Transcending boundaries of advertising Skepticism: examining Chinese and Indian consumer markets through the cultural lens of economics of information (Retracted)

Abstract

India and China collectively represent approximately 40 percent of the global population, and their robust economic growth has resulted in an increase in potential consumers through extensive advertising efforts. However, this surge in advertising, often leading individuals to purchase products they may not genuinely desire, has contributed to a growing skepticism regarding its credibility. This skepticism extends to questioning the reliability of the information conveyed in advertisements (Calfee & Ringold, 1994). This article explores the analysis of consumer skepticism in advertising through the lens of the Economics of Information (EOI). By surveying 1000 consumers in China and India through comprising 60% respondents from China and 40% from India, the research assesses the economic, social, moral, personal utility and regulatory aspects of advertising. The results not only enhance our understanding of advertising dynamics in these countries but also underscore the significance of policymakers addressing consumer skepticism to influence advertising behavior.