Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 Journal homepage: w.
edu/jeb ISSN 1979-6471 E-ISSN 2528-0147 From promises to reality: Analyzing discrepancies in residential property advertisements in indonesia Andreas Kikya* Faculty of Management and Humanity.
Pradita University.
Tangerang.
Indonesia.
kiky@pradita.
ARTICLE INFO
ABSTRAK
Article History:
Received 08-26-2024 Revised 07-09-2025 Accepted 09-04-2025 Penelitian ini menyelidiki prevalensi dan dampak iklan sesat dalam iklan properti residensial di pasar Indonesia, khususnya di Jakarta dan Tangerang.
Dukungan regulasi yang memungkinkan pengembang untuk mengiklankan dan menjual properti sebelum konstruksi telah merangsang permintaan.
Penelitian ini bertujuan untuk mengevaluasi secara empiris akurasi jarak dan waktu tempuh yang diiklankan, mengidentifikasi potensi perbedaan dan Studi ini menggunakan sampel 170 iklan properti, statistik deskriptif, dan uji Wilcoxon Signed Rank untuk menganalisis perbedaan antara jarak dan waktu tempuh yang diiklankan dengan yang sebenarnya.
Pengumpulan data melibatkan perbandingan metrik yang diiklankan dengan pengukuran aktual yang diperoleh melalui Google Maps.
Temuan mengungkapkan perbedaan signifikan antara jarak dan waktu tempuh yang diiklankan dengan yang sebenarnya, menunjukkan praktik iklan palsu yang lazim di kalangan pengembang properti.
Pengembang dan agen mempromosikan jarak dan waktu yang lebih pendek daripada nilai sebenarnya berdasarkan pengukuran Google Maps.
Ketidakakuratan ini memiliki implikasi terhadap kepercayaan konsumen dan kepatuhan terhadap regulasi.
Penelitian ini mengisi celah kritis dalam pemahaman praktik periklanan di pasar properti Indonesia.
Ini menyoroti perlunya transparansi dan akurasi yang lebih besar dalam pemasaran properti untuk mempertahankan kepercayaan konsumen dan mematuhi standar regulasi.
Studi ini menekankan pentingnya praktik periklanan yang etis untuk ekuitas merek jangka panjang dan loyalitas pelanggan.
Pengembang properti disarankan untuk meningkatkan akurasi iklan mereka untuk membangun kepercayaan dan menghindari dampak hukum.
Badan regulasi didorong untuk menegakkan standar iklan yang lebih ketat untuk melindungi konsumen dan memastikan integritas Kata Kunci:
Iklan sesat, pasar properti residensial, kepercayaan konsumen, kepatuhan regulasi, real estat indonesia Keywords:
False advertising, residential property market, consumer trust, regulatory compliance, indonesia real estate ABSTRACT This study investigates the prevalence and impact of false *Corresponding Author From promises to reality: Analyzing discrepancies (Kik.
advertising in residential property advertisements within the Indonesian market, particularly in Jakarta and Tangerang.
Regulatory support allowing developers to advertise and sell properties before construction has stimulated demand.
This research aims to empirically evaluate the accuracy of advertised distances and commute times, identifying potential discrepancies and their implications.
The study utilizes a sample of 170 property advertisements, descriptive statistics, and the Wilcoxon Signed Rank test to analyze the differences between advertised and actual distances and commute times.
Data collection involved comparing the advertised metrics with actual measurements obtained via Google Maps.
The findings reveal significant discrepancies between the advertised and actual distances and commute times, suggesting prevalent false advertising practices in property Developers and agents promote shorter distances and times than the actual value based on Google Maps measurements.
This misrepresentation has implications for consumer trust and regulatory compliance.
This research addresses a critical gap in understanding advertising practices in the Indonesian property It highlights the necessity for greater transparency and accuracy in property marketing to maintain consumer trust and comply with regulatory standards.
The study underscores the importance of ethical advertising practices for long-term brand equity and customer loyalty.
Property developers are advised to enhance the accuracy of their advertisements to build trust and avoid legal repercussions.
