Impact of Personalized Social Media Advertising on Online Impulse Buying Behavior

Authors

Department of Business Studies, Pakistan Institute of Development Economics, Islamabad, Pakistan 1 , Faculty of Management Sciences, International Islamic University, Islamabad, Pakistan 2 , University of Surrey, Guildford, UK 3
“crossref”/
Views: 3825  
Downloads: 3367  

Main Article Content

Abstract

Personalization is used for marketing in social media by marketers and advertisers. So there is a great need to explore this phenomenon of personalization and online impulse buying behavior. This study examines the impact of personalized advertisement and its effects on online impulse buying behavior. This study is significant for online retailers and marketers. In this study, we developed a conceptual model. We then tested it while using different factors to know the power and impact of personalized advertisement on online impulse buying behavior through social media. We see perceived novelty and perceived relevance and online payment facility as mediators between personalized advertisement and online impulse buying behavior and privacy concerns as a moderator between payment facility and online impulse buying behavior. Developed a survey and filled it with 250 participants, then performed an analysis of correlation and regression; ten of the hypotheses of this study are supported by the finding of the results. And at the last chapter discussed the results and practical implications, and conclusion of the study.

Article Details

Aslam, H., Rashid, M., & Chaudhary, N. (2021). Impact of Personalized Social Media Advertising on Online Impulse Buying Behavior. SEISENSE Business Review, 1(3), 12-25. https://doi.org/10.33215/sbr.v1i3.660
Research Articles

Allen, C., Yaeckel, B., & Kania, D. (1998). Internet world guide to one-to-one web marketing: John Wiley & Sons, Inc.

Amos, C., Holmes, G. R., & Keneson, W. C. (2014). A meta-analysis of consumer impulse buying. Journal of Retailing and Consumer Services, 21(2), 86-97. DOI: https://doi.org/10.1016/j.jretconser.2013.11.004

Ampuero, O., & Vila, N. (2006). Consumer perceptions of product packaging. Journal of Consumer Marketing, 23(2), 100-112. DOI: https://doi.org/10.1108/07363760610655032

Antón, A. I., Earp, J. B., & Young, J. D. (2010). How internet users' privacy concerns have evolved since 2002. Journal of IEEE Security Privacy, 8(1), 21-27. DOI: https://doi.org/10.1109/MSP.2010.38

Beatty, S. E., & Ferrell, M. E. (1998). Impulse buying: Modeling its precursors. Journal of Retailing, 74(2), 169-191. DOI: https://doi.org/10.1016/S0022-4359(99)80092-X

Bellenger, D. N., Robertson, D. H., & Hirschman, E. C. (1978). Impulse buying varies by product. Journal of Advertising Research, 18(6), 15-18. DOI: https://doi.org/10.2307/3150635

Carpenter, G. S., Glazer, R., & Nakamoto, K. (1994). Meaningful brands from meaningless differentiation: The dependence on irrelevant attributes. Journal of Marketing Research, 31(3), 339-350. DOI: https://doi.org/10.1177/002224379403100302

Celsi, R. L., & Olson, J. C. (1988). The role of involvement in attention and comprehension processes. Journal of Consumer Research, 15(2), 210-224. DOI: https://doi.org/10.1086/209158

Coley, A. L. (2002). Affective and cognitive processes involved in impulse buying. Citeseer,

Corts, D., Wells, B., Signorelli, P., Hunter, L., & Snyder, T. (2011). System and method for generating multimedia accompaniments to broadcast data. In. U.S. Patent No. 7,908,172. Washington, DC: U.S. Patent and Trademark Office: Google Patents.

Cox III, E. P., Anderson Jr, W. T., & Fulcher, D. G. (1974). Reappraising mail survey response rates. Journal of Marketing Research, 11(4), 413-417. DOI: https://doi.org/10.1177/002224377401100406

de Kervenoael, R., Aykac, D. S. O., & Palmer, M. (2009). Online social capital: Understanding e-impulse buying in practice. Journal of Retailing and Consumer Services, 16(4), 320-328. DOI: https://doi.org/10.1016/j.jretconser.2009.02.007

De Keyzer, F., Dens, N., & De Pelsmacker, P. (2015). Is this for me? How consumers respond to personalized advertising on social network sites. Journal of Interactive Advertising, 15(2), 124-134. DOI: https://doi.org/10.1080/15252019.2015.1082450

Dholakia, U. M. (2000). Temptation and resistance: An integrated model of consumption impulse formation and enactment. Psychology & Marketing, 17(11), 955-982. DOI: https://doi.org/10.1002/1520-6793(200011)17:11<955::AID-MAR3>3.0.CO;2-J

Dodoo, N. A. (2019). Exploring the anteceding impact of personalised social media advertising on online impulse buying tendency. Internet Marketing and Advertising,, 13(1). DOI: https://doi.org/10.1504/IJIMA.2019.097905

Economis. (2000). Shopping around the web. ???, 354 (No. 8159.).

