Article

The Importance of Trust for Personalized Online Advertising

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Abstract

With the amount of online advertising on a steady rise, generic ads noticeably lose effectiveness. In order to break through the clutter, retailers employ a method called retargeting to tailor their advertisements to individual consumers based on inferred interests and preferences. However, while personalization should generally make ads more appealing, the authors use field data to show that the effectiveness of retargeting considerably hinges on consumers’ trust in a respective retailer. To uncover the underlying mechanisms of this phenomenon, they investigate how trust moderates the impact of ad personalization on consumers’ internal and external responses in the lab. They propose a two-dimensional conceptualization of ad personalization: First, a banner's personalization depth defines how closely the ad reflects a consumer's interests. Second, its personalization breadth determines how completely the banner reflects these interests. The lab results show that more trusted retailers can increase the perceived usefulness of their ads through a combination of high depth and narrow breadth of personalization without eliciting increased reactance or privacy concerns. On the other hand, for less trusted retailers, banners with higher depth are not perceived more useful, but instead trigger increased reactance and privacy concerns, regardless of their personalization breadth. These effects directly translate into consumers’ click-through intentions so that retailers should adjust their personalization strategies accordingly in order to increase the effectiveness of their online advertising.

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... Dengan memahami definisi, pentingnya, komponen, manfaat, dimensi, serta faktorfaktor yang mempengaruhi dan dipengaruhi oleh kepercayaan merek, pemasar dan manajer merek dapat mengembangkan dan menerapkan strategi untuk membangun dan mempertahankan hubungan yang kuat dan penuh kepercayaan dengan konsumen mereka. (Bačevac et al., 2020;Permatasari & Dwita, 2020;Surapto, 2020;Rajavi et al., 2019;Lenggono et al., 2019;Mal et al., 2018;Liu et al., 2018;Lin & Guo, 2017;Chen et al., 2015;Venkatesan & Eisenbeiß, 2015;Wang et al., 2011;Afzal et al., 2009;Sung & Kim, 2010;Kantsperger & Kunz, 2010;Soh et al., 2009;Lee et al., 2008;Aiken et al., 2007;Hess & Story, 2005). ...
... Kepercayaan umumnya didefinisikan sebagai keandalan, niat baik, dan kompetensi dari suatu entitas tertentu, baik itu individu, organisasi, atau merek (Chen et al., 2015). Dalam konteks pemasaran, kepercayaan merek mengacu pada keyakinan bahwa konsumen memiliki kemampuan merek BRAND TRUST untuk memenuhi janjinya dan bertindak demi kepentingan terbaik konsumen (Atalay et al., 2022;Ha, 2021;Zhuang et al., 2021;Permatasari & Dwita, 2020;Surapto, 2020;Lenggono et al., 2019;Mal et al., 2018;Huang, 2017;Erdem & Swait, 2016;Davcik et al., 2015;Venkatesan & Eisenbeiß, 2015;Lovett et al., 2014;Wang et al., 2011;Hess & Story, 2005;Srivastava & Mookerjee, 2004;Aiken et al., 2004;Erdem & Swait, 2004;Almquist et al., 1998). ...
... Selain itu, kepercayaan merek dapat meningkatkan kepuasan pelanggan, mengurangi biaya pemasaran, dan memperkuat citra serta reputasi merek. (Vitrika & Susila, 2022;Zaid et al., 2020;Permatasari & Dwita, 2020;Setyadarma, 2020;Rajavi et al., 2019;Lenggono et al., 2019;Sweeney & Thaichon & Quach, 2015;Lassoued & Hobbs, 2015;Venkatesan & Eisenbeiß, 2015;Vazifehdoost, 2014;Swait, 2008;Wang et al., 2011;Zboja & Voorhees, 2006;Hess & Story, 2005;Chaudhuri & Holbrook, 2001;Delgado-Ballester & Munuera-Alemán, 2001). ...
Chapter
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Kepercayaan merek adalah komponen penting dalam pemasaran modern dan perilaku konsumen. Dengan memahami definisi, pentingnya, komponen, manfaat, dimensi, serta faktor- faktor yang mempengaruhi dan dipengaruhi oleh kepercayaan merek, pemasar dan manajer merek dapat mengembangkan dan menerapkan strategi untuk membangun dan mempertahankan hubungan yang kuat dan penuh kepercayaan dengan konsumen mereka. (Bačevac et al., 2020; Permatasari & Dwita, 2020; Surapto, 2020; Rajavi et al., 2019; Lenggono et al., 2019; Mal et al., 2018; Liu et al., 2018; Lin & Guo, 2017; Chen et al., 2015; Venkatesan & Eisenbeiß, 2015; Wang et al., 2011; Afzal et al., 2009; Sung & Kim, 2010; Kantsperger & Kunz, 2010; Soh et al., 2009; Lee et al., 2008; Aiken et al., 2007; Hess & Story, 2005). Kepercayaan merek (brand trust) merupakan kemampuan merek untuk memenuhi nilai yang dijanjikan sehingga dapat dipercaya atau dapat diandalkan oleh konsumen sehingga berperan penting untuk menciptakan dan memelihara hubungan jangka panjang antara perusahaan sebagai pemilik merek dengan konsumen maupun pelanggannya (Aaker, 2011).
... Underpinning the privacy calculus theory, Mckee and team [29]empirically proved that Generation Z consumers' perceived benefits toward a company's personalized marketing efforts increase loyalty toward the brand whereas privacy concerns decrease the association with the brand. Different research works also examined the trade-off between consumers' perceived usefulness (PU) and privacy concerns (PC) on the click-through intentions of PSMAs [23,30]. However, no study investigated whether consumers' PP has any influence on the determinants of the privacy-benefit paradox, i.e. ...
... Since PAs are developed using consumers' personal information, consumers feel that they have less control over their personal information, which in turn increases consumers' privacy concerns [27]. It has been observed that trust in the organization helped to reduce consumers' privacy concerns toward that organization's PAs [30]. Proper disclosure of the personalization process also reduces consumers' fear of information theft [74]. ...
... A similar approach has also been observed in the case of the PAs [69,78]. Consumers' click-through intention toward advertisements has been considered one of the important key performance indicators by several researchers to measure the effectiveness of advertisements [30,79]. Click-through intention shows the motive of the consumers toward the PSMAs. ...
Article
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Personalized social media advertisements (PSMAs) are developed by using consumers' personal information like names, demographic details, location, past buying history, and lifestyle interests to quickly grab consumers' attention within the cluttered space of digital advertisements. Generation Z consumers are highly connected to social media. Hence, this study attempts to understand how Generation Z consumers with different personality traits perceive personalized advertisements (PAs) on Facebook, and subsequently, how their perceived personalization influences their intention to click on PAs based on perceived usefulness and privacy concerns associated with those advertisements. The theoretical underpinning of this research is based on the self-congruency theory and privacy-calculus theory. An explanatory sequential mixed-methods design has been adopted, where a quantitative analysis (Study 1) is followed by a qualitative approach (Study 2). For Study 1, responses were collected from 324 Generation Z consumers through a structured questionnaire and the data was analyzed using the structural equation modeling technique to measure relationships among the constructs. Further, in Study 2, in-depth interviews were conducted with 15 Generation Z consumers, a purposively selected subset of informants from Study 1, to explore the potential causes of those relationships observed in Study 1. It has been found from the study that consumers' perception of PSMAs varies based on their personality traits. Consumers with dominant extraversion, conscientiousness, and neurotic personality traits perceive PSMAs positively whereas the openness to experience and agreeableness dominant consumers perceive those negatively. Positive perception of PSMAs among consumers increases the perceived usefulness of communications and subsequently improves the click-through intentions of the consumers. Generation Z Consumers' perception of PSMAs does not have any influence on their privacy concerns. Consumers’ high privacy concerns reduce the click-through intention rate toward PSMAs. The study will help digital marketing managers to strategically deliver PSMAs, thereby enhancing the efficiency of their advertisements.
... Online content posted by the organisations on their websites or social media platforms enhanced consciousness and brought more customers. The sellers use a technique known as 'retargeting' to target advertisements to separate customers according to interests and priorities [48]. The content that the organisers post on the online business platforms is personalised and offered to the people to reflect customer's interests [47] [48]. ...
... The sellers use a technique known as 'retargeting' to target advertisements to separate customers according to interests and priorities [48]. The content that the organisers post on the online business platforms is personalised and offered to the people to reflect customer's interests [47] [48]. Online mass personalisation was a tactic each participant used to spread over various areas synchronously and non-synchronously. ...
