An assessment of ethical considerations in online advertising on customer trust: Evidence from a tech startup in Lagos, Nigeria
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Background of the study
Ethical considerations in online advertising have become increasingly important as consumers demand transparency and honesty from brands, particularly in the tech industry. In Lagos, tech startups are harnessing digital advertising to reach tech-savvy audiences, but must navigate ethical challenges such as data privacy, deceptive claims, and undisclosed sponsorships (Chinwe, 2023). This study assesses how ethical practices in online advertising influence customer trust for a tech startup. It explores elements such as truthfulness in advertising, clear disclosure of sponsored content, and adherence to privacy regulations. Ethical advertising is posited to enhance customer trust and long-term loyalty by aligning brand practices with consumer values (Ibrahim, 2023). However, lapses in ethical standards can lead to skepticism and damage brand reputation. Through the analysis of advertising content, customer surveys, and expert interviews, the research aims to identify best practices for ethical online advertising and propose recommendations to improve customer trust in tech startups (Adeniyi, 2024).
Statement of the problem
Tech startups in Lagos face significant challenges in maintaining ethical standards in their online advertising, which can negatively affect customer trust. Despite employing digital advertising to expand market reach, instances of misleading claims, lack of transparency, and inadequate data protection practices contribute to consumer skepticism (Chinwe, 2023). This erosion of trust hinders customer loyalty and long-term brand growth. The absence of clear internal guidelines and regulatory enforcement further exacerbates the problem. This study addresses the gap by examining how ethical considerations in online advertising impact customer trust and suggesting strategies to enhance transparency and integrity in digital marketing practices for tech startups (Ibrahim, 2023).
Objectives of the Study
To assess the ethical standards of online advertising for a tech startup.
To evaluate the impact of ethical practices on customer trust.
To propose recommendations for improving ethical advertising practices.
Research Questions
How do ethical considerations in online advertising affect customer trust?
What are the key ethical challenges faced by tech startups?
What strategies can enhance transparency and trust in digital advertising?
Significance of the study
This study is significant as it investigates the relationship between ethical online advertising practices and customer trust in a tech startup in Lagos. The findings will provide actionable insights for tech companies to refine their advertising ethics, ultimately improving customer loyalty. The research contributes to academic literature on digital marketing ethics and offers practical recommendations for fostering transparent advertising practices (Chinwe, 2023; Adeniyi, 2024).
Scope and limitations of the study
The study is limited to analyzing ethical considerations in online advertising and their impact on customer trust for a tech startup in Lagos, Nigeria, excluding traditional advertising methods.
Definitions of terms
Ethical Online Advertising: Advertising practices that adhere to standards of honesty, transparency, and regulatory compliance in digital media.
Customer Trust: The confidence that consumers have in a brand’s integrity and reliability.
Tech Startup: A newly established company in the technology sector.
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