Behavioural Segmentation and the Privacy Personalisation Paradox in Indian Digital Advertising

Abstract

This paper examines behavioural segmentation in digital advertising in India, the role of which is to identify how consumer response is affected by privacy issues and customisation. The survey data on 221 internet users in India were also analysed in terms of reliability testing, factor analysis, K-means clustering, regression and correlation using quantitative techniques. Two major behavioural variables were found to be Impulsive Ad Engagement and Trust and Information Sensitivity, which accounted for 65.9 per cent of the variance. The emergence of six profiles of consumers indicated various engagement behaviours and privacy orientation. Even though correlation analysis showed that there is a moderately positive relationship between privacy issues and the acceptance of personalised advertisements (r = 0.540, p < 0.001), the regression analysis showed that personalisation is a significant predictor of the behavioural response ( β = 0.7730, p < 0.001). Its evidence indicates that when individualised advertising is carried out transparently and ethically, Indian consumers like it. Marketers must create campaigns that are both data-driven and personalised and privacy-focused so as to achieve a balance between relevance and responsibility in order to gain trust and interaction. Within the research paper, the data will contribute to the digital marketing literature by providing a behavioural segmentation model of ethical and personalised marketing of advertising in a growing market like India.