MKTG 4500 Exam 3 UPDATED Exam
Questions and CORRECT Answers
Personalization - CORRECT ANSWER - Companies are being forced to react to the
growing individualization of demand. At the same time, cost management remains of paramount
importance due to the competitive pressure in global markets. Thus, making enterprises more
customer centric efficiently is a top management priority in most industries.
__________ is a key strategy to meet this challenge.
Benefits of personalization - CORRECT ANSWER - Product distinction: a standard
product becomes a specialized solution
Low cost access to luxury and status of personalized services
Survival through differentiation
Increased customer loyalty
Backlash - CORRECT ANSWER - Personalization efforts can produce _______
-excessive personalization wastes time
-sometimes, standardization is just fine
Personalization approaches - CORRECT ANSWER - 1) Mass customization
2) Choice assistance
3) Personalized messaging
Mass customization - CORRECT ANSWER - Blending standard products with individual
information
,-by offering modular production in the production of goods so as to meet exactly the needs of
each individual customer with regard to certain product characteristics at costs comparable to
standard, mass-produced goods
-the last stage of production is simply delayed until individual choices, tastes, and behavior can
shape the firm's offering
*Personalization approach
Choice assistance - CORRECT ANSWER - Advice giving systems cut clutter of product
choice
-Use the full multi-media approach of online interactions to better understand user preferences
and provide advice.
2 prominent approaches used online...
1) Intelligent systems that seek out one's interests and recommend products based upon some
underlying characteristics of specific info given (ex. Pandora)
2) Base suggestions on feedback from other users creating an automated WOM system
*Personalization approach
Personalized messaging - CORRECT ANSWER - Consumer needs and choices tracked
across repeated interaction
-The end goal is a successful and LT relationship where the customer and the firm have an
ongoing, interactive connection
-The firm seeks to satisfy the customers' needs and wants over repeated use
*Personalization approach
Mass customization - CORRECT ANSWER - Customization of....
1) How a product is represented (representation)
, -Refers to how the company portrays a product to a customer. This creates a tie to the packaging,
positioning, and imagery used to describe the product.
2) A product's specific attributes (product attributes)
-Customization to create unique functionality, targeting the specific preferences/behavior of the
individual. Thus, *product specifications, not just info*, change in relation to the individual.
Mass customization - CORRECT ANSWER - Achieve through 4 approaches:
(1) Collaborative
(2) Cosmetic
(3) Transparent
(4) Adaptive
Collaborative - CORRECT ANSWER - Approach to mass customization*
Collaborative customizers conduct a dialogue with individual customers to help them articulate
their needs, to identify the precise offering that fulfills those needs, and to make customized
products for them.
Cosmetic - CORRECT ANSWER - Approach to mass customization*
Cosmetic cutomizers present a standard product differently to different customers. The cosmetic
approach is appropriate when customers use a product the same way and differ only in how they
want it presented. Rather than being customized or customizable, the standard offering is
packaged specially for each customer.
Transparent - CORRECT ANSWER - *Approach to mass customization
Transparent customizers provide individual customers with unique goods without letting them
know explicitly that those products have been customized for them. This approach to
Questions and CORRECT Answers
Personalization - CORRECT ANSWER - Companies are being forced to react to the
growing individualization of demand. At the same time, cost management remains of paramount
importance due to the competitive pressure in global markets. Thus, making enterprises more
customer centric efficiently is a top management priority in most industries.
__________ is a key strategy to meet this challenge.
Benefits of personalization - CORRECT ANSWER - Product distinction: a standard
product becomes a specialized solution
Low cost access to luxury and status of personalized services
Survival through differentiation
Increased customer loyalty
Backlash - CORRECT ANSWER - Personalization efforts can produce _______
-excessive personalization wastes time
-sometimes, standardization is just fine
Personalization approaches - CORRECT ANSWER - 1) Mass customization
2) Choice assistance
3) Personalized messaging
Mass customization - CORRECT ANSWER - Blending standard products with individual
information
,-by offering modular production in the production of goods so as to meet exactly the needs of
each individual customer with regard to certain product characteristics at costs comparable to
standard, mass-produced goods
-the last stage of production is simply delayed until individual choices, tastes, and behavior can
shape the firm's offering
*Personalization approach
Choice assistance - CORRECT ANSWER - Advice giving systems cut clutter of product
choice
-Use the full multi-media approach of online interactions to better understand user preferences
and provide advice.
2 prominent approaches used online...
1) Intelligent systems that seek out one's interests and recommend products based upon some
underlying characteristics of specific info given (ex. Pandora)
2) Base suggestions on feedback from other users creating an automated WOM system
*Personalization approach
Personalized messaging - CORRECT ANSWER - Consumer needs and choices tracked
across repeated interaction
-The end goal is a successful and LT relationship where the customer and the firm have an
ongoing, interactive connection
-The firm seeks to satisfy the customers' needs and wants over repeated use
*Personalization approach
Mass customization - CORRECT ANSWER - Customization of....
1) How a product is represented (representation)
, -Refers to how the company portrays a product to a customer. This creates a tie to the packaging,
positioning, and imagery used to describe the product.
2) A product's specific attributes (product attributes)
-Customization to create unique functionality, targeting the specific preferences/behavior of the
individual. Thus, *product specifications, not just info*, change in relation to the individual.
Mass customization - CORRECT ANSWER - Achieve through 4 approaches:
(1) Collaborative
(2) Cosmetic
(3) Transparent
(4) Adaptive
Collaborative - CORRECT ANSWER - Approach to mass customization*
Collaborative customizers conduct a dialogue with individual customers to help them articulate
their needs, to identify the precise offering that fulfills those needs, and to make customized
products for them.
Cosmetic - CORRECT ANSWER - Approach to mass customization*
Cosmetic cutomizers present a standard product differently to different customers. The cosmetic
approach is appropriate when customers use a product the same way and differ only in how they
want it presented. Rather than being customized or customizable, the standard offering is
packaged specially for each customer.
Transparent - CORRECT ANSWER - *Approach to mass customization
Transparent customizers provide individual customers with unique goods without letting them
know explicitly that those products have been customized for them. This approach to