... Participants in the study highlighted the significance of online content posted on websites or social media platforms in increasing consumer consciousness and driving customer engagement. The participants targeted advertisements to specific customer segments based on their interests and priorities by employing techniques such as retargeting, as highlighted by [48]. The personalised content posted by organisers reflects a deep understanding of customer interests and preferences, contributing to increased relevance and effectiveness of marketing efforts. ...
Article
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In the volatile, uncertain, complex, and ambiguous (VUCA) business environment of today, online marketing has become crucial for connecting with customers and the community. Organisations leverage online marketing to retain and grow their customer base by fostering engagement and building strong community ties. This study explores how start - up leaders utilise onli ne marketing systems to achieve these benefits. Targeting successful small retail business owners in India, the research involved semi - structured and face - to - face interviews, while other data sources include reviews of public documents, company websites, a nd social media sites. The findings reveal the strategies that start - ups use to boost sales through digital marketing. Four key themes emerged from data collection and analysis: (a) social media platforms and strategies; (b) online marketing strategies and challenges; (c) online content strategies; and (d) follow - up strategies. These findings expounded upon the digital marketing techniques employed by business organisers to increase sales, build strong customer relationships, and promote community developme nt. The study recommended that start - ups should enhance the use of social media platforms, refining online content to better engage target audiences, address the challenges inherent in online marketing, and develop robust follow - up strategies to maintain c ustomer relationships. The study highlights how these businesses would enhance brand recognition, drive progress, and maintain sustainability by utilising various communication networks to advance and promote products and services in the retail industry
... Iklan terencana dan ditargetkan berkesesuain dengan target konsumen dapat membangkitkan perasaan positif (percaya) (Bleier and Eisenbeiss 2015;Pintado et al. 2017;Leong et al. 2020a) seorang konsumen untuk melakukan niat pembelian untuk memenuhi kebutuhannya (Alalwan 2018;Meena 2022;Latif and Calicioglu 2020;Sriram, Namitha, and Kamath 2021;Wajahat et al. 2019). Iklan di social media dan konten promosi memainkan peranan penting untuk memberikan pengetahuan pada konsumen tentang sportswear merek Duraking dan TD Active. ...
... Instagram, youtube, tik tok dan media social lainnya merupakan platform digital yang mendukung program periklan yang efektif untuk era IOT (Internet on Things). Semakin informatif sebuah konten iklan yang dikemas dengan menarik dari segi visual dan kemampuan memberikan ulasan yang sesuai dengan isu-isu terkini akan semakin meningkatkan kepercayaan konsumen terhadap merek (Sa 2020;Pintado et al. 2017;Leong et al. 2020b;Bleier and Eisenbeiss 2015). Maka brand trust dalam hal ini menjadi variabel perantara antara social media advertising dan purchase intention (Soh, Reid, and King 2009;Aydin 2013;Boateng and Narteh 2016;Robert and Brown 2004;Sa 2020). ...
... Jika iklan dapat menginformasikan nilai-nilai keunggulan produk dibandingkan merek lainnya maka kepercayaan konsumen semakin meningkat pada merek sportwears merek lokal. Hasil penelitian terdahulu yang dilakukan oleh (Sa 2020;Pintado et al. 2017;Leong et al. 2020b;Bleier and Eisenbeiss 2015) mendukung hasil penelitian ini yang menyatakan bahwa social media advertising mempengaruhi kepercayaan konsumen terhadap merek (brand trust). Social media advertising saat ini dapat dengan mudah dijangkau oleh para pengguna. ...
Article
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Abstrak Revolusi media sosial yang sebelumnya adalah platform jejaring untuk berinteraksi dan bersosialisasi sekarang menjadi salah satu wadah untuk memperluas jejaring bisnis, memperluas pasar dam media periklanan untuk meraih konsumen potensial. Pemanfaatan internet dan fluktuasi pengguna media sosial membuka peluang memperluas jaringan pemasaran untuk meraih konsumen potensial. Social media advertising membantu pemasar untuk melakukan periklanan, promosi produk, dan penawaran penjualan. Iklan melalui media sosial memberikan stimulus visual yang menarik perhatian calon konsumen. Penelitian ini bertujuan untuk menguji pengaruh iklan media sosial terhadap minat beli sportswear merek lokal di Bandung Raya yang di mediasi oleh kepercayaan merek dengan metode kuantitatif deskriptif dan asosiatif. 183 responden berkenan mengisi kuesioner melalui platform Google form. Software Smart-PLS dipergunakan sebagai alat analisis dengan pengujian inner model dan outer model. Berdasarkan hasil penelitian yang diperoleh dan telah dijelaskan oleh penulis maka iklan media sosial berpengaruh positif signifikan terhadap minat beli sebesar 41,5%, iklan media sosial berpengaruh positif signifikan terhadap brand trust sebesar 66,0%, kepercayaan merek berpengaruh positif signifikan terhadap minat beli sebesar 29,7%, kepercayaan merek positif siginifikan memediasi iklan media sosial pada minat beli sebesar 19,6%. Abstract The social media revolution which was previously a networking platform for interacting and socializing is now one of the platforms for expanding business networks, markets and advertising media to reach potential consumers. The internet and growth of social media users open up opportunities to expand marketing networks to reach potential consumers. Social media advertising helps to advertise, product promotion, and sales offers. Social media advertising provides a visual stimulus that attracts potential consumers attention. This study aims to examine the effect of social media advertising on purchase intention of local sportswear brands in Bandung Raya mediated by brand trust with descriptive and associative quantitative methods. 183 have completed the questionnaire which were distributed through the Google form. Smart-PLS software was used as an analytical tool by testing the inner model and outer model. The research results showed that social media advertising has a significant positive effect on purchase intention of 41.5%, Social media advertising has a significant positive effect on brand trust of 66.0%, Brand trust has a significant positive effect on purchase intention of 29.7%, Brand trust has a significant positive effect mediating social media advertising on purchase intention of 19.6%.
... Personalization and customization have become key strategies for businesses seeking to influence consumer behavior in the digital age. Advances in data analytics and AI have enabled businesses to collect and analyze vast amounts of data on consumer preferences and behaviors, allowing them to deliver more personalized and relevant experiences (Bleier & Eisenbeiss, 2015). This has led to a shift from mass marketing to oneto-one marketing, where businesses tailor their messages and offerings to individual consumers. ...
... In the context of personalized marketing, the tension between personalization and privacy is particularly pronounced. As Bleier and Eisenbeiss (2015) note, personalized advertising can significantly enhance consumer engagement and conversion rates, but it also raises concerns about privacy and data security. The challenge for businesses is to leverage data to deliver personalized experiences while maintaining consumer trust. ...
Article
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The advent of digital transformation has revolutionized marketing, fundamentally altering the ways businesses engage with consumers and reshaping consumer behavior in the process. This abstract explores the multifaceted impact of digitalization on marketing practices and consumer interactions, with a focus on the challenges and opportunities presented by emerging digital technologies, the integration of omnichannel strategies, and the growing importance of data privacy and consumer trust. Drawing on key insights from high-impact academic literature, the abstract provides a comprehensive overview of the evolving marketing landscape, emphasizing the strategic implications for businesses operating in a digitally connected world.
... Outcomes of OBA OBA acceptance (Aiolfi et al., 2021) Click intention (Aiolfi et al., 2021), (Jung and Heo, 2021) Purchase intentions (Siani et al., 2021), (Sharma et al., 2022), (Ali et al., 2020) Word of mouth intention (Daems et al., 2019) Consumer brand engagement (Tran et al., 2020) Ad clutter (Jung and Heo, 2021) Trust (Bleier and Eisenbeiss, 2015), (Brinson and Britt, 2021), (Ali et al., 2020) Moderators Gender (Abuhashesh et al., 2021) Psychological ownership (Niu et al., 2021) Social isolation (Rózsa et al., 2024) Source: Authors' compilation. ...
... When reflecting on past empirical studies, as found by Brinson and Britt (2021) trust moderates the relationship between ad-scepticism and ad-avoidance, also moderates the relationship between ad scepticism and ad-blocker use. Furthermore, Bleier and Eisenbeiss (2015) proved that trusted retailers can increase their perceived usefulness of personalised advertisements without high privacy concerns, explaining how trust can alter a relationship between a user-controlled factor and an OBA outcome. ...
