LINKING CORPORATE TRUST, CORPORATE IMAGE, AND CUSTOMER LOYALTY: THE MEDIATING ROLE OF PERCEIVED DECEPTION

Abstract

Deceptive advertisement is a primary factor affecting customer loyalty because when people do not receive what they expect from advertisements, they tend to avoid using those brands. Although past researches have addressed the perceived deception in advertisements and its impact on customer loyalty, there is a lack of studies focusing on the mediating role of corporate trust, corporate image, and perceived deception in relation to customer loyalty. Household consumers were chosen as the target population due to their exposure to advertisements. A sample of 250 individuals participated in this study. Smart PLS was used for data analysis. This study confirms that perceived deception, corporate trust and corporate image play a significant mediating role in establishing customer loyalty. The findings of this study can assist marketers in developing new designs and strategies that do not mislead customers. It will also help marketers to identify the factors that should be considered when designing advertisements.

Keywords

• Perceived deception
• customer loyalty
• corporate image
• trust
• brand recall