
South African bank penalised by regulator for misleading advertisement
Financial Sector Conduct Authority says fine imposed should remind companies that misleading and false advertising will not be tolerated.
CONSUMER TRUST
By our African Marketing Confederation News Team | 2024
People who rely on blogs, reviews and influencers for buying decisions want platforms that reduce suspicion of misrepresentation.
Photo filters, overly edited photos, and other distortions of user-generated content are impediments to consumer trust. In turn, they are potential barriers to the performance of products that users and influencers present online.
Credit: CC0 Public Domain via Univ. of Florida
This is according to researchers from Florida State University in the US, who argue that consumers who rely on blog posts, online reviews, testimonials and other user-generated content to inform their purchase decisions require digital platforms that minimise suspicion of missing or misrepresented content.
“The availability of certain features, including photo filters or the ability to delete content once you’ve posted it, dramatically impacts whether user-generated content affects brand performance,” says Colleen Harmeling, an Associate Professor of Marketing at the university.
“Those features don’t even have to be used to affect product performance. The mere presence of such features in a digital space affects consumer trust in that content for their purchase decision.”
Harmeling’s study, in association with Florida State colleague Taylor Perko and Rachel Hochstein, an Assistant Professor of Marketing at the University of Missouri-Kansas City, appears in the Journal of the Academy of Marketing Science.
The authors say their findings reinforce the notion that digital platforms “serve as custodians of trust in modern society”.
Harmeling calls it “a very significant study” that “I think has profound implications for how and what we trust as consumers, for how marketers engage with their consumers, and how to increase the trustworthiness of the information that’s being circulated about the brand”.
The results of the study showcase how those features influenced trust, distrust and purchasing decisions.
How online trust can be eroded
“We found that trust can be violated if people believe that their digitally presented content isn’t what unfolds in reality – that’s where the photo filters come into play – or if there is missing data from their observable example,” Harmeling explains.
“If we suspect missing data, then we start to call into question whether the online user’s experience with a product is reflective of the population.”
The researchers believe their findings also have implications for social media influencers, who might want to avoid using photo filters or overly edited photos and videos. “Focusing instead on live videos or real-time ‘story’ posts may be perceived as more trustworthy.”
Perhaps more importantly, the researchers urge marketers to help consumers distinguish ‘real’ from ‘fake’ and ‘missing’ content from ‘complete’ content’.
They emphasise that such judgments “require the ability to identify patterns in a body of user-generated content, recognise anomalies in the pattern and estimate the impact of truth-altering features on each online platform”.
The research team adds: “Helping consumers make these judgments should be a priority of marketers, because suspicion of even single posts can erode trust in the entire body of user-generated content and sow uncertainty in consumers’ purchase decisions.”
Harmeling also points out policy implications, especially amid the rapid proliferation of artificial intelligence.
For example, the European Union’s AI Act, scheduled to take effect this year, will require labelling deepfake AI-generated photos, videos or audio of existing people and places as artificially manipulated.
You can find out more about the study here.
Financial Sector Conduct Authority says fine imposed should remind companies that misleading and false advertising will not be tolerated.
Annual CMO Breakfast in Kampala will hear insights from senior HR executive, Gloria Byamugisha, and a panel of business leaders.
CM(A) is a high-level pan-African professional designation awarded to senior marketers in recognition of their experiences and skills.
New legislation in Zambia is helping to establish a supportive environment for creators. But there’s more to be done.
Danish-based brand opens two stores in Casablanca as it launches its long-planned Africa strategy. Another store will open later this year.
The latest issue of Strategic Marketing for Africa, the magazine for deep-thinking African marketing professionals, is now available.
Why attention is the ultimate currency in a world of endless distractions – and how to make it work for your brand.
The Flipper is an AI-powered phone-case that automatically flips a user’s phone face down when someone says “cheers”.
Confederation has fast-paced online Express Courses you can complete in a week, to in-depth studies taking up to 10 months.
Researchers say the fossil fuel industry is spending big on misleading native ads that mimic credible journalism. But there are remedies.
Seacom has announced the appointment of Mandisa Ntloko-Petersen as its new Group Chief Marketing Officer. Seacom is a private telecommunications company that provides data services, internet bandwidth and ICT infrastructure across Africa – including subsea cables and a continent-wide IP-MPLS network
Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.
Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.
Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.