The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach

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dc.contributor.advisorPillay, Pragasen
dc.contributor.advisorRosenstein, David
dc.contributor.advisorDrummond, Mark
dc.contributor.authorMule, Jessica Loko
dc.date.accessioned2021-09-14T18:13:30Z
dc.date.available2021-09-14T18:13:30Z
dc.date.issued2021
dc.date.updated2021-09-14T07:47:23Z
dc.description.abstractThe use of Native Advertising has sparked ethical concerns, due to its controversial nature inherent in its definition - a paid form of advertising that disguises persuasive communications as the editorial content of the publishing media outlet. The growing popularity of Native Advertising practices over the past decade in online news publishing has contributed towards the increasingly blurred lines between commercial and editorial content which in turn engenders feelings of deception in consumers and threatens to lower the trustworthiness of news publishers as an objective source. Therefore, the purpose of this study was to undertake theory testing guided by the tenets of the Persuasion Knowledge Model [PKM] (Friestad & Wright, 1994) to uncover insights on whether disclosure serves as an effective measure in publishers' efforts of mitigating the potential of consumer deception. In particular, this study investigated the relationships between: (1) effect of disclosure label positioning on advertising recognition; (2) mediating influence of visual attention on the aforementioned relationship; and (3) effect of advertising recognition on Inference of Manipulation [IMI] and perceptions of the online news publishers' credibility. The study used a quantitative multi-methodology research approach. An innovative Neuromarketing approach was undertaken through a psychophysiological-based analysis of visual attention to disclosure, measured as Fixation (ms/m) using eye-tracking technology, in addition to self-reported measures obtained via an online survey. In line with similar past studies, this study used convenience non-probability sampling and random assignment of participants to experimental groups, on a sample of 87 students between the ages of 20-29 years from the University of Cape Town (UCT). Findings showed no significant difference in the likelihood of advertising recognition, neither between the groups presented with a disclosure and those not, nor between the varying positions of disclosure. Additionally, advertising recognition had a positive influence on perceptions of credibility, contrary to theory and evidence from past studies (described in the Literature Review). Thus, it was concluded that disclosure and advertising recognition are necessary antecedents for critical processing and formation of judgement, but by themselves are not sufficient for perceived transparency and subsequent evaluations of the publisher's credibility. This study presents design implications for practitioners in the online news publishing industry and marketers: the perceived utility of the sponsored content, along with sponsorship transparency through disclosure, plays an important role in minimizing the negative influence of advertising recognition on perceived credibility.
dc.identifier.apacitationMule, J. L. (2021). <i>The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach</i>. (). ,Faculty of Commerce ,School of Management Studies. Retrieved from http://hdl.handle.net/11427/33889en_ZA
dc.identifier.chicagocitationMule, Jessica Loko. <i>"The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach."</i> ., ,Faculty of Commerce ,School of Management Studies, 2021. http://hdl.handle.net/11427/33889en_ZA
dc.identifier.citationMule, J.L. 2021. The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach. . ,Faculty of Commerce ,School of Management Studies. http://hdl.handle.net/11427/33889en_ZA
dc.identifier.ris TY - Master Thesis AU - Mule, Jessica Loko AB - The use of Native Advertising has sparked ethical concerns, due to its controversial nature inherent in its definition - a paid form of advertising that disguises persuasive communications as the editorial content of the publishing media outlet. The growing popularity of Native Advertising practices over the past decade in online news publishing has contributed towards the increasingly blurred lines between commercial and editorial content which in turn engenders feelings of deception in consumers and threatens to lower the trustworthiness of news publishers as an objective source. Therefore, the purpose of this study was to undertake theory testing guided by the tenets of the Persuasion Knowledge Model [PKM] (Friestad &amp; Wright, 1994) to uncover insights on whether disclosure serves as an effective measure in publishers' efforts of mitigating the potential of consumer deception. In particular, this study investigated the relationships between: (1) effect of disclosure label positioning on advertising recognition; (2) mediating influence of visual attention on the aforementioned relationship; and (3) effect of advertising recognition on Inference of Manipulation [IMI] and perceptions of the online news publishers' credibility. The study used a quantitative multi-methodology research approach. An innovative Neuromarketing approach was undertaken through a psychophysiological-based analysis of visual attention to disclosure, measured as Fixation (ms/m) using eye-tracking technology, in addition to self-reported measures obtained via an online survey. In line with similar past studies, this study used convenience non-probability sampling and random assignment of participants to experimental groups, on a sample of 87 students between the ages of 20-29 years from the University of Cape Town (UCT). Findings showed no significant difference in the likelihood of advertising recognition, neither between the groups presented with a disclosure and those not, nor between the varying positions of disclosure. Additionally, advertising recognition had a positive influence on perceptions of credibility, contrary to theory and evidence from past studies (described in the Literature Review). Thus, it was concluded that disclosure and advertising recognition are necessary antecedents for critical processing and formation of judgement, but by themselves are not sufficient for perceived transparency and subsequent evaluations of the publisher's credibility. This study presents design implications for practitioners in the online news publishing industry and marketers: the perceived utility of the sponsored content, along with sponsorship transparency through disclosure, plays an important role in minimizing the negative influence of advertising recognition on perceived credibility. DA - 2021_ DB - OpenUCT DP - University of Cape Town KW - Native Advertising KW - Advertorials KW - Disclosure KW - Consumer Deception KW - Persuasion Knowledge Model (PKM) KW - Neuromarketing KW - Eye-Tracking LK - https://open.uct.ac.za PY - 2021 T1 - The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach TI - The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach UR - http://hdl.handle.net/11427/33889 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/33889
dc.identifier.vancouvercitationMule JL. The Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach. []. ,Faculty of Commerce ,School of Management Studies, 2021 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/33889en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Management Studies
dc.publisher.facultyFaculty of Commerce
dc.subjectNative Advertising
dc.subjectAdvertorials
dc.subjectDisclosure
dc.subjectConsumer Deception
dc.subjectPersuasion Knowledge Model (PKM)
dc.subjectNeuromarketing
dc.subjectEye-Tracking
dc.titleThe Effects of Native Advertising Disclosure and Advertising Recognition on Perceptions of News Story and News Website Credibility: A Consumer Neuroscience Approach
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMBusSci
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