In the age of algorithms, what about the consumer? : A qualitative study of consumers' perceptions of and attitudes towards algorithms and how they affect the consumers' online behavior.

We are moving towards a more digitalized society; we use smart devices and apps, and we can consume and search for things online. This digitalization provides for massive benefits as our behaviors translate into patterns and information on us, and companies can use this to improve their performance and revenue. However, this digitalization does not only come with benefits but also drawbacks. As we move towards a more digitalized society, risks may arise along the way which may impair our personal autonomy, expose us to risky situations with privacy and cybersecurity issues, and complicate our choices. This thesis investigates consumers’ perceptions of and attitudes towards algorithms, and whether they affect their online behavior, which is also the purpose of the thesis. This thesis uses an exploratory and qualitative method, and in order to fulfill the purpose, long and semi-structured interviews have been conducted with eight interviewees who have shared their thoughts and opinions on different matters related to the increasing presence of algorithms. The main finding is that the consumers’ perceptions of and attitudes towards algorithms are negative. A majority of the interviewees stated that they want for their autonomy to remain intact, that they value their privacy and do not want it to be a tradeoff between privacy and personalization, that they want their “online persona” to be representative, and that they want companies to communicate better and take more responsibility when handling their data. The findings were also that algorithms do not affect the consumer’s online behavior. The study confirms previous studies which have stated that there are benefits and drawbacks with algorithms, and although beneficial, the benefits may impair the consumer’s well-being. The study also confirms that there is a privacy and personalization tradeoff, and in situations where privacy is prominent, trust may promote better marketing outcomes. This study also provides a suggested extension of the paradox of choice by introducing the paradox of customization, and the Technology Acceptance Model which enables investigating acceptance of advanced technologies within devices, rather than acceptance of technology itself