Personalized Advertising Online and its Difficulties with Customer Privacy

Sammanfattning: Purpose: The aim of this paper is to explain and to create an understanding if personalized advertising online creates value for customers.  Design/methodology/approach: A qualitative study through 14 semi-structured interviews.  Findings: The study found personalized advertising to be seen as value co-creation in some cases, but because privacy concerns exist and affect the perception of advertising, it can in many cases lead to value co-destruction instead. It is thus a consideration between privacy concerns and the perceived value of the personalized advertising that decides if the offering will co-create or co-destroy value.  Research limitations/implications for future research: Our study did not involve respondents’ younger than 21 years old, which could have affected the result as this is a generation seen as technology savvy. Through a quantitative study, future research could try to find extremes in personalities by conducting a survey with a large sample of people in different ages, nationalities, gender, active online, etc. in order to see if there are correlations between for example age and privacy concerns.  Practical implications: One purpose of the study is to provide companies with insights of how different customers perceive personalized advertising online in terms of customer value in order for companies to know how to think when targeting their customers.  Keywords: online advertising, personalized advertising, personalized-privacy paradox, privacy concerns, value creation, value co-creation, value co-destruction.