How Digital Nudges Influence Consumers – The Role of Social and Privacy Nudges in Retargeting

Item Type Conference or Workshop Item (Paper)
Abstract Retargeting is an innovative online marketing technique because it can provide consumer-specific advertising content based on consumers’ browsing behavior that meet consumers' prefer-ences and interests. Although this advertising form offers great opportunities of bringing back customers who have left an online store without to complete a purchase, retargeting is risky be-cause the necessary data collection leads to strong privacy concerns which in turn, trigger con-sumer reactance and decreasing trust. Digital nudges – small design modifications in digital choice environments which guide peoples’ behavior – present a promising concept to bypass these negative consequences of retargeting. In order to explore the positive effects of digital nudges in retargeting banners, we conducted a between-subject experiment with a subsequent survey which examines the impacts of social nudges (likes of friends) and privacy nudges (disclosure of privacy policy and purpose of retargeting banners). Whereas the social nudge led to a negative impact on consumers’ privacy concerns and a positive impact on consumers’ booking behavior, the privacy nudge did not have any significant impact. A combination of social nudge and privacy nudge showed that the privacy nudge negatively moderated the positive relationship between social nudge and consumers’ booking behavior. The derived implications provide a theory for under-standing nudges in digital environments and we offer design principles for practitioners that enable better retargeting outcomes.
Authors Eigenbrod, Laura; Janson, Andreas & Leimeister, Jan Marco
Research Team IWI 6
Journal or Publication Title Academy of Management Annual Meeting (AOM)
Language English
Keywords Digital nudging, Privacy Nudging, Trust
Subjects business studies
information management
other research area
HSG Classification contribution to practical use / society
Date 2018
Event Title Academy of Management Annual Meeting (AOM)
Event Location Chicago, IL, USA
Event Dates 10.-14-08.2018
Publisher DOI https://doi.org/10.5465/AMBPP.2018.11298abstract
Official URL https://journals.aom.org/doi/10.5465/AMBPP.2018.11...
Depositing User Dr. Mahei Li
Date Deposited 23 Apr 2018 18:32
Last Modified 20 Jul 2022 17:34
URI: https://www.alexandria.unisg.ch/publications/254082

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Eigenbrod, Laura; Janson, Andreas & Leimeister, Jan Marco: How Digital Nudges Influence Consumers – The Role of Social and Privacy Nudges in Retargeting. 2018. - Academy of Management Annual Meeting (AOM). - Chicago, IL, USA.

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https://www.alexandria.unisg.ch/id/eprint/254082
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