MKTG 4500 Exam 3 Questions and Answers With Verified Solutions 2025
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
(3) Transparent
(4) Adaptive
Collaborative - ✔✔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 - ✔✔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 - ✔✔*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 customization is
appropriate when customers' specific needs are predictable or can easily be deduced, and especially
when customers do not want to state their needs repeatedly.
Adaptive - ✔✔*Approach to mass customization
Adaptive customizers offer one standard, but customizable, product that is designed so that users can
alter it themselves.
Collaborative customization - ✔✔Online reconfiguration of a product to match consumer preferences
-Here the customer works with an online configuration program, sequentially, going through a range of
possible "either/or" choices (dialog) which finally ends with a partially designed product of their own.
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
(3) Transparent
(4) Adaptive
Collaborative - ✔✔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 - ✔✔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 - ✔✔*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 customization is
appropriate when customers' specific needs are predictable or can easily be deduced, and especially
when customers do not want to state their needs repeatedly.
Adaptive - ✔✔*Approach to mass customization
Adaptive customizers offer one standard, but customizable, product that is designed so that users can
alter it themselves.
Collaborative customization - ✔✔Online reconfiguration of a product to match consumer preferences
-Here the customer works with an online configuration program, sequentially, going through a range of
possible "either/or" choices (dialog) which finally ends with a partially designed product of their own.
