A DISSERTATION REPORT

ON
“THE IMPACT OF PERSONALIZATION ON
CONSUMER PURCHASE INTENTION IN
ONLINE SHOPPING”

BACHELOR OF BUSINESS
ADMINISTRATION (BBA)
(Affiliated to Mahatma Gandhi Kashi Vidyapith Varanasi, Uttar Pradesh)
BATCH- 2021-2024

Under Supervision of: Submitted By:

Mr. Saurabh Kr Srivastava HARSH SINGH

SMS VARANASI BBA ( VITH Semester)
ROLL NO:-BBA2125078
 ACKNOWLEDGEMENT

First, I would like to thank almighty for keeping me healthy and active because

of which I was able to complete my project successfully.

I express my greatest gratitude to our Prof. P.N. JHA (Director) of SMS,

Varanasi who gave me such a great opportunity to work on a project where I

can show my creativity, my mentor Mr. Saurabh Kumar Srivastava, SMS

Varanasi for providing me knowledge, guidance, and full cooperation extended

during the perusal of my project.

And at the last but not the least I would like to thank my Mentor Prof. Sandeep

Singh (Head of management department), Mr. Atish Khadse Coordinator of

BBA, SMS VARANASI who helped me and enlighten my path. This report is

the outcome of the support which I have received from people directly or

indirectly.

Finally, I would like to show my gratitude to all my family members, friends,

faculty members of SMS, Varanasi whose guidance have helped to complete

this report.

Thanks!
 DECLARATION

I, HARSH SINGH, student of School of Management Sciences

Varanasi. Hereby declare that I have completed the project

business model under the guidance and support of Mr. Saurabh

Kumar Srivastava

The information that I have written in this project is original to the

best of my knowledge. The content that I am sharing is not copied

and is written by myself.

HARSH SINGH

BBA (VITH Semester)

ROLL NO :-BBA2125078
 Table of Contents

1.0 INTRODUCTION 1

1.1 Background 1

1.2 Problematization 2

1.3 Purpose & Research Question 4

2.0 LITERATURE REVIEW 6

2.1 Personalization 6

2.2 Consumer Behaviour in Online Shopping 7

2.3 Previous Purchase Experience 8

2.4 Privacy Concerns 10

2.5 Purchase Intention 10

2.6 Theory of Planned Behavior 11

2.6.1 Attitudes towards Personalization 12

2.7 Theoretical Framework and Hypotheses 15

3.0 METHODOLOGY 18

3.1 Research Philosophy 18

3.1.1 Ontology 19

3.1.2 Epistemology 19

3.1.3 Positivism 20

3.2 Research Approach 20

3.3 Research Design 21

3.4 Research Strategy 21

3.5 Data Collection Method 22

3.5.1 Data Collection Instrument: Survey 22

3.5.2 Sampling 24

3.5.3 Operationalization and Measurement of Variables 25

3.6 Quality Criteria 26

3.6.1 Validity 26

3.6.2 Reliability 27
[Link] Reliability Testing 28

3.7 Data Analysis Method 29

4.0 FINDINGS 31

4.1 Descriptive Statistics 31

4.2 Correlation Analysis 32

4.3 Regression Analysis 34

5.0 DISCUSSION 37

6.0 CONCLUSION 41

6.1 Managerial Implications 42

6.2 Limitations and Future Research 43

References 43

Appendix 56
1.0 INTRODUCTION

1.1 Background

Internet users worldwide consist of 64% of the global population whereas online shopping is
becoming more and more popular (Statista, 2023a). Furthermore, e-commerce has recently
grown to be an essential part of worldwide retail. Like many other businesses, the buying and
selling of items has experienced significant change since the internet development. As a result
of the increasing digitalization of contemporary life, today consumers worldwide benefit from
online activities' advantages. The use of the Internet in consumer behavior has significantly
altered how buyers and sellers communicate (Xiao, 2016). Accessibility and usage of the
internet are rapidly growing worldwide. Advancement in digital technologies has increased
competitiveness between companies (Berawi et al., 2020). Since the expanded availability of
channels for communication, establishments may communicate directly with the consumers
they target in a more affordable and easy way, and they are able to do it on an international
level (Rowley, 2001). In accordance, the statistics showed that the total number of online sales
in the retail industry has accounted for 20,8% of all internet sales, and by the end of 2026, it is
estimated that it will reach 24% of all internet sales (Statista, 2023b). Since they are simpler to
approach, buyers have been confused by the range of firm offerings (Kotler & Keller, 2015).
There are numerous alternatives available today and the capacity to compare items as well as
access product information make it even more crucial for businesses to use personalized
services (Dawn, 2014). According to Fahy and Jobber (2015), businesses should become aware
of how consumers act to remain successful in online shopping. Today companies can gather
information about consumers by monitoring internet behaviors and target group segmentation
has changed from its traditional shape to one that is more intense (Lee & Park, 2009). With this
level of thorough diversification, the solutions are tailored specifically to each consumer
(Dawn, 2014). Businesses can use the data they have obtained to provide personalized services
to each consumer (Sipior et al., 2011). According to a survey conducted by business managers
globally, 37% of them said their companies only utilized first-party data to personalize client
experiences (Statista, 2022a). Therefore, utilizing first-party data and collection of digital
records from consumers has allowed businesses to create profiles based on their consumers'
purchasing habits (van Doorn & Hoekstra, 2013).

1
Digital traces can be recorded and analyzed to help organizations target consumers and provide
them with specialized services (van Doorn & Hoekstra, 2013). It is essential for companies to
comprehend their consumers and how they act online while considering further development
of the online personalized services strategy that is pertinent to consumers (Aguirre et al., 2015).
In 2021, 40% of consumers worldwide stated they wanted companies to understand more about
their personal style preferences and what works for them (Statista, 2021). A consumer's online
shopping experience can have a substantial impact on their decision to buy online in the future
(Shim et al., 2001; Lynch & Ariely, 2000) and privacy concerns can have significant impact on
buying online (Pappas et al., 2013). Therefore, the whole process may be impacted in a number
of ways by the attitudes towards personalization, which could ultimately determine the decision
on whether or not the purchase will occur (Lee & Park, 2009). The message to consumers is
important, and businesses need to make each consumer feel like the message was chosen just
for them (Dawn, 2014). Thus, the consumer relationship with a company is crucial, and the
overall plans for personalized services become dependent on previous purchase history.
Positive previous purchase experiences improve consumer confidence in businesses' data
management practices (Sethna & Blythe, 2019). A previous study from Lee and Park (2009)
has found that personalization can positively affect a consumer's purchase intention. In 2021,
60% of consumers said they could make purchases again after a tailored online experience, and
in 2022, 49% of consumers said they would be motivated to make additional purchases from a
store offering online personalization (Statista, 2022b). Although personalization has many
advantages, there is continuous discussion about how to handle the collection and storage of
private data (van Doorn & Hoekstra, 2013). Consumer’s attitudes towards personalization
could impact purchasing intentions depending on previous purchase experience and privacy
concerns (Luarn & Liu, 2003).

1.2 Problematization

Personalization is a feature of a company's customer relationship management (CRM) by

which the company gets consumer data into the interaction between consumers and the
company, and the data collection process is known as the learning relationship (Peppers et al.,
1999a). As the digital world develops, companies may collect and retain an incredible quantity
of data about consumer behavior and buying patterns. This development has been creating a

2
problem for consumers, since maintaining privacy in the internet world becomes increasingly
difficult, given that their activities may be easily recorded and archived. This easier method of
monitoring consumers and businesses' capacity to hold data suggests that control and liability
for personal information are passed from the consumer to the business
(Ashworth & Free, 2006). Therefore, consumers may start to have increased privacy issues. In
these conditions, trust is essential, and consumers must have more confidence in the company.
Generally, positive interactions with a company can contribute to the development of trust and
a sense of confidence in the online shopping experience.

Several variables may impact a consumer's purchase intention in personalization (Lee & Park,
2009). Personalization could improve the probability of purchase since consumers are more
willing to interact with content that is personalized to their preferences and areas of interest
(Tran, 2017). Moreover, companies could employ more complex recommender systems to
provide complementary products or services rather than just the things the consumer has
already viewed or purchased in order to deliver something a consumer could be interested in.
The types of personalized communication used by consumers according to their purchasing
acts can positively affect purchase intention (Lee & Park, 2009). Nevertheless, there can be
possible issues with personalization that could have a negative impact on purchasing intentions
(Pavlou, 2011). According to Pavlou (2011), when companies obtain and use private data,
privacy problems could develop. Also, Pavlou (2011) argues that more research into the
effectiveness of various privacy protection systems is needed, as well as a deeper understanding
of the trade-offs between private and other key characteristics such as accessibility and
personalization. When consumers perceive a personalization that is uncomfortably close to
their preferences, they frequently feel manipulated or denied their choice as a consumer (Bleier
et al., 2015). Some economists and experts point out that this seems contradictory and suggests
that consumers' actual behavior may not align with their stated privacy preferences (Dinev &
Hart, 2006).

One of the advantages of correct personalization is that it could match the consumer's wants
and interests, supporting them in making a decision by presenting different goods according to
their specific interests, but consumers could be worried about this situation (Kaniewska-Sejba

3
& Pilarczyk, 2014). According to van Doorn et al. (2013), a successful personalization strategy
may give consumers the idea that the company learns much about their personal lives. This
impression of being observed could lead to anxiety and distrust, causing the consumer to refuse
to engage with the targeted marketing message. Therefore, personalization has advantages, but
the trade-off between privacy and marketing utility must be closely examined. The risks of
compromising privacy could be balanced against the potential advantages of the planning
process. Companies could be transparent in their data acquisition and use it to establish
consumers' confidence and avoid legal implications.

Therefore, in accordance with earlier studies, this study assumes that consumer purchase
intention in online purchasing is impacted by personalization. Purchasing on the internet could
be either directly or indirectly related to previous experiences and privacy concerns, which
could influence future years of use of the internet (Shim et al., 2001). Shim et al., (2001) found
strong evidence that many consumers shop online with the intention of making a purchase, but
then give up and leave the stores. Thus, investigating the effect of personalisation on consumer
purchase intent when shopping online is proven to be quite essential. Furthermore, the current
study will measure the effects of previous purchase experiences, privacy concerns, and
attitudes towards personalization on consumer purchase intention in the context of online
shopping. Moreover, Park (2003) conducted similar research to this study many years ago and
it was recommended that a similar study should be performed since the results are likely to be
different. The main reason for getting different results is that the consumers are constantly
adopting new experiences and their attitudes towards personalization will likely change with
the increase and everyday development of the Internet and personalization features.

1.3 Purpose & Research Question

This research paper seeks to answer the following research questions:

RQ1: How do previous purchase experience and privacy concerns impact attitudes towards
personalization?

