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L) N Ouu‘v‘ k. 7 ) ff / / DEGEPTIVE ADVERTISING: AN EXPERIMENTAL EVALUATION OF AN ATTITUDE CHANGE APPROACH TO DETECTING DECEPTION AND MEASURING THE EFFECT OF CORRECTIVE ADVERTISING BY Karen Margaret Clark A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of Human Environment and Design 1981 ABSTRACT DECEPTIVE ADVERTISING: AN EXPERIMENTAL EVALUATION OF AN ATTITUDE CHANGE APPROACH TO DETECTING DECEPTION AND MEASURING THE EFFECT OF CORRECTIVE ADVERTISING By Karen Margaret Clark The research objectives identified for this study were: (1) to empirically test an attitude change approach to detecting deception in advertising; and (2) to measure the effectiveness of a corrective advertisement on eliminating the effects of previous deception. Both the Fishbein attitude model and the extended behavioral intention model were used in an experimental design to test for possible deception contained in advertisements of three product categories: mouth- wash, pantyhose and footwear. The experiment took the form of a two- Stage non-equivalent control group design. Subjects consisted of 147 high school students in two Michigan cities. Pretest-posttest gain scores for the control and experimental groups were analyzed using a t-test of independence. No significant differences in gain scores were found for either the attitude or behavioral intention model. TWo beliefs from each product class were selected for further investigation. Mean scores of the brand under investigation were compared with an average of the mean brand belief scores of the other three brands. This technique identified deception for three beliefs. ACKNOWLEDGMENTS The writer would like to express her appreciation to a few of the many individuals who assisted her throughout the master's program. A special thanks is offered to Dr. Barbara Stowe, Chairperson of Human Environment and Design, who offered encouragement throughout the program. Gratitude is expressed to my committee members: Dawn Pysarchik, Instruc- tor of Human Environment and Design; Dr. Dennis Keefe, Assistant Pro- fessor of Family Ecology, and Dr. Bruce Vanden Bergh, Assistant Professor of Advertising. Their encouragement, comments, suggestions, and willing— ness to work within a limited time frame were greatly appreciated. A special acknowledgement is given to Dr. Brenda Witter, Assistant Professor of Human Environment and Design, not only for her assistance in the study's conception, her guidance in details of data collection and analysis, and her valuable suggestions for the written manuscript, but especially for her continued encouragement and emotional support through the master's program. Sincerest appreciation should also be given to the fellow graduate students in Room 404 for their encouragement, especially to Mary Beth Cope Robb and Maureen Sweeney Henry for their assistance in data collection. Thank you to the high school students who participated in this study, as well as to their teachers, who so graciously accepted our presence in their classrooms. ii But, most of all, deepest appreciation and a big hug are offered to Debbie for her emotional support, encouragement, and patience with a mother who missed school activities and served 30-minute meals during much of the past two years. Thank you, sweetheart. iii TABLE OF CONTENTS CHAPTER PAGE I. INTRODUCTION . . . . . . . . . . . . . . . . . l Justification . . . . . . . 2 Statement of the Problem . 4 Research Objectives . . . . . . . . . . 4 II. REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . 5 The Federal Trade Commission and Deceptive Advertising . 5 Authority to Regulate Deceptive Advertising . . 5 Development and Use of Corrective Advertising . . 6 Use of Corrective Advertising in Warner-Lambert Case 7 Use of Evidence to Determine Deception 8 Defining Deception. A Behavioral Research Approach 9 The Fishbein Attitude Model . 14 The Fishbein Behavioral Intention Model 15 Empirical Research Findings 17 Deceptive Advertising . 17 Corrective Advertising 20 III. METHODSANDPROCEDURES..................... 24 The Products . . . . . . . . . . . . . . . . . . . . . . . . . 24 The Evaluative Criteria . . . . . . . . . . . . . . . . . . . 25 The Questionnaire . . . . . . . . . . . . . . . . . . . . . . 25 The Sample . . . . . . . . . . . . . . . . . . . . . . . . . 29 The Research Design . . . . . . . . . . . . . . . . . . . . . 30 The Advertising Treatment . . . . . . . . . . . . . . . . 32 Hypotheses and Statistical Treatment . . . . . . . . . . . . . 33 IV. RESULTS AND DISCUSSION . . . . . . . . . . . . . . . . . . . . 35 Analysis of the Fishbein Models . . . . . . . . . . . . . . . 35 The Sample . . . . . . . . . . . . . . . . . . . . . . . . 36 Mouthwash Group . . . . . . . . . . . . . . . . . . . . . 37 Footwear Group . . . . . . . . . . . . . . . . . . . . . 41 Pantyhose Group . . . . . . . . . . . . . . . . . . . . 44 Summary of Demographic Information . . . . . . . . . . . 44 Testing the Hypotheses . . . . . . . . . . . . . . . . . . . 