Conference Paper
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This study aimed to summarize and identify factors affecting online behavioural advertising identified until 2024, and to create an integrated conceptual framework that explains relationships between these factors affecting OBA. Even though a significant number of recent studies have been published on online behavioural advertising during recent years, systematic reviews about online behavioural advertising is limited, which is the focus of this study. The study utilized the systematic review method to organize publications gathered from Scopus database, Emerald Insight and Google Scholar. Thematic analysis was used to identify and according to themes. Review of 46 publications revealed that, advertiser-controlled factors are the initial predictors of user-controlled factors, leading to OBA outcomes. By reviewing 46 publications it was revealed that, advertiser-controlled factors such as: ad-skip option, time display, content quality and source attractiveness affect user-controlled factors. User controlled factors that are highly prevalent in the existing literature are: privacy concerns, ad-scepticism, ad-relevance and user attitude. The impact from advertiser-controlled factors to user-controlled factors are moderated by social and cultural factors and personality traits. The final outcomes of OBA depend on each platform, context and group of users. As identified in the literature OBA outcomes are, OBA acceptance, OBA avoidance, ad-blocker use, purchase intentions and brand engagement. Influence from user-controlled factors to OBA outcomes is moderated by gender, trust and psychological ownership. This systematic review is unique because recent knowledge on personalised advertising is reviewed here through empirical findings, while providing an idea of the broader picture for advertising practitioners.
... The findings suggest that when evaluating how best to reach consumers through advertising, managers should be aware of the multistage nature of the consumer decision-making process and vary the content of advertisements at these stages. A study by Bleier and Eisenbeiss (2015) [8] explored the impact of online ad personalisation on consumer behaviour and found that the level of trust consumers have in e-commerce plays a moderating role, with retailers with higher levels of trust being able to increase the perceived usefulness of advertisements through a combination of high personalisation depth and narrow personalisation breadth. Batra and Keller (2016) [9] proposed a model for improving the effectiveness and efficiency of integrated marketing communication programmes based on a deeper understanding of the consumer decision-making process and consumer processing of communication messages: a 'bottom-up' communication matching model and a "top-down" communication optimisation model. ...
... The findings suggest that when evaluating how best to reach consumers through advertising, managers should be aware of the multistage nature of the consumer decision-making process and vary the content of advertisements at these stages. A study by Bleier and Eisenbeiss (2015) [8] explored the impact of online ad personalisation on consumer behaviour and found that the level of trust consumers have in e-commerce plays a moderating role, with retailers with higher levels of trust being able to increase the perceived usefulness of advertisements through a combination of high personalisation depth and narrow personalisation breadth. Batra and Keller (2016) [9] proposed a model for improving the effectiveness and efficiency of integrated marketing communication programmes based on a deeper understanding of the consumer decision-making process and consumer processing of communication messages: a 'bottom-up' communication matching model and a "top-down" communication optimisation model. ...
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After OpenAI announced the GPT-3.5 model in November 2022, it opened up a new breakthrough in AI technology for content generation. Existing studies are mostly conducted in terms of traditional AI applications in various industries, and few studies have specifically explored the impact of AIGC on the emotional aspects of prosumer behavior. This study explores the difference in consumer behavioural intention between AIGC and human-designed advertisements. A total of 3 experiments were conducted to obtain data from 550 subjects. The results of the study show that ①consumer behavioural intention is higher when consumers see product advertisements generated by AI. ② Emotional attitudes mediate the effect of AI-generated advertisements on intention to produce and consume. ③ Prosumer' capability to regulate emotions mediates the effect of AI-generated advertisements on consumer-producing behavioural intentions. The main innovation of this study lies in the research perspective, comparing AIGC materials with artificially designed materials, which expands the existing research on production and consumption decision-making, and the use of Midjourney to design the experimental materials, which is an extension of the application of academic research tools. Practically the results of the study can provide companies with suggestions for marketing and emotional communication.
... It has also been found that consumers are most likely to oppose the emergence of privacy concerns if they perceive a clear added value from LBS/LBA in improving their shopping experience. This, in turn, can clearly enable increasingly active use of these technologies 14 . ...
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As digital dependency continues to grow, marketers increasingly leverage this trend through advanced marketing strategies like location-based marketing (LBM). This study examines the problem of effectively engaging target customers using LBM by analyzing how mobile devices and applications facilitate customer tracking through data collection on location and preferences. Using a systematic review methodology, the research investigates various LBM applications and technologies, illustrating their impact on customer engagement and marketing effectiveness. Findings reveal that specific LBM strategies, enabled by GPS, Wi-Fi, and Bluetooth technologies, significantly enhance real-time customer interaction and personalization. These insights emphasize LBM's potential in modern digital marketing practices.
... However, this practice, while beneficial for free social media platforms that rely on advertising revenue, raises significant concerns about consumer trust and privacy. The ethical implications of these targeted advertising strategies cannot be overlooked (Schumann et al., 2013;Bleier & Eisenbeiss, 2015;Alzaidi & Agag, 2022;Ligett & Nissim. 2023). ...
... For example, it has been extended into the TAM2 (Venkatesh & Davis, 2000), the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2016). Regardless of the TAM's various versions, perceived usefulness has remained a decisive factor in studying user behavior, and is widely used in important fields such as online advertising (Bleier & Eisenbeiss, 2015), medical education (Wong et al., 2010) and e-commerce (Sohn, 2017;Willemsen et al., 2011). ...
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Social media users’ excessive preservation and collection of digital information result in digital hoarding. Understanding the internal motivations of users’ digital hoarding behavior is made possible by studying the factors that influence this behavior through the lens of perceived value. This study built a model to predict social media users’ digital hoarding, incorporating perceived ability, perceived usefulness, perceived richness, and perceived economy as antecedent variables and security as a mediating variable. An online survey conducted in China (n = 834) using SPSS and R Studio revealed that perceived ability, perceived richness, and perceived economy promote digital hoarding behavior, both directly and indirectly via the mediation of security. These findings provide support for the proposed role of security as an underlying mechanism that explains digital hoarding behavior. The study holds significant implications for the crafting of strategies to facilitate healthier digital storage habits.
... Therefore, studying users' ad avoidance behavior on the RED platform in the Chinese context can provide a new research perspective and enrich the research samples in related fields. Meanwhile, psychological resistance is frequently identified as a key variable in current advertising avoidance research [8,9,10]. Consequently, it is appropriate for this study to adopt the psychological resistance theory as a mediator variable in this research. ...
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This study surveyed 266 RED users and analyzed the data to explore advertising avoidance behavior on this platform. It focused on examining how the perceived ads intrusiveness of newsfeed ads indirectly influences user advertising avoidance behavior through psychological reactance. The research results show that although the direct positive correlation between users' perceived ad intrusiveness and advertising avoidance behavior is not significant, perceived intrusiveness influences users' anger and negative cognition. These mediating variables, indirectly drive advertising avoidance behavior, with negative cognition playing a more important role in promoting ad avoidance than anger.
... A sample item for this construct is, "During the registration process, I felt a certain freedom of choice." Reactance was assessed using items adapted from Bleier and Eisenbeiss (2015), an example statement is, "The registration process at Connect was disturbing." Acceptance of the Digital Nudge was measured with a scale by Jung and Mellers (2016), a sample item for this construct is, "I . . . to the preferences for the visibility of my profile." ...
Article
Purpose This paper examines the concept of digital privacy nudging, a promising approach from behavioral economics that uses subtle cues to influence people’s decisions online. We research the concepts of autonomy and transparency for privacy nudging in digital networking systems for the context of digital work. Design/methodology/approach The paper draws on the literature on digital privacy nudging to develop and test a theoretical model that takes into account legitimate nudge designs, which are those that ensure autonomy and transparency. We utilize a fully randomized between-subjects online experiment with 208 participants to test the effects of different nudge designs on decision outcomes and perceptions. We use a structural equation modeling approach for evaluating the theoretical model. Findings The paper presents two major findings. First, we conceptualize the concept of legitimate nudging and implement the concept empirically with nudges that promote autonomy and transparency in the context of defaults as digital privacy nudges. Second, our findings show that autonomy-promoting nudges significantly lower reactance that is significantly associated with a lower acceptance of digital nudging. Finally, we provide evidence that the acceptance of digital nudging is also crucial for trusting digital systems where nudges are oftentimes embedded in. Research limitations/implications The paper contributes to the literature on digital nudging by providing insights into more legitimate nudge designs through providing autonomy and transparency. Our research provides in this regard implications for nudge effectiveness and the overall debate concerning ethics in digital nudging. We also offer practical implications for organizations and information systems designers who want to use nudges in a responsible way. Originality/value This paper is one of the first to empirically investigate the role of legitimacy in digital nudging and to propose a framework for designing and evaluating legitimate nudges. It also provides insights into the perceptional downstream consequences of legitimate nudging.
... High perceived irritation may trigger ad avoidance behaviour, even when efforts are made to personalise ads. However, the high perceived relevance of skippable ads can mitigate irritation, making the ads more tolerable and reducing ad avoidance (Bleier & Eisenbeiss, 2015). These arguments lead us to the following hypotheses: ...
