The personalization-privacy paradox: implications for new media

Abstract

Purpose – This paper aims to investigate personalized communications through digital media, which include display, search, social and mobile communications. Design/methodology/approach – Drawing on the literature pertaining to different digital mediums, the authors explore how different factors influence consumers’ responses to personalized communications. The current study integrates and reviews prior literature related to personalization, seeking a richer understanding of when personalized communications improve or hinder customer–firm interactions. Findings – Personalization can both enhance and diminish consumer engagement with the firm: it may heighten privacy concerns because consumers worry about how their data are collected and used, and it can also benefit them in meaningful ways. Thus, firms must use the information that they collect in a strategic manner to balance this personalization-privacy paradox. This paper finds that the benefits of personalization may vary as a function of the medium through which the communication is conveyed. It suggests directions for research in each of these media and strategies firms can implement to mitigate privacy concerns. Originality/value – This investigation of emerging themes related to search, display, social and mobile communications provides a more comprehensive overview of current research, as well as a foundation for further research into personalization.