Digital Transformation and Consumer Buying Behavior: The Role of Data Privacy in Online Advertising
DOI:
https://doi.org/10.64137/31079423/IJEBMR-V2I3P112Keywords:
Digital Transformation, Consumer Buying Behavior, Digital Advertising, Data Privacy, Consumer Trust, Online MarketingAbstract
The way a consumer looks for information, weighs product offerings and decides whether to buy has changed massively thanks to digital transformation. The proliferation of smartphones, social media channels, e-commerce platforms, digital payment systems and targeted online advertisements has resulted in a more convenient yet interactive shopping experience. But growing worries about data privacy have put consumer trust in digital platforms and online advertising into question. The purpose of this study is to investigate how digital transformation affects consumer buying behavior while considering the moderating influence of data privacy concerns in online advertising. The research is quantitative in nature and engages primary data collected from a structured online questionnaire filled out by 100 respondents. Perceived consumer use of digital platforms, perceived retailer usage of digital advertising, perceived trust within consumers and data privacy concerns were all measured on a five-point Likert scale. The data were analysed using descriptive statistics, Pearson correlation and regression analysis in SPSS version26. The results suggest that digital transformation has a positive effect on consumer buying behavior through better accessibility, convenience and customized shopping experience. Digital advertising additionally has a very notable beneficial impact on buying intentions. Results show that increasing threats to data privacy actually lead to declining consumer confidence, ultimately reducing the efficacy of personalized online advertising. Consumers are more willing to respond to digital ads if they deem that their data is collected and used responsibly. The findings suggest that transparency in data collection and implementing privacy protection measures could go a long way. Ultimately, the future of digital marketing is about creating consumer trust through ethical practices on behalf of businesses around data management and privacy, while policymakers should further develop strong regulatory frameworks to support a secure and sustainable marketplace. These findings will provide valuable information for marketing managers, researchers and legislators who are trying to develop more effective tactics or public policies regarding consumer behavior in the changing digital landscape.
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