By Gediminas Adomavicius, Alok Gupta
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Extra resources for Business Computing, Volume 3
This can often lead to poor results because of the limited information about consumers and faulty assumptions about their preferences. Examples of these types of applications include recommending books similar to the ones the consumer bought recently and various types of baby products to a woman who recently had a miscarriage. Smart personalizers: These applications use rich proﬁles and provide proactive targeting of the offerings. For example, an online gardening website may warn a customer that the plant she just bought would not grow well in the climate of the region where the customer lives.
As was extensively argued in the marketing literature, all the marketing-oriented goals, eventually, contribute to the long-term ﬁnancial performance of the company (Kotler, 2003). Therefore, the difference between the marketing- and the economics-oriented goals boils down to the long- vs. the sort-term performance of the company and, thus, both types of goals are based on the fundamental economic principles. Among the seven examples of personalization goals listed above, the ﬁrst ﬁve goals are marketing-oriented, whereas the last two are economicsoriented since their objectives are to increase the immediate ﬁnancial performance of the company.
Ch. 1. Personalization: The State of the Art and Future Directions 31 Examples of such customized offerings include customized jeans, shoes, CD records and personal computers. It does not require any manufacturing and only needs to deal with the selection and conﬁgurability issues, such as selection of appropriate books to display on a website or generation of personalized web pages and other online content. Such customization can be done in real time with negligible costs. Although both problems are important, we will focus on the latter one in the rest of this section since the ﬁrst one is a large subject on its own and can constitute a separate stand-alone paper.
Business Computing, Volume 3 by Gediminas Adomavicius, Alok Gupta