Modelling the Antecedent and Consequence of Consumer Perceived Deception in Loan Services

Abstract

This paper assesses the antecedent and consequence of consumer perceived deception (CPD) on consumer trust, satisfaction, attitude recommendation and intentions to acquire future loans from financial service providers. The proposed research model was tested using data from a survey of 371 loan customers of leading financial service providers in Ghana. Data were analysed using SmartPLS 2.0 for Partial Least Squares Structural Equation Modelling. The results show high information quality could significantly reduce CPD. Moreover, results indicate that CPD has negative effects on trust, satisfaction and likelihood to recommend loan service providers. However, CPD did not influence respondents’ general attitude towards loans and future intentions for loan acquisition. This paper uniquely contributes to theory by testing a framework of antecedent and consequence of CPD in order to extend scholar’s understanding of CPD in loan financial service context. The findings provide important implications for managing CPD in loan service delivery, and sustaining customer future intentions in spite of CPD in loan service. While this study is limited in terms of generalizability of the findings in developing countries, it provides avenues for further research to test the applicability of the proposed research model in financial markets in other research settings.