Research Methodologies: Impact of Misleading Ads on Consumer Trust

This research report investigates the impact of misleading advertisements on consumer trust, focusing on Netflix as a case study. It begins by defining misleading advertising and its various forms, such as bait and switch, misleading photos, price deception, unsubstantiated claims, and comparison inconsistencies. The report explores the impact of these misleading tactics on consumer behavior, including influencing buying decisions, promoting unhealthy consumption, and creating negative feelings. Challenges faced by Netflix due to misleading advertising, such as investigations, cease and desist orders, financial losses, and loss of customer trust, are examined. Furthermore, the report discusses strategies employed by Netflix to address these challenges, emphasizing the importance of transparent marketing strategies, clear pricing, and avoiding exaggerated product claims. The research methodology encompasses both positivism and interpretivism philosophies to provide a comprehensive understanding of the topic, addressing ethical considerations, validity, reliability, and limitations of the research.

Research Methodologies on
Impact of misleading
advertisements on consumer
trust.
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Abstract
The main reason for conducting this study is related to analysing the challenge that are
related to the misleading advertisement process. These challenges are related to high cost
services, business and growth to work with the management for analysing the systematic growth
in different platform. Misleading advertisements by the companies are related to gain approaches
and applied in an effective manner. So, this research proposal includes the aim and objectives of
the topic, a collection of secondary sources and application on research methodologies. These are
associated to work and manage the applicabilities to analyse the research proposal and includes
different limitation and research plan for the completion of research.
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Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Research background..............................................................................................................4
Research rationale..................................................................................................................4
Literature review..............................................................................................................................5
Research Methodology....................................................................................................................8
Research Philosophies............................................................................................................8
Research approaches..............................................................................................................9
Research Strategies.................................................................................................................9
Data analysis...........................................................................................................................9
Data collection........................................................................................................................9
Ethical consideration............................................................................................................10
Validity and reliability..........................................................................................................10
Research Limitations............................................................................................................10
Research Plan ................................................................................................................................11
References .....................................................................................................................................14
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Introduction
Research background
Misleading advertisement is a false claim that is used by the many organisation for
change or alter the characteristics of goods and services. It actually helps the organisation to not
only attract the customers but also able to sale different products in an effective manner.
Advertisement is the process of reaching to potential customers with the right information to
make growth in the product development sessions. There are respective fields that combine the
nature of advertisement that is related to marketing, sociology, economics and psychology. This
concept is related to the gaining the trust and confidence of the customers for the use of growth
and productive nature. Misleading the advertisement process, is considered to work and make
systematic changes for having false interpretations and information that can lead to unacceptable
number of people and make incorrect information in an effective manner (Chang and Guo,
2021). There are different ways which are used by the company to make advertisement
regulations and use the false misleading advertisement that may used in different unacceptable
for the growth in number of people for analysing information to make incorrect decision. The
chosen organisation for this research is Netflix, an American company that, providing their
services in top-media production and original programming and production company. This
company make different innovative kind of advertisement are used for their process and able to
manage with applicability and management sources in an effective manner.
Research rationale
To conduct this research, the main reason is to evaluate different organisations that are
using misleading advertisement process for enhance their sales and values in an effective
process. This unethical practice is helpful for the companies to enhancing their performance and
sales within the market. But due to this action, customer's trust has been break and they are not
able to manage their different perspective in the same manner (Cheung and To, 2021). This
process is measure under the misconduct process and manage the quality for the use of products
and make specification that would be related to the composition, manufacture, price and the
place of origin. This process actually manipulates their customers for purchasing products and
attract more new customers. In order to stop this misleading advertisement process, this research
has been conducted and its impact has been analysed for the future growth of the company. The
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chosen company is providing the direct relation to their customers and advertisement techniques
that can be related to ethical or misleading their customers. This is related to complete the
research and achieve the defined objectives in an appropriate and significant manners.
Research Aim: “To analyse the impact of misleading advertisements using digital marketing on
consumer's trust. A study on Netflix.”
Research Objectives:
 To understand the concept misleading advertisements in context to organisation.
 To identify the impact of misleading advertisements on the behaviour and attitude of
consumers.
 To determine the challenges faced by Netflix due to misleading advertisement.
 To examine the strategies used by the Netflix for dealing with the challenge faced by
misleading the consumers.
Research Questions:
 What is the meaning of misleading advertisement?
 What are the major impact of misleading advertisement on the behaviour of the
consumers?
 What are the major challenges faced by the company due to misleading advertisement?
 Which strategies are used by the company for dealing with the above mentioned
challenges?
Literature review
What is the meaning of misleading advertisement?