Regulatory bodies are encouraged to enforce stricter advertising standards to protect consumers and ensure market integrity.
INTRODUCTION
The Indonesian property industry has made a significant recovery from the COVID-19 pandemic.
The latest Residential Property Price Index (IHPR) for the first quarter of 2024 reveals robust growth in this sector.
Notably, the price of small residential properties has seen a substantial increase of 2.
41% year-over-year (YoY), indicating an apparent market recovery.
Total residential property sales also increased 16% YoY, highlighting IndonesiaAos strong demand for residential properties (Bank Indonesia, 2.
Market forces do not solely drive this demand but are significantly bolstered by regulatory support that allows developer companies to sell their designs and advertise homes before construction commences.
This regulatory framework has played a pivotal role in stimulating the market and driving demand for residential properties.
Research trends in the real estate and property sector are increasingly focusing on the integration of technology to enhance customer interaction and experience (Naeem et al.
, 2.
The COVID-19 outbreak has changed market dynamics, buyer behavior, and financial implications for the property sector (Balemi et al.
, 2.
Modern marketing strategies integrate digital advertising with conventional methods.
Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 such as large billboards, to more effectively reach prospective buyers (Zhang et al.
The future of property management marketing strategies will likely shift towards interactive media promotions to target potential buyers more effectively.
Developers can attract prospective buyers even before initiating real estate transactions through creative marketing campaigns and advertising.
Advertising plays a crucial role in the competitive landscape of the primary residential property market.
Developers strive to attract potential customers through various marketing campaigns and advertisements.
Marketers leverage two critical pieces of information, such as distance and commuting time to attract potential buyers.
However, it is essential to question whether the distance and time information presented in advertising accurately represents reality.
Are there instances of false advertising practices in the promotion of residential property? The most recent literature covers broader practices in customer service and technological innovations in property management (Ciuchita et al.
, 2023.
Sanderson & Read, 2.
Digital advertising practices evolved into personalized and data-driven advertisements for targeted segments (Aiolfi et al.
, 2.
The issue of deceptive advertising in the property industry warrants further exploration.
The ethical consideration of false advertising practices in the property sector is critical yet underexplored.
Deceptive advertising may erode client trust over time (Sanderson & Read, 2.
Deceptive advertising is increasing as online media expands its reach to a broader audience through mobile devices, thus motivating regulators to restrict it (Truth in Advertising, 2.
In the food industry.
Burger King is confronted with a class-action lawsuit for deceptive advertising over the dimensions of its burgers (Neal.
There are four types of false information in online content: rumors, fake news, misinformation, and hoaxes (Habib et al.
, 2.
In the context of the Indonesian property industry, advertisements need to deliver more accurate information about distance and commuting time.
I identify a gap in the lack of inquiry into deceptive advertising practices within the property sector.
While earlier studies have examined false advertising in the residential property sector primarily from the perspectives of consumer behavior, regulatory compliance, and ethical implications (Kupke et al.
, 2014.
Nuseir, 2.
, empirical analysis of the actual accuracy of physical advertising content remains scarce.
A recent attempt by Kiky .
has addressed this gap by highlighting discrepancies in distance and travel time claims found in billboard advertisements.
Accordingly, this study enhances the existing literature by offering extensive empirical evidence through the analysis of digital advertisements from Instagram and by corroborating the data across three distinct time periods: midday .
:00Ae15:.
and two critical commuting hours .
orning and evenin.
This method broadens the analytical media reach and incorporates a temporal aspect, facilitating a better understanding of the magnitude and duration of advertising inaccuracies in real-world conditions.
From promises to reality: Analyzing discrepancies (Kik.
This paper aims to fill the research gap by empirically investigating false advertising practices in the property sector.
While numerous scholars have expanded the scope of property management to include sophisticated technology in marketing strategies.
I argue that false advertising practices also deserve special attention from The presence of false advertising practices could damage property developersAo long-term reputations and create distrust among potential customers.
Despite significant technological advancements, property businesses must not publish inaccurate product information.
