Likelihood of Using Online Personalization Services : An Explanatory Study

Bachelor Thesis in Business Administration. Bachelor of Science with Specialization in Marketing – Main Field of Study: Business Administration. School of Business and Economics at Linnaeus University, Course Code 2FE21E, 2017. Title: Likelihood of Using Online Personalization Services: An Explanatory Study Authors: Avesta Diliwi, Christopher Ullberg and Johanna Jevinger Supervisor: Michaela Sandell Examiner: Åsa Devine Background: Online personalization is the result of the rapid technological and digital development where consumers are provided products, services and content based on their individual preferences. Various research has been conducted regarding what factors influence the utilization and acceptance of personalization but does not provide a holistic view on the unified relationship of the recurrent variables of value for personalization, concern for privacy and trust building factors towards likelihood of using online personalization services. Purpose: The purpose of this research is to explain the relationship of value for personalization, concern for privacy, and trust building factors with the likelihood of using online personalization services. Methodology: This research replicated Chellappa and Sin’s (2005) research by modifying their theoretical model and testing it in another context. An explanatory, deductive, quantitative research approach and cross-sectional research design were utilized within this research, where self-completed questionnaires were distributed online with a number of 228 valid responses collected. Findings: The findings demonstrate that the new theoretical model is significant and that it explains the likelihood of using online personalization services with 62,3%. Value for personalization and concern for privacy are considered highly significant and are thus accepted hypotheses, while trust building factors is not considered significant and therefore rejected. Conclusion: This research provides an insight into consumers’ usage decision in regards to likelihood of using personalization. It also provides a furthering on prior research in regards to a theoretical development, the modified model tested in a new context, but also in the findings in how the three independent variables affect the dependent variable. In addition, this research provides support for practitioners of online personalization services to understand which factors actually affect consumers’ usage decision, and can potentially develop strategies accordingly. Keywords: Personalization; Online Personalization Services; Likelihood of Using Online Personalization Services; Value for Personalization; Concern for Privacy; Trust Building Factors