Personalization Marketing
15289071
The personalization privacy paradox: An exploratory study of decision making process for location aware marketing
Despite the vast opportunities offered by location aware marketing (LAM) mobile customers' privacy concerns appear to be a major inhibiting factor in their acceptance of LAM. This study extends the privacy calculus model to explore the personalization privacy paradox in LAM, with considerations of personal characteristics and two personalization approaches (covert and overt) Through an experimental study, we empirically validated the proposed model. Results suggest that the influences of personalization on the privacy risk/benefit beliefs vary upon the type of personalization systems (covert and overt) and that personal characteristics moderate the parameters and path structure of the privacy calculus model.
Decis. Support Syst.
Heng Xu Xin Robert Luo John M Carroll Mary Beth Rosson
167529031
Promotional Tactics for Online Viral Marketing Campaigns: How Scarcity and Personalization Affect Seed Stage Referrals
Against the backdrop of consumers being deluged with traditional online advertising, which is increasingly manifesting in inefficient conversion outcomes, viral marketing has become a pivotal component of marketing strategy. However, despite a robust understanding about the impact of viral marketing as well as of factors that drive consumer referral engagement, we know very little about the effect of traditional promotional tactics on consumer referral decisions. Drawing on a randomized field experiment in the context of an online fashion service named StyleCrowd, we investigate the effects of scarcity and personalization, two classical promotional cues that have become ubiquitous on the web and have received only minimal attention hitherto, on actual referral behavior. Our analysis reveals that using these cues in promotional campaigns is a balancing act: While scarcity cues affect referral propensity regardless of whether a campaign is personalized or not, personalization cues are particularly effective when scarcity is absent, yet are cancelled out when scarcity is prevalent. We demonstrate that consumers' perceptions of offer value drive the impact of scarcity on referral likelihood, while consumer gratitude vis a vis the marketer is the underlying mechanism for personalization's influence on referral decisions.
Oliver Koch Alexander Benlian
168148224
The Influence of Relationship Marketing Tactics on Customer's Loyalty in B2C Relationship The Role of Communication and Personalization
Relationship marketing develops marketing productivity and generates mutual values for both customer and company through growing marketing effectiveness. This study proposes a model to link key relationship marketing tactics to the customers' relationship satisfaction and customer loyalty. This framework is evaluated from the customer perspective in a business to consumer (B2C) setting across the tour and travel industry in Singapore. The Model demonstrates that the customer's loyalty is basically formed by the variables of communication and personalization. This study intends to evaluate the impact of personalization and communication on customer's relationship satisfaction and then determines the impact of customer's relationship satisfaction on customers' loyalty.Meanwhile, in order to conduct this study, primary data has been collected by a properly designed questionnaire which was distributed among customers in 5 different tour and travel agency in Singapore and the secondary data has been collected through online data base such as Ebsco, Emerald and Science Direct. Afterwards, SPSS (17.0) tool has been used in order to evaluate the relationship between variables of the model.Accordingly, correlation analysis and regression results determined the relationship between the variables. Based on the results, there are significant relationships between personalization and communication as independent variables and customers' relationship satisfaction as dependent variable. So, high level of communication and personalization increase the customers' relationship satisfaction. Meanwhile, the results also show that there is significant relationship between customers' relationship satisfaction on customers' loyalty. Consequently, as customers' relationship satisfaction increases, customers' loyalty also enhances. Ultimately, personalization and communication increases the customer's loyalty by enhancing customer's relationship satisfaction.
Anahita Bagherzad Halimi Alireza Chavosh Sahar Hosseinikhah Choshalyc
12694963
Automated Linguistic Personalization of Targeted Marketing Messages Mining User Generated Text on Social Media
Personalizing marketing messages for specific audience segments is vital for increasing user engagement with advertisements, but it becomes very resource intensive when the marketer has to deal with multiple segments, products or campaigns. In this research, we take the first steps towards automating message personalization by algorithmically inserting adjectives and adverbs that have been found to evoke positive sentiment in specific audience segments, into basic versions of ad messages. First, we build language models representative of linguistic styles from user generated textual content on social media for each segment. Next, we mine product specific adjectives and adverbs from content associated with positive sentiment. Finally, we insert extracted words into the basic version using the language models to enrich the message for each target segment, after statistically checking in context readability. Decreased cross entropy values from the basic to the transformed messages show that we are able to approach the linguistic style of the target segments. Crowdsourced experiments verify that our personalized messages are almost indistinguishable from similar human compositions. Social network data processed for this research has been made publicly available for community use.
CICLing
Rishiraj Saha Roy Aishwarya Padmakumar Gunaseger Jeganathan Ponnurangam Kumaraguru
961637
Putting one to one marketing to work: Personalization, customization, and choice
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.
Neeraj Arora Xavier Dreze Anindya Ghose James D Hess Raghuram Iyengar Bing Jing Yogesh V Joshi V Sundeep Kumar Nicholas H Lurie Scott A Neslin S Sajeesh Meng Su Niladri B Syam Jacquelyn S Thomas Z John Zhang
10057777
Personalization in Email Marketing: The Role of Noninformative Advertising Content
In collaboration with three companies selling a diverse set of products, we conducted randomized field experiments in which experimentally tailored email ads were sent to millions of individuals. We found consistently that personalizing the emails by adding consumer specific information e.g. recipient's name benefited the advertisers. Importantly, such content is not likely to be informative about the advertised product or the company. In our main experiment, we found that adding the name of the message recipient to the email's subject line increased the probability of the recipient opening it by 20% from 9.05% to 10.80% which translated to an increase in sales' leads by 31% from 0.39% to 0.51% and a reduction in the number of individuals unsubscribing from the email campaign by 17% from 1.2% to 1.0% We present similar experiments conducted with other companies, which show that the effects we document extend from objectives ranging from acquiring new customers to retaining customers who have purchased from the company in the past. Our investigation of several possible mechanisms suggests that such content increases the effort consumers make in processing the other content in the rest of the advertising message. Our paper quantifies the benefits from personalization and sheds light on the role of noninformative advertising content by analyzing several detailed measures of recipient's interaction with the message. It provides external validity to psychological mechanisms and has clear implications for the firms that are designing their advertising campaigns. Data and the online appendix are available at https:/doi.org/10.1287/mksc.2017.1066
Mark. Sci.
