The influence of personalization on customer's attitude towards Facebook advertising

Abstract

Focusing on investigating the relationship among three variables including privacy concerns, avoidance advertising and credibility of users towards personalized advertising on Facebook, this paper explored the level of privacy concern that they would be able to share on online media platforms with several current and prominent personalization trends. Although lots of literature have conducted research on personalized advertising, the correlation of privacy concerns with other factors is also limited. These frameworks can help businesses contextualize privacy challenges of solutions when designing personalization systems as well as applying this technology in providing intelligent advertising experiences on Facebook. A total sample of 368 respondents is collected to evaluate the conceptual framework of the hypotheses in the research model by online survey in Ho Chi Minh City Viet Nam. Together using SPSS to check Cronbach’s Alpha and EFA of factor loadings, Smart PLS software is used for analyzing and reliability and validity of the factors as well as the confirmation. The findings show that privacy does not directly affect personalization despite existing user’s privacy concerns about information security. It's worth mentioning that privacy concerns will have a significant impact on the credibility of personalized ads and it is the primary reason that advertising specialists as well as online marketers should focus on marketing strategies when establishing personalized activities on Facebook.