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The Role of Trust in Determining Consumers’ Intention to Click on Online Personalized Ads

This paper aims to see the effect of trust on retailers in moderating private responses, namely perceived usefulness, reactance, and privacy concern when faced with personalized advertising among consumers of portable/ wearable electronic products in Jabodetabek. To achieve the goal, we proposed a conceptual model that combines Ducoffe’s advertising value model and model proposed by Bleier and Eisenbeiss. Based on data collected from 438 respondents who were selected based on several considerations, the model is being tested using a Structural Equation Modeling (SEM) estimation with LISREL 8.51 software. The results showed that the level of trust in retailers significantly increased positive internal responses, such as perceived usefulness and reduced negative internal responses such as reactance and privacy concerns. These innate responses cannot be directly translated into click intention on the respective digital ads since consumers still have certain limitations in disclosing their private information. Even for the retailers, they believe before the ads considered as an act of privacy intrusion or personal freedom revocation. This study provides results that allow advertisers, marketers, and scholars to understand how trust plays a crucial role in determining consumers’ intention in visiting a personalized digital ad, specifically in a region that currently does not possess a comprehensive data privacy law.