Technology Readiness Motivators and Online Behavioural Advertising: A Perceived Benefits-Risk Assessment Using Privacy Calculus Theory

Abstract

Purpose: The present research intended to find whether the technology readiness motivators, Optimism, and innovativeness, impact the user's intention to accept Online Behavioural Advertising (OBA), an area that requires additional research. Theoretical framework: Even though these personalized advertisements provide an enhanced user experience, they provide users with advertisements based on their online surfing behavior, and unfortunately, at the same time, it also creates privacy concerns. At the same time, Privacy Calculus Theory (PCT) is considered an appropriate theory when it comes to a rational benefits-costs assessment of the privacy-centred decision-making by internet users. Design/Methodology: Based on an extensive literature review, a conceptual model is being proposed, and a scenario-based questionnaire was developed and pursued on internet users' experience of the subject matter. Six hundred ten valid responses were received, and PLS-SEM was used to analyze the results. Findings: The results show that Optimism and innovativeness have a direct and indirect effect on the intention to accept Online Behavioural Advertising (OBA). Technology readiness Motivators have a detrimental impact on the intention to accept OBA. Research, Practical and Social implications: Based on our findings, we may be able to gain a deeper understanding of the theory behind targeted, data-driven digital advertising and the way in which it pertains to online shopping. Presented here is evidence to support the theory that the predisposition of users toward new technology could be the reason for users ranking perceived benefits higher than risk. Originality/Value: This study attributes original work in the sense that it is the first time that an individual’s predisposition towards technology has been taken into consideration while analysing the acceptance of OBA grounded on the Privacy Calculus framework.