RQ2: How do previous purchase experience, privacy concerns, and attitudes towards
personalization impact consumer purchase intention?

4
The main purpose of this study is to investigate the effect that personalization as a phenomenon
has on consumer purchase intention. Further examination of the impact that personalization
has on consumer purchase intention was developed through three different variables that are
attitudes towards personalization, privacy concerns, and previous purchase experience.
Therefore, two conceptual models will be further presented and tested where the first model
attempts to answer the first research question, and the second model aims to answer the second
research question. To achieve this goal, the theory of planned behavior approach is used to
explore in what way personalization is impacting consumer attitudes and how will in the end
consumer purchase intention be affected. Moreover, the investigation of personalization as a
phenomenon and relevant variables will be further tested on selected groups of individuals.
Primary data is collected through quantitative method to mainly determine the impact of
personalization on consumer purchase intention. Due to that, a quantitative questionnaire is
constructed and distributed.

5
2.0 LITERATURE REVIEW

This chapter presents relevant theoretical background that will be used for further examination
of the main concepts in this research paper. Academic literature will be presented through
personalization, previous purchase experience, privacy concerns, consumer behavior in online
shopping and purchase intention. Besides that, Theory of planned behavior as a theoretical
framework is applied. Lastly, two theoretical models that show relationships among concepts
will be presented and followed by constructed hypotheses.

2.1 Personalization

Personalization is identified as providing the appropriate item and consumer service to the
appropriate consumer at the correct time (Sunikka & Bragge 2012). It was commonly used to
refer to segmentation, targeting, and profitability, while some studies use it to refer to one-on-
one marketing (Petrison et al., 1997). Businesses utilize personalization as a way to save costs,
increase accessibility, and adjust products (Krishnaraju & Mathew, 2013; McCarthy, 2001).
Also, personalization requires comprehending and providing appropriate products that satisfy
the wants of consumers (Ho, 2006). A deeper concept of personalization has also been used in
real life that covers but isn't restricted to, personalizing the product, customizing the content of
communication, or location diagnostic (Wind & Rangaswamy, 2001). Although various
definitions of personalization are presented in key literature, the primary value of
personalization is the process (Vesanen & Raulus, 2006). Personalization is a component of a
firm's customer relationship management whereby the company receives consumer data from
a process of interaction between consumers and brands, and the process of gathering data
involves learning relationships (Peppers et al., 1999b). Therefore, according to Murthi and
Sarkar (2003), personalization is a way of gaining knowledge regarding consumers'
requirements, correlating products to those preferences, and analyzing businesses' attempts to
meet those needs.

Personalization could be used online and is built into the system to make website layouts more
attractive (Peppers et al., 1999b). According to Adomavicius and Tuzhilin (2005),
personalization is a cycle of Understanding-Delivering-Measuring that correlates with three-
phase personalization conceptualization: understand what consumers need, match what

6
consumers require with available options, and assess the results of prior phases (Murthi &
Sarkar, 2003). Also, personalization is considered as an effective marketing communication
system formed from a two-way system, the ability to regulate answers from each part in the
process of communication, a data application, and an individualized communication
connection (Peltier et al., 2003). The combination of the key dimensions helps to synthesize
crucial elements required for personalized marketing and the entire personalization process
(Murthi & Sarkar, 2003). The personalized experience in online shopping can be made more
personalized, which has the potential to improve consumer satisfaction and the effectiveness
of consumer interactions. Trade effectiveness and tailored product suggestions for suitable
consumers are both believed to have substantial potential (Shaw, 2003). Consumers may return
to an online store if services are personalized. By assisting consumers in navigating through
massive volumes of content and a variety of purchase possibilities, personalization serves as a
tool for companies to develop connections with their consumers (Keen & McDonald, 2000;
Nysveen & Pedersen, 2004).

2.2 Consumer Behaviour in Online Shopping

Consumer behavior in online shopping describes how people behave when making purchases
online (Fahy & Jobber, 2015). The way people purchase on the Internet is highly crucial since
the sale or purchase can take place without any face-to-face contact between sellers and
consumers (Mukherjee & Nath, 2007). Therefore, it is crucial to comprehend consumer
behavior in the online environment (Limayem & Khalifa, 2000). Online shopping has been
adapted to meet consumer needs and is influenced by their perceptions (Jin et al., 2014). Since
the company has the chance to specifically personalize an individual consumer and the
consumer's needs, personalization is crucial (Dennis et al., 2009). According to Fahy and
Jobber (2015), companies need to recognize that every consumer and their purchasing acts are
different and that every consumer’s purchasing habits could change.

Consumer behavior can be identified as all the activities related to purchasing and using goods
and services, as well as the decisions that influence these activities (Blackwell et al., 2001).
Therefore, as consumer behavior is the essential foundation of marketing and the consumer
should always come first, marketers need to understand it (Sethna & Blythe 2019). Being aware

7
of consumer behavior is essential when creating a marketing strategy (Sethna & Blythe, 2019),
since there is a chance to affect the consumer purchase intention (Vukasovic,
2016). Consumers are more likely to have a positive attitude towards personalization in online
shopping if they believe it would simplify their lives (Jin et al., 2014). Technological
proficiency and e-commerce experience are among the variables that influence how consumers
behave online (Ab Hamid, 2008). Reichheld and Schefter (2000) argued previous purchase
experience and privacy concerns could affect consumer behavior in online shopping. The desire
to provide information rises if the consumer has had favorable previous experiences with a
business and believes that their private information is being properly maintained (Reichheld &
Schefter, 2000). The willingness of consumers to provide private data can increase if they have
adequate belief in the business (Dinev & Hart, 2006).

2.3 Previous Purchase Experience

According to Motta-Filho (2017), experience is the consumer's perception of the emotions

integrated into the features of the offering, based on the impression arising from any type of
engagement. Also, experience is the consumer's cognitive and emotive judgment of all their
interactions with the firm relevant to the consumer’s purchase behavior (Klaus & Maklan,
2013). According to some studies, a company's interactions with its consumers or potential
buyers across a variety of channels are the result of functional and emotional signals (Klaus &
Maklan, 2013). Helson (1964) suggested that the total of a person's previous experiences,
situation or history, and stimulus all play a role in how they react to a judging task. Since online
shopping is different from traditional shopping, transactions made there may seem riskier
(Laroche et al., 2005). Therefore, consumers that shop online would strongly rely on the
experience quality, which can only be obtained from previous purchase experience (Gurleen,
2012). Furthermore, according to Dawn (2014), one of the key effects of personalization is to
improve the consumer experience.

The company's goal is to build an effective connection with consumers that will ensure their
brand loyalty (Reichheld & Schefter, 2000). By focusing on the person, the business aims to
communicate to the consumer that they are aware of their needs and are able to meet them.
Developing trustworthy connections between consumers and businesses requires that both

8
parties have had positive previous experiences with online shopping (Gurleen, 2012). Since
this may create a stronger feeling of community, this could decrease the perceived risk. Trust
is more likely to grow when consumers perceive a connection between the business and
themselves (Sethna & Blythe, 2019). According to Reichheld and Schefter (2000), the
effectiveness of retaining consumers depends on the ability to build trust from positive past
experiences. When consumers use online resources for shopping, it is essential that consumers
feel safe if a threat occurs (Dinev & Hart, 2006). Trust may create emotions of assurance that
the personal data of an individual is handled safely and employed to the purpose it was created
for, which may result in an improved impression overall (Dinev & Hart, 2006).

Positive previous experience is a well-established element of trust, and it has a positive effect
on the sharing of private data and also establishing and maintaining long-term relations is
particularly important (Kobsa, 2007). Also, according to Sethna & Blythe (2019), good
experiences are attained by consistently focusing on consumer happiness, which is made
possible at a minimal cost by Internet channels. Consumer experience is improved by
significant fulfillment, which increases the possibility that consumers will regard
personalisation favorably (Shen, 2014). If consumers of personalized online websites have
good experiences with the same or comparable sites in the long term, they might become more
open with their personal information (Kobsa, 2007). Furthermore, according to Grönroos
(2004), interactions between consumers and businesses can develop feelings of control,
protection, and trust that could reduce the risks associated with making purchases. When a
consumer has had positive experiences in the past, they are also more likely to be understood
when something happens that makes them unhappy (Grönroos, 2004).

Consumers can continue to use the Internet to shop in the future if their previous online
shopping experiences were successful (Shim et al., 2001). This highlights the significance of
giving current Internet users positive online purchasing experiences in order to encourage them
to become repeat consumers (Weber & Roehl, 1999). According to Eastlick (1996), previous
purchase experiences may influence future purchase intentions. Therefore, personalized online
websites might be created such that consumers could use them productively with any amount
of private data they choose to give and consumers might also be able to provide more

9
information gradually in the future, at which point their interaction with the personalized
platform would increase (Kobsa, 2007).

2.4 Privacy Concerns

Due to the constant development of the Internet and rapid technological progress, consumer
online privacy has become a prominent topic of discussion in the realm of online advertising
and e-commerce (Anić et al., 2019). According to the research by Dinev and Hart (2006)
consumers are increasingly worried about their online privacy. This is due to their growing
awareness of the privacy risks associated with their online activities (Dinev & Hart, 2006).
Privacy concerns can be described as a set of particular awareness and perceptions regarding
privacy breaches and violations (Cai & Mardani, 2023). Due to worries about their privacy,
certain consumers may decline to allow businesses to utilize their personal information for
personalized marketing, resulting in a decrease in the efficacy of personalized marketing (Cai
& Mardani, 2023).

In response to these concerns, consumers may exhibit different behaviors, such as avoiding
risky websites and applications, providing false personal information, or using privacy-
enhancing software (Anić et al., 2019). Research from Milne and Culnan (2004) has pointed
out ongoing discussions about issues associated with collecting personal information without
the consumer’s knowledge or approval. Additionally, it is concerning that once collected, this
information can be easily shared with third parties who the consumer has no prior business
relationship with. Given the potential risks involved, sharing personal information with an
online organization requires a certain level of trust. This is due to information asymmetry which
limits the consumer’s understanding of the organization's information policies and whether
their personal data might be misused leading to negative consequences such as unwanted
requests, credit card fraud or even identity theft (Milne & Culnan, 2004).

2.5 Purchase Intention

When it comes to the decision-making process for purchases, online and offline consumer
behavior are very similar, but they differ in significant ways (O'Keefe & McEachern, 1998).

