Investigating the Impact of Misleading Information via Social Media Platforms on the Trust and Image of Beauty and Skincare Companies, as Perceived by Customers

Abstract

The study investigates the impact of misleading information on company trust and image on social media platforms. The study examines misleading information as an independent variable and company trust and company image as dependent variables, with company trust acting as a mediator to investigate the relationship between misleading information and company image. A questionnaire was distributed to 378 social media-active beauty and skincare customers, and hypotheses were tested using quantitative methods, including descriptive statistics, convergent validity, Cronbach alpha, discriminant validity, and fit model, along with a PLS-SEM path for hypothesis testing. The findings revealed that misleading information positively influenced both company trust and company image. Company trust positively affects company image. Additionally, misleading information has been shown to positively impact company image through company trust. The study advises that consumers should be cautious when using social media platforms for information and purchasing products, choose trustworthy companies, and avoid misleading information. Furthermore, the study suggests that companies should avoid unethical practices, as these can undermine trust, damage their reputation, reduce market competitiveness, and adversely influence customer perceptions and purchasing behavior.