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Programmatic advertising operates within a surveillance framework that monitors consumer behaviour and generates personalised content to deliver more targeted advertisements to audiences. While this framework analyses large-scale data from users and has the potential to enhance the relevance of advertisements, it can also negatively impact the user experience. This study examines the factors influencing avoidance behaviours towards pre-roll video advertisements by analysing the relationships between perceived marketing surveillance, ad clutter, skippable ad irritation, and perceived autonomy. For this purpose, data collected from 547 participants were analysed using structural equation modelling (SEM). The study's findings show that increasing the relevance of advertisements mitigates surveillance-induced negative attitudes and reduces viewers' tendency to avoid skippable ads. The results underscore the importance of granting viewers greater autonomy to improve the user experience and minimise ad avoidance. Furthermore, the study highlights the necessity of developing more balanced and ethical advertising strategies that enhance consumers' sense of control and alleviate the intrusive effects of programmatic advertising's surveillance nature.
... In addition, virtual AI (e.g., conversational agents) is developing rapidly and offers increasing possibilities of personalisation, to which users seem to react rather positively (Kronemann et al., 2023). As long as there is no privacy concern about the use of personal data, personalised AI can lead to greater feelings of being understood by the technology and to improved experience, which in turn may increase positive attitudes towards the AI as well as greater willingness to disclose personal information to it (Aguirre et al., 2015;Bleier & Eisenbeiss, 2015). A separate line of research on immediacy behaviour similarly suggests that users react more positively to an AI that responds to them adequately and adapts its response to that of the user (Komiak & Benbasat, 2006). ...
Article
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The concept of trust in artificial intelligence (AI) has been gaining increasing relevance for understanding and shaping human interaction with AI systems. Despite a growing literature, there are disputes as to whether the processes of trust in AI are similar to that of interpersonal trust (i.e., in fellow humans). The aim of the present article is twofold. First, we provide a systematic test of an integrative model of trust inspired by interpersonal trust research encompassing trust, its antecedents (trustworthiness and trust propensity), and its consequences (intentions to use the AI and willingness to disclose personal information). Second, we investigate the role of AI personalization on trust and trustworthiness, considering both their mean levels and their dynamic relationships. In two pilot studies (N = 313) and one main study (N = 1,001) focusing on AI chatbots, we find that the integrative model of trust is suitable for the study of trust in virtual AI. Perceived trustworthiness of the AI, and more specifically its ability and integrity dimensions, is a significant antecedent of trust and so are anthropomorphism and propensity to trust smart technology. Trust, in turn, leads to greater intentions to use and willingness to disclose information to the AI. The personalized AI chatbot was perceived as more able and benevolent than the impersonal chatbot. It was also more anthropomorphized and led to greater usage intentions, but not to greater trust. Anthropomorphism, not trust, explained the greater intentions to use personalized AI. We discuss implications for research on trust in humans and in automation.
... The rejection of advertising can be explained by reactance theory. Reactance consists of a negative psychological response as a means of resisting attempts at persuasion, which are considered coercive, and which leads people to act in the opposite direction to the meaning requested in the message (Hannah et al. 1975;Bleier and Eisenbeiss 2015;Amarnath and Jaidev 2021;Chen et al. 2019). The individual attitude is, thus, inverted as a rejection of what is perceived to be a threat to personal freedom (Edwards et al. 2002). ...
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Tourism promotional videos (TPVs) are widely used by destination management organizations (DMOs) in promotional campaigns. With the aim of opening new research perspectives in the field of tourism promotion, this article proposes a model for evaluating the effectiveness of TPVs—the Emovie model—conceptually anchored in studies on transformational and symbolic advertising. The model describes the interrelationship of four constructs: artistic value, positive emotional impact, perceived quality of the video, and perceived quality of the destination. The model was tested in three empirical studies carried out in parallel and using the same methodological procedures for quantitative analysis, applied to three samples totaling 674 individuals. The results show that the creativity and originality of TPVs elicit positive emotional reactions, resulting in favorable attitudes towards the message and the destination. This study is particularly important because it provides DMOs with a tool for evaluating the effectiveness of their promotional videos.
... software. This has ensured that properly aimed campaigns and thus a better way of reaching out to the consumers' end (Bleier & Eisenbeiss, 2015). ...
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The subject of this research focuses on the effects of Shock Advertising on purchasing behavior. This research work adopted a quantitative research method and data was gotten through the administration of questionnaires administered to users of social media platforms using Google Forms. This paper establishes that Shock Advertising plays a very critical role in consumer buying behavior causing shifts in their product perceptions, brand attitudes and purchase intent. When asked, the nature of social media that impacted consumers the most, participants tagged Instagram and Facebook. The study also reveals the extent to which social media is used by the consumer in the quest for information about products and brands they use and recommended by those in the consumers' social circles. The work suggests that the companies use social media advertising to reach the consumers and persuade them to purchase the products. Thus, this study contributes to the knowledge of how consumers interact with social media and gives useful recommendations to enhance the practice of marketing on social media platforms to marketers.
... Personalized features are also essential in building user trust in map applications [14]. Trust is established when users believe that the application understands and meets their specific needs and preferences [83]. Research suggests that personalization can greatly enhance trust by highlighting the application's focus on delivering user-centric services [84]. ...
... These findings are congruent with prior studies by Baek and Morimoto (2012), Paul, Sankaranarayanan, and Mekoth (2016), Hyken (2017), and Chandra et al. (2022), all of which emphasize the significance of personalization and entertainment, particularly in the context of beauty products. However, it is essential to acknowledge that some studies caution against the improper execution of personalization, as it may be perceived as intrusive and lead to reduced purchase intention (Aguirre et al. 2015;Bleier and Eisenbeiss 2015). Lack of IRRitation emerges as an insignificant factor influencing purchase intention. ...
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Article
Compared to human influencers, AI influencers offer advantages such as low cost, high efficiency, and fairer handling of objective tasks. However, they are believed to have shortcomings in perception and empathy abilities. How can companies select the more appropriate promoter between AI influencers and human influencers based on their marketing content? How can enterprises design more persuasive marketing content according to the type of influencer? Three behavioral experiments were conducted in this paper. The results indicate that when AI influencers post marketing content with functional advertising appeal, they can significantly enhance people's perceived trust. When human influencers share marketing content with experiential advertising appeal, they can significantly improve people's perceived empathy. Consumers with lower levels of knowledge are more susceptible to the matching effect of influencer type and advertising appeal type on the persuasive effect of marketing content than those with higher levels of knowledge. The conclusions of this study assist enterprises in scientifically matching influencer types with advertising appeals. By choosing influencers based on the nature of the marketing content or designing suitable marketing content based on the influencer type, companies can maximize marketing effectiveness. This refined marketing strategy not only improves the persuasive effect of the marketing content but also strengthens the brand's market competitiveness.
Chapter
Understanding modality in artificial intelligence is essential for grasping its varied applications and implications for human interaction. Modality encompasses dimensions like interactivity, adaptiveness, and explainability, each influencing user attitudes and adoption of AI systems. This chapter delves into how these facets shape attitudes towards AI, drawing from psychology frameworks to highlight the affective and cognitive components of user perceptions. Trust and acceptance emerge as critical factors intertwined with attitude, affecting intentions to use AI technologies. The chapter navigates through diverse modalities—from interactive versus non-interactive to personalized versus generalized—illuminating their nuanced impacts on user attitudes and societal acceptance of AI. Through this lens, it underscores the multidimensional nature of AI modality and its profound implications for fostering responsible AI deployment and enhancing user engagement.
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CERC 2021, the first online CERC conference, provided an opportunity to welcome not only our European friends and colleagues but also participants from across the globe. Munster Technological University has made a notable impact in Artificial Intelligence, Cybersecurity, and Computer Science research, largely due to national, European, and international funding and partnerships. It feels fitting, therefore, that CERC is once again being hosted by our university. The selected papers for presentation and publication are covering a wide range of topics like Visual Computing, Data Processing and Machine Learning, E-Healthcare and Smart Diagnostics, E-Learning and Education and Engineering and Society. Throughout this conference, we have received invaluable support from the program committee and my fellow program chairs, especially Prof. Udo Bleimann for his unwavering support, Prof. Huiru Zheng, Prof. Ingo Stengel, Dr. Haiying Wang, and Prof. Stefanie Regier for their dedication to the review process. We are also grateful to Dirk Burkhardt and Dr. Robert Loew for their efforts in setting up the website, managing the conference system, and preparing the programme and proceedings. A special thanks goes to Munster Technological University, Ulster University, Hochschule Karlsruhe, and Hochschule Darmstadt for their essential support of this conference.
