Consumer perceptions on targeted marketing : a study on Facebook personalization practices

This research investigates what the consumers of Facebook think of Facebook’s targeted advertising. It also seeks to explain which variables influence the consumer perceptions. Data was collected through an online questionnaire in which 167 participants had to respond to various statement on a Likert scale. Based on our results, we found that the consumers’ perception of infotainment, ad irritation and credibility and privacy concerns exert influence on the perceived value of targeted advertising. Moreover, we found a positive relationship between the perceived value of targeted advertising and ad avoidance. We also found that the attitude towards targeted advertising is positively influenced by the perceived value of targeted advertising. The study contributes theoretical knowledge on the variables which influence the perception of consumers on targeted advertising. The practical contribution of this research is that it offers advertisers and marketers a better understanding of what makes consumers avoid targeted advertisements, something that can help them implement measures to counter ad avoidance.