47 Stage I: Detecting Deception . . . . . . . . 47 Stage II. Measuring the Effectiveness of Corrective Advertising . . . . . . . . . . . . . . . . . . . . 51 Normative Belief Technique . . . . . . . . . . . . . 52 The Affect Component of the Fishbein Model . . . . . . . . . . 62 V. SUMMARY, LIMITATIONS AND RECOMMENDATIONS . . . . . . . . . . . . 73 Summary . . . . . . . . . . . . . . . . . . . . . . 73 Limitations and Recommendations for Further Study . . . . . . 75 iv CHAPTER PAGE LIST OF REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 APPENDICES . . . . . . . . . . . . . . . . . . . . 82 Appendix A . . . . . . . 82 Appendix B . . . . . 83 Appendix C . . . . 95 Appendix D . . . . . 96 Appendix E . . . . 111 TABLE 1. Final Evaluative Criteria by Source . . . . . . . . . . . . 2. Fishbein Components Operationalized in Questionnaire 3. Directional Rating of Variables . 4. Mouthwash Group--Summary of Demographic Information . 5. Mouthwash Group--Comparison of Control and Experimental Groups 6. Footwear Group--Summary of Demographic Information 7. Footwear Group--Comparison of Control and Experimental Groups . 8. Pantyhose Group-—Summary of Demographic Information . 9. Pantyhose Group——Comparison of Control and Experimental Groups 10. State I: Attitude Change and Behavioral Intention Change Gain Scores for Mouthwash Brands . . . . . . . . . 11. Stage I: Attitude Change and Behavioral Intention Change Gain Scores for Footwear Brands . . . . . . . . . . . . 12. Stage I: Attitude Change and Behavioral Intention Change Gain Scores for Pantyhose Brands . . . . . . . . . . . . 13. Stage II: Attitude Change and Behavioral Intention Change Gain Scores for Mouthwash Brands . 14. Stage II: Attitude Change and Behavioral Intention Change Gain Scores for Footwear Brands . . . . . . . . . . . . . . . . 15. Stage II: Attitude Change and Behavioral Intention Change Gain Scores for Pantyhose Brands . . . . . . . . . . . . 16. Mean Brand Belief Scores for Selected Attributes 17. Mean Affect Scores for Selected Attributes 18. Multiple Regression Analysis of Fishbein Attitude Model . . 19. Multiple Regression Analysis of Fishbein Behavioral Intention Model . LIST OF TABLES vi PAGE 26 28 29 38 40 42 43 45 46 48 49 50 53 54 55 56 65 .111 .113 LIST OF FIGURES FIGURE 1. Two-Stage Non—Equivalent Control Group Design . . . . . . . . . . . 2. Normative Belief Technique--Belief that Mouthwash Prevents Colds 3. Normative Belief Technique--Belief that Mouthwash Kills Germs . 4. Normative Belief Technique--Belief that Footwear Gives Leg Exercise . 5. Normative Belief Technique--Belief that Footwear Has Health Value for Feet . . . . . . . . . . . . . . . . . . . . . . . 6. Normative Belief Technique--Belief that Pantyhose Has Sex Appeal 7. Normative Belief Technique-—Belief that Pantyhose Has Texture One Likes . vii 0 PAGE 31 57 59 CHAPTER I INTRODUCTION Since man first discovered that goods could be bartered, the seller has sought to get the highest price for his product. This has sometimes resulted in the use of deception for the purpose of gaining a higher price for a product or a larger share of the market than would otherwise be obtained. For many centuries, the marketplace operated under a philosophy of "caveat emptor." In modern times, this philosophy has gradually changed to one more concerned with protection 0f the consumer. In 1914, the Federal Trade Commission was created to regulate Commerce. For many years, the Commission sought to protect the con— Sumer from the use of outright lies in advertisanents. Since 1960, however, the Commission has gradually become more concerned with advertisements which seem to give false impressions, even though the Claims may be literally true (Armstrong and Russ, 1975). While the FTC has seemed to expand its concern with deception, it has also devised methods to correct effects of previous deception and to insure the truthfulness of claims made to the consumer. The Commission has initiated an advertising substantiation program in which substantiating data for product claims must be publicly disclosed. Affirmative disclosure requires specific types of information to be disclosed in all advertising of a certain product class. Counter advertising has been required in certain cases, as in the provision for anti-smoking commercials to counter cigarette advertisements. Correc- tive advertising has been required in some cases in order to eliminate 1 the effect of past deception on future consumer decision-making. The increased concern with deception and the increasing efforts to remedy its effects are dependent on the supposition that deception in advertising can be detected. The FTC has_generally relied on an EPFUit.ixs.,§}2£§9§_9§’ -in.,-vhis=h thsiudgemenfipf Pic members is used 35° detect deception in advertising. However, in recent years, advertisers (Dillon, 1973), market researchers (Pollay, 1969; Haefner and Permut, 1974; Bernacchi, 1974; Wilkie and Gardner, 1974; Armstrong and Russ, 1975; Gardner, 1975), lawyers (Gellhorn, 1969; Mann and