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Over the last decades, ongoing advancements in information technology (i.e., Internet and mobile devices) have expanded a firm’s ability to communicate and interact with consumers and hence, create the potential of building sustainable relationships. Tailoring offerings through (1) consumer-initiated customization and (2) firm-initiated personalization is considered a key driver of long-term consumer relationships. As technologies continue to evolve, the opportunities for tailored marketing expand and enable new technology-driven business models that help to leverage customization and personalization and strengthen customer relationships in the era of the digital economy.
Across three independent essays, the purpose of this dissertation is to answer the overarching research question of how innovative technology-driven business models versus traditional business models in the domains of customization and personalization influence consumer behavior. Thereby, this dissertation contributes to an understanding of challenges and opportunities of innovative customization and personalization business models with the ultimate goal of enabling their successful diffusion in the marketplace.
Specifically, in Essay 1 and Essay 2, I investigate an innovative business model located in the realm of customization, that is, internal product upgrades (i.e., offering fee-based access to originally built-in, but deliberately restricted, optional features). Using a conceptual approach, Essay 1 provides a framework for understanding how internal product upgrades will likely influence consumers’ responses. As such, it outlines evolving challenges and opportunities of internal product upgrades and derives questions for future research. In Essay 2, I use an empirical approach to examine pitfalls of internal product upgrades in the product usage phase. Drawing on research on normative expectations and perceived ownership, this essay reveals that consumers respond less favorably to internal (vs. external) product upgrades and investigates managerially relevant boundary conditions.
Finally, Essay 3 creates novel insights into a business model in the domain of personalization. This essay examines how the increasingly prevalent data disclosure practice of firms engaging in a network with other firms to exchange consumer data, which we denote as Business Network Data Exchange (BNDE), influences consumers’ privacy-related decision-making. In particular, this essay shows that consumers are less likely to disclose personal data in BNDE (vs. traditional dyadic) data exchange settings and that immediate affective reactions are crucial in explaining consumers’ privacy-related decision-making.
Within this dissertation, I make substantial contributions at a more general level to literature on customization and personalization by comparing innovative business models to established ones. At the individual essay level, I extend existing research in the domains of product feature modifications, norm violations, and privacy-related decision making. Moreover, this dissertation provides actionable implications for managers who are facing the decision to transform their established business model into an innovative technology-driven one.
Today the world of multimedia is almost completely device- and content-centered. It focuses it’s energy nearly exclusively on technical issues such as computing power, network specifics or content and device characteristics and capabilities. In most multimedia systems, the presentation of multimedia content and the basic controls for playback are main issues. Because of this, a very passive user experience, comparable to that of traditional TV, is most often provided. In the face of recent developments and changes in the realm of multimedia and mass media, this ”traditional” focus seems outdated. The increasing use of multimedia content on mobile devices, along with the continuous growth in the amount and variety of content available, make necessary an urgent re-orientation of this domain. In order to highlight the depth of the increasingly difficult situation faced by users of such systems, it is only logical that these individuals be brought to the center of attention. In this thesis we consider these trends and developments by applying concepts and mechanisms to multimedia systems that were first introduced in the domain of usercentrism. Central to the concept of user-centrism is that devices should provide users with an easy way to access services and applications. Thus, the current challenge is to combine mobility, additional services and easy access in a single and user-centric approach. This thesis presents a framework for introducing and supporting several of the key concepts of user-centrism in multimedia systems. Additionally, a new definition of a user-centric multimedia framework has been developed and implemented. To satisfy the user’s need for mobility and flexibility, our framework makes possible seamless media and service consumption. The main aim of session mobility is to help people cope with the increasing number of different devices in use. Using a mobile agent system, multimedia sessions can be transferred between different devices in a context-sensitive way. The use of the international standard MPEG-21 guarantees extensibility and the integration of content adaptation mechanisms. Furthermore, a concept is presented that will allow for individualized and personalized selection and face the need for finding appropriate content. All of which can be done, using this approach, in an easy and intuitive way. Especially in the realm of television, the demand that such systems cater to the need of the audience is constantly growing. Our approach combines content-filtering methods, state-of-the-art classification techniques and mechanisms well known from the area of information retrieval and text mining. These are all utilized for the generation of recommendations in a promising new way. Additionally, concepts from the area of collaborative tagging systems are also used. An extensive experimental evaluation resulted in several interesting findings and proves the applicability of our approach. In contrast to the ”lean-back” experience of traditional media consumption, interactive media services offer a solution to make possible the active participation of the audience. Thus, we present a concept which enables the use of interactive media services on mobile devices in a personalized way. Finally, a use case for enriching TV with additional content and services demonstrates the feasibility of this concept.