Article
Purpose This study aims to examine young social media users’ differential acceptance of data-driven ad personalization depending on the types of personal data used, and to propose and test the Privacy and Trust Equilibrium (PATE) model, a new conceptual model developed to explain the intertwined nature of the competing influences of platform-related factors (privacy concern, trust, and privacy fatigue) on acceptance of ad personalization. Design/methodology/approach A survey of 440 Instagram users aged 18–24 in Australia was conducted to examine the relationships between the three factors of the PATE model and acceptance of ad personalization utilizing overt vs covert data collection methods. Findings This study shows the highest level of acceptance for personalization using overtly collected data and the lowest for covert data. The results also support the PATE model, revealing the competing dynamics of how the platform-related factors shape consumers’ acceptance of data-driven ad personalization. Privacy concern discourages Instagram users from accepting personalized ads, while trust encourages them. When the pushing influence of privacy concern and the pulling influence of trust form equilibrium, generating cognitive dissonance, privacy fatigue seems to play a significant role in resolving the dissonance, leading to increased acceptance. Originality/value This study advances the understanding of how concurrent push–pull-resigning factors affect young consumers’ acceptance of data-driven ad personalization practices, expanding the scope of research on data-driven personalized advertising and privacy.
Research
To quote this resource: Dorian DUTOIT-PROUST, “Relevance and Effectiveness of sui generis instruments to tackle exclusionary practices in the Digital Economy”, Competition Forum – Resources, 2024, n° 0015, https://competition-forum.com
Article
Flipkart, a leading e-commerce platform, has made significant global strides by offering a diverse range of products, including electronics, fashion, and groceries. Flipkart has a significant problem with high cart abandonment rates, particularly on mobile devices, despite its success. This problem is severe because it damages marketing efforts, impacts customer retention, and causes a large loss of revenue. Complicated checkout procedures and unforeseen expenses are major contributors. Flipkart uses name-based personalized nudges to address this, giving customers a sense of familiarity and customization that makes them feel appreciated. Purchase completion is encouraged by these nudges, which include recovery emails that use the customer’s name and provide customized incentives. Challenges in putting these nudges into practice include protecting customer privacy and guaranteeing data accuracy. Nonetheless, the possible advantages of lowering abandonment rates and strengthening allegiance make it valuable. Flipkart also improves the shopping experience by strategically nudging customers. Transparent pricing, streamlined checkout procedures, guest checkout, a variety of payment methods, and conspicuous security badges are a few of them. To further promote transaction completion and reduce abandonment rates, several interventions are used, such as mobile optimization, exit-intent popups, and cart recovery emails. Flipkart’s dedication to establishing a smooth shopping experience and tackling the serious problem of cart abandonment is demonstrated by these initiatives. All things considered, even though putting these nudges into practice can be difficult, Flipkart’s creative strategy for addressing cart abandonment through personalization and name-based personalized nudges demonstrates its commitment to improving customer satisfaction and increasing conversion rates.
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Technology has allowed the creation of granular-level data that can provide detailed insights and analysis on consumers. This level of data allows marketers and advertisers to make better-informed decisions about their target consumers and tailor their strategies to specific customer segments. With an online experiment (N = 236), we examined how increased personalization of advertisements—more precisely the case of online behavioral ads (OBA) based on the brand match (vs. mismatch) and product match (vs. mismatch) with a previous web search—impacts consumers’ responses, avoidance, and attitudes mediated by perceived surveillance. The study found that perceived surveillance increases with brand match, leading to increased advertising avoidance and less positive attitudes toward the ad, product, and brand, but no relationship was found between product match and perceived surveillance, nor did it reveal an interaction effect between brand and product mismatch on perceived surveillance. This research contributes to theory by considering perceived surveillance as an antecedent to users’ responses and presents a framework to understand people’s perceptions of increased specificity of OBA ads based on previous web searches. Additionally, this study amplifies both the need to understand consumers’ responses to increased personalization and the need to balance consumers’ privacy with effective advertising strategies.
Chapter
This comprehensive handbook delves into the intricate relationship between artificial intelligence, law, and government regulations in society and business. With a particular focus on consumer-centric issues, chapters analyze the benefits and challenges of the expanding influence of AI systems on consumers, while shedding light on the psychological impact and potential harm posed by AI. Readers will navigate the complexities of tort law and its application to harm caused by AI, explore the legal conundrums arising from consumers utilizing digital delegates as agents, and uncover the innovative ways AI can be harnessed to enforce consumer law. This work is essential reading for anyone seeking to understand the implications of AI on the legal landscape, the future of the consumer marketplace, and the role of consumer law.
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The use of technology for marketing was lauded as a revolutionary method of promotion that provided organizations with new possibilities for carrying out business. Marketers were able to communicate directly with potential customers regardless of where they were by using digital media. The adoption of personalized consumer interaction strategies has significantly increased as a result of the speedy growth of digital marketing strategies. When clients are navigating the vast digital marketplace, personalized marketing strives to stand out from the crowd by offering highly relevant information and product recommendations that speak to each individual. By combining data from a variety of empirical investigations, this meta-analysis systematically assesses the overall consequence. Using a large dataset spanning various organizations and consumer categories, this study aims to demonstrate the multifaceted connection between personalized web-based advertising efforts and their impact on customer behavior. Our meta-analysis's findings provide strong proof of the beneficial impact, and personalized content continuously shows a substantial link between greater conversion rates and increased consumer satisfaction across a range of contexts, including e-commerce, social media, and email marketing. The results of this study could help practitioners and marketers create and deploy tailored digital marketing initiatives.
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In the ever-evolving realm of digital advertising, optimizing ad performance is pivotal for maximizing return on investment (ROI) and achieving business objectives. This paper examines the effectiveness of two innovative strategies: direct links and native browser destinations. Direct links streamline the user journey by directing clicks from advertisements straight to targeted landing pages, minimizing unnecessary steps and reducing user drop-off rates. By enhancing the relevance of landing pages, direct links can significantly improve engagement metrics such as click-through rates (CTR) and conversion rates. Conversely, native browser destinations integrate advertising content within the user's existing browsing environment, leveraging the familiar interface to offer a seamless and unobtrusive experience. This approach capitalizes on the user's current context, which can lead to higher levels of interaction and more effective engagement. The paper explores the benefits of both techniques, providing insights into how they can be used to enhance user experience and drive better performance metrics. Additionally, the paper discusses best practices for implementing these strategies, including how to align content with user expectations and how to measure the impact of these approaches on overall ad performance. By optimizing ad delivery through direct links and native browser destinations, advertisers can achieve more precise targeting, increase user satisfaction, and ultimately drive greater business success. This study aims to offer a comprehensive overview of these techniques, highlighting their significance in the digital advertising landscape and providing actionable recommendations for advertisers.
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Kişiselleştirilmiş reklamlar günümüzde internet ortamındaki pazarlama faaliyetlerinde sıkça kullanılan tutundurma araçlarından birisidir. Bununla birlikte, kişiselleştirilmiş reklamlar hem tüketicilerin satın alma davranışlarının yönlendirilmesinde, hem de pazarlama faaliyetlerinin hedeflenen sonuçlara ulaşabilmesinde büyük önem taşımaktadır. Bu çalışmanın amacı, kişiselleştirilmiş reklamların anlık satın alma davranışı üzerindeki etkilerini incelemektedir. İlgili amaç kapsamında çalışma, Türkiye'de ikamet eden 400 bireysel tüketiciden çevrimiçi anket yöntemiyle elde edilen birincil veriler aracılığı ile gerçekleştirilmiştir. Çalışmada oluşturulan hipotezler IBM SPSS 25.0 programı kullanılarak çoklu regresyon analizleriyle test edilmiştir. Çalışma sonucunda, kişiselleştirilmiş reklamlara yönelik algı ve tutumların anlık satın alma davranışları üzerinde anlamlı etkisi olduğu tespit edilmiştir.
Article
Multi-product ads (MPAs) allow an ad platform to display multiple products within a single ad unit. Unlike a single-product display ad, similar ads from the same product category may appear in MPAs and induce consumer satiation. Further, the simultaneous display of ads from multiple product categories can result in cross-category complementarity or substitution in consumers’ utility from ad-clicking. This study examines ad platforms’ potential benefit from incorporating consumer within-category satiation and cross-category spillover into ad-serving policies. To achieve this goal, the authors propose a full-equilibrium modeling framework to capture both the demand (i.e., consumers’ clicks) and supply sides (i.e., advertisers’ bids) of MPAs. The results from a dataset from a large display ad network reveal heterogeneity in within-category satiation across consumers and categories, and provide evidence of cross-category complementarity. The authors then demonstrate how the platform can indirectly influence the ad variety and category composition of MPAs through three counterfactuals of ad-serving policy changes. The results show that the implementation of a more privacy-preserving policy may hurt both consumer welfare and the platform’s revenue because of the reduced ad variety, which makes consumers more prone to within-category satiation and less prone to cross-category complementarity.
