Consumer Perception on Personalized Advertisement and Brand Integrity

Abstract

The use of artificial intelligence and machine learning is being deeply used in digital marketing. There is a thin line between personalized service and surveillance. This research talks about the creepiness, psychological discomfort faced by customers when the things they search or talk about is hyper accurate in their algorithm. the privacy paradox suggests that being too accurate can trigger a defensive reaction leading to a drop in brand image and trust. The purpose of this research is to see how tracking too much of private information of a customer can decrease their trust. There is a very thin line between using the data for personalization and misusing the data to exploit the customers so they hesitate to give their credentials most of the time.
This research uses a quantitative approach; the data was collected through a questionnaire creating primary data. People were provided with scenario of predictive ads appearing after private conversations. The data was analyzed using correlation analysis and use of SPSS. The study suggests people find the hyper personalized ads to be annoying and add a creepy factor. The use of artificial intelligence in promoting brand ads and using bots for customer service makes the customer loose the human touch Therefore, the brands should focus on privacy first to retain the integrity and increase the brand loyalty for a long term in era of algorithm governance. Let the brand speak for itself and retain its originality than being diluted in the world of artificial intelligence.