10
Most of all, since the physical shop atmosphere has been replaced by an electronic world,
online consumers must interact with technology to buy goods and services (Van der Heijden et
al., 2003). Consumers require more confidence in the world of the internet than in an actual
store since this may reduce feelings of uncertainty and worry (Yao-Hua Tan, 2001; Van der
Heijden et al., 2003). Understanding and anticipating how people behave could be crucial in
order to ascertain a consumer's purchase intention (Van der Heijden et al., 2003). Furthermore,
behavior in humans is seen as the result of someone's intent to act, which is determined by that
person's personal views and norms about the particular act, such as making a real purchase
(Ajzen, 1985; Bosnjak et al., 2006; Hansen et al., 2012).

Personalization has gained popularity in recent years as a method of successfully attracting

consumers, particularly online (Peer et al., 2020). According to Kazeminia et al. (2019),
personalization techniques have favorable effects on consumers' purchase intentions, and they
additionally suggested that in order to increase the likelihood that a consumer will actually
make a purchase, several aspects of the buying process could be tailored to the consumer's
decision making. As a result, personalization may be useful in predicting a consumer's decision
to buy certain goods (Wessel & Thies, 2015).

2.6 Theory of Planned Behavior

Theory of planned behavior (TPB) is a prolonged version of the theory of reasoned action and
it was developed to overcome the limitations in the original model. Both theoretical models
have a central component which is the intention of an individual to perform a particular
behavior (Ajzen, 1991). Despite that, the theory of reasoned action describes the outcome of
behavioral intentions and behaviors and includes specific beliefs categorized as behavioral and
normative (Madden et. al, 1992). Therefore, behavioral beliefs are presumed to be a
fundamental influence on an individual’s attitude towards performing a particular behavior
(Madden et. al, 1992). Accordingly, normative beliefs are impacting the individual subjective
norm in order for particular behavior to be performed. On the other hand, intention is described
as capturing the motivational factors that influence behavior (Ajzen, 1991). To simplify,
intentions are explained as how strong individuals are willing to try to make an effort in order
to perform particular behavior.

11
According to Ajzen (1991), a strong interest and intention to engage in a particular behavior
increases the likelihood of its performance. However, the behavioral intention can only be
performed if the behavior is under volitional control. This means that the individual can
explicitly control whether or not behavior will be performed. Therefore, the theory of reasoned
action is limited, meaning that there is a missing variable for addressing volitional control. As
a result, TPB was developed in order to address the issue of missing variable, by inducing the
extended variables, perceived behavioral control.

TPB model consists of three different variables that are attitude, subjective norms, and
perceived behavioral control. According to the research conducted by Liu et al. (2020), the
TPB model is based on the idea that individuals' decision-making is driven by consequence of
their own behavior. Recent studies have provided knowledgeable factors that this model is used
by researchers to analyze behavioral patterns with the purpose of identifying consumer
purchase intention. Bearing that in mind, Zhuang et al. (2021) confirms that the TPB model is
one of the most acknowledged theories when it comes to consumer behavioral decisions.

Due to the provided general explanations about the TPB model, one particular variable will be
further used in this research. Chosen variable for this research is attitudes. As Conner and
Armitage (1998) mention, attitudes towards a particular behavior strongly influence the
intention and actual behavior. Ajzen (1991) mentions that attitudes are an important factor in
predicting behavioral intentions and certain behaviors.

2.6.1 Attitudes towards Personalization

According to the theory of planned behavior, attitude is a key indicator of behavioral adoption
intention (Ajzen, 2011). Attitude is characterized as a person's general assessment of an idea
(Peter & Olson, 2010). There are two different kinds of attitudes, known as attitudes towards
behaviors and attitudes towards objects (Akroush & Al-Debei, 2015). The point at which a
person has a positive or negative view to be engaged in is referred to as attitude towards the
behavior (Taylor & Todd, 1995). As defined by a person's salient views about the perceived
repercussions of engaging in a conduct, attitude towards an act might be described as either
favorable or unfavorable judgment of a relevant act by an individual (Kim & Park, 2005). These
definitions make it quite evident how effective attitude is (Akroush & Al-Debei, 2015).

12
According to the theory of planned behavior, attitudes towards actual activity are influenced
by behavioral beliefs, which are an individual's internal views about the effects of carrying out
a certain action (Ajzen, 2011).

According to previous studies based on the influence of attitude on online websites, a favorable
attitude towards the online buying environment is an important indicator to have a significant
effect on new purchase conditions (Shim & Eastlick, 1998). It has been demonstrated that a
potential consumer's attitudes towards adopting new technology are a significant indicator of
actual use in the sectors of online commerce (Davis, 1989). According to Helander and Khalid
(2000), positive e-commerce attitudes have been shown to have a considerable impact on
people's use of the Internet to make purchases. Also, as a major factor in attitudes and the
subsequent acceptance of new technology as a new commerce channel, perceived utility has
received particular attention (Salisbury et al., 2001). According to Davis (1989), consumers are
more likely to perceive a new system as useful and to have a good attitude towards it than non-
users if they think it can enhance how effectively a task is performed. Goldsmith (2002) found
that participation on the Internet is significant determinant of consumers' propensity to make
purchases online. Therefore, it is expected that users of the internet might be more likely to
adopt this e-commerce system if they have a more positive view of its effectiveness and good
attitudes towards online purchasing (Fenech & O’Cass, 2001).

According to the attitudinal-behavioral framework, some external factors may indirectly

influence behavioral intentions by having an impact on how people balance their attitudes
towards conduct (Ajzen & Fishbein, 1980). Since behavioral history is a good indicator of
future behavior, the construction of impressions for attitude could be related to prior online
experience (Lee & Park, 2009). Understanding the relationship between consumers' attitudes
about online personalization and their buying intentions requires knowledge of their prior
online purchasing experiences (Lee & Park, 2009). An individual's present purchasing
intentions may be influenced by previous purchase experience (Bagozzi et al., 2000; Shim et
al., 2001). Consumers who shop online analyze their experiences based on impressions of the
product details, the method of payment, the risk concerned, the privacy of their information,
and the degree of personalization (Burke, 2002; Parasuraman & Zinkhan, 2002). According to

13
Shim and Drake (1990), consumers who have significant online buying intentions typically
have previous experiences that help to reduce their concerns. It is clear that a consumer's
previous purchase experience may have a big impact on their decision to shop online in the
future (Shim et al., 2001).

Moreover, one's trust in the product or service provider would influence one's attitudes towards
online personalisation (Ball et al., 2004; Ball et al., 2006). Trust has been found to be influenced
by perceived privacy, or how a website handles the personal information of its users (Flavian
& Guinaliu, 2006). Perceived privacy was looked at as the main factor of user trust in a study
(Shin, 2010). Personalization in e-commerce includes adjusting and proposing goods and
services depending on particular consumer traits, knowledge about their interests, and actions
(Adomavicius & Tuzhilin, 2005). Therefore, personalized services would be connected to the
sense of risk when shopping (Mittal & Lassar, 1996). In a paradoxical way, personalization and
privacy are related, and in this way, personalization can raise privacy concerns since consumers
may feel like their privacy has been invaded in order to receive tailored services (Douligeris et
al., 2013). Consumers' willingness to provide personal information is positively impacted by
personalization and favorable impressions of it, like the perceived value of tailored services
and the consumer's attitude towards personalization becomes positive (Douligeris et al., 2013).
According to Lee and Cranage (2011), the personalization-privacy issues state that the better
services a consumer wants, the more private data consumers can disclose, and high privacy
concerns make consumers less likely to share this information and decrease their purchase
intention in the future.

According to Ajzen and Fishbein (1980), intentions that satisfy behavioral requirements
estimate consumers' actions. Consumer studies have shown a comparable relationship between
attitudes and purchase intention (Ting & De Run, 2015). Ajzen and Fishbein (1980) found that
purchase intention has been impacted by consumers' attitudes. Also, if consumers have a
positive attitude, it positively affects their decision to buy (Dickson & Littrell, 1996).
Therefore, Halepete et al., (2009) claim that attitudes towards personalization have a positive
effect on purchasing intentions.

14
2.7 Theoretical Framework and Hypotheses

It is necessary to investigate consumers' previous purchase experiences, privacy concerns, and

attitudes towards personalization in order to acknowledge how consumers' purchase intentions
will be impacted.

According to earlier studies, a person's current purchase intentions might be influenced by

previous purchase experiences (Bagozzi et al., 2000; Shim et al., 2001). A consumer's
perception of personalization may differ and it can mean many various things to them (Lee &
Park, 2009). They can anticipate that knowledgeable and assured clients may be more likely to
adopt the personalized service as a new technology if personalization is viewed as a new
technology (Kim et al., 2006). The consumer is more likely to be innovative and more inclined
to adopt new technologies if they are more accustomed to products online (Kunz,
1997). Therefore, someone who has good previous experience on online shopping would be
less afraid of new technologies related to online shopping, allowing them to feel more relaxed
when using personalization (Lee & Park, 2009). According to this viewpoint, positive attitudes
towards personalization are anticipated to be fostered through the general online purchasing
experience (Lee & Park, 2009). Therefore, consumers might keep buying online in the future
if their previous online purchasing experiences were successful and if these previous
experiences are viewed badly, buyers might be hesitant to conduct future online purchases
(Shim, et al., 2001). Therefore, attitudes towards personalization are significantly influenced
by previous purchase experiences (Lee & Park, 2009). A consumer's online shopping
experience might have a substantial impact on their decision to buy online in the future (Shim
et al., 2001; Lynch & Ariely, 2000).

Furthermore, privacy concerns have a significant impact on consumer attitudes towards

personalization (Pappas et al., 2013). Although personalization offers clients a number of
benefits, it also always necessitates the disclosure of personal data (Culnan & Armstrong, 1999;
Roussos et al., 2003). Privacy concerns become much more crucial in this context when a
person considers that personalization is based on the personal information of clients (Pappas et
al., 2013). According to studies, when consumers learn that personalized services are used, they
could think like their personal data has been violated (Roussos et al., 2002). Consumers might

15
be uncomfortable about the risk of their data being shared with other organizations without
their permission, regardless of certain benefits of personalization (Lee & Cranage, 2011).
Therefore, consumer privacy concerns have a negative effect on people's attitudes towards
personalization and may even reduce their perception of its advantages (Joinson et al., 2007).
Moreover, according to Pappas et al. (2013), more personal information must be shared by a
consumer to obtain better services, and it has been discovered that privacy concerns make
people hesitant to provide more details about their lives and unlikely to make purchases in the
future. Therefore, online purchase intentions are negatively impacted by privacy concerns
(Fortes & Rita, 2016).

Moreover, Kim et al., (2003) found a positive correlation between attitudes and the intention
to buy from online businesses. In the majority of studies, attitudes were regularly confirmed to
be the primary factor directly influencing behavior intention (Taylor & Cosenza, 2000). For
instance, those with a favorable attitude towards online were said to be more likely to plan on
making a purchase from an online retailer (Watchravesringkan & Shim, 2003). An earlier study
proves that consumers who value individual interactions with a company are more likely to
develop a connection (Ligas, 2004). Therefore, the study has shown that attitudes towards
personalization will affect consumer purchase intention positively (Lee & Park, 2009).