Article
This article examines the personalisation of touchpoints across the omnichannel customer journey (OCJ) for retailers and direct-to-consumer brands. Despite the increasing availability of connected touchpoints, research on personalisation across multiple touchpoints during the OCJ is scarce. To address this gap, the author conducts qualitative expert interviews with 24 managers and six focus group discussions with 43 consumers. They identify scope and intensity as two overarching design concepts for personalised OCJs whose optimal levels depend on several contingency factors. Two decision trees arrange the contingency factors and reduce the complexity when dealing with personalisation in OCJs by proposing recommendations for the optimal scope and intensity of personalised OCJs. The study provides managerial implications for effectively designing and implementing personalised OCJs.
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This study explores the impact of mobile technologies on consumer behavior in retail marketing, examining how advancements in mobile platforms have transformed shopping habits and interactions with brands. Mobile technologies have revolutionized the retail experience by providing unprecedented convenience, allowing consumers to shop at any time and from any location. This shift has led to a marked preference for mobile shopping over traditional methods, fundamentally altering consumer behavior. Key findings reveal that personalization plays a crucial role in enhancing consumer engagement and satisfaction, with mobile technologies enabling tailored recommendations and offers based on individual preferences. Access to real-time information, such as product details and price comparisons, empowers consumers to make more informed purchasing decisions, reflecting a shift towards deliberate and confident buying choices. Social media and social commerce have also become significant factors, with consumers discovering new products and brands through these platforms and benefiting from integrated shopping features. Impulse buying behavior has increased due to the convenience of mobile shopping, with promotional alerts and simplified payment processes contributing to spontaneous purchases. The integration of mobile technologies with physical store experiences has created a more seamless shopping journey, bridging the gap between online and offline interactions. However, challenges such as privacy concerns, data security, and information overload remain significant. Consumers are increasingly aware of data collection risks and may experience fatigue from excessive marketing messages. To navigate this evolving landscape, retailers must balance the advantages of mobile technologies with addressing these challenges to effectively meet consumer needs and expectations.
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Due to the proliferation of social media, numerous opportunities are arising for marketers and businesses to market their products and services and effectively influence purchasing intentions through social media applications, including Instagram. Hence, the purpose of this study is to investigate the impact of Instagram personalized advertisements on the customer's purchasing intentions in the Saudi Market and to identify the factors that influence purchasing intentions upon exposure to personalized Instagram ads. These factors are ad credibility, ad avoidance, and ad attitude. The sample of this study was 500 participants (both males and females) who are active users of Instagram. The quantitative approach was used to collect and analyze the data in this study. The research data were obtained using an online questionnaire and analyzed using SPSS software. The findings indicated that Instagram personalized ads positively influence ad attitude, which positively affects the customer's purchasing intention. The finding of this study will be useful for marketers and businesses using personalized Instagram ads as a marketing tool to influence the customer's purchasing intention. It will help marketers create more effective personalized Instagram ads that increase ad credibility and reduce customers' tendency to avoid the ad, ultimately leading to enhanced purchasing intention.
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Firms track consumers’ shopping behaviors in their online stores to provide individually personalized banners through a method called retargeting. We use data from two large-scale field experiments and two lab experiments to show that, although personalization can substantially enhance banner effectiveness, its impact hinges on its interplay with timing and placement factors. First, personalization increases click-through especially at an early information state of the purchase decision process. Here, banners with a high degree of content personalization (DCP) are most effective when a consumer has just visited the advertiser’s online store, but quickly lose effectiveness as time passes since that last visit. We call this phenomenon overpersonalization. Medium DCP banners, on the other hand, are initially less effective, but more persistent, so that they outperform high DCP banners over time. Second, personalization increases click-through irrespective of whether banners appear on motive congruent or incongruent display websites. In terms of view-through, however, personalization increases ad effectiveness only on motive congruent websites, but decreases it on incongruent websites. We demonstrate in the lab how perceptions of ad informativeness and intrusiveness drive these results depending on consumers’ experiential or goal-directed Web browsing modes.
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Although the positive traits and qualities that compose heroism such as courage, bravery and empathy have received research support, little experimental research has directly investigated the perception of heroic acts. The primary purpose of the current research was to address this gap in the literature by investigating a basic question about a central defining feature of heroism, namely the risk of potential harm. A related objective was investigating how implicit theories of personality and moral character influence perceptions of heroism, particularly as it relates to risk of harm. Results revealed how incrementally escalating the level of risk to the actor can transform an otherwise prosocial behavior into heroism through separating altruism from heroism. Implicit theories impacted perceptions of heroism consistent with the theorizing behind entity/incremental orientations, and produced an interactive effect with the situational manipulation through information about the particular level of risk differentially affecting entity and incremental belief systems.
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Online advertising campaigns often consist of multiple ads, each with different creative content. We consider how various creatives in a campaign differentially affect behavior given the targeted individual's ad impression history, as characterized by the timing and mix of previously seen ad creatives. Specifically, we examine the impact that each ad impression has on visiting and conversion behavior at the advertised brand's website. We accommodate both observed and unobserved individual heterogeneity and take into account correlations among the rates of ad impressions, website visits, and conversions. We also allow for the accumulation and decay of advertising effects, as well as ad wearout and restoration effects. Our results highlight the importance of accommodating both the existence of multiple ad creatives in an ad campaign and the impact of an individual's ad impression history. Simulation results suggest that online advertisers can increase the number of website visits and conversions by varying the creative content shown to an individual according to that person's history of previous ad impressions. For our data, we show a 12.7% increase in the expected number of visits and a 13.8% increase in the expected number of conversions.
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Tailored push advertising on smartphones is a key target for the advertising industry. We conducted a study with 20 professionals 'in the wild': over 5 consecutive days participants received ads tailored to their personal profiles and geographical location on their personal smartphones. Of the 400 ads sent, participants accepted 20%, rejected 30%, said 'maybe' to 17%. Interviews revealed that accept or reject decisions were driven by specific needs at the time of delivery -- e.g. a busy workload. Effective tailoring of smartphone ads requires fine-grained data on users' emotional state and context of use - data that is sensitive and requires significant effort to obtain. Users liked context-relevant ads, but also perceived privacy costs associated with disclosing personal information. To break this conundrum, users need to be able to customize the ad service, e.g. choosing which information to disclose, when to receive ads, what types of ad.
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This study explores the consequences of consumers' privacy concerns in the context of mobile advertising. Drawing on social contract theory, the proposed research model connects a series of psychological factors (prior negative experience, information privacy concerns, perceived ubiquity, trust, and perceived risk) and preference for degree of regulatory control. Data from a survey of 510 mobile phone users in Japan show that mobile users with prior negative experiences with information disclosure possess elevated privacy concerns and perceive stronger risk, which leads them to prefer stricter regulatory controls in mobile advertising. Both perceived ubiquity and sensitivity of the information request further the negative impact of privacy concerns on trust. No such effect occurs for the impact of privacy concerns on perceived risk, however. The authors discuss some theoretical and managerial implications.
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Though research has addressed relationships between social power bases and several work-related variables, processes that may underlie such relationships have generally not been examined. The present study considered relationships between bases of social power and subordinates' affective work reactions, hypothesizing that procedural justice would mediate such relationships. Two samples, one drawn from two service-oriented companies and one collected from a hospital, were used to test a mediational model reflecting this hypothesis. Using theoretically grounded measures of social power and procedural justice, support was found for full mediation effects in connection with subordinates' affective work reactions. Implications regarding the development of social power bases are discussed.
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This paper explores forced viewing of “pop-up ads” on the Internet to understand better how viewers come to define ads as irritating and decide to avoid them. Perceived intrusiveness was suggested as the underlying mechanism by which the process occurs. Antecedents of intrusiveness were identified that affect perceptions of ads as interruptions, including congruence of the advertisement content with the current task and intensity of cognition at the moment the ad pops up. The consequences of intrusiveness were shown to be caused by feelings of irritation and ad avoidance. The results provide an understanding of how consumers experience forced exposure situations in interactive environments and highlight implications for advertisers seeking to increase the effectiveness of on-line advertising.
