Big browser is watching you : How Information Privacy Concerns and Involvement affect Purchase Intentions in Online Personalized Advertising

Authors: Malin Karlsson, Sandra Karlsson, Amanda Malmberg Tutor: Dr. Setayesh Sattari Examiner: Prof. Anders Pehrsson Background: Consumers increasingly purchase products online due to the widespread use of the Internet. The decision for consumers to purchase online is predicted by their purchase intentions, which in turn is affected by their information privacy concerns. There is a lack of research on IPC and purchase intentions in the context of online personalized advertising. Purpose: To extend the understanding of purchase intentions considering information privacy concerns and involvement in the context of online personalized advertising. Methodology: A survey in form of a questionnaire was conducted in order to gather the information necessary to be able to analyse the relationship between IPC and purchase intentions in the context of online personalized advertising. The sample consists of 18-70 year olds from cities in southern Sweden. Conclusion: Conclusions drawn in this thesis is that when applied in the context of online personalized advertising, there is no significant relationship between IPC and purchase intentions. However, involvement is suggested as having a positive relationship to purchase intentions, as well as a positive moderating effect on the relationship between IPC and purchase intention in the context of online personalized advertising. Keywords: Purchase intentions, Information privacy concerns (IPC), Online personalized advertising, Involvement.