Based on the theoretical contributions of this research, the following hypotheses are
constructed:

H1: Previous purchase experiences have a positive impact on consumer attitudes towards
personalization.

H2: Privacy concerns have a negative impact on consumer attitudes towards personalization.

H3: Previous purchase experience has a positive impact on consumer purchase intention.

H4: Attitudes towards personalization have a positive impact on consumer purchase intention.

H5: Privacy concerns have a negative impact on consumer purchase intention.

16
Both Figure 1 and Figure 2 illustrate the theoretical models for this research. These two
models present connections between overarching concepts along with constructed hypotheses.
Therefore, Figure 1 presents the first constructed model, where previous purchase experience
(PPE) and privacy concerns (PC) are independent variables and attitudes towards
personalization (ATP) are presented as a dependent variable. Therefore, the first introduced
model that could be seen in Figure 1 attempts to answer if there is an existing relationship
between the two independent variables PPE and PC, and the dependent variable ATP.
Therefore, Figure 1 is testing developed hypotheses that are presented earlier in the paper and
that are H1 and H2.

Figure 1
First theoretical model of
the literature contributions
of this research paper

Figure 2 presents a second proposed research model where previous purchase experience
(PPE), attitudes towards personalization (ATP) and privacy concerns (PC) are independent
variables and purchase intention (PI) is a dependent variable. Previous studies have shown that
previous purchase experience, privacy concerns and attitudes towards personalization are all
impacting consumer purchase intention (Pappas et al., 2013; Watchravesringkan & Shim,
2003,; Lee & Park, 2009; Bagozzi et al., 2000; Shim et al., 2001) in which researchers of this
paper decided to test if there is an existing relationship between them and if they will impact
the consumer purchase intention. Therefore, developed hypotheses H3, H4 and H5 will be
further tested and explained.

17
 Figure 2
Second theoretical model of
the literature contributions
of this research paper

3.0 METHODOLOGY
This chapter will thoroughly explain the process of how this research paper was constructed
and analyzed and what methods were used to test theoretical models and hypotheses. Moreover,
to examine the cause-effect relationship among the variables, the primary data collection used
for this study was throughout the constructed survey. Selected methodological approaches and
strategies were justified with assistance of academic literature connected to business research
methods.

3.1 Research Philosophy

"Research philosophy" is a term that describes a set of presumptions and attitudes towards the
growth of knowledge (Saunders et al., 2009). At every stage of the investigation, people will
make a variety of assumptions, whether they are aware of them or not (Burrell & Morgan,
2017). These involve presumptions regarding the facts people experience while conducting
research (ontological), presumptions regarding human knowledge (epistemological), and
presumptions regarding the degree and manner in which people's personal values impact their
method of study (axiological) (Saunders et al., 2009). These presumptions ultimately influence
how you define the study questions, choose your methodologies, and analyze your results
(Crotty, 1998).

18
A research philosophy is an opinion utilized to collect, analyze, and apply data regarding a
topic (Galliers, 1991). In the classical philosophy of science, positivism, and interpretivism are
two main research philosophies (Galliers, 1991). Positivism refers to the philosophical
perspective of naturalists and comprises using a social reality that can be observed to develop
generalizations that resemble laws (Saunders et al., 2009). According to interpretivism, social
phenomena and human beings cannot be investigated in the identical way as physical ones
(Saunders et al., 2009). The research philosophy will be explained clearly by ontology and
epistemology in this study.

3.1.1 Ontology

A definition of ontology is the philosophical study of the essence of actuality (Creswell & Poth,
2018). Ontology focuses on the presumptions investigators use to justify their conclusions as
being logical (Scotland, 2012). The positivist assumption that reality is singular, concrete, and
fragmented is the foundation of quantitative research (Needleman & Needleman, 1996).
Furthermore, it asserts that there is just one reality (Slevitch, 2011). Therefore, objectivism is
being used since this study uses a quantitative method. One of the aspects of ontology is
objectivism and it highlights the presence of an objective reality that does not depend on
personal interpretations or perceptions. This study is supported by a common understanding of
the world and is not impacted by unique perceptions or interpretations by assuming that there
is an objective reality. The findings completely depend on how previous purchase experience
and privacy concerns affect attitudes towards personalization and how they impact consumers
online purchase intention.

3.1.2 Epistemology

Epistemology examines questions related to the nature and circumstances of knowing

(Creswell & Poth, 2016). In other words, it is about how individuals learn about things and
how they know the truth (Creswell & Poth, 2016). Epistemology answers the following
inquiries: What is considered knowledge? How are statements of knowledge supported?
(Creswell & Poth, 2016). Quantitative research is based on positivism, which holds that what
is real is objective, logically ordered, and independent of the opinions of both the researchers
and the participants (Needleman & Needleman, 1996; Slevitch, 2011). A positivist

19
epistemology highlights the importance of focusing on the value of unbiased observation and
measurement in the production of knowledge. Therefore, it is useful in this study to consider
positivism from an epistemological point of view.

3.1.3 Positivism

This study aims to obtain empirical data and evaluate hypotheses for undertaking rigorous and
scientific studies. Alavi and Carlson (1992) found that each of the empirical studies employed
a positivist technique. According to positivists, reality is constant and can be viewed and
described objectively, that is without trying to interfere with the phenomena under-researched
(Kleinberg-Levin, 1988). Also, they argue that findings should be repeatable and that
phenomena must be hidden and in order to find patterns in and establish connections between
some of the components of the social environment, this frequently entails manipulating reality
with modifications in just one independent variable (Kleinberg-Levin, 1988). Therefore, this
study is unbiased, organized, and supported by empirical data by using a positivist method.
This study gathers and analyzes quantitative data to find patterns and relationships between the
variables such as attitudes towards personalization, previous purchase experience, privacy
concerns and purchase intention. Positivism is especially relevant to this research on how
personalization affects consumer purchase intention. Therefore, this study reflects a positivist
approach to research in which predictions of behavior are made without the researcher
modifying the collected data.

3.2 Research Approach

This research began with collection and development of existing academic literature that was
followed by designing a research strategy to test the existing theory, which is known as
deductive approach (Saunders et al., 2019). Accordingly, this research investigates existing
theories on personalization, purchase intention, and attitudes, whereas the most adequate
research approach is the deductive approach (Saunders et al., 2019). Furthermore, quantitative
studies are often associated with deduction whereas its importance lies in testing an already
existing theory where theoretical concepts need to be operationalized (Saunders et al., 2019).
Therefore, in quantitative studies that are following a deductive approach, operationalization

20
can be performed after theoretical concepts are presented and relevant hypotheses are
developed (Saunders et al., 2019). Developed hypotheses are constructed prior to data
collection and usually are developed on corresponding literature, research questions, and
theory (Hair et al., 2015). Moreover, constructed hypotheses are formulated in order to examine
positive or negative relationships between the observances and known academic literature.

3.3 Research Design

As explained by Saunders et al. (2019) research design has the importance of being an overall
plan of structuring a research project, with the main purpose of increasing the probability of
generating data that provides credible response to the chosen research question with limited
resources. In accordance with the theory, this study follows a quantitative research design,
which is commonly associated with deductive approach and positivism (Saunders et al., 2019).
Accordingly, quantitative research design investigates the relationships between variables,
which are measured numerically and analyzed using statistical techniques (Saunders et al.,
2019). Furthermore, two conceptual models will be further tested in order to examine the
relationships between the variables. Variables tested in the first model will be privacy concerns,
previous purchase experience and attitudes towards personalization. And the second model will
test the relationship between privacy concerns, previous purchase experience, attitudes towards
personalization and consumer purchase intention.

Despite that, this study is following an explanatory research design as it aims to answer two
research questions that begin with “How” (Saunders et al., 2019). To be more specific,
explanatory research design is focused on investigating the cause-effect relationship between
the independent and dependent variables (Saunders et al., 2019).

3.4 Research Strategy

A research strategy explains the purpose of the research, helping to make it easier for the
investigators to gather information as well as find answers to their questions regarding the

21
study (Yin, 2014; Bryman & Bell, 2011). A survey method was used for selecting a sample that
was representative of the people to collect information for generalizing on a topic in question
in this study (Yin, 2014). Also, when gathering and analyzing the primary data for the study,
attention was given to current topics (Yin, 2014; Bryman & Bell, 2011). This study's research
question included how-related questions (Yin, 2014). The survey method was appropriate
because gathering data from a sample has beneficial results which provide efficiency,
effectiveness in cost, being anonymous and the ability to generalize (Saunders et al., 2019). In
particular, the survey method draws possible conclusions about bigger groups that won't exceed
the budget (Bryman & Bell, 2011).

3.5 Data Collection Method

The process of data collection began with investigating various databases for applicable
scientific literature that could correspond to the selected research question. Accordingly,
relevant scientific literature was identified and collected through numerous scientific articles.
Moreover, databases that were carefully selected for investigating academic literature were
Jstor, ABI/Inform Global, Emerald Insight and Google Scholar. Databases can be found on the
online research services provided by Mälardalen University Library.

3.5.1 Data Collection Instrument: Survey

This research study was conducted upon examining consumer online shopping behavior
towards personalization with the main focus on investigating consumer attitudes and their
purchase intention. Therefore, in order to examine the mentioned concepts, the primary data
collection was made through a constructed survey. Survey could be explained as an instrument
that is used for collecting the data where each individual is asked to answer a set of questions
in a predetermined order (Saunders et al., 2019). Mainly, survey data collection was chosen for
the reason of collecting large amounts of data in a limited period (Robson & McCartan, 2016).

Before creating the survey, previous researches (Tran, 2017; Chellappa & Sin, 2005;
Knijnenburg & Kobsa, 2013; Hillqvist & Johnsson Östergren, 2020; Svensson & Dirksz, 2021;
Lindh et al., 2020), were used for further development of the questions. Therefore, validated
adjustments have been created which in turn led to developing significant questions that follow
theoretical concepts and will be used furthermore in this research. Hypotheses were constructed

22
upon following theoretical concepts and they helped in the choice of formulating the most
applicable questions for this research. Applicable questions were operated with main focus to
keep the language most simplified for respondents to understand and keep the questions as
short as possible (Robson & McCartan, 2016).

