Ethical Advertising in Pakistan's Telecom Sector: Assessing Deceptive Practices and Strategies for Sustaining Customer Loyalty

Abstract

This paper examines the impact of deceptive advertising practices on customer loyalty in Pakistan’s telecom sector, focusing on major providers Jazz, Telenor, and Ufone. Through a mixed-methods approach, including surveys and secondary data analysis, the research reveals that 74.6% of respondents felt deceived by misleading claims, hidden charges, and unfulfilled service promises, leading to a 69.3% churn rate. Ufone exhibited the highest levels of unethical advertising, correlating with poor customer retention, while Jazz, with more transparent practices, maintained stronger loyalty and market dominance. The findings underscore that deceptive tactics erode trust and brand equity, whereas ethical advertising fosters long-term customer relationships. Strategic recommendations include enhancing pricing transparency, improving service quality alignment, and strengthening customer service to rebuild trust. The study highlights the need for stricter regulatory oversight by the Pakistan Telecommunication Authority (PTA) and calls for industry-wide adoption of ethical marketing standards to ensure sustainable growth in this competitive sector.

Keywords: Ethical Advertising, Deceptive Practices, Customer Loyalty, Telecom Sector, Pakistan, Transparency, Regulatory Compliance