Determinants of Customers' Responses to Customized Offers: Conceptual Framework and Research Propositions

Marketers have been challenged by proponents of individual (one-to-one) marketing to shift from focusing on market segments to making individually customized offers. Building on current knowledge regarding the construction of customers’ preferences, the author examines the basic assumptions underlying individual marketing and presents a process model of customers’ responses to customized offers. The model addresses (1) preference development, (2) evaluation of customized offers, (3) likelihood of purchasing the customized offers, and (4) maintenance of relationships with one-to-one marketers. The analysis leads to specific propositions regarding determinants of customers’ responses to customized offers. The author discusses future research directions and managerial implications.