Abstract
E-commerce business grows over time and has changed retail business behavior all over the world. To expand, e-commerce uses ads personalization to study customer needs and track customer behavior. This study aims to analyze the effect of perceived ads personalization towards online impulse buying tendency. The research model hypothesized the effect of perceived ads personalization towards online impulse buying tendency. The mediating variables in this study are perceived novelty, privacy concerns, advertising value, perceived relevance, creepiness, affective reactance, and attitudes towards ads. The study also used a moderating variable of purchasing frequency to distinguish how effective personalized advertising is in groups that are classified as high and the low-frequency buyer on e-commerce. This study using quantitative research methods with PLS-SEM data analysis. Respondents were taken by purposive sampling on millennial social media users in Jabodetabek. The results showed that perceived advertising personalization had a positive effect on perceived novelty, privacy concern, advertising value, perceived relevance, and creepiness. Furthermore, this study found perceived novelty, advertising value, and perceived relevance have a positive effect on attitudes towards ads. Creepiness indicates a positive effect on affective reactance, while privacy concern and affective reactance have a negative effect on attitudes towards ads. One of the findings is that attitudes towards ads had a positive impact on online impulsive buying tendency. The frequency of purchase is proven to be a moderator that weakens the influence of attitudes towards ads to online impulse buying tendency.Keywords: perceived ads personalization, perceived novelty, privacy concern, advertising value, perceived relevance, creepiness, affective reactance, attitudes toward ads, online impulse buying tendency, e-commerce
Highlights
The retail business has been a part of human history since the beginning of human civilization
One of the objectives of this study is to provide managerial implications for the Indonesian e-commerce managerial team who use the personalized ads advertising strategy
The managerial implications that can be applied by Indonesian e-commerce can focus their marketing efforts on groups of women with demographic profiles as mentioned above
Summary
The retail business has been a part of human history since the beginning of human civilization. In 2019, the world's online retail shopping figure has reached 14.1% of total retail spending, and it is predicted that by 2023, the world's online retail shopping figure will reach 22% and will continue to grow in the following years (Copolla, 2020, November 26). In Indonesia alone, data from the Central Statistics Agency (BPS) states, the Indonesian e-commerce industry in the last 10 years has increased by 17% with a total number of e-commerce businesses reaching 26.2 million units, and in 2019, the total number of transactions ecommerce reached 17.21 trillion rupiahs (BPS, 2019). E-commerce business is predicted to continue to increase in the number of transactions, both in the world and in Indonesia. With the intense competition of e-commerce in Indonesia, e-commerce players must be able to find ways to make their platform widely used by internet network users. E-commerce players are competing to use the internet as a promotional medium for their products
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