To my best knowledge, this paper is the first empirical attempt to explore false advertising practices among property developers.
understanding false advertising practices in the property business, this paper aims to contribute to the improvement of the regulatory framework that protects consumers' right to accurate information.
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Property business in IndonesiaAos urban area Jakarta is the most prominent city in Indonesia.
Most of the economic activity is centralized in this city.
Consequently, there is a growing demand for residential properties in the surrounding area, especially in the Tangerang region.
Over the past decade.
Tangerang Regency has undergone a transformation into a thriving city, thanks to the support of major developers.
Several reputable property developers have transformed the area into a new urban city with elevated property values.
While the residential property prices of reputable developers are skyrocketing, mid-tier developers around the area offer affordable residential prices near major developersAo National-scale property developers typically construct independent towns equipped with entertainment, healthcare, and educational facilities to serve the Large-scale developers also create a sustainable environment by incorporating green principles into their designs.
In Jakarta, most property appraisals assign more value to green properties owing to their sustainability (Sidig et al.
, 2.
The market value is further elevated due to the integration of services by elite developers to uphold the town's cleanliness and security.
The market will assign significant value to properties with town management services (Li & Monkkonen.
These variables enabled national-scale developers to sustain competitive advantages over mid-tier and lower-tier developers.
The Indonesian Central Bank regulation facilitates these developers by permitting them to sell residential concepts, advertise the products before construction projects, and receive cash for the signed mortgage (ICLG Business Report, 2.
However, small and medium developers must meet specific targets in construction development to receive mortgage funds.
In the absence of governmental assistance and relevant rules, developers will encounter difficulties in financing construction projects Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 (Auyezkhanuly et al.
, 2.
National-scale developers are treated differently owing to their reputation and market trust.
This regulation renders product launching and advertising essential for market competition.
With sales surging and products depleted, the financing for the construction project is secured.
National-level developers typically promote their neighborhoods and their surrounding facilities.
Conversely, medium and small developers typically emphasize the distance and duration of commutes from commuter line stations or established towns developed by larger developers.
Examining the promotional materials regarding distance and duration from mid-tier developers or real estate agents is quite intriguing.
The advertisements often disseminate erroneous information and mislead potential Therefore.
I conjecture that the distance and time promoted by these developers or agents are lower than the actual value.
False advertising and property marketing False advertising occurs when advertisements inform inaccurate specifications or occasionally exaggerate the products or services (Rhodes & Wilson, 2.
In the era of digital and online media, the practice has evolved into fake reviews that mislead customersAo perceptions (Martynez Otero, 2.
Consumers tend to believe and be attracted by influencer marketing on online reviews before making purchase decisions (Arief et al.
, 2.
A dedicated systematic literature review also classified fake information into four categories: rumors, fake news, misinformation, and hoaxes (Habib et al.
, 2.
False advertising techniques may adversely affect a business's reputation and long-term trust (Nuseir, 2018.
Rhodes & Wilson, 2.
Location is a significant factor for property buyers to consider.
This information is typically promoted together with the surrounding facilities in the area .
Ninar, 2.
Property buyers also consider the community within the residential areas and the affordability of property prices before making any transaction (Ratchatakulpat & Marchant, 2.
Property buyers purchase residential products based not only on the material and specifications but also on the surrounding environments offered by the developers, such as facilities, location, and property values of future development.
Therefore, developers will promote such information as their marketing strategies to attract buyers.
Digital marketing was used in early 2005 to promote the property market in Shenzhen (Ford et al.
, 2.
The results could have been more practical because of consumer behavior and the instability of the internet connection.
A similar result was also observed in the New Zealand property market (Mcdonagh, 2.
However, nowadays, the trend favors digital marketing in promoting residential properties.
The advent of smartphones and stable internet connections has significantly enhanced property promotions through virtual reality (Xiong et al.
, 2.
Prospective buyers can interact and experience the property products with a tap or finger.
The innovation even utilized big data to target highly prospective buyers (Ciuchita et al.
, 2.
From promises to reality: Analyzing discrepancies (Kik.