The most appropriate questions specifically chosen for this survey are rating questions.
Moreover, rating questions mainly ask respondents to share their opinion regarding the
presented topic by rating either negative or positive statements (Saunders et al., 2019). Rating
questions chosen for this survey use Likert-style rating where respondents are asked to respond
on whether they agree or disagree with the presented statement (Saunders et al., 2019). With
the intention of making it easier for respondents to process the data, responses on the rating
questions are presented on a numerical linear scale (Saunders et al., 2019). More specifically,
Likert-style rating is used in this survey where five points are displayed on a rating scale and
it gives respondents the choice of selecting between Strongly Disagree, Disagree, Neutral,
Agree, Strongly Agree. By incorporating the Neutral point on the rating scale, respondents have
the option to present their uncertainty in their response, which may indicate that they do not
want to share their opinion (Saunders et al., 2019). Furthermore, the survey was designed to be
anonymous to minimize the probability of receiving unwanted biased responses. Therefore,
sharing personal information was not requested whereas respondents could provide an honest
response to the questions. Moreover, to ensure anonymity of potential respondents, the number
of responses were monitored every 24 hours, so the individual responses could not be tracked.
Along with that researchers have created the survey in a way that respondents are not obligated
to answer every question that could be found in the survey, except the demographic questions.
Therefore, the researchers did not perceive the need to include an option for respondents to
answer, “Don’t know/Does not apply”. Among the questions that follow the theoretical
framework, demographic questions are used. Demographic questions can be noted in the first
four questions in the survey (Appendix D - Q1, Q2, Q3, Q4). Demographic questions are an
important part of the survey because it is investigating how attitudes and opinions vary from
the different demographic groups in regard to behavior and events (Saunders et al., 2019).
Bearing that in mind demographic questions are also testing if collected data are representative
of the total population (Saunders et al., 2019). Demographic questions in this survey are asking
respondents about their gender, age, employment status, education level.

23
Along with that, when respondents open a survey, the first thing they notice is the brief
introduction of what the survey is about, with specifying main concepts as well as all relevant
information considering the respondents while answering the survey. Despite that, the survey
was designed and constructed through the free online tool, Google Forms. Before the authors
could distribute the survey and start collecting the data, pilot testing was necessary to be
performed. Therefore, pilot testing has the advantage of ensuring formulated questions are
measurable and correctly constructed (Bryman & Bell, 2011; Saunders et al., 2019). Pilot
testing is used in order to correct small mistakes if they are needed so that researchers can see
if the questions are perceived differently by respondents (Bryman & Bell, 2011). Therefore,
the survey was sent out to one expert in quantitative studies to comment on the suitability of
the survey (Saunders et al., 2019). Furthermore, because of the time limit, the survey was sent
out to researchers' family and friends to check if the respondents understand the main concepts
(Saunders et al., 2019).

Once the researchers had fixed the minor changes recommended by the expert, the survey was
ready to be distributed. Researchers started distributing their survey through various online
social media platforms by providing hyperlinks. Social media platforms used for distributing
survey were LinkedIn, Facebook (Messenger), Instagram, WhatsApp and
Snapchat. Each individual received a personalized message which consisted of a brief
explanation of the purpose of the survey and what they could expect if they chose to participate
in the research.

3.5.2 Sampling

This study is focused on examining online consumer behavior whereas a constructed survey
was sent out among individuals that have made online purchases more than once in the past 12
months. Acknowledging that, the highest percentage (33,3%) and number of respondents (61
responses) have purchased 16 or more times in the past 12 months. Along with that, researchers
have collected the data by sending out surveys to their personal and professional connections
that they established over various social media platforms. The target population of this study
consists of international online consumers. Based on that, the sampling size of the study
consists of researchers personal and professional connections that are online consumers living
in developed countries such as Sweden, Germany, Australia, Croatia and Turkey. Therefore,

24
the chosen sampling method for this study was a convenience sampling method. The hyperlink
for the online survey was directed to each individual with a personalized message. Personalized
messages consisted of inviting possible respondents to be engaged in the study. Researchers
have sent out a survey to 331 consumers, asking them to help in the research by answering the
survey. Therefore, researchers achieved the number of 183 responses with a response rate of
55,29% (Appendix B). The first four questions in the survey were formulated to ask the
respondents to answer the questions about their age, gender, education level and their
employment status. Therefore, the respondent sample included 101 female respondents
(55,2%) and 82 male respondents (44,8%). The most received responses were gained from the
age range of 25-34 years constituting 64,5%. Therefore, this study is proven to be respectably
reasonable whereas Saunders et al. (2019) pointed out that studies that engage individuals and
have a response rate that is approximately 50 percent respectively are reasonable.

3.5.3 Operationalization and Measurement of Variables

To start with, it is necessary to have variables in order to measure the main concepts in the
research (Bryman & Bell, 2011). More specifically, this research has two independent and two
dependent variables that will be measured. Each variable consists of a series of questions that
are connected to each variable and can report respondents' attitudes and their behavior
(Bryman & Bell, 2011). An independent variable could be described as a variable that is being
manipulated or modified in order to measure its effect on a dependent variable (Saunders et al.,
2019). On the other hand, a dependent variable could be explained as a variable that may be
impacted by changes in other variables and represents the observed outcome resulting from the
manipulation of another variable (Saunders et al., 2019). As mentioned earlier, this research
has two independent variables which are privacy concerns (PC) and previous purchase
experience (PPE). Bearing that in mind, there are as well two dependent variables which are
attitudes towards personalization (ATP) and purchase intention (PI). With examination of
previous studies, there are signs of connections and positive and negative impacts that variables
have on each other. For instance, the study from Pappas et al. (2013) shows that privacy
concerns have a negative impact on consumer attitudes towards personalization. Connections
among variables could be noted in developed hypotheses that will be further tested. When it
comes to measuring the variables, carefully selected questions are used as items and each item

25
corresponds to a specific variable (Operationalization table-Appendix A). For instance,
question 16 in the survey Q16 “I am more likely to appreciate personalization in online
shopping if I have previously heard/seen/read positive things about the company.” corresponds
to an independent variable PPE and it is connected to H1. Moreover, if the respondents already
have positive experience with a specific brand that could potentially mean that their attitudes
will stay positive. Dependent variable ATP will be further tested and measured through
computed independent variables privacy concerns (PC) and previous purchase experience
(PPE). Along with that, another dependent variable PI will be further tested and measured
through three independent variables which are PC, PPE and ATP.

3.6 Quality Criteria

In order to assess the standard of studies in the natural sciences and quantitative studies,
reliability and validity are crucial (Saunders et al., 2019). Replication and consistency are
referred to as reliability and research is considered trustworthy if it can successfully replicate
a previous research strategy and provide the same results (Saunders et al., 2019). Validity
essentially relates to the suitability of the utilized measurements, correctness of the analysis of
the results, and generalizability of the findings (Saunders et al., 2019).

3.6.1 Validity

The term "validity" describes whether the study's findings are valid and correct, it assesses their
accuracy, the findings might not be accurate without validity (Bryman & Bell, 2011).
According to Saunders et al., (2019), it refers to whether the findings comply with all the
standards set forth in a scientific study's methodology, which is essential for all studies. There
are different measuring qualities to establish validity (Scholtes et al., 2011). Construct validity
determines how closely the measuring instrument's results match hypotheses according to the
presumption that the measurement tool accurately captures the construct that must be tested
(Scholtes et al., 2011). Using appropriate theories and measures throughout the study helped
to establish construct validity because of previous studies.

Internal validity and external validity are the second and third aspects of validity (Saunders et
al., 2019). Internal validity is the degree to which your results are more likely to be explained

26
by the measure that you are studying than by errors in the study that was conducted (Saunders
et al., 2019). The degree to which research findings can be used or generalized to the
community and other groups is known as external validity (Bryman & Bell, 2011; Nardi, 2003).
According to Bryman and Bell (2011), it may be difficult to adapt the results to other contexts
similar to the ones in which the research was done or to the same environment over a different
time period. Therefore, the external validity wasn't apparent in this study. The findings could
not be applicable to different periods or other nations, thus there is a definite external validity
constraint in this study. Non-probability sampling, which is a subjective method of selecting
people from a community, is an efficient and simple way to gather data since it doesn't need a
full survey framework (Tutz, 2023). Malhotra (2010) asserts that the use of a non-probability
sample reduces generalizability and thus, the likelihood of sample selection cannot be
calculated because it depends on subjective judgment. Therefore, the non-probability sample
was used in this study.

3.6.2 Reliability

According to Bryman and Bell (2011), reliability is divided into several various components
that assess the consistency of the concepts being measured and the repeatability of the research.
A study's external reliability intends to enable other researchers to reproduce it at a later time
(Gray, 2021). When a measurement can consistently deliver the same outcome with the same
measurements throughout time, it is said to have external reliability (Bryman & Bell, 2011).
Therefore, questions found in previous studies (Tran, 2017; Chellappa & Sin, 2005;
Knijnenburg & Kobsa, 2013; Hillqvist & Johnsson Östergren, 2020; Svensson & Dirksz, 2021;
Lindh et al., 2020) have been used for further development of the survey. Since questions from
earlier studies have been previously embraced by other researchers, adapting the original
questions and creating similar ones strengthens both the validity and reliability of the new study
(Saunders et al., 2019). Moreover, this study used Cronbach's alpha test to measure the degree
of reliability. Indicating how closely the variables are connected to one another, Cronbach's
alpha analysis internal consistency (Bryman & Bell, 2011). In this study, acceptable value (α)
needs to be provided for the assumptions in the conceptual model in order to maintain internal
consistency. The findings are trustworthy if the reasonable value is
0.50 or higher (Nunnally, 1978; Hair et al., 2006; Ekolu & Quainoo, 2019).

27
[Link] Reliability Testing

Cronbach's alpha was determined for every variable in order to examine the inner consistency
of the notions. The metric most often used to determine internal reliability is Cronbach's alpha
(Saunders et al., 2019). The literature considers that alpha values are higher than 0.50 to be of
reasonable reliability (Nunnally, 1978; Hair et al., 2006; Ekolu & Quainoo, 2019). Variables
were calculated by separating the questions into different groups: previous purchase experience
(PPE), privacy concerns (PC), attitudes towards personalization (ATP) and purchase intention
(PI). Previous purchase experience (PPE) and privacy concerns (PC) were independent
variables, and attitudes towards personalization (ATP) and purchase intention (PI) were
dependent variables.

PPE's value of Cronbach's alpha is calculated 0.854 (Table 1) which is acceptable (Saunders et
al., 2019). ATP and PI have acceptable Cronbach's alpha values of 0.886 and 0.711. PC has the
lowest Cronbach's alpha. It was calculated 0.508 which passed the test on the verge and it
denotes the acceptable degree of consistency (Singh, 2017). In general, Cronbach's alphas
appear acceptable and confirm the internal reliability of each item based on every scale.

