Perceived Effectiveness Of Personalization

Abstract

The internet, while still in infancy, has established itself as a channel for commerce and communication. The interactive nature of its network, along with size and speed is leading to a paradigm shift in the way companies approach the marketing mix, similar to the shift in thinking from a production/sales orientation to a customer orientation to a future defined by personalization. There are currently very few empirical studies focusing on the construct and practice of personalization in the academic literature. This study empirically tests the perceived effectiveness of personalization based on an online survey of approximately 200 marketing executives on a business panel. As predicted, personalization was perceived as having a positive impact on both profit and customer responsiveness for the company.