Feinberg, R. A. J. (1986). Credit cards as spending facilitating stimuli: A conditioning interpretation. Journal of Consumer Research, 13(3), 348-356. DOI: https://doi.org/10.1086/209074

Floh, A., Madlberger, M. J. E. C. R., & Applications. (2013). The role of atmospheric cues in online impulse-buying behavior. Electronic Commerce Research and Applications, 12(6), 425-439. DOI: https://doi.org/10.1016/j.elerap.2013.06.001

Hausman, A. J. (2000). A multi-method investigation of consumer motivations in impulse buying behavior. Journal of Consumer Marketing, 17(5), 403-426. DOI: https://doi.org/10.1108/07363760010341045

International Trade Administration. (n.d.). Retrieved from https://www.trade.gov/knowledge-product/pakistan-market-overview?section-nav=3640

Jeffrey, S. A., & Hodge, R. J. E. C. R. (2007). Factors influencing impulse buying during an online purchase. Electronic Commerce Research, 7(3-4), 367-379. DOI: https://doi.org/10.1007/s10660-007-9011-8

Kalyanaraman, S., & Sundar, S. S. (2006). The psychological appeal of personalized content in web portals: does customization affect attitudes and behavior? Journal of Communication, 56(1), 110-132.

Kalyanaraman, S., & Sundar, S. S. (2006). The psychological appeal of personalized content in web portals: does customization affect attitudes and behavior? Journal of Communication, 56(1), 110-132. DOI: https://doi.org/10.1111/j.1460-2466.2006.00006.x

Kelly, L., Kerr, G., & Drennan, J. (2010). Avoidance of advertising in social networking sites: The teenage perspective. Journal of Interactive Advertising, 10(2), 16-27. DOI: https://doi.org/10.1080/15252019.2010.10722167

Ketelaar, P. E., Bernritter, S. F., van't Riet, J., Hühn, A. E., van Woudenberg, T. J., Müller, B. C., & Janssen, L. J. (2017). Disentangling location-based advertising:The effects of location congruency and medium type on consumers' ad attention and brand choice. International Journal of Advertising, 36(2), 356-367. DOI: https://doi.org/10.1080/02650487.2015.1093810

Koch, O. F., & Benlian, A. J. J. o. I. M. (2015). Promotional tactics for online viral marketing campaigns: how scarcity and personalization affect seed stage referrals. Journal of Interactive Marketing, 32, 37-52. DOI: https://doi.org/10.1016/j.intmar.2015.09.005

Kreuter, M. W., & Wray, R. J. (2003). Tailored and targeted health communication: strategies for enhancing information relevance. journal of health behavior, 27(1), 227-232. DOI: https://doi.org/10.5993/AJHB.27.1.s3.6

Lee, C.-S., Chen, Y. G., & Fan, Y.-H. (2006). Structure and components of e-commerce business model. In Encyclopedia of E-Commerce, E-Government, and Mobile Commerce (pp. 1058-1063): IGI Global. DOI: https://doi.org/10.4018/978-1-59140-799-7.ch170

Leong, L.-Y., Jaafar, N. I., & Ainin, S. (2018). The effects of Facebook browsing and usage intensity on impulse purchase in f-commerce. 78, 160-173. DOI: https://doi.org/10.1016/j.chb.2017.09.033

Li, K., Lee. (2009). An empirical examination of perceived retail crowding, emotions, and retail outcomes. The Service Industries Journal, 29(5). DOI: https://doi.org/10.1080/02642060902720121

Lim, P. L., Yazdanifard, R. J. G. J. o. M., & Research, B. (2015). What internal and external factors influence impulsive buying behavior in online shopping? Global Journal of Management and Business Research.

Madhavaram, S. R., & Laverie, D. A. J. A. N. A. A. (2004). Exploring impulse purchasing on the internet. ACR North American Advances.

Montgomery, A. L., & Smith, M. D. J. J. o. I. M. (2009). Prospects for Personalization on the Internet. Journal of Interactive Marketing, 23(2), 130-137. DOI: https://doi.org/10.1016/j.intmar.2009.02.001

Ouellette, J. A., & Wood, W. (1998). Habit and intention in everyday life: The multiple processes by which past behavior predicts future behavior. J Psychological bulletin, 124(1), 54. DOI: https://doi.org/10.1037/0033-2909.124.1.54

Ozdemir, E., & Akcay, G. (2019). The Effect of Gender Identity on Consumers' Impulse Buying Behavior and The Moderating Role of Biological Sex. Business and Economics Research Journal, 10(5), 1109-1125. DOI: https://doi.org/10.20409/berj.2019.218

Park, E. J., & Forney, J. C. (2004). A comparison of impulse buying behavior and credit card use between Korean and American college students. Journal of the Korean Society of Clothing Textiles, 28(12), 1571-1582.

Petrison, L. A., Blattberg, R. C., & Wang, P. J. J. o. D. M. (1997). Database marketing: Past, present, and future. Journal of Direct Marketing, 11(4), 109-125. DOI: https://doi.org/10.1002/(SICI)1522-7138(199723)11:4<109::AID-DIR12>3.0.CO;2-G

Petty, R. E., Barden, J., & Wheeler, S. C. (2009). The Elaboration Likelihood Model of persuasion: Developing health promotions for sustained behavioral change.

