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When Does Retargeting Work? Information Specificity in Online Advertising

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TLDR
In this article, the authors use data from a field experiment conducted by an online travel firm to examine whether dynamic retargeted ads are more effective than simply showing generic brand ads.
Abstract
Firms can now offer personalized recommendations to consumers who return to their website, using consumers' previous browsing history on that website. In addition, online advertising has greatly improved in its use of external browsing data to target Internet ads. Dynamic retargeting integrates these two advances by using information from the browsing history on the firm's website to improve advertising content on external websites. When surfing the Internet, consumers who previously viewed products on the firm's website are shown ads with images of those same products. To examine whether this is more effective than simply showing generic brand ads, the authors use data from a field experiment conducted by an online travel firm. Surprisingly, the data suggest that dynamic retargeted ads are, on average, less effective than their generic equivalents. However, when consumers exhibit browsing behavior that suggests their product preferences have evolved (e.g., visiting review websites), dynamic retargeted ad...

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Citations
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Understanding Consumers' Reactance of Online Personalized Advertising: from aPerspective of Negative Effects

TL;DR: In this article, the authors identify rational choice factors rooted in the rational choice theory in the context of consumers' reaction to personalization and test their impacts on reactance, with the consideration of individual feeling factors in a specific situation of personalization paradox.
Journal ArticleDOI

Perceived Personalization, Privacy Concern, e-WOM and Consumers' Click Through Intention in Social Advertising

TL;DR: This study contributed to the theory of psychological reactance by indicating that the individuals with less privacy concern and personalized recommendations from their contacts on SNS have a smaller amount of reactance towards social advertisements than commercial advertisements by marketers.
Journal Article

A Tale of Browsers and Hunters: Exploration of Diverging Consumer Profiles and Their Characteristics in the Secondhand Marketplace

TL;DR: In this article, the authors conducted an in-depth interview with 12 consumers and found that consumers may seek to surprise themselves by shopping secondhand, typically by finding a "treasure", but without knowing what they look for, until they unexpectedly find a valuable product and have actually the means to acquire and store it.
Journal ArticleDOI

Effects of Website Credibility and Brand Trust on Responses to Online Behavioral Advertising

TL;DR: In this article, the effects of brand trust and website credibility on responses to behavioral advertising via privacy concerns are examined using psychological reactance theory. But, the results suggest that while brand trust influences purchase intention, website credibility only exerts modest effects on the dependent variables.
References
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Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations

TL;DR: The authors address the role of marketing in hypermedia computer-mediated environments by considering hypermedia CMEs to be large-scale (i.e., national or global) networked enviro...
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