As per the view of Alscher, (2021), any advertisement and promotion which is associated
to the television, radio or any kind of digital media and to misrepresent the nature of goods and
services provided to make commercial activities. There are different processes to make activities
and consumers to defined and misleading the advertisement in market. This process includes the
specific growth and management techniques to analyse the system and make average consumers
to provide the applicability in an effective manners. Advertisements is the technique which is
helpful for growing and working in misleading statement and provide different information to
complete the average customers need in the market (Dedeoğlu and Boğan, 2021). All of these are
helpful for generating the idea and make systematic approaches in an effective manners.
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Companies should follow the strict regulation and make federal formation that would be related
to the different range of products and services.
There are different types of misleading advertisement process which are related to the
significant growth and success within the organisational process and management success. The
very first approach is Bait and Switch, which means a company provides the advertisement
process that never wants or intended to provide to their customers. Second approach is
Misleading Photos, sometimes the company used such type of images that look more attractive
to the customers than it really is. Third one is using Price Deception, that means when a
company use false or misleading price ads for the growth of products or services through the
advertisement process. Fourth approach is Unsubstantiated Claims, this occurs when the
company provide the different kind of benefits in their products that can be used by their end
users that practically never proven in the market (Gaspar Ferreira and Fernandes, 2021). This
approach is basically associated to make systematic approach and provide products to make
unsubstantiated claims. In last, comparison inconsistencies are happened to compare the
company's products and work within the areas and make superior to the major products and
being available to their customers and other products. These approaches are used by the
companies in misleading the advertisement and gain various benefits for the short period of time
and in replacement of company's value and image in future (The Honest Truth About False
Advertising, 2021).
What are the major impact of misleading advertisement on the behaviour of the consumers?
As per the view of Lin, (2021), many of the organisations are using different benefits that
are gained through the advertisement process and to work with systematic approaches in an
effective manner. All of these advertisements are helpful for generating the idea related to
growth of the company and manage the profitability in an impressive manner. Advertisement
that are related to the behaviour of the consumers are associated to the advertisement process. If
the company consists the healthy competition, then it is related to gain the competitive
advantages and customer's trust but due to misleading advertisement, company loss their image
within the market (Grappe and et.al., 2021). A good way to produce an advertisement is helpful
for providing data to tends and use positive information for the acceptable growth of the
company in respect to their customers. Many of the misleading advertisement is make an
atmosphere in the market which is related to change the customer's taste and preferences. There
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are different types of impacts that consumer's face during an inappropriate advertisement
channels. The very first impact is influencing decision of the buyers due to misleading
advertisements as they are get attracted towards the product which company offers through the
inappropriate advertisements. Another impact is the misleading advertisement of the companies
sometime provoke for the bad and unhealthy consumptions. Third impact is consumer generate
the negative feelings that are related to comparing with peers or superior influencers in decision
making process.
These above mentioned impacts are associated to the behaviour of the customers in
relation to selecting, consuming and evaluating the need of any type of products and services in
buying process (Idrees and et.al., 2021). Consumer's reaction is basically depending on the
different type of service management that a company offers. So, it can be stated that misleading
advertisements get an impacts on the company's marketing platform, financial losses and an
incorrect interpretation that become the reason for declining growth of the company in market.
What are the major challenges faced by Netflix due to misleading advertisement?
As per the view point of LeMarco, (2021), there are different kind of misleading
advertisement that makes an effect to contradict the nature of products that company offers. An
inappropriate advertisement leads to create the wrong impacts on the growth of business
activities. Misleading Advertisement is comes up with some negative impacts and problem
arising situations within the company. Most of the misleading advertisement arise the challenges
for the declining growth of company. It is said that the use of misleading advertisement's factor
is not able to identified the risk and overcome them in appropriate time (Kim and et.al., 2021).
So, misleading advertisement make the negative impact on the business and consumer of the
Netflix company. Netflix try to mislead their consumers and some of them are become the reason
for the productivity growth for short term future. Netflix, face the major issues some of them are
related to different challenging sectors. The very first challenge is to investigate or suspected for
using misleading advertisement. Another challenge for the company is they receive a cease and
desist order, for analysing a systematic loss in the digital marketing strategies of the company.
Third challenge for the Netflix is that they can bear the financial losses that may be developed
through the different deceive practices in the company. And in last, company can lose the trust of
their customers due to using inappropriate content in their advertisement (Negative Effects of
False Advertising, 2021). Furthermore, the company may face the challenges related to
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perception of the competition on employees and the growth of the company in future. This is
said that the company like Netflix faces different challenges that are related to different
perspective for the growth in different manners.
Which strategies are used by Netflix for dealing with above mentioned challenges?
There are different ways which are used by Netflix for minimising the challenges that are
related to misleading the advertisement. With the use of appropriate advertisement and proving
the solution for an issues can be related to the future growth of the company. The company try
for identifying the appropriate marketing strategies and clear the pricing amount of their products
through their advertisements. In addition to that there are different kind of information that are
use through the advertisement that are related to growth of the company, so they should carry
forward the relevant information (Tarabieh, 2021). Further, they should try to not exaggerate the
capabilities of the products in false manner. These strategies are helpful for the growth of the
company to work and make approaches in an effective buying and selling process (Six top tips to
avoid misleading advertising, 2021). All of these are related to manage their behavioural
practices and minimise their misleading advertisement and work with the ethical consideration
and manage the applicability in the associated time period.
