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1.1c 'It’s My Virtual Space, Not Yours': The Effect of Personalized Native Ad within Social Media
Abstract
This study examined the impact of personalization, the moderating role of ad type and privacy concerns, and the mediating role of perceived relevance on purchase intention by employing psychological ownership theory to explain consumers’ response to a personalized ad. The result showed that personalization decreased consumers’ purchase intention. However, in terms of ad type, the effect of personalization only occurred when the consumers were exposed to the banner type of ad, not for the native ad. In addition, privacy concern moderated the interaction effect between personalization and ad type. Those highly concerned about their privacy had greater purchase intention when they saw the highly personalized native ad compared to the moderately personalized native ad; meanwhile, they had greater purchase intention when exposed to the moderately personalized banner ad compared to the highly personalized banner ad. For consumers who perceived a moderate level of privacy concern, a moderately personalized ad yielded higher purchase intention than a moderately personalized one for a banner ad; no difference emerged with the native ad. Moreover, a moderated mediation model revealed that perceived relevance mediated the effect of personalization moderated by ad type on purchase intention.
First & Corresponding Author
Jihye Kim, University of Kentucky
Authors in the order to be printed.
Jihye Kim, University of Kentucky; Hyun Ju Jeong, University of Kentucky