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Putting one-to-one marketing to work: Personalization, customization, and choice |
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| Authors: | Neeraj Arora Xavier Dreze Anindya Ghose James D Hess Raghuram Iyengar Bing Jing Yogesh Joshi V Kumar Nicholas Lurie Scott Neslin S Sajeesh Meng Su Niladri Syam Jacquelyn Thomas Z John Zhang |
| Institution: | 1. A.C. Nielsen Center for Marketing Research, Wisconsin School of Business, University of Wisconsin-Madison, Madison, WI, 53706, USA 2. The Wharton School, University of Pennsylvania, Philadelphia, PA, 19104-6340, USA 3. IOMS Department, Leonard N. Stern School of Business, New York University, 44 West 4th Street, Suite 8-94, New York, NY, 10012-1126, USA 4. Department of Marketing, University of Houston, Houston, TX, 77204-6021, USA 5. Department of Marketing, Robert H. Smith School of Business, University of Maryland, College Park, MD, 20742, USA 6. Georgia State University, 35 Broad Street, Atlanta, GA, 30303, USA 7. College Management, Georgia Institute of Technology, 800 West Peachtree Street, NW, Atlanta, GA, 30308-0520, USA 8. Amos Tuck School of Business Administration, Dartmouth College, Hanover, NH, 03755, USA 9. Guanghua School of Management, Beijing, 100871, China 10. C.T. Bauer College of Business, University of Houston, Houston, TX, 77204-6021, USA 11. Integrated Marketing Communications (IMC), Northwestern University, 1845 Sheridan Road, Evanston, IL, 60208-2101, USA |
| Abstract: | 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. |
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