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Willingness to Be Targeted by Personalized Online Advertising School of Business, Society and Engineering Master Thesis in International Marketing Spring 2020 Willingness to be Targeted by Personalized Online Advertising A Cross-Cultural Study on Privacy Calculus AUTHORS: ANAS DAHAN, SHAGHAYEGH HOSSEINI Supervisor: Konstantin Lampou Date: 9th June 2020 Abstract Date: 09/06/2020 Level: Master thesis in International Marketing, 15 credit Institution: School of Business, Society and Engineering, Mälardalen University Authors: Anas Dahan Shaghayegh Hosseini (92/01/14) (80 /01/20) Title: Willingness to be Targeted by Personalized Online Advertising Tutor: Konstantin Lampou Keywords: Personalized advertising, Privacy concern, Willingness, Individualism/Collectivism, Uncertainty avoidance Questions: -What is the impact of privacy concern and perceived risk versus perceived benefits on willingness to be targeted by personalized online marketing? -How culture influences privacy concerns and risk perception? -To what extent does culture impact willingness to be targeted by personalized advertising? How does privacy and risk mediate this effect? Purpose: Investigate the effect of national culture on consumer intention towards being targeted by personalized marketing, and if culture has an effect on consumer decision making process. Method: Quantitative research method Conclusion: Culture showed as a vital phenomenon concerning consumers’ willingness towards being targeted by personalized advertising. Besides, consumers decision making process is also affected by culture. Concerning consumers decision making process privacy and risk showed a negative effect on consumers’ willingness to be targeted by personalized advertising Simultaneously, the perceived benefit positively affects willingness. Furthermore, privacy and risk found out to be culturally sensitive. In relation to calculus theory, the majority of consumers value benefits more than risk. i Acknowledgments We would like to thank those who supported us in completing our Master dissertation. We wish to express our sincere appreciation to our supervisors Konstantin Lampou for his valuable support. Lastly, we want to thank our family and friends, and all the research respondents who participated in the survey questionnaires and provided the information for this research. Västerås, 9th of June 2020 Anas Dahan & Shaghayegh Hosseini ii Table of Contents List of Figures ............................................................................................................................................... v List of Tables ................................................................................................................................................. v 1 Introduction ............................................................................................................................................... 1 1.1 Background ........................................................................................................................................ 1 1.2 Problem Formulation ........................................................................................................................ 3 1.3 Purpose ............................................................................................................................................... 5 1.4 Research Questions ............................................................................................................................ 5 2 Literature Review and Conceptual Framework ................................................................................. 6 2.1 Online Marketing .............................................................................................................................. 6 2.2 Personalized Online Advertising ...................................................................................................... 6 2.3 Willingness to be Targeted by Personalized Advertising ............................................................... 7 2.4 Hofstede Cultural Dimensions .......................................................................................................... 8 2.4.1 Individualism (IDV) vs Collectivism (COL) ............................................................................................ 9 2.4.2 Uncertainty Avoidance (UAI) .................................................................................................................. 10 2.4.3 Cultural Differentiation ........................................................................................................................... 10 2.5 Privacy Calculus .............................................................................................................................. 11 2.5.1 Information Privacy Concerns ................................................................................................................ 11 2.5.1.1 Privacy Concerns and Willingness to be Targeted by Personalized Marketing ............................. 11 2.5.2 Privacy Calculus Theory .......................................................................................................................... 12 2.5.2.1 Perceived Risks of Information Disclosure ......................................................................................... 13 2.5.2.1.1 Perceived Risk and Willingness to be Targeted by Personalized Marketing ............................... 13 2.5.2.1.2 Perceived Benefits of Information Disclosure .................................................................................. 14 2.5.2.1.3 Perceived Benefit and Willingness to be Targeted by Personalized Marketing ........................... 14 2.6 The Cross-Cultural Perspective on Privacy Calculus .................................................................. 15 2.6.1 Individualism/Collectivism and Privacy Concerns ............................................................................... 15 2.6.2 Individualism/Collectivism and Perceived RisK .................................................................................... 16 2.6.3 Uncertainty Avoidance and Privacy Concerns ...................................................................................... 16 2.6.4 Uncertainty Avoidance and Perceived RisK ........................................................................................... 17 2.7 Culture and willingness ................................................................................................................... 17 2.8 Framework for this Project ............................................................................................................ 19 3. Methodology .......................................................................................................................................... 21 3.1 Research Method and Approach .................................................................................................... 21 3.2 Data Collection and Questionnaire Design ................................................................................... 22 3.3 Sample Approach ............................................................................................................................ 23 3.4 Operationalization of Research Questions .................................................................................... 24 iii 3.5 Data Analysis Method ..................................................................................................................... 27 3.5.1 Descriptive Statistics and Correlation Analysis ..................................................................................... 27 3.5.2 Regression Analysis .................................................................................................................................. 28 3.6 Quality Criteria ................................................................................................................................ 28 3.6.1 Validity ...................................................................................................................................................... 29 3.6.2 Reliability .................................................................................................................................................. 29 3.7 Research Limitations ....................................................................................................................... 29 3.8 Ethical Considerations .................................................................................................................... 30 3.8.1 Ethical Expectations ................................................................................................................................. 30 3.8.2 Informed Consent ..................................................................................................................................... 31 3.8.3 Non-Disclosure, Anonymity and Confidentiality ................................................................................... 31 4.Empirical Finding & Data analysis ................................................................................................... 32 4.1 Descriptive Statistic ......................................................................................................................... 32 4.2 Reliability Analysis .......................................................................................................................... 35 4.3 Validity ............................................................................................................................................
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