Computed variables Cronbach’s Alpha N of Items

Previous Purchase Experience (PPE) 0.854 4

Privacy Concerns (PC) 0.508 3

Attitudes towards Personalization (ATP) 0.886 4

Purchase Intention (PI) 0.711 3

Table 1
Cronbach’s Alpha

28
3.7 Data Analysis Method

An organized data analysis strategy was required in order to evaluate the received data in order
to comprehend it and come to reasonable findings (Aaker et al., 2010). Since it is not likely to
change directions or methods once the study has begun, it is crucial to make these choices
consciously at the start of any study's procedure (Bryman & Bell, 2011). Before analysis, the
data was required to be prepared because it was gathered by a survey (Aaker et al., 2010). It
was important for coding the raw materials before entering the information gathered into the
statistical application of SPSS (Malhotra, 2010). Data coding is the process of turning questions
and responses into numerical values (Ghauri & Grønhaug, 2005). Since the responses to
closed-ended inquiries can be clearly stated, they are simpler for coding than questions that are
open-ended (Aaker et al., 2010). Descriptive analysis, reliability analysis, correlation analysis
and standard multiple regression analysis were all used to analyze the data since they were
appropriate for the purpose of the research (Saunders et al., 2019).

Descriptive analysis was employed to describe the mean and variance for every variable to be
able to show the key characteristics of the details and the standard deviation (Saunders et al.,
2019). It was provided to demonstrate the respondents' responses and to see whether they
agreed. Correlation analysis was used to enable the relationship between a dependent variable
and an independent variable (Saunders et al., 2019). According to Saunders et al. (2019), the
correlation coefficient needs to range from 0.2 to 0.9, indicating a moderately strong
connection, a weak relationship is shown by values below 0.2, and a high relationship is shown
by values above 0.9. Reliability testing was employed to assess the trustworthiness of the notion
that was being measured since accurate measurements are less susceptible to unplanned
variation and error at random (Bryman & Bell, 2011). Therefore, Cronbach's alpha was used
to measure reliability. Multiple regression analysis was used to generate a coefficient of
multiple determination and regression equation utilizing two or more independent variables
(Saunders et al., 2019). The extent that the change in the dependent variable correlates with the
change in the independent variables is referred to as linearity (Saunders et al., 2019). Therefore,
linear regression analysis shows how a change in one variable is consistent with a different
variable's changes (Bryman & Bell, 2011). The process is modified by using a five-point Likert-

29
style rating scale (Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree) and only
asking questions that are closed-ended.

30
4.0 FINDINGS
This chapter will present the empirical findings from the constructed survey. Firstly, descriptive
statistics are presented in 4.1, while correlation analysis is presented in 4.2. Lastly, regression
analysis is presented in 4.3. The data was gathered through the survey questions and analyzed
in SPSS.

4.1 Descriptive Statistics

Table 2 shows that the total number of responses achieved in this study was 183. Table 2 also
shows respondents' demographics by presenting the number of achieved responses and
percentages. Out of 183 responses, 82 respondents were male (44,8%) and 101 respondents
were female (55,2%). The highest number of responses were achieved in the age range of 25-
34 with a total amount of 118 respondents. Furthermore, 48 individuals that are in the age range
of 18-24 have responded to the survey. The smallest number of respondents were in the group
where the age range is 35-44 with 12 respondents as well as groups where the age range is 45-
54 and 55-64 with only 3 and 2 respondents. However, the majority of respondents were
employed with a total amount of 127. Therefore, the following group were students with a total
amount of 46. Along with that, 8 respondents have answered that they are self-employed while
2 of them were not employed.

Bearing that in mind, 58,5% of respondents completed a Bachelor's degree as the highest level
of their education. As shown in Table 2, 23,5% of respondents completed a Master’s degree as
the highest level of their education. 13,1% of respondents have completed High School as the
highest level of their education. Finally, the smallest number of responses were achieved by 3
respondents having completed Ph.D. or higher. As well as 3 respondents completed Vocational
University (yrkeshögskola, YH-utbildning) and 3 respondents did not want to share the
completed level of their education.

Respondents’ demographics

N %

31
 Gender Male 82 44,8%
Female 101 55,2%

48 26,2%
18-24 25- 118 64,5%
34 35-44
Age 45-54 55- 12 6,6%
64 3 1,6%
2 1,1%

Employed 127 69,4%

Student 46 25,1%
Self-employed 8 4,4%
Not employed 2 1,1%
Employment Status

High School 24 13,1%

Bachelor’s Degree 107 58,5%
Master’s Degree 43 23,5%

Ph.D. or higher 3 1,6%

Level of Education 3 1,6%
Vocational University (yrkeshögskola, YH-utbildning) 3 1,6%
Prefer not to say

Table 2
Respondents’ demographics
by number of respondents &
percentage

Upon descriptive statistics, it is important to highlight Appendix E, where the summary of

survey responses are presented. Summary of the responses will be further explained in the
discussion part. Furthermore, in Q15 (Appendix E) respondents were asked whether they were
more likely to appreciate personalization in online shopping if they have heard/seen/read
positive things about a company before. That being said, 62.8% (Appendix E) of respondents
answered that they are more likely to appreciate personalization in online shopping if they have
heard/seen/read positive things about a company before.

4.2 Correlation Analysis

Table 3 presents the correlation analysis that was performed in statistical program SPSS in
order to test the strength of relationships between the constructed variables and to see if the

32
 relationship is positive or negative (Saunders et al., 2019). Therefore, table 3 shows that most
of the variables show a positive relationship with the values above the 0,2 limit. As Saunders
et al. (2019) mentions, the values should be above the 0,2 limit in order to show that there is a
positive correlation. Therefore, the relationship between two variables purchase intention (PI)
and attitudes towards personalization (ATP) have a higher value than 0,2 and that shows they
are statistically significant. However, as the researchers introduced two different conceptual
models that are tested, that means that first model indicates that dependent variable ATP is
statistically significant with one independent variable which is previous purchase experience
(PPE) seeing that the score is 0,488**. The second conceptual model shows that the dependent
variable PI is positively correlated with two independent variables ATP and PPE seeing that
the score is 0,348** and 0,373** with the values above the 0,2 limit. Even though all the
mentioned variables have a positive correlation, one variable indicated a non existing
correlation with any of the mentioned variables. Independent variable privacy concerns (PC)
have shown that there is no significant correlation with other variables that are PI, ATP, and
PPE.

Privacy
Attitudes Previous
Concerns (PC)
Purchase towards Purchase
Intention (PI) Personalization Experience
(ATP) (PPE)

Pearson 1 0,348** 0,373**

Purchase Intention Correlation

<0.001 <0,001
(PI) Sig. (2-tailed)
-.032
.665

Pearson 0,348** 1
Attitudes towards Correlation 0,488**
<0,001
Personalization (ATP) Sig. (2-tailed) <0,001 -,028
,705

0,373** 0,488** 1
Pearson
Correlation <0,001 <0,001
Previous Purchase -,086
Sig. (2-tailed)
Experience (PPE) .247

Pearson
Privacy Concerns Correlation
(PC) Sig. (2-tailed)
-,032 -,028 -,086
,665 ,705 .247 1

33
 Table 3 Pearson Correlation

** Correlation is significant at the 0.01 level (2-tailed)

4.3 Regression Analysis

Multiple regression analysis was used to examine whether there is a relationship between the
variables. Table 4 represents figure 1 while table 5 represents figure 2.

Table 4 shows that there is a positive relationship between previous purchase experience and
attitudes towards personalization with the standardized coefficient beta of 0.623. In comparison
to the other variable, previous purchase experience appears to have a rather large effect on
attitudes towards personalization, as indicated by the t-value of 10.503. The statistically
significant t-value of 10.503 and low p-value (p < .001) show that previous purchase experience
has a significant effect on attitudes towards personalization. Therefore, H1 “Previous purchase
experiences have a positive impact on consumer attitudes towards personalization.” is
supported. Moreover, table 4 indicates privacy concerns have standardized coefficient beta of
0.072 which shows a positive relationship, but it has a much smaller impact than previous
purchase experience relationship. In addition, privacy concerns and attitudes towards
personalization are not statistically significant as shown by the fact that the t-value of 1.214 is
not significant (p = 0.227). Therefore, H2 “Privacy concerns have a negative impact on
consumer attitudes towards personalization.” is rejected. Table 4 shows 37.8% of the variance
in attitudes towards personalization can be explained by previous purchase experience and
privacy concerns which means a moderately favorable relationship between the variables. In
addition, F-value of 55.192 (2, 176) shows that the model is statistically significant. This
suggests previous purchase experience and privacy concerns have a significant relationship
with attitudes towards personalization.

Table 4: Regression Coefficients 1

Regression Standardized
Weights Coefficients Beta
Hypothesis t-value p-value Hypothesis

H1 PPE → ATP 0.623 10.503 <.001 Supported

34
 H2 PC → ATP 0.072 1.214 0.227 Rejected

Adjusted R Square 0.378

F-value (2, 176) 55.192

Dependent Variable: Attitudes Towards Personalization

Independent Variables: Previous Purchase Experience, Privacy Concerns
Table 5 indicates the standardized coefficients beta of 0.333 shows a positive relationship
between previous purchase experience and purchase intention. The standard effect of previous
purchase experience on purchase intention is shown by the t-value, which is 3.925. The
relationship between previous purchase experience and purchase intention is statistically
significant (p < .001). Therefore, H3 “Previous purchase experience has a positive impact on
consumer purchase intention.” is supported. Furthermore, Table 5 shows the standardized
coefficient beta between attitudes towards personalization and purchase intention is 0.198,
which indicates a positive relationship. T-value is 2.342 which represents the effect of attitudes
towards personalization on purchase intention and the relationship between attitudes towards
personalization and purchase intention is statistically significant (p = 0.020). Therefore, H4
“Attitudes towards personalization have a positive impact on consumer purchase intention.”
is supported. Additionally, table 5 shows privacy concerns have standardized coefficient beta
of 0.049 on purchase intention. Although it has a positive relationship, there is a weak positive
relationship between privacy concerns and purchase intention. The t-value is 0.731 and the p-
value is greater than the conventional significance level of 0.05 which means the relationship
between privacy concerns, and purchase intention is not statistically significant. Therefore, H5
“Privacy concerns have a negative impact on consumer purchase intention.” is rejected. Table
5 indicates 21.8% of the variance in purchase intention can be explained by previous purchase
experience, privacy concerns and attitudes towards personalization. This means a moderately
positive relationship between the variables. F-value of 17.551 (3, 175) shows that the model is
statistically significant which suggests previous purchase experience, privacy concerns and
attitudes towards personalization have a significant relationship with purchase intention.

