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Online Behavioral Advertising: Why and how online customers respond to it? : An experimental study into the effects of personalized levels, rewards on click-through intentions towards ads between Chinese and Dutch

Yang, K. (2020) Online Behavioral Advertising: Why and how online customers respond to it? : An experimental study into the effects of personalized levels, rewards on click-through intentions towards ads between Chinese and Dutch.

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Abstract:Purpose: With the emergence and development of new technologies, the so-called online behavioral advertising (OBA) is being used to collect information of customers and then to deliver highly personalized ads to them. However, it remains unclear how customers from different culture backgrounds can react to different levels of personalized ads when given rewards (e.g., discounts or coupons) in the ad. Therefore, the main purpose of this study is to examine how both the level of personalization and rewards influence click-through intentions towards ads in different cultures. Furthermore, the mediation effects of perceived benefits, perceived risks, and perceived intrusiveness are discussed. Method: A 2 (level of personalization: high vs. no) by 2 (rewards: yes vs. no) between subjects experiment in a cross-culture (Chinese vs. Dutch) setting was formulated. For the study, a total of 129 respondents (65 Dutch and 64 Chinese) participated via an online survey. Results: The MANOVA analysis showed a significant effect of personalized levels on perceived benefits and click-through intentions towards ads. Moreover, the mediation effect of perceived benefits was proved. However, the analysis showed no significant effects of personalized levels on perceived risks and perceived intrusiveness. Also, no mediation effects of perceived risks and perceived intrusiveness were found. Besides, two-way interaction effects were not found for personalized levels and rewards, rewards and cultural differences on click-through intentions. Last, two-way interaction effects were also not found for personalized levels and cultural differences on perceived risks, perceived intrusiveness, and click-through intentions. Conclusions: The findings of the study suggest that a high level of personalization leads to higher perceived benefits and higher click-through intentions towards ads than non-personalized level. Also, perceived benefits by online customers can mediate the effect between personalized levels and click-through intentions. Therefore, marketers and academics should pay attention to the benefits of the ad that are presented to online customers to optimize OBA effectiveness.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Communication Studies MSc (60713)
Link to this item:http://purl.utwente.nl/essays/80840
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