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This study tests the Mehrabian-Russell environmental psychology model in retail settings. The results suggest that store atmosphere engendered by the usual myriad of in-store variables, is represented psychologically by consumers in terms of two major emotional states - pleasure and arousal - and that these two emotional states are significant mediators of intended shopping behaviors within the store. The practical value of this approach is that retailers may be better able to explain and predict the effects of in-store changes on shopping behavior.
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The authors examine potential relationships among categories of personal information, beliefs about direct marketing, situational characteristics, specific privacy concerns, and consumers' direct marketing shopping habits. Furthermore, the authors offer an assessment of the trade-offs consumers are willing to make when they exchange personal information for shopping benefits. The findings indicate that public policy and self-regulatory efforts to alleviate consumer privacy concerns should provide consumers with more control over the initial gathering and subsequent dissemination of personal information. Such efforts must also consider the type of information sought, because consumer concern and willingness to provide marketers with personal data vary dramatically by information type.
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Customized communications have the potential to reduce information overload and aid customer decisions, and the highly relevant products that result from customization can form the cornerstone of enduring customer relationships. In spite of such potential benefits, few models exist in the marketing literature to exploit the Internet's unique ability to design communications or marketing programs at the individual level. The authors develop a statistical and optimization approach for customization of information on the Internet. The authors use clickstream data from users at one of the top ten most trafficked Web sites to estimate the model and optimize the design and content of such communications for each user. The authors apply the model to the context of permission-based e-mail marketing, in which the objective is to customize the design and content of the e-mail to increase Web site traffic. The analysis suggests that the content-targeting approach can potentially increase the expected number of click-throughs by 62%.
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Previous research has suggested that Americans hold a strongly negative view of advertising. Our national telephone survey of over 1,000 adult consumers assessed the general public's current attitudes toward and confidence in advertising. Questions focused on perceptions and evaluations of advertising at a concrete and personalized level. Results indicate a more favorable evaluation of advertising than previous data would suggest. More Americans say that they like rather than dislike advertising overall. They tend to report that they enjoy the advertisements they see, and they tend to find advertising generally informative and useful in guiding their own decision making. Also, although Americans report that they do not generally trust advertising, they tend to feel more confidence in advertising claims when focused on their actual purchase decisions. Males, younger consumers, persons with less education and income, and nonwhites generally report more favorable advertising attitudes than others do. People's feelings of enjoyment and indignity elicited by advertisements played the strongest role in accounting for their overall attitudes toward advertising.
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The authors examine the effect of relational constructs (e.g., satisfaction, trust, and affective and calculative commitment) on customer referrals and the number of services purchased, as well as the moderating effect of age of the relationship on these relationships. The research reported, based on data obtained from a large sample of customers of an insurance company, combines archival and survey data. The results provide evidence that supports the moderating effect of relationship age on the relationship between satisfaction, affective and calculative commitment, and the number of services purchased.
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This paper proposes a theoretical framework to investigate the factors that influence the privacy concerns of consumers who use the Internet, and the possible outcomes of such privacy concerns. Factors identified as antecedents to online privacy concerns are perceived vulnerability to personal data collection and misuse, perceived ability to control data collection and subsequent use, the level of Internet literacy, social awareness, and background cultural factors. The possible consequences of online privacy concerns are the lack of willingness to provide personal information online, rejection of e-commerce, or even unwillingness to use the Internet. Managerial implications of the framework are discussed.
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This study explores the use of psychological reactance theory to explain consumer response to the elimination of phosphate laundry detergents. Consumers tended to express attitudes consistent with psychological reactance theory predictions.
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Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
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The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
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Subjects' aesthetic choices were predicted on the basis of a “personality test” described as being either 58%, 68%, or 78% accurate. The results were consistent with the notion that such prediction would be perceived as a threat to behavioural freedom and result in the arousal of psychological reactance. Subjects who were led to believe that the test was fairly accurate in predicting choices, as compared to those who thought their choices to be minimally predictable, were both more likely to choose the opposite of what was predicted and to change their ratings such that the predicted choice was devalued and the nonpredicted choice revalued upwards. The results may have important implications for a situation in which either implicit or explicit predictions of an individual's behaviour are made.
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Marketers’ use of the new information technologies has provided the opportunity for improved market segmentation and target marketing. However, the profession faces ethical conflicts because application of these technologies commonly invades consumer privacy. The authors examine the ethical dimensions of marketing practice in relation to consumer privacy. The meaning of privacy in a marketing context is explored and specific marketing threats to consumer privacy are described. After examining current and potential mechanisms to safeguard consumer privacy, the authors conclude that marketers must make an active commitment to ethical behavior in this area if restrictive legislation is to be avoided.
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Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
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The use of structural equation modeling (SEM) is illustrated for comparative treatment outcome research conducted with heterogeneous clinical subpopulations within large multimodality treatment settings. All analyses are accomplished with SEM analogs of more familiar classical multivariate techniques. The effect of the early period of treatment on the daily lives of 486 clients in two drug abuse treatment modalities (methadone maintenance and outpatient counseling) is evaluated. Structured means analysis is used to assess initial differences between modalities on the latent means of 6 latent constructs reflecting daily life. The effect of treatment modality and attrition from the program on daily life latent constructs is evaluated while initial selection differences are statistically controlled. Effect sizes are computed on the basis of SEM parameter estimates. The advantage of SEM over classic multivariate approaches for correcting for selection bias when assessing comparative outcomes is explained.
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Multi-pronged strategies are needed to reconcile the tension between personalization and privacy.
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This study examined the role of subordinate voice in creating positive attitudes in the performance appraisal context. Two aspects of voice, instrumental and non-instrumental, were assessed. Both aspects of voice were related to satisfaction with the appraisal, while only non-instrumental voice had an impact on attitudes toward the manager. Implications for procedural justice and performance appraisal are discussed.
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A focus group was conducted with a total of 25 participants to explore and identify the privacy and user acceptance issues associated with targeted advertising. Three scenarios were studied: one providing advertisements and coupons to a mobile device based on shopping behaviors, another delivering advertisements to a mobile device based on location and online activities, and the third presenting TV advertisements based on viewing patterns. It was found that targeted advertising was generally preferred to non-targeted advertising but users wanted to control the type, quantity, frequency, range, and context of the advertisements received. It was also important that advertisements be based on personal data that users are willing to share and that targeting not be intrusive or embarrassing. Targeted advertisements that offered discounts or financial benefits were most preferred.
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This study explores the use of psychological reactance theory to explain consumer response to the elimination of phosphate laundry detergents. Consumers tended to express attitudes consistent with psychological reactance theory predictions.
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Retailers gather data about customers’ online behavior to develop personalized service offers. Greater personalization typically increases service relevance and customer adoption, but paradoxically, it also may increase customers’ sense of vulnerability and lower adoption rates. To demonstrate this contradiction, an exploratory field study on Facebook and secondary data about a personalized advertising campaign indicate sharp drops in click-through rates when customers realize their personal information has been collected without their consent. To investigate the personalization paradox, this study uses three experiments that confirm a firm's strategy for collecting information from social media websites is a crucial determinant of how customers react to online personalized advertising. When firms engage in overt information collection, participants exhibit greater click-through intentions in response to more personalized advertisements, in contrast with their reactions when firms collect information covertly. This effect reflects the feelings of vulnerability that consumers experience when firms undertake covert information collection strategies. Trust-building marketing strategies that transfer trust from another website or signal trust with informational cues can offset this negative effect. These studies help unravel the personalization paradox by explicating the role of information collection and its impact on vulnerability and click-through rates.
Book
The Mood of Information explores advertising from the perspective of information flows rather than the more familiar approach of symbolic representation. At the heart of this book is an aspiration to better understand contemporary and nascent forms of commercial solicitation predicated on the commodification of experience and subjectivity. In assessing novel forms of advertising that involve tracking users' web browsing activity over a period of time, this book seeks to grasp and explicate key trends within the media and advertising industries along with the technocultural, legal, regulatory and political environment online behavioural advertising operates within. Situated within contemporary scholarly debate and interest in recursive media that involves intensification of discourses of feedback, personalization, recommendation, co-production, constructivism and the preempting of intent, this book represents a departure from textual criticism of advertising to one based on exposition of networked means of inferring preferences, desires and orientations that reflect ways of being, or moods of information. Sample material at: The Mood of Information explores advertising from the perspective of information flows rather than the more familiar approach of symbolic representation. At the heart of this book is an aspiration to better understand contemporary and nascent forms of commercial solicitation predicated on the commodification of experience and subjectivity. In assessing novel forms of advertising that involve tracking users' web browsing activity over a period of time, this book seeks to grasp and explicate key trends within the media and advertising industries along with the technocultural, legal, regulatory and political environment online behavioural advertising operates within. Situated within contemporary scholarly debate and interest in recursive media that involves intensification of discourses of feedback, personalization, recommendation, co-production, constructivism and the preempting of intent, this book represents a departure from textual criticism of advertising to one based on exposition of networked means of inferring preferences, desires and orientations that reflect ways of being, or moods of information. Sample material at: http://cipg.codemantra.us/UI_TRANSACTIONS/Marketing/UI_Marketing.aspx?ID=WP9781441176141&ISBN=9781441176141&sts=b
Article
Our purpose is to examine the evolving public policy and marketing domain of consumer privacy as it relates to current and future advertiser strategies and activities. After a brief introduction, the paper discusses major privacy concerns identified in the literature, focusing on tensions between advertiser interests and consumer needs. The regulatory environment is chronicled next, emphasizing Federal Trade Commission (FTC) policies and domains representing old practices and new considerations—direct mail, Internet, and neuromarketing. The closing section presents a call for coherent rationale and practical guidelines for consumer self-protection, self-regulation, and legislation involving primary (product) as well as secondary (informational) exchanges.
