Predictors of avoidance towards personalization of restaurant smartphone advertising

Abstract

Purpose – This paper aims to examine the effect of privacy concern, irritation and personalization on Millennials’ perceptions of personalized smartphone advertising avoidance in a restaurant context. The hospitality industry has witnessed a huge surge in mobile activity over the past few years. Mobility opens up a new communication channel and allows industry to connect with their guests in a more personalized way. However, not all customers welcome the personalized advertisements. Design/methodology/approach – Data were collected from 159 Millennials enrolled in a large state university in the Eastern USA using an online self-administered survey. These Millennials were asked to use a restaurant’s smartphone application for 30 days and then complete a survey based on their perceptions of personalized advertising. Descriptive analysis, reliability, factor analysis and regression analysis were used to evaluate the relationships among the four constructs: privacy concern, irritation, personalization and advertising avoidance, with the first three variables as predictors and advertising avoidance as an outcome. Findings – The results suggest that advertising irritation is positively related to advertising avoidance, perceived personalization is related with less advertising avoidance, while privacy concern is not related to advertising avoidance. Originality/value – Although advertising avoidance has previously been studied for the past few decades, little research has explored the underlying mechanisms of the Millennials’ avoidance of personalized smartphone advertising in a restaurant context. The current research suggests information pertinent to strategies for marketing personalized smartphone advertisement for restaurant companies.