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Thanks to online tracking technology, marketers no longer have to rely on assumptions about consumer behavior. Instead, they can deliver ads targeted specifically to individuals based on their behavior online. A study found that consumers were more interested in buying a Groupon for a restaurant advertised as sophisticated when they thought the ad had been targeted to them based on specific websites they had visited, compared to when they thought the ad was targeted based on demographics (their age and gender) or not targeted at all. This suggested that behavioral targeting specificallynot targeting group level attributesincreased their interest in the product. But why would the mere belief that an ad is targeted based on your online history make you more interested in buying the product? Data shows that consumers evaluate themselves as more sophisticated after receiving an ad that they thought was individually targeted to them, compared to when they thought the same ad was not targeted. In other words, participants saw the targeted ad as reflective of their own characteristics. The ad told them that, based on their browsing history, they had sophisticated tastes. They accepted this information, saw themselves as more sophisticated consumers, and this shift in how they saw themselves increased their interest in the sophisticated product. Another study demonstrate that such changes in self-perceptions from behaviorally targeted ads can impact behaviors extending beyond purchase intentions. After receiving a behaviorally targeted ad for an environmentally friendly product, undergraduate study participants rated themselves as more green and were (at least in the short-term) subsequently more willing to buy the advertised product and to donate to a pro-environmental charity. Research shows that some ads are not actually matched to participants behavior, they merely create the perception that they are. What does this all mean for marketers? Firstly, targeting may change how consumers see themselves and make them feel like they already have traits implied by the ads. This suggests that brands with strong personalities might particularly benefit from behavioral targeting. Additionally, identifying ads as behaviorally targeted gives consumers greater control over the use of their data and may help alleviate many of the privacy concerns.

(business ethics question send me before 7:10 pls)

Acquiring information about consumer perceptions and using, manipulating and even changing it for selling products is what is being done by targeted advertising. This may compromise consumers right to privacy. What are the ethical implications that apply here? Support your answers with examples. (04 MARKS) According to utilitarian ethics, an act is acceptable if its benefits exceed its costs and majority of society approves it as acceptable behavior. Thus, if most of the individuals in a society show carelessness about their online privacy, would collecting all users online data be ethical for companies? Justify your opinion. (04 MARKS)

(business ethics question send me before 7:05) pls