Article
Customer satisfaction is generally acknowledged as a key determinant of the value a customer contributes to a firm. Following the widespread recognition that the relationship is nonlinear and possibly even asymmetric, the authors develop a framework for understanding and predicting functional differences across consumers and situations. The resultant conceptualization proposes two general categories of moderating factors: Type I moderators, which induce functional changes by impacting the underlying comparison standards employed in the CS formation process, and Type II moderators, which cause the function to change by altering the interplay of cognitive and affective modes of the satisfaction experience. The authors employ firm reputation as an example of a Type I moderation and customer involvement as an example of a Type II moderation to illustrate differences between these types of moderation and to highlight how exactly each type of moderation changes the functional nature of the focal relationship. Specifically, a firm with a strong reputation benefits from a broader zone of tolerance than a firm of minor reputation, and highly involved customers react more intensively to extreme changes in satisfaction than do low involvement consumers.
Article
This study examines the trade-off between tailoring an ad to an individual consumer’s needs and the demand for personal data required to do so, which is inherent in targeted online advertising. Two scenario-based studies in two different industries reveal the extent to which using personal information with greater distinctiveness affects consumers’ sense of intrusiveness and purchase intentions. We also manipulate ad fit to each consumer’s needs and the presence of a discount to investigate whether feelings of intrusiveness mitigate the potential positive effects of fit and discount. Higher degrees of personalization, such as adding personal identification or transaction information to browsing data, increase feelings of intrusiveness, and negatively affect purchase intentions. These negative effects are not compensated for by offering discounts but can be partly mitigated by presenting an ad with a high fit to consumers’ current needs. The positive effect of tailoring the ad is weakened at higher levels of intrusiveness though. Furthermore, high fit may lead to not only higher purchase intentions but also higher perceived intrusiveness levels. Presenting a consumer with a customized ad can thus be a double-edged sword, leading to higher purchase intentions but also greater perceived intrusiveness, which then negatively affects purchase intentions.
Article
The purpose of this study is to assess the possibility of implementing an online advertising strategy using a well-known third-party privacy seal located on the order page of an unfamiliar online retailer. An online experiment was conducted with 223 participants using a 2 (third-party seal: present vs. absent)×2 (purchase-decision involvement: low vs. high)×2 (disposition to trust: low vs. high)×2 (privacy-protection self-efficacy: low vs. high) between-subjects design. The results provide evidence of trust transference from a well-known third-party seal to an unfamiliar retailer website, indicating that seal presence raised initial trust in the website and that the effects of seal presence were mediated by perceived privacy empowerment. Results also indicate that the seal effects were moderated by the level of purchase-decision involvement, disposition to trust, and self-efficacy. Theoretical explanations and managerial implications are discussed.
Article
The Federal Trade Commission (FTC) is one of many organizations studying influences on consumer privacy online. The authors investigate these influences, taking into consideration the current body of literature on privacy and the Internet and the FTC's core principles of fair information practice. The authors analyze these influences to assess the underlying factors of privacy concern online. The authors examine the current recommendations and actions of the FTC in light of the results of an e-mail survey of online consumers in the United States that assessed their attitudes toward privacy online. The authors find that the FTC's core principles address many of online consumers' privacy concerns. However, two factors not directly incorporated in the five principles, the relationships between entities and online users and the exchange of information for appropriate compensation, may influence consumers' privacy concerns.
Article
Data from 3,085 respondents from metropolitan Sydney, Australia were used to refine the 14-item Hong Psychological Reactance Scale. Results consistently showed three problematic items, which led to a refined 11-item scale. A series of factor analyses yielded a distinctive four-factor structure that was perfectly congruent among the total sample and the four subsamples: males, females, university students, and nonuniversity students. Cronbach alpha, split-halfs, and theta coefficients were found to be very satisfactory for the refined scale. The convergent and discriminant validities for the 1 1-item scale were tested with various personality constructs.
Article
This study examined the role of subordinate voice in creating positive attitudes in the performance appraisal context. Two aspects of voice, instrumental and non-instrumental, were assessed. Both aspects of voice were related to satisfaction with the appraisal, while only non-instrumental voice had an impact on attitudes toward the manager. Implications for procedural justice and performance appraisal are discussed.
Article
Two studies examined the extent to which a core dimension of cultural variability, individualism-collectivism (Hofstede, 1980, 1983; Triandis, 1990), is reflected in the types of persuasive appeals that tend to be used and that tend to be effective in different countries. Study 1 demonstrated that magazine advertisements in the United States, an individualistic culture, employed appeals to individual benefits and preferences, personal success, and independence to a greater extent than did advertisements in Korea, a collectivistic culture. Korean advertisements employed appeals emphasizing ingroup benefits, harmony, and family integrity to a greater extent than did U.S. ads. Study 2, a controlled experiment conducted in the two countries, demonstrated that in the U.S. advertisements emphasizing individualistic benefits were more persuasive, and ads emphasizing family or ingroup benefits were less persuasive than they were in Korea. In both studies, however, product characteristics played a role in moderating these overall differences: Cultural differences emerged strongly in Studies 1 and 2 for advertised products that tend to be purchased and used with others, but were much less evident for products that are typically purchased and used individually.
Article
The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity afforded companies to choose how they interact with their customers. The Web allows companies to build better relationships with customers than has been previously possible in the offline world. This revolution in customer relationship management (CRM) has been referred to as the new "mantra" of marketing. However, a problem is that CRM means different things to different people. This article develops a comprehensive CRM model incorporating seven phases: database creation, analysis of the database, customer selection, customer targeting, relationship marketing, privacy issues, and new metrics necessary for evaluating the CRM effort. The article also discusses the implications of CRM for future marketing organizations.
Article
This study was designed ca provide insights into why people avoid advertising on the Internet. Recent negative trends in Internet advertising, such a.s "banner blindness" and extremely low click-through rates, make it imperative to study various factors affecting Internee ad avoidance. Accordingly, this study builds a comprehensive theoretical model explaining advertising avoidance on the Internet, We examined three latent variables of Internet ad avoidance: perceived goal impediment, perceived ad clutter, and prior negative experience. We found that these constructs successfully explain why people cognitively, affectively, and behaviorally avoid advertising messages on the Internet. Perceived goal impediment Is found to be the most significant antecedent explaining advertising avoidance on the Internet.
Article
Purpose The aim of this study is to better understand how consumers understand and judge multi‐attribute products that are perceived as either more or less complete in terms of feature coverage in a category. Complete products are used to reduce the need of developing and managing expansive and expensive line‐extension portfolios. Design/methodology/approach The authors used an experimental method and conducted two studies to test hypotheses derived from the marketing literature. Findings The authors find more complete multi‐attribute products are preferred to less complete alternatives. This preference for more complete products remains under larger competitive product assortment, but is reduced under smaller assortment. With a higher price level and larger assortment, the preference is substantial. However, under the conditions of lower price level/larger assortment, higher price level/smaller assortment, and lower price level/smaller assortment, the preference is again reduced. Research limitations/implications More positive evaluations and higher product utility accrue from adding new features to multi‐attribute products prior to purchase. Moreover, more complete information causes more positive evaluations and cognitive responses. Larger assortment strains cognitive resources, and more complete multi‐attribute products are easier to understand than less complete multi‐attribute products. This processing facilitation generates positive affect and leads to greater use of information that can shorten processing. Price level strongly influences processing of more complete products under larger assortment, but not under smaller assortment. Practical implications Brand managers have a better understanding of how consumers judge more and less complete products, and under which circumstances more complete products are preferred. Originality/value The study of perceived product completeness is novel.