Is personalization of services always a good thing? Exploring the role of technology‐mediated personalization (TMP) in service relationships

Abstract

PurposeDespite the strong intuitive appeal of personalization (through employees or, increasingly, through the use of software applications), relatively little is known about its role in managing service relationships. This study aims to explore the burgeoning area of technology‐mediated personalization and its effects on customer commitment to service relationships.Design/methodology/approachA theoretical perspective based on integrated reviews of service research and relationship marketing is developed and used to guide the exploration of personalization effects with qualitative data.FindingsPersonalization is not always good enhancement to service: its effects have contingencies and vary across the categories. Continuity personalization seems to be a promising area for researchers and practitioners.Research limitations/implicationsPersonalization effects should be rigorously studied. Continuity personalization seems to offer a promising area for future research.Practical implicationsThe intuitive belief about personalization is probably misleading. Whether or not personalization strategies help service relationships depends on their capacity to generate positive inferences on dimensions of performance, benevolence, and value provision. Out of the three types, continuity personalization offers a promising strategic option for managing ongoing customer relationships if well implemented.Originality/valueThe counter‐intuitive insights into personalization effects on relationship continuity address issues of theoretical and practical concerns.