Property marketing is entering a new wave of digitalization, enhancing customersAo experience through virtual reality and big data analytics.
False advertising practices have been observed in the secondary property market in Australia.
For instance, bait pricing attracts buyers while final prices differ from advertised ones (Kupke et al.
, 2.
Several property management studies focus on trends in sophisticated digital marketing and data-driven buyer profiling (Aiolfi et , 2021.
Jain & Purohit, 2022.
Kaur & Solomon, 2.
However, it can be argued that good business conduct and ethical advertising behavior also play a pivotal role in establishing long-term trust and reputation.
Inadequate and misleading advertising could harm firmsAo reputation (Nuseir, 2018.
Zeng et al.
, 2.
Accordingly, this paper seeks to investigate false advertising practices in IndonesiaAos primary property market, specifically in the Greater Jakarta area.
As towns are developed by large developers, middle, and small-property developers or agents tend to advertise their products near well-established facilities.
Therefore, the distance and commuting time advertised by these developers should represent actual measures rather than mere bait prices.
To ensure a comprehensive understanding of false advertising practices in the Indonesian property market, it is crucial to integrate each referenced study directly with our research question and hypothesis.
For instance, studies on the impacts of digital marketing and false advertising in various sectors can provide a foundational context for our investigation (Ciuchita et al.
, 2023.
Sanderson & Read, 2.
Specifically, the evolution of digital advertising into personalized and data-driven approaches underscores the importance of accuracy in marketing claims (Aiolfi et al.
This relevance is particularly significant in the property market, where deceptive advertising about commuting distances and times could significantly affect consumer decisions and trust.
Furthermore, studies on the post-COVID-19 changing market dynamics (Balemi et al.
, 2.
and technological integration in property marketing (Naeem et al.
, 2.
highlight a trend toward interactive media promotions, which can be used by developers to attract buyers.
However, this shift also increases the potential for misleading advertisements, emphasizing the need for our empirical investigation of the accuracy of advertised claims by Indonesian property developers.
We aim to fill the specific gap in understanding the prevalence and impact of false advertising in the Indonesian property market, specifically in the Greater Jakarta area.
Hypothesis development A form of false advertising involves product specification misinformation (Habib et al.
, 2.
The emergence of digital media and online reviews has boosted false advertising practices (Martynez Otero, 2.
Social media, like Instagram, has become a new medium influencing customer perception in the digital age (Waltenrath.
In this respect.
I predict that the advertised distance and commuting time are lower than their actual values.
Property developers or agents tend to misinform their target customers about the shorter distances and shorter times to the advertised Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 residential property.
The phenomenon is well documented in the Australian property market.
The research theme focuses primarily on the regulatory aspects and controls that enable real estate agents to act ethically and provide fair information to consumers (Webb.
Furthermore.
Christensen et al.
demonstrate that the physical brochures of property information often mislead consumers.
Buyers rely heavily on visuals and third-party endorsements, which positions them asymmetrically against sales representatives (Christensen et al.
, 2.
This finding is also supported by Kiky .
, who points out the inaccuracy of the advertised proximity and commuting time.
It is then more likely that the advertised information .
istance and tim.
does not reflect the actual buyersAo commuting experience.
Therefore, the following are my research hypotheses:
H1: The advertised distance from the media is shorter than the actual distance measured by Google Maps.
H2: The advertised commuting time from the media is shorter than the actual commuting time measured by Google Maps.
RESEARCH METHODS
This paper used a quantitative method to test the proposed hypotheses.
collected pictures of advertisement materials from both physical and digital media.
The physical advertising media consists of large billboards or banner advertising media in Greater Jakarta.
For digital media, pictures of agents or official developers promoting their residential properties were collected from Instagram.
The observation was conducted between May 2024 and June 2024.
This research employed a simple random sampling method.
I chose Greater Jakarta as the observation region because of the emergence of numerous satellite cities that have developed into autonomous towns during recent decades.
The data analysis will proceed through the following First, the images of the advertised media were recorded based on the distance .
n meter.
and time .
n minute.
