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The aim of the study was to develop a comprehensive model of the outcomes of perceived personalization. The study tested online advertising engagement developed due to perceived personalization. Intention to click, purchase intention and electronic word of mouth intention were proposed as outcomes of online advertising engagement. The moderating role of online users‘ mode and privacy concern was investigated on the relationship of perceived personalization and online advertising engagement. Survey research design was employed to test the study model. Actual online behavioural advertisement was manipulated. Data from 409 useable responses was included in the analysis. SPSS 21 and AMOS 23 were used for the analysis. Hayes method (Macro process) was used to perform the mediation and the moderation analysis. Results revealed that online advertising engagement partially mediate the relationship between perceived personalization and outcome variables. The results of the moderation showed that playful mode online users strengthen the relationship between perceived personalization and online advertising engagement, whereas, serious mode online users weakened this relationship. The moderation result of privacy concern revealed that online users with high privacy concerns strengthen the relationship between perceived personalization and online advertising engagement. The result is opposite to what was hypothesized in the study. The result of study has practical implications for the advertisers. For the best managerial practices, this study has analysed perceived personalization developed due to online behavioural advertising in the context of Pakistan. Furthermore, the proposed model of the study is supported by Stimulus Organism Response Model as an explanatory mechanism. The contribution and novelty of the current study is to empirically test the entire set of direct and indirect relationships under the framework of stimulus organism response model. Theory of presence is also used as an underlying mechanism to theorize online advertising engagement as a mediator. Theory of presence is used on rare basis in the marketing literature, hence this study adds to the generalization of the theory in the context of online behavioural advertising.
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