Table 5: Regression Coefficients 2

Regression Standardized
Weights Coefficients Beta
Hypothesis t-value p-value Hypothesis

35
 H3 PPE → PI 0.333 3.925 <.001 Supported

H4 ATP → PI 0.198 2.342 0.020 Supported

H5 PC → PI 0.049 0.731 0.466 Rejected

Adjusted R Square 0.218

F-value (3, 175) 17.551

Dependent Variable: Purchase Intention

Independent Variables: Previous Purchase Experience, Attitudes Towards Personalization, Privacy Concerns

Table 6 and Table 7 presents single regression analysis. Single regression analysis was
performed to confirm that independent variable privacy concerns do not have statistically
significant relationships with other dependent variables. Results in table 6 and table 7 show
that there is no significant correlation between attitudes towards personalization and privacy
concerns, as well as there is no significant correlation between purchase intention and privacy
concerns.

Table 6: Single Regression

Regression
Standardized
Weights
Hypothesis Coefficients Adjusted R2 t-value p-value Hypothesis
Beta

H5 PC → PI 0.016 -0.005 0.216 0.829 Rejected

Dependent Variable: Purchase Intention

Independent Variable: Privacy Concerns

Table 7: Single Regression

Regression
Standardized
Weights Adjusted
Hypothesis Coefficients t-value p-value Hypothesis
R2
Beta

PC → ATP
H2 0.013 -0.005 0.167 0.868 Rejected

Dependent Variable: Attitudes towards Personalization

Independent Variable: Privacy Concerns

36
5.0 DISCUSSION
This chapter will present a discussion according to the results. Findings of the study will be
compared and analyzed to previous studies.

This study was attempting to investigate the impact that personalization as a phenomenon has
on consumer purchase intention. Therefore, in order to determine the degree that
personalization has on purchase intent, specified variables were chosen for further
examination. Moreover, this study attempted to determine how previous purchase experience
and privacy concerns impact attitudes towards personalization, and how previous purchase
experience, privacy concerns and attitudes towards personalization impact purchase intention.
Earlier studies have shown that personalization impacts previous purchase experience, privacy
concerns, attitudes and purchase intention (Dinev & Hart, 2006; Kobsa, 2007; Lee & Park,
2009; Kazeminia et al, 2019; Cai & Mardani, 2023). Based on that these specific variables for
further investigation were chosen. Hence, it was crucial to review earlier research in order to
comprehend how previous purchase experiences and privacy concerns affect consumers
attitudes towards personalization and consumers purchase intentions, and additionally how
attitudes affect purchase intentions.

As Xiao (2016) supports, the internet plays an important role in determining consumer
behavior, and the internet has changed communication between buyers and sellers. Dawn
(2014) argues that there are numerous alternatives available today and the capacity to compare
items as well as access product information makes it even more crucial for businesses to use
personalized services. Studies have been conducted that a consumer's previous shopping
experience and privacy concerns will significantly affect their future purchase intention (Shim
et al., 2001; Lynch & Ariely, 2000; Pappas et al., 2013). Also, it has been discussed that
attitudes towards personalization will be affected by previous purchasing experiences and
privacy concerns, and accordingly will affect purchase intention (Luarn & Liu, 2003; Lee &
Park, 2009). As Davis (1989), Helander and Khalid (2000), Salisbury et al. (2001) and
Goldsmith (2002) supports, positive attitudes towards e-commerce have an impact on people's
use of the internet to shop, and perceived usefulness has been found to have a significant impact
on the acceptance of new commerce channels. Our results show that 33.3% of our respondents

37
have purchased online 16 or more times in the past 12 months, and 16.9% of respondents have
purchased online 7-6 and 7-9 times in the past 12 months. 35.5% of respondents have spent
700€ or more in online shopping in the past 12 months. This shows that respondents frequently
shop online and therefore give consistent answers to the questions asked.

Many researchers have proven that attitude could be related to previous online experience since
behavioral history is a good indicator of future behavior (Ajzen & Fishbein, 1980; Bagozzi et
al., 2000; Helander & Khalid, 2000; Shim et al., 2001; Lee & Park, 2009). Lee and Park (2009)
found that people with previous good purchasing experience will be less afraid of new
technologies in online shopping and feel better when using personalization. Also, Lee and Park
(2009) found that consumer's attitudes towards personalization and purchase intention have a
positive relationship with previous purchase experience as well as Shim et al., (2001) identified
that if consumer's purchase experiences are successful, they will continue to shop online in the
future. The collected results are consistent with Lee and Park (2009) and Shim et al., (2001)
findings where it was mentioned that the consumer's attitudes towards personalization is
affected by the previous purchasing experience and this also affects the consumer's future
purchasing impact. According to our results, attitudes towards personalization and previous
purchase experiences have a positive relationship and purchase intention and previous purchase
experiences have a positive relationship. Therefore, H1: "Previous purchase experiences have
a positive impact on consumer attitudes towards personalization." is supported. Moreover, H3:
"Previous purchase experience has a positive impact on consumer purchase intention." is as
well supported. In the questionnaire, respondents were asked whether they were more likely to
appreciate personalization in online shopping if they have heard/seen/read positive things about
a company before (Q15, Appendix E). 62.8% of respondents answered that they are more likely
to appreciate personalization in online shopping if they have heard/seen/read positive things
about a company before. Also, 61.2% of respondents answered that they are more likely to
appreciate personalization in online shopping if they have had a positive previous experience
with the companies products/services (Q16, Appendix E). Therefore, these findings show that
consumers' previous experiences with a company have a positive impact on attitudes towards
personalization and have a positive influence on consumers' purchase intentions.

38
Moreover, Pappas et al., (2013) found that privacy concerns have a significant impact on
consumer attitudes towards personalization. In addition, Fortes and Rita (2016) identified that
privacy concerns have a negative impact on online purchase intention. Some researchers have
found that consumers think their personal data is stolen when they use personalization, and that
privacy concerns negatively affect consumers' attitudes towards personalization (Roussos et
al., 2002; Joinson et al., 2007; Lee & Cranage, 2011). Previous studies demonstrated a
connection between privacy concerns and purchase intention (Roussos et al., 2002; Dinev &
Hart, 2006; Joinson et al., 2007; Lee & Park, 2009; Lee & Cranage, 2011). Dinev and Hart
(2006) argued that privacy concerns and purchase intention have a negative relationship, and
if consumers are concerned about their privacy it will be questioned if they will pursue a
purchase. Although many researchers argue that there is a significant relationship between
privacy concerns and attitudes towards personalization and that privacy concerns and purchase
intention have a significant relationship, our findings show that privacy concerns and attitudes
towards personalization don't have a statistically significant relationship. Similarly, there is no
statistically significant relationship between privacy concerns and purchase intention based on
the results. This means that if there is no significant correlation, attitude towards
personalization and consumer purchase intention will not be impacted significantly by privacy
concerns. 47.5% of respondents agreed that it is the most important thing to keep their privacy
intact from online companies, while 23% strongly agreed (Q10, Appendix E). Also, 45.9% of
respondents were concerned about threats to their privacy today (Q11, Appendix E), while
42.6% of respondents believed that their online personal data gathered by the social media
platform(s), is often misused (Q12, Appendix E). Although some respondents were concerned
about privacy, 57.4% of respondents like personalization in online shopping (Q19, Appendix
E). Moreover, 55.5% of respondents described their overall attitude towards personalization on
their shopping page as favorable (Q20, Appendix E), and 54.9% of respondents described that
personalization on their shopping page is interesting to them (Q21, Appendix E). The findings
from empirical data show that privacy concerns don’t have a negative impact on consumer
attitudes towards personalization. Therefore, H2:“Privacy concerns have a negative impact on
consumer attitudes towards personalization.” is rejected. However, 50.3% of respondents
agreed that they intend to keep on purchasing from the Internet/website, while 39.3% of
respondents strongly agreed (Q23, Appendix E). 49.2% of them agreed that they believe that

39
they will buy more online in the future, on the other hand, 34.4% of respondents strongly agreed
(Q24, Appendix E). Despite that, our findings have also shown that privacy concerns don’t have
a negative impact on consumer purchase intention. Bearing that in mind, H5:“Privacy
concerns have a negative impact on consumer purchase intention.” is rejected. Our findings
show that although customers care about and are concerned about their privacy, their attitudes
and intentions to make purchases will remain the same and they will continue to engage in their
usual purchasing habits. Douligeris et al. (2013) believe that perceived value increases
consumers' willingness to share their personal information, and therefore their attitudes
towards personalization and personalized services are positive. They believe this will have a
positive impact on their future purchase intentions. We believe that consumers' perceived value
is linked to privacy concerns.

Furthermore, Taylor and Cosenza (2000) argue that attitudes are the primary factor that directly
affects behavioral intention. Ajzen (1991) has proved that when consumers' attitudes are
favorable, attitudes positively affect their intention. Researchers found that there is a positive
relationship between attitudes and purchase intentions, and if consumers have positive
attitudes, their purchase intention is positively affected (Ajzen & Fishbein, 1980; Ajzen, 1991;
Dickson & Littrell, 1996; Watchravesringkan & Shim, 2003; Ting & De Run, 2015). Halepete
et al. (2009) and Lee and Park (2009) claim that attitudes towards personalization have a
positive effect on consumer purchase intention. The collected results are consistent with
Halepete et al., (2009) and Lee and Park (2009) findings that consumers' purchase intentions
are affected positively by consumers' attitudes towards personalization. Also, the findings
proved that attitude is important in predicting behavioral intention (Ajzen, 1991; Taylor &
Cosenza, 2000). Our findings show that there is a positive relationship between consumers'
attitudes towards personalization and their purchase intentions. Therefore, H4:“Attitudes
towards personalization have a positive impact on consumer purchase intention.” is supported.
55.5% of participants described their attitudes towards personalization as favorable on their
shopping page (Q20, Appendix E) and 58.8% of participants considered personalization on
their shopping page a good thing (Q22, Appendix E). 42.1% of respondents agreed that they
want to purchase more from the Internet in the future than they do today, while 17.5% of them
strongly agreed (Q25, Appendix E). Ajzen (1991) identified in the viewpoint of the Theory of

40
Planned Behavior, positive attitudes towards personalization can forecast and clarify
consumers' intentions. Our findings support and confirm that in order for personalization to be
effective, consumers' attitudes towards personalization on online shopping websites should be
positive and their purchase intentions will be determined according to these attitudes.
Therefore, companies need to ensure that their consumers perceive personalization positively.

6.0 CONCLUSION

This chapter attempts to answer two constructed research questions with concluding major
findings. Moreover, it is followed by managerial implications, and further suggestions for
managers and companies. Lastly, the limitations of this study are mentioned as well as
suggestions for future research.

