Attitude formation towards personalized internet advertisements

Abstract

ABSTRACT Business firms around the world are spending more and more on internet services. There has in fact been a paradigm shift from traditional to digital marketing. This naturally makes researchers want to know whether it is worth investing in traditional means of advertisements like analog television, newspaper and radio, or to explore other alternatives. ii Digital marketing in Nepal is popular especially among youngsters and growing fast but effects of personalized digital advertisements are not known to marketers. The study explored the personalized Ads and their effect on perceived Ad attributing factors that contributed in attitude formation on internet advertising. The main objective of the study was to analyze the effects of personalized Ads on cognitive factors of Ads: perceived entertainment, perceived informativeness, perceived interactivity, perceived irritation, perceived credibility, and their effect on attitude towards internet advertising. Validity and reliability test was done through confimatory factor analysis using AMOS. Pertinent tests like homogeneity, convergent validity, discriminant validity, correlation, regression followed by structural equation modeling were carried out to examine cognitive factors that form attitude towards internet advertisements. The results in general were found to support few of the hypothesized relationships, and the findings were consistent with past empirical studies. The findings are applicable to business firms and marketing managers willing to adopt digital channels to promote goods and services through Advertisements online. Key Words: personalized ads, entertainment, informativeness, credibility, irritation, interactivity, attitude towards internet advertising