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Consumer attitudes towards behavioral advertising of goods and services

Student: Ekaterina Vasenkova

Supervisor: Efim Galitsky

Faculty: Faculty of Management

Educational Programme: Master

Year of Graduation: 2014

<p align="center"><strong>Abstract</strong></p><p align="center"><strong>Topic: &quot;Consumer attitudes towards behavioral advertising of goods and services&quot;</strong></p><p>To date, behavioral advertising is considered an effective tool for promoting products and services on the Internet. Tracking behavior of the target audience in the Internet space is becoming a priority for advertisers during the campaign. However, from the point of view of the users of the behavioral advertising, its effectiveness is not always obvious to them. On the one hand, the user spends less time searching for the right information: he finds relevant advertising messages and advertisements placed by many services that are free and available. On the other hand, the confidentiality of the data and the possible misuse of the information available about the user remain open. In this way, it is necessary to understand how the consumer relates to advertising and behavioral factors.</p><p>The aim of the study is to determine the list of factors that have a positive or negative influence on the response of internet users to online behavioral advertising. The study was based on a universal model UTAUT.</p><p>In this study, we conducted Internet survey, using principle of behavioral advertising. The graduates with Management major (2012-1014) from Hither School of Economics (HSE) were selected as the study population. Data analysis was implemented by a computer program Lisrel 8.80, using the maximum likelihood method.</p><p>After factor analysis few constructs were identified (Practicability of advertising (Pragmatism), Perceived risks (Barriers), the propensity to innovate (Innovation), Knowledge (Knowledge), advertising frequency (Frequency), Entertainment Properties (Entertainment), which influence to Attitude towards advertising, their intention to use it (Behavioral Intention) and behavior Response.</p><p>According to the results, obtained model revealed that graduates&rsquo; considerations of practical advertising (Pragmatism) influence on the Intention to use behavioral advertising and &nbsp;the Attitude towards it. The behavioral Intention to use behavioral advertising has a positive effect on user&rsquo;s behavior Response. Perceived risks (Barriers) adversely affect the attitude towards behavioral advertising, and the impact of the Barriers was not statistically significant.</p><p>In addition, it was found that a penchant for innovation (Innovation) has positive impact on the desire to use behavioral advertising (Intention), even &nbsp;though this relationship has not been always proven to be statistically significant. But the frequency with which behavioral advertising (Frequency) is being used has negative impact on the desire to use it at all.</p><p>Based on the assessment of the cumulative effect of each construct on Response appeared that Pragmatism, with a total effect of 0.604, and Attitude (0,19) are the key drivers impacting on the responding behavior of consumers about behavioral advertising. The marketers should be focused on the results of Pragmatism and Attitude construct. However, we should not forget about the possible risk of using the behavioral advertising (construct Barriers). This construct has a negative impact on attitudes towards behavioral advertising. Therefore, marketers need to counteract prejudices of Internet users against behavioral advertising caused them to fear the invasion of &quot;personal space&quot;- uncomfortable feeling that they are being watched by the internet.</p><p>Certainly, this study has some limitations, so the results of further research should contribute to a more accurate detailed targeting, thereby improving the strategy of promoting products and services in general.</p>

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