The purpose of this research paper was to investigate the effects that personalization as a
phenomenon has on consumer purchase intention. Therefore, personalization was investigated
through three different variables in order to determine the impact on consumer purchase
intention. Findings of this study have constituted that previous purchase experience has a
positive impact on both attitudes towards personalization and consumer purchase intention.
Accordingly, if a company puts an effort to make each consumer feel unique by offering special
recommendations that go along with their preferences and if a consumer could feel trust in the
company, that will mean that their purchase experience will remain positive and their attitudes
towards personalization will remain favorable. Furthermore, if the previous purchase
experience was positive, consumers' attitudes towards personalization will remain positive in
which consumers will continue purchasing from the significant brand. On the other hand,
analysis showed that attitudes towards personalization have a positive impact on consumer
purchase intention. That could be explained as if attitudes towards personalization are
favorable, consumers will be positively impacted and they will keep purchasing. Interestingly,
this study has found that privacy concerns don't have any significant correlation with consumer
purchase intention and attitudes towards personalization. Even though many studies have
mentioned that privacy concerns are an important factor to be discussed, this study has shown
different results. In addition, privacy concerns have no impact on either consumer purchase

41
intention or attitudes towards personalization. Even though privacy concerns have no impact
on attitudes towards personalization and purchase intention, the results have shown that
consumers are concerned with privacy that comes with the usage of online shopping. Although
that may seem contradictory, assumptions are that many consumers think of their privacy
concerns the moment they open their favorite brand’s website, but no matter their concerns,
they will remain purchasing and their attitudes towards personalization remain unchanged.

6.1 Managerial Implications

We believe that our findings could be beneficial for managers in order to increase consumers'
positive previous purchase experiences and positively improve consumers’ attitudes towards
personalization. It is of great importance that managers provide positive previous purchase
experience because our results show that there is a strong correlation between previous
purchase experience and attitudes towards personalization as well as consumer purchase
intention. Accordingly, we believe that it would be beneficial for companies to work on their
transparency. Companies should be honest about collecting consumers' digital records and first-
party data. If companies are transparent, consumers' trust will increase. Moreover, if companies
have positive interactions with consumers, that will increase trust and the consumer purchase
experience will stay positive. Managers could also enhance previous purchase experience by
having positive interactions with consumers, offering them customized recommendations or
offers that match their personal preferences which will in turn make consumers appreciate
personalization in online shopping. Therefore, if the consumers are satisfied with the purchase
experience, their attitudes towards personalization will remain positive which will increase
their purchase intention.

Even so, the results have shown that consumers that participated in this research are concerned
about their privacy, their intention to purchase, and their attitudes towards personalization will
remain unchanged. Furthermore, recommendations are that online companies should put an
effort into building and creating consumer trust with evolving privacy policies. For this reason,
companies must prove that a consumer's personal information is securely processed and used
only for that purpose. If they can prove it, consumers who use personalization on their websites
may have fewer privacy concerns and feel more comfortable.

42
6.2 Limitations and Future Research
Even though the apparent contribution is evident, it is important to acknowledge that like every
other study, this study also has some distinct limitations that should be announced. The
recommended sample size for the sampling groups was 384 (Saunders et al., 2019) which could
not be achieved, mainly because this research was acquired to be completed in a short period
of time. Therefore, this study has used the non-probability sampling method which is a
convenience sampling method. The reason for choosing the convenience sampling method is
that when writing a Master thesis authors are limited with both time and resources and it is not
possible to conduct a survey that will use probability sampling method. Furthermore, the
researchers were limited by collecting the data from individuals that have purchased more than
one time in the past twelve months. Future research could specify its target population and
conduct research on either all European countries or specific countries such as Sweden.
Moreover, the collection of data could be through specific sampling groups such as Millennials
or Generation Z, that are perceived as being actively involved in online purchasing and have
purchased more than one time in the past three months. In that way, collection of data would
be more connected to the online users that are purchasing online very frequently.

Authors recommend that a similar study to this one is constructed every few years. Because
the Internet is constantly developing, there is a possibility that consumer behavior will change
and the results will be different. This research found no correlation between privacy concerns
and other variables and previous research has noted that privacy concerns influence purchase
intention and attitudes. Future studies could examine more factors that may act as mediators in
the relationship between privacy concerns and consumer behavior in order to gain a greater
knowledge of the topic.

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 Appendix

Appendix A - Operationalization Table

Variables Questions References

Demographics Q1 Gender No references

Demographics Q2 Age
No references

Demographics Q3 What is your employment status? No references

Demographics Q4 What is the highest level of education you have completed? No references

Q5 How many times have you purchased products online in the past 12 months?

Q6 How much would you estimate you have spent shopping online in the past 12 months? Park (2003)
Online Shopping
behaviour

Q7 Personalization in online shopping makes purchase recommendations that match my needs Tran (2017) Chellappa
and Sin (2005)
Q8 I value goods and services that are personalized based on information that is collected automatically (such
as IP address, pages viewed, access time) but cannot identify me as an individual.

Q9 I value goods and services that are personalized based on information that I have voluntarily given out
Personalization (such as age range, salary range, Zip Code) but cannot identify me as an individual.

Q13 Personalization in online shopping makes me feel that I am a unique customer.

Q14 I like the idea of using personalization in online shopping.

Q10 To me, it is the most important thing to keep my privacy intact from online companies. Knijnenburg and Kobsa
(2013)
Q11 I am concerned about threats to my personal privacy today.
Hillqvist and Johnsson
Q12 I believe my online personal data gathered by the social media platform(s), is often misused. Östergren (2020)

Privacy Concerns

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 Q15 I am more likely to appreciate personalization in online shopping if I have previously heard/seen/read
positive things about the company.

Q16 I am more likely to appreciate personalization in online shopping if I have had a positive past
experience with the company’ products/services.

Q17 I am more likely to appreciate personalization in online shopping if I have had a positive past
experience communicating with the company (e.g. customer service, social media account).
Previous Purchase Svensson and Dirksz
Experience (2021)

Q18 I am more likely to appreciate personalization in online shopping if the company’ values correspond
with my own values.

Q19 In general, I like personalization in online shopping.

Q20 I would describe my overall attitude towards personalization on my shopping page as favourable.
Q21 Personalization on my shopping page is interesting to me.
Q22 I consider personalization on my shopping page a good thing.
Attitudes towards Svensson and Dirksz
Personalization (2021)

Q23 I intend to keep on purchasing from the Internet/website.

Q24I believe that I will buy more online in the future. Lindh et al. (2020)
Purchase
Q25 I want to purchase more from the Internet in the future than I do today.
Intention
Appendix B

Platforms Sent to Confirmed Response rate

LinkedIn 145 54 37,24%

Messenger (Facebook) 53 33 62,26%

Instagram 50 33 66%

WhatsApp 80 60 75%

Snapchat 3 3 100%

Summary 331 183 55,29%

Table 1 Response rate table
Appendix C - Regression Analysis

57
Table 2
Dependent variable purchase intention (PI) and independent variables attitudes towards
personalization (ATP), previous purchase experience (PPE) and privacy concerns (PC)

Table 3

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Dependent variable attitudes towards personalization (ATP) and independent variables previous
purchase experience (PPE) and privacy concerns (PC)

Table 4
Single Regression
Dependent variable PI and independent variable PC

Table 5
Single Regression
Dependent variable ATP and independent variable PC

Appendix D - Survey Questions

Q1 Gender

Male Female Other

Q2 Age

Under 18 18-24 25-34 35-44 45-54 55-64 65+

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Q3 What is your employment status?

Don’t now/
Employed Self-employed Not employed Student Retired does not apply

Q4 What is the highest level of education you have completed?

a) High School
b) Vocational University (yrkeshögskola, YR-utbildning)
c) Bachelor’s Degree
d) Master’s Degree
e) Pd.D. or higher

f) Prefer not to say

Q5 How many times have you purchased products online in the past 12 months?

a) 1-3
b) 4-6
c) 7-9
d) 10-12
e) 13-15
f) 16 or more

Q6 How much would you estimate you have spent shopping online in the past 12 months?

a) Less than 300 €

b) 301 € - 500 €
c) 501 € - 700 €
d) 700 € or more

Personalization:

Q7 Personalization in online shopping makes purchase recommendations that match my

needs

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Strongly disagree Strongly agree

1 2 3 4 5

Q8 I value goods and services that are personalized based on information that is collected
automatically (such as IP address, pages viewed, access time) but cannot identify me as an
individual.

Strongly disagree Strongly agree

1 2 3 4 5

Q9 I value goods and services that are personalized based on information that I have
voluntarily given out (such as age range, salary range, Zip Code) but cannot identify me as
an individual.

Strongly disagree Strongly agree

1 2 3 4 5

Privacy Concerns:

Q10 To me, it is the most important thing to keep my privacy intact from online companies.

Strongly disagree Strongly agree

1 2 3 4 5

61
Q11 I am concerned about threats to my personal privacy today.

Strongly disagree Strongly agree

1 2 3 4 5

Q12 I believe my online personal data gathered by the social media platform(s), is often
misused.

Strongly disagree Strongly agree

1 2 3 4 5

Personalization:

Q13 Personalization in online shopping makes me feel that I am a unique customer.

Strongly disagree Strongly agree

1 2 3 4 5

Q14 I like the idea of using personalization in online shopping.

Strongly disagree Strongly agree

1 2 3 4 5

Previous Purchase Experience:

Q15 I am more likely to appreciate personalization in online shopping if I have previously

heard/seen/read positive things about the company.

Strongly disagree Strongly agree

1 2 3 4 5

62
Q16 I am more likely to appreciate personalization in online shopping if I have had a
positive past experience with the company’ products/services.

Strongly disagree Strongly agree

1 2 3 4 5

Q17 I am more likely to appreciate personalization in online shopping if I have had a

positive past experience communicating with the company (e.g. customer service, social
media account).

Strongly disagree Strongly agree

1 2 3 4 5

Q18 I am more likely to appreciate personalization in online shopping if the company’

values correspond with my own values.

Strongly disagree Strongly agree

1 2 3 4 5

Attitudes towards Personalization:

Q19 In general, I like personalization in online shopping.

Strongly disagree Strongly agree

1 2 3 4 5

Q20 I would describe my overall attitude towards personalization on my shopping page as

favorable.

Strongly disagree Strongly agree

63
 1 2 3 4 5

Q21 Personalization on my shopping page is interesting to me.

Strongly disagree Strongly agree

1 2 3 4 5

Q22 I consider personalization on my shopping page a good thing.

Strongly disagree Strongly agree

1 2 3 4 5

Purchase Intent:

Q23 In the future I intend to continue shopping online based on personalized services.

Strongly disagree Strongly agree

1 2 3 4 5

Q24 My general intention to buy online based on personalized services is very high.

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Strongly disagree Strongly agree

1 2 3 4 5

Q25 I will shop online in the future based on personalized services.

Strongly disagree Strongly agree

1 2 3 4 5

APPENDIX E - Summary of responses

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