Ask or infer? Strategic implications of alternative learning approaches in customization

When Does Information Transparency Reduce Downside of Personalization? Role of Need for Cognition and Perceived Control

“…Implicit data collection involves the tracking of customers’ behavior online. Companies use these data to infer customers’ preferences and build customer profiles (Fay, Mitra, and Wang 2009; Liang, Lai, and Ku 2006). For instance, companies can infer customer interests based on their prior browsing behavior.…”

The market value for product attribute improvements under price personalization

“…Fay et al (2009) consider conditions under which firms invest in technology to solicit preferences from consumers at the point of purchase versus technology that allows the firm to infer preferences based on past observations. Wertenbroch and Skiera (2002) discuss different methods for determining consumer valuations, or willingness-to-pay, in market research.…”

“…However, the Ofek and Srinivasan (2002) derivation of MVAI assumes that firms charges a common price to all consumers. In contrast to a homogenous pricing policy, the notion of personalized pricing is of great appeal to both marketing academics and managers (Fay, Mitra, & Wang, 2009). A stream of research in the marketing literature has considered the personalization of the marketing mix from both an empirical and theoretical perspective (Chen & Iyer, 2002;Choudhary, Ghose, Mukhopadhyay, & Rajan, 2005;Heilman, Kaefer, & Ramenofsky, 2003;Khan, Lewis, & Singh, 2009;Knox & Eliashberg, 2009;Liu & Zhang, 2006;Rossi, McCulloch, & Allenby, 1996;Shaffer & Zhang, 2002).…”

User modeling and Web-based customazation techniques: An examination of the published literature

“…It has an impact on the relevance of the proposed customization. The reference [42] discusses how to choose the optimal learning approach and it shows that this choice can strengthen the company competition. It classifies the learning techniques in two approaches: S-learning and O-learning.…”