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The Effect of Privacy Concerns and Consumer Trust on Consumer Response to Online Behavioral Advertising for Travel Products

Abstract Online Behavioral Advertising (OBA) is the practice of tailoring advertising based on an individual’s online activities such as searching keywords and visiting websites. The purpose of this study is to develop a conceptual model for the OBA of travel products and examine the influence of privacy concerns and consumer trust on the acceptance of tourism OBA. Using data from 500 respondents from South Korea, hypothesized relationships were tested by Structural Equation Modeling. The results show that perceived entertainment, perceived informativeness, and perceived personalization had positive effects on attitudes towards OBA, whereas perceived irritation had a negative effect. Also, the results indicate that consumers’ privacy concerns and trust have significant impact on consumers’ intention to click on tourism OBA. Implications for management practice and further research are discussed.