Common Tactics of Customer Deception in Chain Stores: A Model of Customer Deception Tree

Document Type : Research Paper

Authors

1 Ph.D. Candidate, Department of Marketing Management, Aras International Campus, University of Tehran, Tehran, Iran.

2 Ph.D. Candidate, Department of Marketing Management, Faculty of Business Management, College of Management, University of Tehran, Tehran, Iran.

3 Assistant Prof., Department of Marketing Management, Research Center of Management & Productivity Studies Center, Faculty of Management & Economics, Tarbiat Modares University, Tehran, Iran.

Abstract

Objective
The widespread occurrence of fraud in chain stores poses a major challenge for the retail sector. The issue can be examined from multiple perspectives: customer fraud during purchases, employee fraud, fraud against investors and stockholders by stores, and deceptive practices that stores use against their customers. There is a notable research gap regarding the latter type of fraud, which this study aims to address by exploring and identifying prevalent methods of customer deception in chain stores. This article aims to present a model for explaining the methods of deceiving customers in chain stores.
 
Methodology
A mixed-methods approach was employed to illustrate the facets of customer fraud and deception by chain stores. Following a comprehensive literature review, in-depth interviews were conducted with (frequently purchasing) customers, industry experts, and key informants and professionals in the retail industry. This led to the identification of significant factors associated with customer deception in chain stores. Subsequently, a conceptual framework for the customer deception model was developed using cognitive mapping techniques, in collaboration with retail industry scholars and specialists. To validate the initial model, a quantitative field survey was conducted using structural equation modeling. This process led to the development of the final model, termed the "Customer Deception Tree".
 
Findings
Over half of the participants reported experiencing instances of fraud and deception, highlighting a critical concern for the retail industry. The identified components of customer fraud are visualized in a tree model format. This model outlines the prevalent methods of deceiving customers across five primary stems, which include misleading advertisements, failure to deliver promised services, price manipulation, alterations in product characteristics, and misplaced goods on shelves.
 
Conclusion
The act of misleading consumers by chain stores has emerged as a significant and increasingly pervasive unethical behavior in recent years. This research delves into the various dimensions of this issue, identifying and presenting contributing factors within a comprehensive model. This model serves as a guiding framework for stakeholders in the retail industry, including marketers and policymakers, particularly those involved in decision-making and strategic planning within chain stores, to address and mitigate this issue effectively. It is imperative to recognize the significance of avoiding such deceptive practices. Furthermore, the model can assist regulatory bodies and governance institutions in improving their protocols and supervision mechanisms, updating their enforcement strategies against fraud, and ensuring the protection of consumer rights. The tree symbol serves as a visual metaphor for the phenomenon of deception, aiming to alert consumers, the public, academics, and the research community to its existence. Ignoring or neglecting this symbol allows deceptive practices to grow and become more deeply rooted and widespread. By raising awareness of this "deceptive tree," there is an expectation that regulators will be encouraged to intervene, curbing its growth and influence by addressing deceptive tactics before they become even more ingrained.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 16, Issue 4
2024
Pages 1029-1054

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