The impact of personalized advertising on online shopping behavior

Abstract

The study of consumer behavior and its influence on purchasing decisions is crucial for businesses to optimally target consumer’s needs. Due to the rise in digitalization, personalized advertising has developed into a potent tool for marketers to target consumers with tailored messages. Thoughts about customer privacy, moral issues, and legal limitations have surfaced in addition to the advantages of individualized advertising. This study intends to investigate the relationship between customers' opinions regarding tailored advertising and their influence on online shopping behavior. Furthermore, the perspective of firms is also investigated and enables to have a clearer overall picture of personalized advertisement. The research incorporates a literature review, expert interviews, and a consumer survey. The findings highlight the significance of effectively targeted advertising, the impact of customer reactions to privacy concerns, and the relevance of demographic characteristics. Consumers are highly concerned about privacy, indicating the need for companies to handle sensitive data responsibly. The study offers insights on the traits that affect consumers' preferences for tailored advertising and forecasts the significance of various marketing platforms. Additionally, it underlines the significance for businesses to comprehend data protection and personalization. Overall, if personalized advertising is applied with caution of all these aspects, it is a powerful and beneficial tool to improve online shopping experience. The study includes academic and managerial implications, limitations, and recommendations for further research. It outlines possibilities for businesses to adjust to changing trends and upcoming changes in regulations while maintaining consumer trust and offering advice on overcoming privacy issues.

Date of Award	29 Jun 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Daniel Fernandes (Supervisor)