A dark side of retargeting? How advertisements that follow users affect post-purchase consumer behavior: Evidence from the tourism industry in Saudi Arabia

Abstract

This study aims to explore the complex effects of post-purchase retargeting ads on consumer behavior, with a focus on expectation confirmation, satisfaction, and repurchase intentions. Additionally, it examines the influence of time spent online on these effects. Anchored in expectation confirmation theory (ECT), the study analyzes responses from 396 Saudi Arabian e-tourism customers who encountered competitive retargeting ads after purchasing an e-tourism package. The analysis employs partial least squares structural equation modeling (PLS-SEM) and multigroup analysis (MGA) to test the hypotheses. A notable finding is the direct negative impact of retargeting ads on expectation confirmation: increased exposure to such ads post-purchase seems to diminish the perception that initial expectations of the product or service are being met. The negative effect of these ads also indirectly influences satisfaction and repurchase intentions. Furthermore, the MGA results indicate variations in this negative impact based on the time spent online. Specifically, the more time consumers spend online, the stronger the negative impact, leading to a significant decrease in satisfaction and repurchase intentions. These insights reveal the complex nature of post-purchase retargeting ads and underscore the importance of accounting for consumers’ online behavior. They offer valuable direction for marketers to refine retargeting strategies to better resonate with consumer expectations.