Personalized Advertising: Examining the Consumer Attitudes of Generation Z Towards Data Privacy and Personalization : A study of consumer attitudes towards the commercial usage of personal data

Sammanfattning: Abstract Background The advancement of Internet technology and the ability of companies to process large amounts of information has made it possible for marketers to communicate with their customers through customized measures, namely personalized advertising. One of the primary aspects that differentiates personalized advertising from traditional advertising is the collection and use of consumers’ personal information, which have presented marketers with numerous benefits and opportunities. However, this has also raised concerns among consumers regarding their privacy and the handling of their personal information. In this study, the attitudes of Generation Z will be examined regarding data privacy, personalization, and the commercial usage of their personal information, as well as how these attitudes may impact consumer behavior. Purpose                   The purpose of this study is to examine the attitudes of consumers towards personalized advertising and the commercial usage of personal consumer data, with the focus on consumers belonging to Generation Z. Issues regarding data privacy and personalization is explored, as well as how consumer attitudes towards the personalization of advertisements may impact consumer behavior in the digital environment. Method The positivistic approach was applied with the intention to draw conclusions about a population of people, namely Generation Z. A deductive approach was implemented to test an existing theory, the Theory of Planned Behavior (TPB) with the intention to examine whether Generation Z follows the trend found in the literature; namely that younger consumers (Millennials) are more positive towards personalized advertising and the sharing of personal data for commercial purposes than older generations. The empirical data was collected through a survey, which was later analyzed through statistical measures.           Conclusion              The results suggested a predominantly neutral attitude among the survey participants regarding personalized advertising and the sharing of personal data for commercial purposes. Moreover, a positive correlation between consumer attitudes and behavioral intention to interact with personalized advertisements was detected. However, the correlation was found to be rather weak, indicating that consumer attitudes are not necessarily the strongest predictor of behavioral intention among Generation Z consumers in regards to personalized advertising.