Putting one-to-one marketing to work: Personalization, customization, and choice
- 6.4k Downloads
The tailoring of a firm’s marketing mix to the individual customer is the essence of one-to-one marketing. In this paper, we distinguish between two forms of one-to-one marketing: personalization and customization. Personalization occurs when the firm decides what marketing mix is suitable for the individual. It is usually based on previously collected customer data. Customization occurs when the customer proactively specifies one or more elements of his or her marketing mix. We summarize key challenges and knowledge gaps in understanding both firm and customer choices in one-to-one markets. We conclude with a summary of research opportunities.
KeywordsOne-to-one marketing Customization Personalization Marketing mix Choice
- Black, A. J., & Thomas, J. S. (2004). Customer intelligence is the catalyst for competitive differentiation. white paper, www.csc.com/solutions/customerrelationshipmanagement/.
- Blattberg, R. C., Kim, B.-D., & Neslin, S. A. (2008). Database marketing: Analyzing and managing customers. New York: Springer.Google Scholar
- Chen, Y., & Zhang, J. Z. (2007). Dynamic targeted pricing with strategic consumers. Working paper. Philadelphia: Wharton School, University of Pennsylvania.Google Scholar
- Coussement, K., & Van den Poel, D. (2007). Improving customer churn prediction using emotionality indicators in emails as additional features. Working Paper. Ghent: Faculty of Economics and Business.Google Scholar
- Dewan, R., Jing, B., & Seidmann, A. (1999) One-to-one marketing on the internet. In Proceedings 20th International Conference on Information Systems (pp 93–102).Google Scholar
- Forman, C., Ghose, A., & Wiesenfeld, B. (2006). Examining the relationship between reviews and sales: The role of social information in electronic markets. Working Paper #06-09. New York: NYU CeDER.Google Scholar
- Ghose, A., & Huang, K.-W. (2006). Personalized pricing and quality design, working paper. New York: New York University.Google Scholar
- Häubl, G., Dellaert, B. G. C., Murray, K. B., & Trifts, V. (2004). Buyer behavior in personalized shopping environments. In C.-M. Karat, J. O. Blom, & J. Karat (Eds.), Human–computer interaction series: Designing personalized user experiences in ecommerce, vol. 5 (pp. 207–229). Dordrecht: Kluwer.CrossRefGoogle Scholar
- Keller, K. L. (2001). Building customer-based brand equity. Marketing Management, 10(2), 14–19.Google Scholar
- Liechty, J., Ramaswamy, V., & Cohen, S. H. (2001). Choice menus for mass customization: An experimental approach for analyzing customer demand with an application to a web-based information service. JMR, Journal of Marketing Research, 38(2), 183–196. doi: 10.1509/jmkr.126.96.36.19949.CrossRefGoogle Scholar
- Morneau, J. (2000). Dynamic pricing: who really wins? TechWeb, September 29.Google Scholar
- Nunes, P. F., & Kambil, A. (2001). Personalization? No thanks. Harvard Business Review, 79(4), 32–34.Google Scholar
- Peppers, D., & Rogers, M. (1997). The one to one future. New York: Doubleday.Google Scholar
- Peppers, D., Rogers, M., & Dorf, B. (1999). Is your company ready for one to one marketing? Harvard Business Review, 77(1), 151–160.Google Scholar
- Rossi, P. E., McCulloch, R. E., & Allenby, G. M. (1996). The value of purchase history data in target marketing. Marketing Science, 15(4), 321–340.Google Scholar
- Shaffer, G., & Zhang, Z. J. (1995). Competitive coupon targeting. Marketing Science, 14, 395–416.Google Scholar
- Thisse, J.-F., & Vives, X. (1988). On the strategic choice of spatial price policy. American Economic Review, 78(1), 122–137.Google Scholar
- Ulph, D., & Vulkan, N. (2001) Electronic commerce and competitive first-degree price discrimination. Technical report, University College London. http://www.ecn.bris.ac.uk/www.ecnv/welcome.htm.
- Watson, H. J., & Volomino, L. (2001). Harrah’s high payoff from customer information. http://text.usg.edu:8080/tt/www.terry.uga.edu/∼hwatson/ (Harrah’s.doc). Accessed 7 August 2007.
- Zhang, J., & Wedel, M. (2007). The effectiveness of customized promotions in online and offline stores. Working paper. Baltimore: University of Maryland.Google Scholar