Gurol, 1978), and even a former Commissioner of the Federal Trade Commission (Jones, 1971), have written of the need for aniobjective methodology for detec- ting deception in advertising. I. JUSTIFICATION The existence of a consumer-based research procedure to determine deception would be of benefit to regulators, advertisers, and to con- sumers. It would aid regulators such as the Federal Trade Commission in its selection of cases, prosecution, and in determination of remedies (Armstrong and Russ, 1975; Mann and Gurol, 1978). It has been suggested that consumer research could be incorporated into the existing FTC advertising substantiation program, making research data available on certain product categories, such as those in which public health and safety are involved (Rotfeld and Reid, 1977). Consumer research would aid in determining remedies such as cease and desist orders, affirmative disclosure, counter advertising, and corrective advertising, since the actual existence of deception as well as deceptive characteristics must be determined before these methods can be used effectively (Armstrong and Russ, 1975). In addition, behavioral science research could aid the FTC in determining whether or not what the advertiser considers to be puffery is actually deceptive (Preston and Johnson, 1973). The law has gener- ally seen puffery as a statement of mere opinion which no reasonable consumer would rely upon in purchase decisions. However, there has been little attempt to substantiate this position. Consumer research evidence would help to demonstrate whether or not consumers do indeed treat puffery as fact and if they are subject to being deceived by it. Since, as behaviorally defined, deception is dependent on the perception of the receiver, it will continue to exist in advertisements regardless of the intent of the advertiser. For the FTC to use this procedure, it would be necessary, therefore, to establish certain stan- dards of allowable deception. These standards might allow differing amounts of deception to occur in different product classes. Advertising agencies could use a consumer-based research procedure to pre-screen questionable advertisements and to provide evidence at the time cases are being considered for litigation. For advertisers who routinely do copy testing to measure the effectiveness of their adver- tisements, such data could be gathered at a minimal cost. A bonus to the advertiser would be the elimination of vague or misdirected messages that interfer with effective advertising. The further elim- ination of deception would also promote a more favorable impression of advertising by the consumer. If advertising can become more informative by the elimination of deception, the consumer would benefit by gaining a better basis for purchase decision-making. In addition, rather than relying on value judgements and emotional suspicions, the consumer would have objective evidence on which to base his complaints (Armstrong and Russ, 1975). II. STATEMENT OF THE PROBLEM There is a need for a consumer research methodology which can be used as the basis for identifying deceptive advertising and for evalu- ating the effect of corrective advertising. III. REASERCH OBJECTIVES This research was designed to: (l) empirically test an attitude change approach to detecting deception in advertising. (2) measure the effectiveness of a corrective advertisement on elimi- nating the effects of previous deception. The authority and actions of the Federal Trade Commission in regulating deceptive advertising and proposed methodologies for defin- ing deception are presented in the following chapter. .Attitude theory will be discussed, and two models of potential use for the FTC will be introduced. The chapter will conclude with a discussion of the use of attitude theory in assessing deceptive and corrective advertising. CHAPTER II REVIEW OF LITERATURE I. THE FEDERAL TRADE COMMISSION AND DECEPTIVE ADVERTISING Authority to Regulate Deceptive Advertising In 1914, the Federal Trade Commission Act created the Federal Trade Commission. This Commission was formed not to deal with advertising regulation, but instead for the enforcement of antitrust laws (Pelgro, 1978). Using its authority to prevent "unfair methods of competition in commerce" (FTC act of 1914, ch. 311 § 5, 38 Stat. 719), the Commission immediately began to exercise jurisdiction over advertising. This action continued until 1931, when the Supreme Court, in FTC vs. Radam Co. (238 U. S. 643, 1931), severely restricted the Commission's authority in this area. In this case, a manufacturer of an "obesity cure" was ordered to stop advertising the product as "safe" and "effective" when the Commission found that the preparation could not be used safely except under medical direction and advice. The Supreme Court provided a landmark ruling that forbade the FTC to pro— hibit false and deceptive advertising unless it could show that there was a harmful effect upon the competitors of the advertiser, regardless of whether or not