Navdeep S Sahni S Christian Wheeler Pradeep Chintagunta
168111320
BUILDING BRIDGES FOR PERSONALIZATION: A PROCESS MODEL FOR MARKETING
It has been suggested that personalization offers an avenue to improve marketing performance; however, there are several organizational and technical hurdles that hinder the efforts of marketers in capitalizing on it. This is largely because personalization has been executed as several disconnected campaigns and operations in many companies. Marketers also may have faced challenges posed by systems integration and organizational processes. In this article, we show how seeing personalization as a process helps marketers manage and execute it more effectively. A process view shows how the different phases of personalization customer interactions, analyses of customer data, customization based on customer profiles, and targeting of marketing activities are linked. Process analysis further identifies the key stumbling blocks that arise from ineffective integration of these phases.
Jari Vesanen Mika Raulas
20669226
Personalization or Codification? A Marketing Perspective to Optimize Knowledge Reuse Efficiency
Organizations continue to struggle with low returns on knowledge management (KM) investments. This paper's goal is to prescribe a KM strategy that maximizes organizational knowledge reuse efficiency (KRE) Knowledge reuse is defined as the totality of all knowledge transfers, from all producers to all consumers in the same organization, over all locations. Organizational inefficiencies result from individual knowledge producers and consumers having different priorities and agendas during the knowledge exchange. Furthermore, these producers' and consumers' priorities overlap with, but are not congruent with, the organization's priorities to maximize knowledge reuse efficiency. By combining a marketing perspective with a marketing consumer stages process model of knowledge reuse, we develop a contingency model which prescribes the strategy which maximizes KRE. The organizational characteristics on which the model is contingent include organization size, the number of knowledge producers, consumers, these producer and consumer costs and utilities during the knowledge transfer, and the organization's KM infrastructure costs. The prescribed approach specifies the degree to which a personalization and codification strategy should be combined to optimize KRE, contrary to some suggestions in the literature. A simulation supports that the model's prescribed strategy is not overly sensitive to its contingency variables.
IEEE Transactions on Engineering Management
Kah-Hin Chai James F Nebus
168138396
Analysis of Consumers' Attitudes toward Interactivity and Relationship Personalization as Contemporary Developments in Interactive Marketing Communication
Purpose: Interactive marketing communication and relationship personalization present some of the most recent developments in the field of marketing communications. This paper analyzes consumers' attitudes towards the two concepts. Methodology: This study used an online survey on a convenience sample of Internet users in Croatia and a telephone survey (CATI method) on a representative sample of Croatian citizens. Findings: Two main hypotheses researched in this paper are: consumers have a more positive attitude toward interactive marketing communication than toward one way communication (H1) consumers have a more positive attitude toward relationship personalization than toward classical transactional relationship (H2) It was found that consumers do want interactive communication, but they are more rigorous about personalization. H1 was accepted, while H2 was accepted only for certain industries. Implications: These findings have implications for the direction of relationship development with consumers. They provide an insight into how consumers want to communicate with companies and organizations and what level of personalization they expect or require. In addition, the findings indicate what companies or organizations should do in order to draw consumers into interactive personalized relationships.
Goran Vlasic Tanja Kesic
64397020
Web Personalization for E Marketing Intelligence
As the Web is growing exponentially, online marketing has been changed by the newly provided technological capacities and digital channels of sales. Online marketing or e marketing is the adaptation and development of marketing strategies in the Web environment and includes all factors that affect a Web site's efficiency, like the idea, the content, the structure, the interface, the implementation, the maintenance, the promotion and the advertising. Since more and more businesses are using the Web to conduct their activities, issues like interface usability, easy navigation and effective 701 E. Chocolate Avenue, Suite 200, Hershey PA 17033 1240, USA Tel: 717/533 8845; Fax 717/533 8661; URL http:/www.idea group.com IDEA GROUP PUBLISHING This chapter appears in the book, Contemporary Research in E Marketing, Vol. 1, edited by Sundeep Krishnamurthy. Copyright (c) 2005, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. Web Personalization for E Marketing Intelligence 49 Copyright (c) 2005, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. supporting services become critical and influence their success dramatically. However, one important problem that arises is that Web users are confronted with too many options. Currently, Web personalization is the most promising approach to alleviate this information overload and to provide users with tailored experiences. It improves user interaction with Web sites and offers them the ability to establish long term and loyal relationships. The scope of this chapter is to give a comprehensive overview of research issues on personalized e marketing applications. We focus on the importance of personalization as a remedy for the negative effects of the traditional "one size fitsall" approach. Next, we explore the different steps of the personalization process providing information about interesting research initiatives and representative commercial tools for producing personalized Web experiences. Finally, we demonstrate the close relation between personalization and Web mining and discuss open research issues.
Penelope Markellou Maria Rigou Spiros Sirmakessis