6. Discussion, implications & limitations
6.4 Limitations and future research
Our research has some limitations that offer directions for future research. First, a strength of this study is that it covers a broad span of worldwide customers since we used MTurk to gather respondents. Nevertheless, we had to pull out a lot of participants (n = 66) because they did not answer the control question right. This leads to a final sample size that was smaller than the number of respondents indicated by GPower. Therefore, it would be useful to reproduce this research with more respondents.
Second, despite our pretest shows that the manipulations are successful on average, the main sample of the experiment (n = 317) consists of 185 participants who did not understand the personalization manipulation correctly, and 147 participants who did not understand the manipulation regarding communication channel correctly. Considering this, it is difficult to identify whether there is no effect of personalization, as indicated by the main sample, or whether there is an effect of personalization, as indicated by the sub-sample. Based on this, we suggest future research to repeat this study with the advice to make sure the manipulations are more clear, so the majority of the respondents actually understand them.
Third, although not defined in academic literature yet, some additional types of personalization can be distinguished. Besides individualization and segmentation, two other types of personalization are persona-based personalization and personalization based on the customer journey (Mialki, 2020; Onespot, n.d.). On the one hand, persona-based
personalization is one step further than segmentation, whereby brands build data-driven
personas based on factors like website activity and purchase history. On the other hand, customer-journey personalization is focused on the stage of the journey, whereby the content is directly related to the customers’ phase (Mialki, 2020; Onespot, n.d.). Since we distinguish between individualized and segmented personalization only, we suggest future research to expand existing knowledge about personalization by studying the effectiveness of additional types of personalization like persona-based and customer-journey based personalization.
Fourth, this study test different levels of personalization, which is a marketing term that Arora et al. (2008) explain as selecting the right marketing effort for the right customer.
Pine (1993) defines customization as “a method to meet the individual needs of customers by constructing products or services” (p. 782). Another definition of customization, by Hsu, Lu, and Ng (2014) is “the costly alteration of a product to tailor it to clients’ needs or tastes” (p.
10). Based on these definitions it seems that customization is more on product-level, whereas personalization seems more general. Nevertheless, existing literature indicates that the marketing terms are often used interchangeably (Sunikka & Bragge, 2012). To expand existing theoretical definitions and provide insights on the potential differences between personalization and customization, we suggest future research to study the impact of customization within a loyalty program setting.
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Appendix A: Pretest questionnaire
Block 1 - Introduction Q1 Dear participant,
Thank you for participating in this study. Your participation in this study will require approximately 5 minutes. All information you provide will remain confidential and will not be associated with your name. If you have any further questions concerning this study please feel free to contact me: Sophie Klijn via sophie.klijn@student.uva.nl.
Before starting the survey, please indicate below whether you agree to participate:
o
I agree to participate in this studyo
I disagree to participate in this study Block 2 - One-to-one (1) - RandomizerQ2 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in the loyalty program. The Food Market's loyalty program keeps track of your purchases, and uses your data to offer you personalized rewards. The rewards you receive are personalized to only your preferences and past
purchases.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 3 - One-to-one (2) - Randomizer
Q3 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in the loyalty program. The Food Market's loyalty program keeps track of your purchases, and uses your data to offer you personalized rewards. When making a purchase you scan your loyalty card, which makes it easy for The Food Market to gather data on you. This is not only data on what you bought, but also when you bought, and whether this purchase was online of offline for example. The rewards you receive are personalized to only your preferences and past purchases.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 4 - One-to-N (1) - Randomizer
Q4 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in the loyalty program. The Food Market's loyalty program keeps track of your purchases, and uses your data to offer you personalized rewards. The rewards you receive are personalized to the preferences and past purchases of the customer segment you fall into.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 5 - One-to-N (2) - Randomizer
Q5 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in the loyalty program. The Food Market's loyalty program keeps track of your purchases, and uses your data to offer you personalized rewards. When making a purchase you scan your loyalty card, which makes it easy for The Food Market to gather data on you. This is not only data on what you bought, but also when you bought, and whether this purchase was online of offline for example. Based on this information, The Food Market compose different consumer segments. The rewards you receive are personalized to the preferences and past purchases of the customer segment you fall into.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 6 - No personalization (1) - Randomizer
Q6 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in the loyalty program. The Food Market's loyalty program does not keep track of your purchases, and does not use your data to offer you personalized rewards. The rewards you receive are generic because all members of the loyalty program receive the same rewards.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 7 - No personalization (2) - Randomizer
Q7 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in the loyalty program. The Food Market's loyalty program does not keep track of your purchases, and does not use your data to offer you personalized rewards. When making a purchase you scan your loyalty card, but The Food Market is not making use of any data (e.g., what you bought, but also when you bought, and whether this purchase was online of offline). The rewards you receive are generic because all members of the loyalty program receive the same rewards. The Food Market distinguish between two groups, namely members and non-members of the loyalty program.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 8 - Offline communication (1) - Randomizer
Q8 You receive a flyer with the following rewards. Please take a look at it and click on the arrow to go to the next page.