Research Methodology
Research Philosophies
This is the very first stage of the are conducted into academic studies and used to
identified different perspective and achieve the completion of the research proposal. There are
two type of philosophies such as interpretivism and positivism philosophies. Positivism
philosophy is basically related to make effective strategies and applied sources for using their
own and effective perspective to understand the chosen topic. Whereas, interpretivism
philosophy is used in studies where the understanding is basically related to their own concepts
and data. Hence, for completing this study researcher will be use positivism philosophies that
help to make more identifying and scientific data to address business issues in an effective
manner. In addition to this, it is also helpful for analysing the concept and make actual research
report within less cost and time as well (Gregório and et.al., 2021).
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Research approaches
This is the second stage of research methodology that provides the right approach and
method for completing research. There are two main approaches that is deductive and inductive
approach. Deductive approach is useful for completing the pre-existing theory for formulating
the positivism data in an effective manner. It is also helpful for considering the information
related to general to particular research. Whereas, inductive approach is moves from specific to
very general theory. Hence to complete this study, the researcher will use deductive approach as
it provides a better explanation of casual relationship among the variables and concepts
(Yoshida, Matsuda and Miyamoto, 2021).
Research Strategies
There are different research strategies such as experimental research, case study,
interviews, survey and many more method of research are used by the researchers for completing
study. For completing the present study, researcher will use Survey method as it is helpful for
collecting data on the large scale and make strategies that are helpful and effective to achieve the
objectives. Survey is chosen for this study because it helps in collecting appropriate information
from the selected respondents (Lim and et.al., 2021).
Data analysis
This is the technique that is considered for collecting analysing and choosing the models
Data analysis is related to make effective techniques and opt the right research methodology for
helping in analysing frequency distribution method and help the researcher for analysing the
objectives in an effective manner. This section consists the appropriate graph, charts and good
visuals for completing the research. Here primary and secondary data is analysed for completing
the present study. To complete primary data, instigator choose the questionnaire method
(Tarnavsky, 2021). On the other hand, for secondary data, researcher use the online sources,
journals, books and etc.
Data collection
In order to collect the data from different sources, researcher will use the different
methods and collect information through the wide range of sources. Some of the major sources
are making questionnaire, conducting interview, having observation techniques and etc. In the
present study, research will use the Questionnaire and sampling method to complete the research
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(Štefko and et.al., 2021). This is chosen under the quantitative research methodology and adopt
for completing the research in some attractive and presentable manner. Questionnaire is designed
on the collection of close ended questions and they are related to the topic of misleading
advertisement and its impact on the consumer's trust. Whereas, for completing questionnaire
researcher choose the sampling method, that helps to collect large sampling data in respective
area. For this research, investigator choose the 35 respondents who are the employees of Netflix
company that are established in UK. The main reason for choosing them as the respondents is,
they have the good knowledge about their customer's feedback and responses after seeing their
advertisement.
Ethical consideration
These research methods is very helpful in collecting information and completed their
work in an effective manner without facing any issues. For this Researcher always try to follow
the anonymity and confidentiality of the participant’s information, avoid the use of deceptive
practices and participants have the right to go through with all the other relevant information
related to collecting data (Potgieter and Rensleigh, 2021).
Validity and reliability
These two terms are associated with the research and make consistency in the research.
Validity is related to make accuracy whereas reliability is related to work with regularity growth
in the research data. For this, researcher use questionnaire that actually support the researcher to
provide a valid and reliable data for attaining research objectives. This section is helpful for
evaluating the quality of the research and use effective research data collection method. With the
use of the validity and reliable sources, an effective and appropriate approach to considered
within the organisation and complete the research on time.
Research Limitations
In this study, researcher use different type of data collection and sources that are related
to achieve objectives. In this study, it is very difficult to worked with data analysis, interpretation
approach and many more methods that are related to the limitation of the research proposal
(Thomas, 2021). As the researcher is not able to collect the data or interpretation in effective
manner, so it would be related to create unwanted disruption in research and leads to delay in
completion of project.
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Research Plan
Research time scale plan is referred to completion of the research activities and its
monitoring in an effective manner. It is associated with the time frame that based on the study
subjects to starting and ending date within the project. It will be related to completing activities
on the pre-decided time scale and make effective applicability in different management process.
It means to make a clear starting and ending time for the research project, list of different data
base that are helpful for completing research. This process is completed through the use of Gantt
chart that is related to changes in planning for research proposal (Yang, Massey and Popova,
2021). It will be helpful for completing systematic change and work on the basis of appropriate
research proposal and complete significant growth in analysing the difficulties and minimise the
limitation of the research proposal.
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