Abstract
The Internet provides unprecedented ability for marketers to learn about their customers and offer custom products at special prices. The technology, marketing, and economics of using the Internet for one-to-one marketing are examined. We find that, under very general conditions, a seller can make higher profits by adopting a “mixed” strategy of serving conventional segments with standardized products at a uniform price and serving the direct marketing segment with customized products at differentiated prices. Surprisingly, the seller can raise its prices for both standard and customized products as customization and information collection technologies improve. The seller’s best response to reduction in technology costs is to increase its customization effort at the expense of its standard products.
Original language | English (US) |
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Pages | 93-102 |
Number of pages | 10 |
State | Published - 1999 |
Externally published | Yes |
Event | 20th International Conference on Information Systems, ICIS 1999 - Charlotte, United States Duration: Dec 13 1999 → Dec 15 1999 |
Conference
Conference | 20th International Conference on Information Systems, ICIS 1999 |
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Country/Territory | United States |
City | Charlotte |
Period | 12/13/99 → 12/15/99 |
ASJC Scopus subject areas
- Computer Science Applications
- Computer Networks and Communications
- Information Systems