Week 12 – Consumer Empowerment
Computational advertising Data-driven advertising approach that relies on or is facilitated by computing capabilities (such as
AI), mathematical models/algorithms, and the technology infrastructure.
Combination of advertising, marketing, and computer science.
Personalized advertising Content that is created and optimized to fit with personal characteristics, interests, preferences,
communication styles, and behavior.
à Personalization process is a circular process that keeps on going.
Personalization paradox Personalized ad leads to more purchase intention, but also more skepticism and therefore to less
purchase intention
Privacy paradox Consumers say they care about their privacy and are concerned about how organizations use
their data. But in practice it appears that consumers do little to protect their privacy.
Privacy calculus Benefits of personalization/OBA have to outweigh its costs for it to be effective.
Advertising calculus The evaluation of trade-offs between an ad’s benefits (e.g., personalization) and its costs (e.g.,
privacy). This is similar to the concept of privacy calculus, where the benefits and costs of
information disclosure are cognitively weighed.
Protection motivation theory Objective knowledge activates threat- and coping appraisal.
, Dataveillance The automated, continuous, and unspecific collection, retention, and analysis of digital traces by
state and corporate actors.
Perceived surveillance The feeling of being watched, listened to, or having personal data recorded.
Chilling effects Refraining of individuals from conducting Internet searches, making purchases, or using specific
consumer services because their data is being used by organizations.
Sync advertising Personalizing advertising between two different media at the same time.
- Online profiling
- Water mark
Digital vulnerability The circumstances that consumers face that determine their vulnerability.
- Internal
• Personal characteristics
• Individual states
- External
• Access to goods and services
• Environment
Empowered consumers Consumers today are connected (vs. atomized), active (vs. passive), and informed (vs. ignorant).
User-generated content (UGS) Content produced and uploaded by consumers instead of by companies. Has the potential to
shape consumer brand perceptions.
Online brand related activities A behavioral measure of consumer engagement that corresponds to how practitioners measure
(COBRA’s) the effectiveness of their social media communications efforts.
Users & Gratifications theory People actively seek out particular media and content for specific users and to achieve particular
gratifications (or results).
- Entertainment - The emotional relief generated by temporarily recreating or recessing from daily routines.
- Integration and social interaction - The users’ feeling of connection that enables them to increase their knowledge about
other people’s circumstances and augment individuals’ socializing capabilities.
- Personal identity - The need for shaping one’s identity by providing an image of one’s personality and by
receiving peer recognition.
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