HYPER-PERSONALIZATION IN MARKETING: REDEFINING CONSUMER EXPECTATIONS IN THE AGE OF BIG DATA
DOI:
https://doi.org/10.31539/costing.v7i6.14288Keywords:
Hyper-Personalization, Big Data Usage, Consumer Expectations, Customer EngagementAbstract
This research examines the impact of hyper-personalization and big data usage on consumer expectations and customer engagement within the context of the Spotify platform. Utilizing a quantitative research design, data were collected from 150 students at the Faculty of Economics and Business, Bina Sarana Informatika University, through a structured questionnaire. The analysis employed Smart PLS to evaluate the relationships between the variables, with consumer expectations as the dependent variable, hyper-personalization and big data usage as independent variables, and customer engagement as an intervening variable. The findings reveal that while big data usage significantly enhances customer engagement, its direct influence on consumer expectations is negligible. Conversely, hyper-personalization demonstrates a strong positive effect on both consumer expectations and customer engagement. Furthermore, customer engagement positively impacts consumer expectations, indicating that increased interaction with personalized content elevates user satisfaction. These results suggest that marketers should focus on implementing effective hyper-personalization strategies to optimize consumer experiences and foster brand loyalty in the competitive digital music streaming landscape. This study contributes valuable insights into consumer behavior, emphasizing the essential role of data-driven personalization in shaping user expectations and engagement.
References
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Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (2005). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–50. https://doi.org/10.2307/1251430
Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (2020). The role of personalization in customer engagement: A new framework. Journal of Service Research, 23(3), 362–378. https://doi.org/10.1177/1094670519830138
Van Doorn, J., Lemon, K. N., Mittal, V., Nishiyama, S., & Pappu, R. (2010). Customer engagement behavior: Theoretical foundations and research directions. Journal of Service Research, 13(3), 253–266. https://doi.org/10.1177/1094670510375599
Wang, Y., Kung, L. A., & Byrd, T. A. (2018). Big data in healthcare: A systematic literature review. Health Information Science and Systems, 6(1), 1-10. https://doi.org/10.1007/s13755-018-0225-1
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (2020). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46. https://doi.org/10.2307/1251929
Zhao, Z., & Wu, Y. (2021). The double-edged sword of hyper-personalization: The effects of personalized recommendations on consumers’ trust and behavioral intention. Journal of Retailing and Consumer Services, 63, 102703. https://doi.org/10.1016/j.jretconser.2021.102703
Zikopoulos, P., Eaton, C., DeRoos, D., & Deutsch, T. (2012). Understanding Big Data: Analytics for Enterprise Class Hadoop and Streaming Data. McGraw-Hill. https://doi.org/10.1036/0071790357
Bennett, S., & Owers, K. (2020). The impact of personalization on user experience in digital music platforms. Journal of Interactive Marketing, 50, 75-88. https://doi.org/10.1016/j.intmar.2020.04.004
Bolton, R. N., Gustafsson, A., McColl-Kennedy, J. R., Sirianni, N. J., & Tse, D. K. (2014). Small details that make big differences: A radical approach to consumption experience as a firm's differentiating strategy. Journal of Service Management, 25(2), 253–274. https://doi.org/10.1108/JOSM-01-2014-0024
Brodie, R. J., Hollebeek, L. D., Juric, B., & Ilic, A. (2011). Customer engagement: Conceptualization, antecedents, and consequences. Journal of Service Research, 14(3), 252–271. https://doi.org/10.1177/1094670511411703
Chaffey, D. (2021). Digital Marketing: Strategy, Implementation, and Practice. Pearson Education. https://doi.org/10.1016/B978-0-12-819540-6.00001-4
Chen, Y., & Zhang, M. (2021). The impact of big data on marketing: Insights from real-time analytics and personalized strategies. Journal of Marketing Science, 39(3), 276–295. https://doi.org/10.1016/j.jmark.2020.12.004
Davenport, T. H., Guha, A., Grewal, D., & Bressgott, T. (2012). How big data is different. MIT Sloan Management Review, 54(1), 22–24. https://sloanreview.mit.edu/article/how-big-data-is-different/
