Gen Z's personalization paradoxes: A privacy calculus examination of digital personalization and brand behaviors

Abstract

Employing privacy calculus theory, we examine why Gen Z consumers increasingly adopt ad blockers, use private browsers, or take other measures to limit data tracking. Specifically, we evaluate consumer behaviors related to personalized and non‐personalized digital marketing in light of two personalization paradoxes: privacy–benefits and avoidance–annoyance. Using structural equation modeling on a sample of 414 Gen Z consumers, our findings show that both the privacy–benefits paradox and avoidance–annoyance paradox strongly influence consumers' intentions to avoid brands that fail to personalize marketing efforts. We also explore the interaction effects of the two digital personalization tensions, showing that tradeoffs exist between the utilization of these two paradoxes. Our findings underscore key implications for marketers investing in personalized marketing efforts to enhance consumer–brand relationships.