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Related Experiment Videos

Consumerism as a branding opportunity.

M Treash1, R Adams

  • 1Ernst & Young, LLP, Washington, DC, USA.

Managed Care Quarterly
|March 3, 1999
PubMed
Summary

Individual-level customer portfolio management focuses on member preferences, not demographics. This approach enhances value by understanding what members truly want from an organization.

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Area of Science:

  • Health Services Research
  • Marketing Science
  • Consumer Behavior Analysis

Background:

  • Effective customer portfolio management is crucial for organizational success.
  • Traditional demographic segmentation models may not fully capture consumer needs.
  • Understanding individual member preferences is a complex but valuable goal.

Purpose of the Study:

  • To explore the challenges and promise of individual-level customer portfolio management.
  • To differentiate individual-level management from mass marketing approaches.
  • To highlight the importance of member-derived preferences for segmentation.

Main Methods:

  • Developing segmentation models based on direct consumer preference extraction.
  • Analyzing member perceptions of organizational value.
  • Moving beyond traditional socioeconomic or demographic segmentation.

Main Results:

  • Individual-level management requires understanding unique member preferences.
  • Segmentation models should prioritize extracted consumer desires over demographic data.
  • Member perceptions of value are key to effective segmentation.

Conclusions:

  • Individual-level consumer portfolio management offers significant promise.
  • Segmentation based on direct member preferences is more effective than demographic models.
  • Understanding desired value is paramount for successful customer relationship management.

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