Grewal, D., Hulland, J., Kopalle, P. K., & Karahanna, E. (2020). The future of technology and marketing: A multidisciplinary perspective. Journal of the Academy of Marketing Science, 48(1), 1-8. https://doi.org/10.1007/s11747-019-00706-7
Hollebeek, L. D. (2011). Demystifying customer brand engagement: Exploring the relationship between customer engagement and brand performance. Journal of Brand Management, 18(7), 590–610. https://doi.org/10.1057/bm.2011.2
Hollebeek, L. D., & Macky, K. (2019). Digital content marketing’s role in fostering consumer engagement, trust, and value: Framework, fundamental propositions, and implications. Journal of Interactive Marketing, 45, 27–41. https://doi.org/10.1016/j.intmar.2018.07.003
Hoyer, W. D., Kroschke, M., Schmitt, B., Kraume, K., & Shankar, V. (2020). Transforming the customer experience through new technologies. Journal of Interactive Marketing, 51, 57–71. https://doi.org/10.1016/j.intmar.2020.04.001
Kamal, M. M., Fadlalla, A. M., & Salama, A. (2021). Big data analytics and customer relationship management: A systematic review. Journal of Business Research, 124, 432–445. https://doi.org/10.1016/j.jbusres.2020.11.020
Kumar, V., Lemon, K. N., & Parasuraman, A. (2019). Managing the transition from customer management to customer engagement. Journal of Service Research, 22(3), 235–247. https://doi.org/10.1177/1094670518770301
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96. https://doi.org/10.1509/jm.15.0420
Liu, C., Li, S., & Zhang, Y. (2022). The impact of hyper-personalization on consumer trust in e-commerce: The role of data privacy concerns. Computers in Human Behavior, 128, 107091. https://doi.org/10.1016/j.chb.2021.107091
Malthouse, E. C., Haenlein, M., Skiera, B., Wege, E., & Zhang, M. (2013). Managing customer engagement in a multichannel environment. Journal of Interactive Marketing, 27(4), 270–280. https://doi.org/10.1016/j.intmar.2013.09.005
Martin, K. D., & Murphy, P. E. (2017). The role of data privacy in marketing ethics. Journal of Business Ethics, 143(1), 43–55. https://doi.org/10.1007/s10551-015-2782-3
McAfee, A., & Brynjolfsson, E. (2012). Big data: The management revolution. Harvard Business Review, 90(10), 60–68. https://hbr.org/2012/10/big-data-the-management-revolution
Mithas, S., Ramasubbu, N., & Mithas, S. (2013). How information management capability influences customer satisfaction: A study of the banking industry. Journal of Service Research, 16(1), 1–15. https://doi.org/10.1177/1094670512452806
Pappu, R., & Quester, P. G. (2021). The impact of brand trust on customer engagement and brand loyalty in the music streaming industry. Journal of Retailing and Consumer Services, 59, 102370. https://doi.org/10.1016/j.jretconser.2020.102370
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (2005). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–50. https://doi.org/10.2307/1251430
Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (2020). The role of personalization in customer engagement: A new framework. Journal of Service Research, 23(3), 362–378. https://doi.org/10.1177/1094670519830138
Van Doorn, J., Lemon, K. N., Mittal, V., Nishiyama, S., & Pappu, R. (2010). Customer engagement behavior: Theoretical foundations and research directions. Journal of Service Research, 13(3), 253–266. https://doi.org/10.1177/1094670510375599
Wang, Y., Kung, L. A., & Byrd, T. A. (2018). Big data in healthcare: A systematic literature review. Health Information Science and Systems, 6(1), 1-10. https://doi.org/10.1007/s13755-018-0225-1
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (2020). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46. https://doi.org/10.2307/1251929
Zhao, Z., & Wu, Y. (2021). The double-edged sword of hyper-personalization: The effects of personalized recommendations on consumers’ trust and behavioral intention. Journal of Retailing and Consumer Services, 63, 102703. https://doi.org/10.1016/j.jretconser.2021.102703
Zikopoulos, P., Eaton, C., DeRoos, D., & Deutsch, T. (2012). Understanding Big Data: Analytics for Enterprise Class Hadoop and Streaming Data. McGraw-Hill. https://doi.org/10.1036/0071790357
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2024-12-31
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