MKTG 4500 Exam Practice Quizzes and Verified
Answers
Personalization
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
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
Personalization efforts can produce _______
-excessive personalization wastes time
-sometimes, standardization is just fine
,Personalization approaches
1) Mass customization
2) Choice assistance
3) Personalized messaging
Mass customization
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
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
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
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
Achieve through 4 approaches:
(1) Collaborative
(2) Cosmetic
Answers
Personalization
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
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
Personalization efforts can produce _______
-excessive personalization wastes time
-sometimes, standardization is just fine
,Personalization approaches
1) Mass customization
2) Choice assistance
3) Personalized messaging
Mass customization
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
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
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
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
Achieve through 4 approaches:
(1) Collaborative
(2) Cosmetic