Second, the advertised distances were compared with Google Maps information based on the car distance routes.
Third, the advertised time was compared with Google Maps information based on three different commuting hours: morning time .
:00 Ae 08:.
, afternoon time .
:00 Ae 15:.
, and evening time .
:00 Ae 18:.
Fourth, the three different commuting hours are averaged to ensure the validity of the actual commuting time.
Fifth, the advertised distance and time were statistically compared with the actual data from Google Maps using a dependent t-test to test the research hypotheses.
A normality test was used before I ran the dependent t-test.
If the difference between the two groups was not normally distributed, then the Wilcoxon Signed test was applied to test the hypotheses.
From promises to reality: Analyzing discrepancies (Kik.
Sixth, a dependent t-test was used to minimize the variation between the data groups, considering that the scale of measurement used was a ratio scale.
RESULT AND DISCUSSIONS
Descriptive results This research collected 194 samples of commuting distance and time information advertised by developers or agents.
These samples were gathered from both physical and digital media.
The samples from the Greater Jakarta area were likely to promote commuting time rather than distance in their advertisements.
Property developers or agents attempt to capture the mobility needs of urban residents by promoting commuting time, which is essential in the Greater Jakarta area.
Table 1 presents the details of the sample size.
Table 1
The number of samples based on distance and commuting time
Information Distance Time
TOTAL
Source: Author Most of my samples .
came from digital media (Instagra.
, which accounted for 76% of the samples.
In the Instagram caption, property developers or agents could provide more information about their property distance and time, which was very limited compared with giant billboards or banners.
Most physical promotion advertisements had a radius of 5 km from the property locations.
The longest distance claimed in our sample was within eight km.
Many physical promotion media were found in the Tangerang Regency area, near the BSD town, a rapidly developing area.
In our sample, the data were dominated more by the advertising from the middle and low-class developers than the high-end developers.
Middle and small developers utilized physical media to attract middle-income buyers to their property, using this media with commuting information.
Figure 1 The proportion of digital and physical ads Source: Author Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 The descriptive results demonstrate that the advertisements provided a shorter distance than the information from Google Maps.
Figure 2 compares the claim and the exact distance.
I used the car-travel distance information in Google Maps.
The car distance information has considered the shortest riding distance available for the spot.
The advertisement must provide more accurate information regarding the riding distance for prospective buyers.
Many of the advertised samples underreported the actual riding distance of their property advertisements.
Figure 2 Comparison between the advertised and actual distance Source: Author The practice of providing misleading information was also evident in the descriptive results of commuting time.
Figure 3 indicates that the advertisements also claimed lower commuting times than the actual values.
I observed three commuting times to validate the result: morning, afternoon, and evening.
The actual commuting time is the average time calculated from three different commuting hours provided by Google Maps.
The advertisements act as bait to attract potential buyers and encourage them to visit the propertyAos location.
Figure 3 Comparison between advertised and actual commuting time Source: Author From promises to reality: Analyzing discrepancies (Kik.
The mean actual distance and commuting time of the samples were higher than the advertised figures.
The average distance was 1,390 meters longer than the advertised figure, and it took 7.
03 minutes longer than advertised.
The standard deviations of the discrepancy between advertised and actual figures were 2,162.
82 and 2,737.
58, respectively.
The standard deviation of the actual commuting time was higher than the advertised figure.
Time variation in urban cities is relatively standardized, which is likely because of road maintenance, accidents, and several other factors that delay residentsAo commuting activities from home to work and vice versa.
It was a bold move to advertise and promote their propertiesAo commuting time from the spot to the Jakarta Business District.
The traffic and commuting times were unpredictable due to the crowd and vibrant life of Jakarta city.
The details of the descriptive summary are displayed in Table 2.
Table 2 Descriptive summary of distance and time Descriptive Statistics Distance Ads Distance Time Actual Ads Mean 2,582.
3,972.
Standard Error Std.
Deviation 2,162.
2,737.
Minimum Maximum 8,000.
9,100.
