Invasion or Personalization: An Overview on User Attitudes towards the Privacy Issues in Targeted Advertising in NCR and Its Effect in Consumer Purchase Behavior

Abstract

Targeted advertising is online advertising that focuses on the behavior of the consumer to give them a specific advertisement. Literature on targeted advertising focused mainly on the strategy crossing the personal boundaries of the consumers and how fields of marketing, finance, advertising, etc., are benefitting from the algorithmic profiling of personalized advertising. Findings revealed the negative sides of personalized advertising, such as advertising irritation and negative attitudes towards targeted ads. We argue that the focus is limited; thus, we aim to determine the perception of users towards targeted advertising and utilize it to identify the influence of their perception on their purchasing behavior, examine if there is a correlation between their demographic and their perception of targeted advertising. The study site are respondents who have experience in online shopping residing in the National Capital Region of the Philippines. We were able to gather the data through disseminating Google forms and utilized the purposive sampling technique in segmenting the respondents. In the survey of N=261 respondents, the result reveals that consumers are completely concerned and interested in their personal information online but perceive targeted advertising as personalization, hence, will continue their purchase as it adds ease to their online shopping experience.