Consumerization and Product Positioning

Yi-Nung Yang ； Leonard F.S. Wang

《亞太經濟管理評論》 7卷1&2期 (2004/03) Pp. 140-141

https://doi.org/10.30087/APEMR.200403.0016

並列摘要

Advances in information technology since 1990s give rise to opportunities for today’s businesses to bring those presumed marketing models closer to reality. E-commerce over the Internet, for example, may allow managers to track and trace customers’ actual patterns of searching and shopping individually with assistance of appropriate software tools, Consumerization depicts the potential in which companies allow consumers create personalized products or services through intensive interactions with the firm. This paper formally shows that firms are able to increase their profits by forming effective product position as well as pricing strategies if managers have perfect information about consumer’s preferences. Consumerization undoubtedly can speed up firm’s adaptive learning process in identifying consumers’ attributes. The new opportunities sound appealing for managers. However, we have shown that not every business have to invest in such practice of interaction with consumers because whether or not the profitability can increase by consumerization still depends on the degree of heterogeneity in consumer’s preferences.