Information Asymmetry in Online Advertising

Advertising is a company's primary form of communication with the market, and it is a component of the IMC system. It is a form of persuasive communication that affects consumer behavior and can reflect information asymmetry between an advertiser and recipients. This book assesses the forms and range of consumer behavior manipulation through information asymmetry in online advertising and explores the possible causes, forms, and effects. The theoretical framework is based on online advertising, information asymmetry, and social manipulation, and the research provides an empirical answer to the question of how transparent advertising is and how it represents the world of manipulation.

Format: Paperback / softback
Length: 210 pages
Publication date: 31 May 2023
Publisher: Taylor & Francis Ltd

Advertising is a crucial component of a company's marketing strategy, serving as a vital means of communication with the market. It forms an integral part of the integrated marketing communication (IMC) system and holds a unique influence on its intended audience. Advertising employs persuasive communication techniques to shape consumer behavior, leveraging information asymmetry between advertisers and recipients. This book delves into the diverse forms and scope of consumer behavior manipulation through information asymmetry in online advertising. It explores the potential causes, manifestations, and consequences of such manipulation, offering a fresh perspective on the role of advertising in the digital realm.

The theoretical framework underpinning this work is rooted in the domains of online advertising, information asymmetry, and social manipulation. The book provides a comprehensive description of the methodologies employed to explore these areas, presenting the findings of empirical studies conducted by the authors. These empirical investigations enable the identification of moral hazard strategies employed by companies and their adverse effects on e-consumers, specifically in the context of adverse selection. By offering an empirical response to the question of whether advertising is a transparent form of communication or a representation of manipulation, the research contributes to our understanding of this complex phenomenon.

The book is organized into several chapters, each addressing different aspects of consumer behavior manipulation through information asymmetry in online advertising. It begins by introducing the theoretical framework and highlighting the significance of advertising in the digital age. Subsequently, the book explores the various forms of advertising, including search engine marketing, social media advertising, and display advertising. It examines the strategies employed by advertisers to exploit information asymmetry and manipulate consumer behavior, such as personalized advertising, social proof, and scarcity tactics.

Furthermore, the book delves into the consequences of consumer behavior manipulation through information asymmetry. It discusses the impact on consumer trust, brand reputation, and consumer decision-making processes. It also explores the ethical considerations surrounding advertising, particularly in the context of privacy and data protection. The book concludes by offering practical insights and recommendations for advertisers and marketers seeking to navigate the complexities of online advertising while maintaining ethical practices.

Given the interdisciplinary nature of this work, it appeals to scholars and researchers across various fields, including marketing, media and communication, economics, psychology, sociology, and ethics. The book provides valuable insights into the dynamics of consumer behavior in the digital age and offers practical strategies for advertisers and marketers to effectively engage with consumers while upholding ethical standards. By fostering a deeper understanding of advertising's role in shaping consumer behavior, this book contributes to the ongoing discourse on marketing practices and their impact on society.

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9780367680824