consumers were harmed by the advertising. Congress responded to this ruling by passing the Wheeler-Lea Act of 1938, which extended the Commission's authority to preventing "unfair or deceptive acts or practices in commerce" (Wheeler-Lea Act of 1938, 3, 15, U. S. C. § 45, a, 1, 1970). Development and Use of Corrective Advertising / In writing the Wheeler-Lea Act, Congress chose to use the general words "deceptive" and "unfair" rather than to define deception by the enumeration of proscribed acts. Thus, the Commission was given the power to determine deception on a case-by-case basis. Although provid- ing a workable framework for FTC control of deception, this decision prevented businessmen from being certain that specific acts were unlaw- ful until ruled so by the Commission. To prevent due process concerns, Congress decided against the imposition of civil or criminal liabilities for violation of the act, in favor of the issuance of cease and desist orders. Exclusive use of cease and desist orders to deter deception con- tained two fundamental inadequacies: (1) provision of delay profits, and (2) failure to eliminate persistent false impressions. Delay pro- fits refers to profits gained from a deceptive advertising campaign during the period of sometimes several years between the initial FTC investigation and the issuance of a cease and desist order. By the time the order is finalized, the deceptive advertising campaign may have run its natural course and the guilty party has gained a profit based on deception and paid only attorney fees. Secondly, the tradit- ional remedies do nothing to eliminate the false impression that persists after the deceptive advertisement has ceased. It is theorized that consumers could continue making purchase decisions based on im- pressions created by deceptive advertisements long after the deceptive advertisement has been withdrawnv/ Corrective advertising is one method recently utilized by the FTC to eliminate delay profits and persistent deception. Most simply stated, corrective advertising is "advertising designed to inform con- sumers that previous advertising by the company was deceptive" (Mann and Gurol, 1978, p. 79). The exact wording and length of exposure of this advertising is generally stipulated in a consent decree. Corrective advertising was first formally proposed by SOUP (Students Opposing Unfair Practices), a group of George Washington law students who sought to intervene in a FTC action against the Campbell Soup Company (77 FTC 664, 1970). This case concerned the soup company's practice of putting marbles in soup shown in television commercials, giving the soup a deceptively rich appearance. Although the Commission declined to use corrective advertising in that case, it reserved the right to use the remedy in future cases. SOUP again sought the correc- tive advertising remedy in a second case, Firestone Tire and Rubber Company, with the same results (81 FTC 398, 426, 1972). The FTC has subsequently utilized corrective advertising in a number of cases as part of the consent order. The most recent was signed by STP on February 9, 1978, as part of a settlement of a civil penalty action for violation of a 1976 FTC cease and desist order. The federal court first acknowledged the FTC's authority to order corrective advertising in the Listerine mouthwash case (Warner- Lambert Co. vs. FTC, 562 F. 2d 749, DC Cir. 1977, cert denied, 98 S. Ct. 1575, 1978). Since Listerine will be used in this study, a brief description of the case follows. Use of Corrective Advertising in Warner-Lambert Case Listerine had been represented as a mouthwash product beneficial in certain aspects for colds, cold symptoms, and sore throats ever since its introduction to the market in 1879. On December 9, 1975, the Commission ordered Warner-Lambert to cease and desist from alleging that Listerine would cure or lessen the severity of colds or sore thorats. It was also stipulated that the next ten million dollars of Listerine advertising contain the disclosure that, "Contrary to prior advertising, Listerine will not help prevent colds or sore throats or lessen their severity" (Warner-Lambert Co. vs. FTC, 86 FTC 1398, 1513- 15, 1975). When Warner—Lambert sought review of this order, the court found the following evidence that supported the Commission's findings: (1) ingredients in Listerine are not present in sufficient quantities to have any therapeutic effect; (2) it is impossible for Listerine to reach the critical areas of the body in sufficient concentration during gargling; (3) even if significant quantities of the active ingredients were to reach the critical sites, they would not interfere with the activities of the virus because they could not penetrate the tissue cells; (4) the ability of Listerine to kill germs by the millions on contact is of no medical significance in the treatment of colds or sore throats, because colds are caused by viruses (Warner-Lambert Co. vs. FTC, 652 F. 2d at 753—54). 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