The Role of Algorithmic Ad Personalization in Driving Impulse Buying Behavior: Mediating Effects of Perceived Value and Moderating Personality Traits

Abstract

This research investigates how personalized advertisements in algorithms can cause people to shop on impulse, and it reveals that this effect is influenced by perceptions of value (emotion, social & price) and influenced by trait personality (extraversion and agreeableness). A sample of 106 responses were collected using Likert scales that had been changed to fit the purpose of the study. The collected data were analyzed using PLS-SEM, and the results showed that customized ads can lead people to make impulsive purchases. It was found that the value individuals anticipate before making a purchase, along with its social, emotional, and price elements, affects the link between algorithmic ad personalization and impulsive buying. In addition, having an extroverted and agreeable personality helps make this type of mediation stronger. The research integrates the S-O-R framework and considers the impact of different factors to explain how someone’s traits influence their buying decisions when seeing personalized ads on the internet. As a result, marketers are able to target ads and campaigns toward specific traits to boost the effectiveness of what they do online. For greater generalizability, researchers need to consider traits like neuroticism or conscientiousness in their future studies, use designs that last a long time, and test specific hypotheses.