Source: Author Time Actual Hypothesis testing The basic assumptions of the dependent t-test before testing the hypotheses.
This research compared the paired advertised and actual data.
Both observations were independent of one another.
The measurement scale used in this research was a ratio Hence, the difference between paired observations should be approximately normally distributed.
Therefore.
I ran the one-sample Kolmogorov-Smirnov test to ensure the normality of the difference.
The normality test indicated that the sample differences were not normally distributed.
Therefore.
I used the Wilcoxon Signed test, a non-parametric approach, to test the hypotheses.
Table 3 presents the results of the normality tests.
Table 3 One-Sample Kolmogorov-Smirnov test for sample differences Normality Test Distance Difference Time Difference Mean Difference 1,390.
Std.
Deviation 2,092.
Test Statistics P-value .
-taile.
< 0.
< 0.
Source: Author * p-value < 0.
Two hypotheses will be tested:
H01: The advertised distance Ou actual distance measured by Google Maps.
Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 Ha1: The advertised distance < actual distance measured by Google Maps.
H02: The advertised time Ou average commuting time measured by Google Maps.
Ha2: The advertised time < average commuting time measured by Google Maps.
The results of the Kolmogorov-Smirnov test necessitated me to use the Wilcoxon-Signed Rank test to compare the mean differences between advertised and actual figures .
istance and tim.
As presented in Table 4, there is strong evidence to reject the null hypotheses.
The p-values are lower than 0.
001 for both distance and time differences.
Therefore.
I conclude the presence of false property advertising In other words, property developers or agents promote shorter distances and commuting times for their residential properties.
Table 4 Wilcoxon Signed Rank Test Results Wilcoxon Signed Rank Test Distance Difference P-value .
-taile.
< 0.
Source: Author * p-value < 0.
Time Difference < 0.
After performing the Wilcoxon Signed Rank test.
I rechecked the robustness of my results by conducting a bootstrapping-dependent t-test using 1,000 samples.
displayed in Table 5, bootstrapping confirmed the robustness of the results, further demonstrating the presence of false advertising practices among property firms.
Advertised commuting times and distances were lower than the actual information provided by Google Maps.
Therefore, this paper empirically demonstrates the presence of false advertising practices among property firms in promoting their residential products by misinforming their prospective buyers.
Table 5 Dependent t-test (Bootstrappin.
Results Dependent t-test Distance Time Mean difference -1,390.
Standard error P-value .
-taile.
< 0.
< 0.
Source: Author * p-value < 0.
From promises to reality: Analyzing discrepancies (Kik.
Discussions Distance and Commuting Time Providing Crucial Information for Potential Property Buyers in Urban Areas Distance and time information likely affect property buyersAo decisions by enabling them to understand the accessibility of residential areas and the availability of surrounding amenities.
This information sets buyersAo expectations and helps them make informed decisions (Malizia, 1.
In practice, high-end developers use dedicated TV sessions to promote their properties that evoke the feelings of living inside developed towns.
The practice could establish strong emotional connections with their brands.
Nevertheless, however, excessive exposure can result in consumer fatigue and skepticism (Pol et al.
, 2.
Reliable and transparent distance and commuting-time related information likely establishes long-term trust and reputation (National Association of Realtors (NAR), 2.
My empirical findings document that distance and commuting time figures advertised by developers or agents are significantly lower than the actual values.
paper identifies the practice of false advertising in the form of misinformation.
False advertising practices potentially erode firmsAo reputation by destroying customersAo trust (Ndlela, 2019.
Serota, 2.
Nonetheless, the negative impacts may take a longer time to materialize.
Hence, future studies are necessary to explore the implications of these Future research could investigate the effects of false advertising on eroding developersAo reputation.
From the managerial perspective, such practices necessitate revision.
Misinforming prospective buyers through advertisements is not advisable.
Despite the information's attractiveness and its ability to entice buyers, it will ultimately lead to disappointment when it fails to satisfy their expectations after the purchase and It will have a detrimental impact on developersAo future.
