MBA Journals Peer-reviewed management research from Consortium e-Learning Network

NOLEGEIN Journal of Financial Planning And Management

A Study on Data privacy towards customer perception in personalized advertising inE-Commerce

  1. Chandana G
  2. Ashwinee G

Abstract

The rapid growth of e-commerce has increased the use of personalized advertising, where companies collect and analyse customer data to provide customized product recommendations and promotional messages. Although personalized advertising improves customer experience and supports business growth, it has also raised significant concerns regarding data privacy, transparency, and the security of personal information. This study examines the influence of data privacy on customer perception towards personalized advertising in e-commerce platforms. The research focuses on four major factors: awareness of data privacy, data privacy concerns, trust in e-commerce platforms, and transparency in data usage. A descriptive research design was adopted, and primary data were collected from 125 respondents in Bangalore using a structured questionnaire. Secondary data were gathered from research articles, journals, books, company reports, and authentic websites. Multiple regression analysis was used to examine the relationship between the independent variables and customer perception towards personalized advertising. The findings reveal that transparency in data usage has the strongest positive influence on customer perception, followed by trust in e-commerce platforms and data privacy concerns. Awareness of data privacy showed a comparatively lower influence. The study also indicates that customers are more willing to accept personalized advertisements when companies clearly communicate how personal information is collected, stored, and used while ensuring strong data protection measures. The study concludes that ethical data collection practices, transparent privacy policies, and effective security systems play an important role in building customer trust and improving the acceptance of personalized advertising. The findings provide useful insights for e-commerce companies to strengthen privacy practices and develop responsible, customer-centric digital marketing strategies.

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