The influence of online behavioural targeting on consumers' online shopping experience, satisfaction and subsequent shopping behaviour

Abstract

Online behavioural targeting (OBT) is an advertising strategy widely adopted by marketing practitioners in the online shopping environment. It is a process that monitors and gathers online behavioural data from online users with the primary intent to present them with personalised, targeted advertising derived from their online activities and the data collected. However, the advertising strategy has raised significant concerns amongst consumers, regulators, and governing bodies across the globe, especially because of its methods in obtaining and using consumers' online behavioural data. The advertising strategy can be a "double-edged sword", resulting in both positive and negative outcomes. The purpose of this research study was to determine the influence of (OBT) on consumers' online shopping experiences, their online satisfaction, and subsequent online shopping behaviour (attending to their purchase intentions having experienced OBT adverts, their acceptance or avoidance of OBT adverts, and their continued use of online shopping in the future). The study acknowledged factors related to the effectiveness of OBT as a phenomenon, namely consumers' knowledge of personalised ads, the perceived benefits of OBT ads, personalisation, privacy concerns and perceived intrusiveness. It aimed to understand online consumers perceptions, attitudes and behaviour regarding OBT advertising tactics and online shopping. The study adopted a quantitative, deductive approach that implemented highly structured data collection techniques and collected quantifiable data from 229 respondents through an electronic self-administered survey questionnaire. The data collected from respondents were statistically analysed to test the research hypotheses empirically. The findings reveal that respondents' perceptions of OBT advertising tactics significantly influence and predict their online shopping experience, specifically the perceived benefits and personalisation associated with OBT advertising and the perceived intrusiveness of OBT advertising. The findings also reveal that respondents' online shopping experiences significantly influence and predict their online satisfaction. Additionally, the results from the study revealed that online shopping satisfaction significantly influences and predicts OBT ad purchase intentions and acceptance, OBT ad avoidance, and continuation with online shopping. Overall, the study revealed that respondents' perception of OBT advertising significantly influences their online shopping experiences. Respondents' satisfaction (positive or negative) with their online shopping experiences influences their subsequent shopping behaviour accordingly, leading to either favourable or unfavourable outcomes. Therefore, it is imperative for organisations, marketers, and advertisers that utilise OBT advertising to ensure that the tactics enhance consumers' online shopping experiences, leaving them satisfied and subsequently leading to favourable shopping experiences.