Purpose

This paper aims to examine the effect of privacy concern, irritation and personalization on Millennials’ perceptions of personalized smartphone advertising avoidance in a restaurant context. The hospitality industry has witnessed a huge surge in mobile activity over the past few years. Mobility opens up a new communication channel and allows industry to connect with their guests in a more personalized way. However, not all customers welcome the personalized advertisements.

Design/methodology/approach

Data were collected from 159 Millennials enrolled in a large state university in the Eastern USA using an online self-administered survey. These Millennials were asked to use a restaurant’s smartphone application for 30 days and then complete a survey based on their perceptions of personalized advertising. Descriptive analysis, reliability, factor analysis and regression analysis were used to evaluate the relationships among the four constructs: privacy concern, irritation, personalization and advertising avoidance, with the first three variables as predictors and advertising avoidance as an outcome.

Findings

The results suggest that advertising irritation is positively related to advertising avoidance, perceived personalization is related with less advertising avoidance, while privacy concern is not related to advertising avoidance.

Originality/value

Although advertising avoidance has previously been studied for the past few decades, little research has explored the underlying mechanisms of the Millennials’ avoidance of personalized smartphone advertising in a restaurant context. The current research suggests information pertinent to strategies for marketing personalized smartphone advertisement for restaurant companies.