How the level of personalization affects the effectiveness of personalized ad messages: the moderating role of narcissism

In this study, we examined the effects of two different levels of personalization strategies (individual-level vs. group-level) on consumers' visual and attitudinal responses to personalized advertising. We further investigated the moderating role of recipients' narcissism in the effect of personalization. Results show that individuals higher in narcissism paid greater and more frequent attention to ads personalized on an individual level than to those personalized on a group level, while individuals low in narcissism showed no such differences. Regarding attitudinal response, consumers with a high level of narcissism tended to have a more favourable attitude towards the individual-level personalized ad compared to those with a low level of narcissism, while consumers with a low level of narcissism tended to have a more favourable attitude towards the group-level personalized ad compared to those with a high level of narcissism. Theoretical and managerial implications are discussed.