$1.41
Online code:
HIVU881 Valid: 03/03/2021 until 03/10/2021
$1.00
$1.41
$1.00
Valid: 03/03/2021 until 03/10/2021 Online code:
HIVU882
An offer from The Food Market!
Block 9 - Offline communication (2) - Randomizer
Q9 You receive a direct mail (by post) with the following reward. Please take a look at it and click on the arrow to go to the next page.
Block 10 - Online communication (1) - Randomizer
Q10 You receive an email with the following rewards. Please take a look at it and click on the arrow to go to the next page.
Block 11 - Online communication (2) - Randomizer
Q11 You receive a mobile app notification (left). After opening it, you see the following rewards (right). Please take a look at it and click on the arrow to go to the next page.
Block 12
Q12 What personalization type do The Food Market use?
o
The Food Market personalizes based on consumer segmentso
The Food Market personalizes based on individual consumerso
The Food Market does not make use of any personalizationo
Could be any type of personalizationQ15 What personalization type do The Food Market use?
o
The Food Market personalizes based on consumer segmentso
The Food Market personalizes based on individual consumerso
The Food Market does not make use of any personalizationo
Could be any type of personalizationQ13 What communication channel type was used to communicate the reward?
o
An offline communication channelo
An online communication channelo
Could be any type of communication channel Block 13 - DebriefingThank you for participating in this study. Please click the arrow below to complete the survey.
If you have any further questions concerning this study please feel free to contact me: Sophie Klijn at sophie.klijn@student.uva.nl.
Kind regards, Sophie Klijn
Appendix B: Visualizations outcomes pretest
Figure 5:
Visualization pretest personalization type
Figure 6:
Visualization pretest communication channel
Appendix C: Experiment questionnaire
Block 1 - Introduction Q1 Dear participant,
Thank you for participating in this study. Your participation in this study will require approximately 5 minutes. All information you provide will remain confidential and will not be associated with your name. If you have any further questions concerning this study please feel free to contact me: Sophie Klijn via sophie.klijn@student.uva.nl.
Before starting the survey, please indicate below whether you agree to participate:
o
I agree to participate in this studyo
I disagree to participate in this studyBlock 2 - Personalization type (one-to-one) - Randomized
Q2 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in their loyalty program. The Food Market's loyalty program keeps track of your purchases, and uses your data to offer rewards.
The rewards you receive are personalized to only your preferences and past purchases.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 3 - Personalization type (one-to-N) - Randomized
Q3 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in their loyalty program. The Food Market's loyalty program keeps track of your purchases, and uses your data to offer rewards.
The rewards you receive are personalized to the preferences and past purchases of the customer segment you fall into.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 4 - Personalization type (no personalization) - Randomized
Q4 Imagine yourself in the following situation: you regularly shop groceries at The Food Market, and therefore decided to participate in their loyalty program. The Food Market's
loyalty program does not keep track of your purchases, and does not use your data to offer rewards.
The rewards you receive are generic because all members of the loyalty program receive the same rewards.
While keeping the situation described above in mind, please click to the next page to see the reward you receive.
Block 5 - Communication channel (online) - Randomized
Q5 You receive a mobile app notification (left). After opening it, you see the following rewards (right). Please take a look at it and click on the arrow to go to the next page.