A growing number of researchers have examined the effects of personalized advertising in traditional media, but little has been developed to examine the effects of a personalized ad of a brand on social media (i.e., Facebook). The primary objectives of this research are (1) to develop a comprehensive model detailing the role personalization plays in the development of consumer perception about a specific brand; (2) test the hypothesized relationships via online survey and (3) understand the effects of personalized messages as it relates to consumer purchasing behaviours related to a particular brand. The model is tested using data collected from Amazon Mturk. The findings reveal that all hypothesized relationships are supported. That means personalized ads on Facebook have drastically changed the ways customers perceive about the brand. Specifically, consumer brand engagement, brand attachment, perceived quality and brand loyalty are drastically enhanced by perceived personalization. The paper concludes with discussions highlighting managerial and research implications.
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Shanahan, Tyler and Tran, Trang P., "Understanding a Mechanism to Enhance Perceived Quality and Brand Loyalty in Social Media: The Role of Personalizatio" (2018). Association of Marketing Theory and Practice Proceedings 2018. 48.