Phau, I., Lo, C. C. J. J. o. F. M., & Journal, M. A. I. (2004a). Profiling fashion innovators. Journal of Fashion Marketing and Management.

Phau, I., Lo, C. C. J. J. o. F. M., & Journal, M. A. I. (2004b). Profiling fashion innovators. An International Journal. DOI: https://doi.org/10.1108/13612020410559993

Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior research methods, 40(3), 879-891. DOI: https://doi.org/10.3758/BRM.40.3.879

Rawlings, D., Boldero, J., Wiseman, F. J. P., & differences, I. (1995). The interaction of age with impulsiveness and venturesomeness in the prediction of adolescent sexual behaviour. Personality and Individual Differences, 19(1), 117-120. DOI: https://doi.org/10.1016/0191-8869(95)00024-Z

Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs use continuous innovation to create radically successful businesses: Currency.

Roberts, J. A., & Jones, E. J. J. (2001). Money attitudes, credit card use, and compulsive buying among American college students. Journal of Consumer Affairs, 35(2), 213-240. DOI: https://doi.org/10.1111/j.1745-6606.2001.tb00111.x

Rook, D. W. (1987). The buying impulse. Journal of Consumer Research, 14(2), 189-199. DOI: https://doi.org/10.1086/209105

Saleem, A. (2019, June,29). 95% of Pakistanis use Cash on Delivery option for e-commerce transactions. Retrieved from https://www.techjuice.pk/95-of-pakistanis-use-cash-on-delivery-option-for-e-commerce-transactions/

Sekaran, U., & Bougie, R. J. I. N. Y. (2003). Research Methods For Business, A Skill Building Approach, John Willey & Sons.

Sharma, P., Sivakumaran, B., & Marshall, R. J. (2010). Impulse buying and variety seeking: A trait-correlates perspective. Journal of Business Research, 63(3), 276-283. DOI: https://doi.org/10.1016/j.jbusres.2009.03.013

Sheng, H., Nah, F. F.-H., & Siau, K. (2008). An experimental study on ubiquitous commerce adoption: Impact of personalization and privacy concerns. 9(6), 15. DOI: https://doi.org/10.17705/1jais.00161

Stern, H. (1962). The significance of impulse buying today. Journal of Marketing, 26(2), 59-62. DOI: https://doi.org/10.1177/002224296202600212

Szymanski, D. M., & Hise, R. T. (2000). E-satisfaction: an initial examination. Journal of Retailing, 76(3), 309-322. DOI: https://doi.org/10.1016/S0022-4359(00)00035-X

Toch, E., Wang, Y., & Cranor, L. F. (2012). Personalization and privacy: a survey of privacy risks and remedies in personalization-based systems. Journal of User Modeling User-Adapted Interaction, 22(1-2), 203-220. DOI: https://doi.org/10.1007/s11257-011-9110-z

Tran, T. P. (2017). Personalized ads on Facebook: An effective marketing tool for online marketers. Journal of Retailing and Consumer Services, 39, 230-242. DOI: https://doi.org/10.1016/j.jretconser.2017.06.010

Unni, R., & Harmon, R. (2007). Perceived effectiveness of push vs. pull mobile location based advertising. Journal of Interactive Advertising, 7(2), 28-40. DOI: https://doi.org/10.1080/15252019.2007.10722129

Verhagen, T., & van Dolen, W. (2011). The influence of online store beliefs on consumer online impulse buying: A model and empirical application. Information & Management, 48(8), 320-327. DOI: https://doi.org/10.1016/j.im.2011.08.001

Wells, J. D., Parboteeah, V., & Valacich, J. S. (2011). Online impulse buying: understanding the interplay between consumer impulsiveness and website quality. Journal of the Association for Information Systems, 12(1), 3. DOI: https://doi.org/10.17705/1jais.00254

Westin, A. F. J. P., & Personnel Records, T. C. L. R. . (1967). Privacy and freedom New York Atheneum.

Weun, S., Jones, M. A., & Beatty, S. E. (1998). Development and validation of the impulse buying tendency scale. Psychological Reports, 82(3_suppl), 1123-1133. DOI: https://doi.org/10.2466/pr0.1998.82.3c.1123

Wu, L. (2016). Understanding the impact of media engagement on the perceived value and acceptance of advertising within mobile social networks. Journal of Interactive Advertising, 16(1), 59-73. DOI: https://doi.org/10.1080/15252019.2016.1160331

Xia, L., & Bechwati, N. N. (2008). Word of mouth: the role of cognitive personalization in online consumer reviews. Journal of Interactive Advertising, 9(1), 3-13. DOI: https://doi.org/10.1080/15252019.2008.10722143

Xu, H., Oh, L.-B., & Teo, H.-H. (2009). Perceived effectiveness of text vs. multimedia location-based advertising messaging. International Journal of Mobile Communications, 7(2), 154-177. DOI: https://doi.org/10.1504/IJMC.2009.022440