Impact of Algorithm-Driven Personalized Social Media Advertising on Consumer Purchase Intention: A Trust-Mediated Perspective

The study is focused on exploring how the algorithm-driven personalized social media advertising (ADPA) is changing the marketing of lifestyle products, ultimately impacting the purchase intention (PI). Analysis of the data is performed on 304 usable responses collected from the Gen Z and Gen Alpha in the north region of India. Partial least squares (PLS) structural equation modeling (SEM) methodology is adopted to understand the predictive relevance of trust impacting the relation between ADPA and PI. The results depict the positive impact of ADPA on trust and trust on PI. The meditating role of trust between ADPA and PI is established providing valuable insights to the lifestyle product industry. Hence, pushing the industry to provide more ADPA to cater the needs of the customer. Insight to the policymakers is provided to exploit the novel area of ADPA in digital marketing moving towards the future in developing country like India.