Week 2 Flashcards
Definition Online Behavioral Advertising
The practice of monitoring people’s online behavior and using the collected information to show people individually targeted advertisements
Effects OBA depends on…
- advertiser controlled factors
- consumer controlled factors
Advertiser controlled factors
- ad characteristics
- OBA transparency
Ad characteristics (advertiser controlled factors)
- level of personalization
- accuracy
OBA transparency (advertiser controlled factors)
- privacy statements and informed consent
- disclosure
Consumer controlled factors
- knowledge and abilities
- perceptions
- consumer characteristics
Knowledge and abilities (consumer controlled factors)
- consumers have little knowledge about OBA and hold misconceptions
- even less knowledge about legal protections
- consumers do not seem to understand tools to protect online privacy
- however, people do want to have control over data collection and use
Consumer perceptions (consumer controlled factors)
- Overall perceptions are mixed: OBA is relevant but also creepy
- privacy concerns and trust play important roles in consumer acceptance and the effectiveness of OBA
- privacy calculus: response to OBA is the outcome of process in which costs and benefits are assessed and weighted
Consumer characteristics (consumer controlled factors)
- low levels of privacy concerns and desire for privacy positively affect OBA responses
- also important: decision stage/ needs, age, online experience, education
Outcomes Proposed Framework of OBA
- Advertising effects
- OBA acceptance and resistance
Advertising effects (outcomes Proposed framework of OBA)
- click through intention and behavior
- purchase intention and behavior
- brand recall
- perceived relevance of add
OBA acceptance and resistance (outcomes Proposed framework of OBA)
- OBA acceptance
- advertising avoidance
Personalization Paradox
Personalization ads leads to more purchase intention, but also more skepticism and therefore to less purchase intention.
Skepticism is especially high for:
- adolescents with high privacy concerns
- when the practice of retargeting is explained
Psychological characteristics
- Openness
- Conscientiousness
- Extroversion
- Agreeableness
- Neuroticism
Definition Extraversion & outcome study
Definition: Personality trait reflecting the extent to which people seek and enjoy company, excitement and stimulation
Outcome: Users were more likely to purchase the product after viewing an ad that matched their personality