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Jurnal Ekonomi dan BisnisJurnal Ekonomi dan Bisnis

This study investigates the prevalence and impact of false advertising in residential property advertisements within the Indonesian market, particularly in Jakarta and Tangerang. Regulatory support allowing developers to advertise and sell properties before construction has stimulated demand. This research aims to empirically evaluate the accuracy of advertised distances and commute times, identifying potential discrepancies and their implications. The study utilizes a sample of 170 property advertisements, descriptive statistics, and the Wilcoxon Signed Rank test to analyze the differences between advertised and actual distances and commute times. Data collection involved comparing the advertised metrics with actual measurements obtained via Google Maps. The findings reveal significant discrepancies between the advertised and actual distances and commute times, suggesting prevalent false advertising practices in property developers. Developers and agents promote shorter distances and times than the actual value based on Google Maps measurements. This misrepresentation has implications for consumer trust and regulatory compliance. This research addresses a critical gap in understanding advertising practices in the Indonesian property market. It highlights the necessity for greater transparency and accuracy in property marketing to maintain consumer trust and comply with regulatory standards. The study underscores the importance of ethical advertising practices for long-term brand equity and customer loyalty. Property developers are advised to enhance the accuracy of their advertisements to build trust and avoid legal repercussions. Regulatory bodies are encouraged to enforce stricter advertising standards to protect consumers and ensure market integrity.

The research empirically demonstrates the presence of false advertising practices among property firms in Indonesia, specifically the tendency to promote shorter distances and commuting times than those actually measured by Google Maps.This practice potentially erodes consumer trust and highlights the need for improved regulatory oversight.To foster ethical business practices, property developers and agents should prioritize truthful information in their advertisements, while regulatory frameworks should be developed to protect consumers from misleading claims.

Future research should investigate the long-term impact of false advertising on developers reputations and consumer trust in the Indonesian property market. Additionally, exploring the acceptable tolerance levels for discrepancies in advertised versus actual commuting times among consumers is crucial. Finally, studies could examine how the implementation of services and town management by developers influences property value perception and builds long-term brand equity, potentially leading to more sustainable and ethical practices within the industry. These investigations will contribute to a more comprehensive understanding of consumer behavior and the development of effective strategies for promoting transparency and integrity in the Indonesian property sector, ultimately benefiting both consumers and developers alike.

  1. What Makes a “Bad” Ad? User Perceptions of Problematic Online Advertising | Proceedings... dl.acm.org/doi/10.1145/3411764.3445459What Makes a yAAAuBadyAAAy Ad User Perceptions of Problematic Online Advertising Proceedings dl acm doi 10 1145 3411764 3445459
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