It would be more effective to promote the upcoming stages of a town, rather than the distance and commute time, as high-end developers typically construct a town in multiple phases.
In urban areas, it is difficult to predict the future, which is why middle and low-class developers could promote the adjacent communities without mentioning the time.
ConsumersAo Motivation for Buying Properties Property products have unique characteristics that distinguish them from conventional products.
Theoretically, consumer consumption is driven by multidimensional factors such as economic, hedonic, and normative goals (Barbopoulos & Johansson, 2.
Hedonic motivation, such as curiosity, can induce impulse purchases of standard products (Chang et al.
, 2.
Nevertheless, the decision to purchase property products necessitates additional assessment and cognitive calculation, which may be influenced by economic incentives.
Property prices typically increase over time as urban areas expand.
Consumers may perceive the purchase of a property as an investment, particularly when it pertains to high-end Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 The advertised distance and time are also indicative of the town's accessibility and amenities, which contribute to the price increase.
This information is often used by middle-class developers or agents to forge consumers' expectations, exploiting the vulnerabilities of consumers' decision-making.
The proximity to well-developed towns is arguably a valuable factor in buyersAo Small and medium-sized developers employ pricing as one of their marketing strategies to attract their target audience (Jobber & Shipley, 2.
The midclass developers in Tangerang Regency implemented a strategy that prioritized affordability and proximity to high-end developers.
The practices can be expanded to include flexible payment plans and discounts to attract consumers due to limited marketing budgets (Selvi et al.
, 2.
This approach encourages potential buyers to anticipate that the prices of their properties will rise as the development of adjacent towns and facilities continues.
Tangerang Regency has evolved into a vast network of satellite cities to support Jakarta.
The last ten years of development in this region by three major developers have also resulted in the establishment of middle-class property developers that could assist middle-income professionals or the workforce in acquiring their residences at more reasonable prices.
This resident type is also encouraged by the accessibility of public facilities and transportation in the town, which have been developed by highend developers in the vicinity.
This begs the question of how the dynamic interaction between the township and middle-low developers manages public facilities for their residents in order to ensure that the actual commute time is consistent with the The crowd will become inevitable as the settlement advances.
The commuting time would be difficult to advertise due to the high degree of uncertainty associated with it.
Framing effect and heuristic in the property buying decision Do consumers evaluate advertised distance and commuting time? I argue that the answer is no.
Advertised inaccurate distances motivate potential consumers to visit the actual residential sites.
Advertisements serve as a frame to develop a closer perception in consumersAo minds.
Theoretically, different framing could affect consumersAo behavior and the effectiveness of advertising.
For instance, it can reduce meat consumption through a social campaign (Zunckel et al.
, 2.
, induce consumers to engage in more sustainable behaviors (Ekebas-Turedi et al.
, 2021.
Florence et al.
, or mitigate biases in holding and buying short-term investment assets (Kiky et , 2.
In the case of property advertisements involving inaccurate time and distance information, individuals tend to make a heuristic judgment.
The advertisements have been successful in attracting and capturing targeted consumersAo attention despite deceitful business practices.
The demand for residential properties in new satellite cities near Jakarta remains promising, and advertisements answer the need for From promises to reality: Analyzing discrepancies (Kik.
affordable residential areas near well-established towns.
Consumers likely exhibit a subjective tolerance level for accurate distance and commuting time.
It begs future studies to evaluate the acceptable distance and commuting time from the consumersAo Do consumers set different tolerance levels when municipalities become more densely populated and crowded? Heuristic decisions serve as cognitive shortcuts to handle complex decisionmaking processes, which could lead to efficient decision-making, albeit their biased effects on judgments.
Marketers understand this process and explore the possibility of influencing consumersAo decisions (Guercini & Freeman, 2.
In this case.
I detect that false advertising practices remain acceptable by consumers, given that the differences between advertised and actual distances and commuting time do not fall beyond consumersAo tolerance levels.
This consumer tolerance is worth investigating in future research to understand the mechanism of consumersAo decision-making on purchasing their properties and how expectations shape the future prices of the residential markets.
