Does personalized advertising have their best interests at heart? A quantitative study of narcissists’ SNS use among Generation Z consumers

Abstract

Artificial intelligence (AI)-enabled technology has generated a new dynamic that empowers the advertising business and social networking environment. In terms of convenience, consumers benefit from the generation of customized ad content through their activities on social network sites (SNS). However, concerns about data privacy and impaired well-being remain, notably in relation to Generation Z consumers, who are considered tech-savvy, narcissistically-oriented, and vulnerable in their SNS usage. Drawing on cognitive dissonance theory, we show how a dilemma of convenience vs. privacy drives their technology dissonance and their dependence on SNS. Our empirical study in the US demonstrates the trade-off between convenience and privacy that results from the customizability of technology, the opposite functions of these facets in technology dissonance, and the negative impact on SNS dependence. When the key role of the ego in the dissonance in Generation Z’s SNS behavior is recognized, vulnerable narcissism is found to show nuances of psychological dissonance induced by privacy concerns. Our findings enhance the discussion on the customizability of AI-enabled technology by indicating how advertisers can improve targeted marketing and ensure the well-being of Generation Z consumers.