Wetzels, M. (2015).Unraveling the personalization paradox: The effect of information collection and trustbuilding strategies on online advertisement effectiveness. Journal of Retailing, 91(1), pp. 34-49. doi: 10.1016/j.jretai.2014.09.005 This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent ABSTRACTRetailers gather data about customers' online behavior to develop personalized service offers. Greater personalization typically increases service relevance and customer adoption, but paradoxically, it also may increase customers' sense of vulnerability and lower adoption rates. To demonstrate this contradiction, an exploratory field study on Facebook and secondary data about a personalized advertising campaign indicate sharp drops in click-through rates when customers realize their personal information has been collected without their consent. To investigate the personalization paradox, this study uses three experiments that confirm a firm's strategy for collecting information from social media websites is a crucial determinant of how customers react to online personalized advertising. When firms engage in overt information collection, participants exhibit greater click-through intentions in response to more personalized advertisements, in contrast with their reactions when firms collect information covertly. This effect reflects the feelings of vulnerability that consumers experience when firms undertake covert information collection strategies. Trust-building marketing strategies that transfer trust from another website or signal trust with informational cues can offset this negative effect. These studies help unravel the personalization paradox by explicating the role of information collection and its impact on vulnerability and click-through rates.2

Purpose – This paper aims to investigate personalized communications through digital media, which include display, search, social and mobile communications. Design/methodology/approach – Drawing on the literature pertaining to different digital mediums, the authors explore how different factors influence consumers’ responses to personalized communications. The current study integrates and reviews prior literature related to personalization, seeking a richer understanding of when personalized communications improve or hinder customer–firm interactions. Findings – Personalization can both enhance and diminish consumer engagement with the firm: it may heighten privacy concerns because consumers worry about how their data are collected and used, and it can also benefit them in meaningful ways. Thus, firms must use the information that they collect in a strategic manner to balance this personalization-privacy paradox. This paper finds that the benefits of personalization may vary as a function of the medium through which the communication is conveyed. It suggests directions for research in each of these media and strategies firms can implement to mitigate privacy concerns. Originality/value – This investigation of emerging themes related to search, display, social and mobile communications provides a more comprehensive overview of current research, as well as a foundation for further research into personalization.

A growing reliance on customer reviews prompts firms to develop strategies to encourage customers to post online reviews of their products. However, little research investigates the behavioral consequences of writing a review. The act of sharing personal opinions through reviews is a rewarding experience and makes customers feel socially connected. With an application of reverse alliesthesia theory, the current study predicts that such rewarding experiences drive online reviewers to seek other rewards, such as impulsive buying. Three lab-based and two field studies demonstrate such an emotional review-reward effect: sharing emotional information in the public realm of customer reviews, rather than forming similar opinions privately, drives participants to make more impulsive buying decisions.

To develop the knowledge and skill sets of channel partner firms, firms increasingly introduce learning programs as part of their relationship management strategies. Yet, the engagement of channel partners in these programs tends to be low though. The current research, conducted in collaboration with a Fortune 100 information technology company, examines ways to strengthen learning engagement. In accordance with self-regulated learning theory, the authors propose and demonstrate that when channel partners write reviews of a learning module that they attended, beyond providing ratings, they are better able to reflect on the relevance of their learning experience and they are further engaged in learning activities. The audience and focus of these written reviews determine the engagement of the channel partner sales personnel. Therefore, review writing is a valuable, informal mechanism to motivate them. These effects are moderated by characteristics of both the channel partner (learning orientation of the salesperson, identification with the manufacturer) and the relationship with the manufacturer (length and exclusivity).