributes to both academic literature and industry practice by offering a deeper understanding of deceptive advertising’s psychological, economic, and ethical dimensions. It calls for a collective shift towards integrity in advertising to preserve trust in an increasingly digital and globalized marketplace.