Managerial implications False advertising must be minimized to foster ethical business practices.
Property developers and agents who promote inaccurate information should provide truthful information about their properties to avoid further lawsuits from disappointed buyers (Nuseir, 2018.
Rhodes & Wilson, 2.
Middle and small developers could promote their affordability rather than commuting time information, as it is more difficult to predict the time accurately.
A regulatory framework could be developed by property developer associations, such as REI, to ensure that developers adhere to ethical business practices.
It has the potential to prevent legal complications and foster positive relationships among developers, consumers, and associations.
Truthful advertising will increase engagement and influence the resonant target market effectively.
Accurate advertisements establish trust in consumers' minds and set realistic product expectations.
Artificial intelligence and data science can even improve the accuracy of the selected target (Aiolfi et al.
, 2.
Developers will receive the impact for the following property project.
Marketing strategy and advertising should reflect developersAo commitment to their targeted market, serving as their long-term brand equity and goodwill (Jeon, 2.
Positive brand images can also impact consumer loyalty (Ogba & Tan, 2.
High-end developers have implemented this practice due to their preference for promoting town or township plans.
Their commitment to maintain the townsAo values by managing the townsAo cleanliness and security reflects their managerial practices.
Middle and low developers could learn from high-end developers that the property business is not limited to selling residential properties only to targeted Property businesses should also maintain relationships with buyers through transparent and excellent relationship management (Chang et al.
, 2.
High- Jurnal Ekonomi dan Bisnis.
Volume 28 No.
2 Oktober 2025, 403 - 422 end developers establish a town management division responsible for overseeing daily activities and maintaining the community.
DevelopersAo reputation for constructing an autonomous community affects their long-term assetsAo values.
It cultivates a community and enhances residential life within the city.
Consequently, strategic plans and management may pivot to emphasize long-term initiatives and the development of new land to enhance property values.
CONCLUSIONS
This paper empirically documents advertising practices in the property industry, especially among middle- and low-class developers.
These developers tend to promote lower commuting distances or times than the actual value measured by Google Maps.
Nearby high-end developers tend to promote their products with surrounding amenities and facilities rather than commuting information.
This practice needs to be monitored and supervised by the developersAo association and a regulatory framework to ensure better and more ethical business practices.
Theoretically, consumers can be easily deceived by inaccurate ad information.
Consumers tend to judge information quickly using heuristic thinking, eventually leading to biased decisions.
Consumers are also very prone to the framing effect, which can effectively change their choices and decisions.
The role of the regulatory framework is essential to protect consumers from false advertising that could harm their long-term trust.
The framework can enforce better marketing practices and accurate advertising for better property business in Indonesia.
Property businesses and developersAo associations can start drafting regulatory frameworks to protect consumers from false advertising practices.
Commuting information is less predictable due to the highly uncertain urban life in big cities.
The association could help middle and low-class developers think strategically about the long-term development of the town and build an integrated city to serve different market segments.
In the long run, middle and low-class developers can transform into high-end developers by implementing services in their businesses and creating a town management division.
In the end, property developersAo value is associated with creating sustainable communities through the continuous development of rural areas.
Research limitation This paper focuses on observing Greater Jakarta, especially Tangerang Regency.
Most samples belong to middle and low developers near big satellite towns in Tangerang Regency.
High-end developers in this area typically promote facilities and amenities, which, in this paper, are only a tiny proportion of the sample advertised distance or commuting time.
Therefore, the conclusion only applies to the practices of middle- and low-class developers rather than general developers.
Future research can explore the impact of long-term trust and consumer From promises to reality: Analyzing discrepancies (Kik.
satisfaction on the purchasing decisions of residential properties.
It is worth investigating how such practices affect developersAo reputations in future projects, as it arguably offers a comprehensive understanding of consumersAo decision-making Future studies can also use experimental approaches to better understand how consumers value their properties, as these products can serve as long-term investment assets.
More specifically, these studies can ask: .
Do the services and town management impact consumersAo property value evaluation? and .
How the services of high-end developers build their long-term reputation and brand equity.
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