The Effect of Perceived Ads Personalization Toward Online Impulse Buying Tendency with Mediating and Moderating Variables, Evidence from Indonesian Millennial E-Commerce Customers

Abstract

E-commerce business grows over time and has changed retail business behavior all over the world. To expand, e-commerce uses ads personalization to study customer needs and track customer behavior. This study aims to analyze the effect of perceived ads personalization towards online impulse buying tendency. The research model hypothesized the effect of perceived ads personalization towards online impulse buying tendency. The mediating variables in this study are perceived novelty, privacy concerns, advertising value, perceived relevance, creepiness, affective reactance, and attitudes towards ads. The study also used a moderating variable of purchasing frequency to distinguish how effective personalized advertising is in groups that are classified as high and the low-frequency buyer on e-commerce. This study using quantitative research methods with PLS-SEM data analysis. Respondents were taken by purposive sampling on millennial social media users in Jabodetabek. The results showed that perceived advertising personalization had a positive effect on perceived novelty, privacy concern, advertising value, perceived relevance, and creepiness. Furthermore, this study found perceived novelty, advertising value, and perceived relevance have a positive effect on attitudes towards ads. Creepiness indicates a positive effect on affective reactance, while privacy concern and affective reactance have a negative effect on attitudes towards ads. One of the findings is that attitudes towards ads had a positive impact on online impulsive buying tendency. The frequency of purchase is proven to be a moderator that weakens the influence of attitudes towards ads to online impulse buying tendency.Keywords: perceived ads personalization, perceived novelty, privacy concern, advertising value, perceived relevance, creepiness, affective reactance, attitudes toward ads, online impulse buying tendency, e-commerce

Revisiting perceived gratification, consumer attitudes and purchase impulses in cross-border e-commerce live streaming: a direct and indirect effects model

“…Further, as with others (Chen et al , 2022a; Guo et al , 2021; Liu, 2022; Sun et al , 2019; Zhang et al , 2020; Zhang et al , 2023), this research alludes to the positive relationship between live-streaming and purchase behavior. This research believes that impulsive purchasing has become a universal consumer behavior in online media channel, a finding that is consistent with Akram et al (2018), Chan et al (2017), Christian et al (2021), Zafar et al (2020) and Zafar et al (2021).…”

“…But unlike an actual purchase, an impulse purchase is a sudden behavior that occurs before an actual purchase; it is an irresistible internal sense of impulse generated by the individual (Beatty and Ferrell, 1998) and triggered by multiple enticements on the Web (Akram et al, 2018;Chan et al, 2017;Redine et al, 2023;Karim et al, 2021;Kimiagari and Malafe, 2021;Verhagen and Van Dolen, 2011). Recent research has highlighted that impulse buying has become a normalized consumer behavioral phenomenon in streaming media (Li et al, 2023;Yan et al, 2023), e-commerce (Christian et al, 2021) and social commerce (Zafar et al, 2021) scenarios. Zhang et al (2023) show that informativeness, social connections and live environments are significant prerequisites for creating positive consumer attitudes and subsequently transforming consumers from having no intention to buy to having a strong intention to buy.…”

“…Attitude is an internal mental activity or state of perception that precedes an individual's formation of an opinion or judgment about something objective (Ajzen and Fishbein, 1977), such as the perception of entertainment (Karim et al , 2021), a positive perception of a social media platform (Bawack et al , 2023) or a positive perception of a brand (Christian et al , 2021). When individuals develop a positive attitude toward something or a phenomenon, they do not hesitate to activate social behaviors immediately, such as generating a desire to buy (Seo and Yoh, 2022) or impulse buying (Chan et al , 2017; Yan et al , 2023).…”