Investigating the Effects of Affective and Rational Factors on Reactance to Online Personalized Advertising

Document Type : Original Article

Authors

1 Department of business management, Faculty of management, University of Tehran, Tehran, Iran.

2 Assistant prof. in Business Management, Faculty of Management, University of Tehran, Iran

10.22034/cbsj.2024.63306

Abstract

Providing online personalized advertising (OPA) in the form of targeted content that fits the needs and interests of each user is a suitable response to consumers' exposure to a large number of online advertisements. However, users may perceive OPA differently in terms of benefits and costs and, as a result, show conflicting reactions to them. In this regard, the objective of this research is to study consumer reactance of OPA, based on both affective and rational choice factors. The former includes ownership, vulnerability and joy that are dominants of the latter, which includes perceived costs of non-personalization, privacy concerns and opportunity cost. In order to achieve this purpose, the convenience sampling method has been used to select the statistical sample. The statistical population of this research consists of all the Iranians who has received OPA in the last three months. Using Cochran sampling formula, the number of sample members is calculated to be 384 people. Data collection has been done through field survey using standard online questionnaire and collected data has been analyzed using SPSS and Smart PLS software. The results confirm personalization paradox, by indicating that vulnerability has a significant impact on privacy concerns, which leads to user’s reactance toward online personalized advertising. Meanwhile, the effect of joy on perceived costs of non-personalization modifies the negative attitude toward OPA.

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Consumer Behavior Studies Journal

Articles in Press, Accepted Manuscript
Available Online from 22 June 2024

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