The power of perception: how persuasion knowledge and perceived deception in advertisement impact brand-related fake news adoption

Purpose This paper aims to explain how consumer persuasion knowledge and perceived deception in advertisements can influence consumers’ future evaluation of fake news about a brand. Design/methodology/approach This research develops a conceptual model using widely used persuasion knowledge theory and confirmation bias theory. A questionnaire-based online survey (n = 410) was conducted by displaying an advertisement stimulus followed by a fake news stimulus to test the model. Covariance-based structural equation modeling was used to analyze the hypothesized research model. Findings The results demonstrate that consumers with high persuasion knowledge are more likely to trust and adopt fake news about an advertised brand through the mediation of perceived deception in the advertisement. Additionally, perceived deception indirectly affects information adoption through the mediation of news credibility. Practical implications Theoretically, this study contributes to the existing body of literature on advertising deception and fake news. This research also extends theory of persuasion knowledge in understanding adoption of fake news. Practically, this study has significant implications for various stakeholders, including brands, social media corporations and consumers. Originality/value This research adds novel insights in the relationship of consumers’ persuasion knowledge and credibility and adoption of fake news. Furthermore, the investigation of the relationship between the perceived deception in advertising and the adoption of fake news has not been explored, which is also novel.