Social media marketing deception, such as exaggerated claims, false reviews and concealed sponsorships, is increasingly becoming a threat to consumer confidence and decision-making, especially in digitally developing cultures. This research aims to explore the perception and reaction of university students in Iraq to such misleading advertising and the role of digital literacy, trust, perceived risk and cultural values.
The study used 273 students at Mustansiriyah University and analyzed the data through partial least squares structural equation modeling (PLS–SEM). The reliability and validity levels of the measurement model were achieved (CR > 0.85; AVE > 0.50).
Among the main findings, it was revealed that deceptive marketing has a positive effect on trust (β = 0.421, p < 0.001) and consumer behavior (β = 0.337, p < 0.001), whereas digital literacy has a positive effect on consumer behavior (β = 0.236) but increases perceived risk (β = 0.451). Both trust and risk mediate behavioral outcomes, and cultural values have a negative moderating effect on the relationship between deception and trust (β = –0.238) and behavior (β = –0.229). The level of education did not have any significant effects. The model accounts for 53.3% of the variance in consumer behavior and 41.5% in trust.
These findings indicate the significance of digital literacy and culturally sensitive advertising ethics as a means of safeguarding young consumers in new digital economies.
