Luxury Brands in the Digital Era: A Cross- Cultural Comparison of the Effectiveness and Underlying Mechanisms of Personalized Advertising

Year of publication: 2017
Author(s): Shubin Yu; Liselot Hudders & Verolien Cauberghe
Appeared in: The Essence of Luxury: An Asian Market Perspective

Abstract

Personalized advertising enables advertisers to tailor their ads based on individuals. By using a between- subjects factorial design, this paper reveals that personalization (i.e., programmed personalization) is a good strategy for luxury brands. However, the effectiveness depends on the cultural orientation of the consumers. The persuasive advantage of personalization is more prominent in the Netherlands, where people exhibit highly individualistic tendencies. In particular, personalization can increase consumers’ self-referencing, which in turn shortens consumers’ psychological distance, and therefore leads to higher purchase intention. However, in China, where people are more collectivistic, the effect of personalization is not significant.

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