27 Questions
How does Stitch Fix combine algorithm and human judgment to determine customers' style?
The algorithm and stylist work together to determine the selections, with the stylist able to override the algorithm
What does Stitch Fix ask customers to do as part of their style profile?
Rate photo montages of different fashions and submit links to their social media
Why is the first 'Fix' the hardest for Stitch Fix?
Both the algorithm and the stylist are still learning about the customer's style
What does the text suggest about the Stitch Fix experience for many shoppers?
It is a unique experience that customers find addictive
What has been the primary criticism of fast-food chains targeting inner-city minority consumers?
They have been accused of pitching unhealthy food to low-income, urban residents.
What type of home mortgages have big banks and mortgage lenders been criticized for targeting to consumers in poor urban areas?
Adjustable-rate mortgages
Which of the following industries have been criticized for their marketing efforts directed toward children?
All of the above
What was the primary concern expressed by critics regarding McDonald's Happy Meal offers?
The trinkets and other items tied in with popular children's movies and TV shows were too powerful in connecting children to less-healthy eating.
How did McDonald's respond to the criticism of their Happy Meal offers?
They put the Happy Meal on a diet, cutting the overall calorie count by 20 percent, adding fruit to every meal, and promoting Happy Meals only with milk, water, and juice.
Which of the following best describes the main point of the passage?
The passage discusses how various industries have been criticized for their marketing practices targeting vulnerable populations, such as inner-city minorities and children.
What is the main drawback of local marketing mentioned in the text?
Increased manufacturing and marketing costs due to reduced economies of scale
Which term refers to tailoring products and marketing programs to the needs of individual customers?
Micromarketing
What is another term used for individual marketing in the text?
One-to-one marketing
What historical fact about customer service has been obscured by the widespread use of mass marketing?
Consumers were served individually for centuries before mass marketing
Why are companies increasingly turning to customized marketing according to the text?
To tailor products and programs to individual customer preferences
Which term is used in the text to describe companies returning to customized marketing?
Mass customization
What is the main purpose of Marriott’s Renaissance Hotels Navigator program?
To offer personalized and local recommendations for guests at each hotel location.
Who are the Navigators in the Renaissance Hotels Navigator program?
Locals extensively trained about the destination
How does the Navigator program at Renaissance Hotels differentiate guest experiences?
By providing personalized and local recommendations based on each location.
What qualities do Navigators in the Navigator program possess?
They are passionate locals with deep knowledge of the destination.
How does the Navigator program enhance guest experiences?
By offering personalized recommendations tailored to each guest's interests.
What is a key criterion for a brand difference to be worth establishing?
Being important to target buyers
In terms of communicability, a brand difference should be:
Visible and easily understood by buyers
Why did the differentiation strategy of the Westin Stamford Hotel in Singapore fail?
It was not important or valued by tourists
What does it mean for a brand difference to be preemptive?
Competitors cannot easily copy the difference
Which of the following is NOT a criterion for a brand difference to be worth establishing?
Unimportance
Why do companies need to consider if a brand difference is profitable?
To ensure long-term success and sustainability
Study Notes
Stitch Fix: Personalized Fashion Experience
- Stitch Fix positions itself as "Your partner in personal style" with a team of over 2,000 personal stylists who use a sophisticated algorithm to determine each customer's unique sense of style.
- Customers fill out a detailed style profile, rating photo montages and submitting links to social media, to help stylists assemble a personalized "Fix" of five clothing or accessory items.
- The stylist combines algorithmic results with human judgment to select items, which the customer can keep or return with feedback.
Marketing Controversies
- Companies have been criticized for targeting vulnerable audiences, such as low-income minorities, children, and urban residents, with unhealthy products and predatory marketing practices.
- Examples include fast-food chains, big banks, and marketers who target children with enticing offers and high-powered advertising.
Local Marketing
- Local marketing has drawbacks, such as increased manufacturing and marketing costs, as well as logistics problems.
- However, with the development of digital technologies, the advantages of local marketing often outweigh the drawbacks.
Individual Marketing
- Individual marketing, also known as one-to-one marketing, mass customization, and markets-of-one marketing, involves tailoring products and marketing programs to individual customers' needs and preferences.
- New technologies are enabling companies to return to customized marketing, such as Marriott's Renaissance Hotels' Navigator program, which hyper-localizes guest experiences at each location.
Establishing Brand Differences
- Not all brand differences are meaningful or worthwhile; each difference must satisfy certain criteria, including:
- Importance: delivering a highly valued benefit to target buyers
- Distinctiveness: competitors do not offer the difference or the company can offer it in a more distinctive way
- Superiority: the difference is superior to other ways that customers might obtain the same benefit
- Communicability: the difference is visible to buyers
- Preemption: competitors cannot easily copy the difference
- Affordability: buyers can afford to pay for the difference
- Profitability: the company can introduce the difference profitably
Discover your unique sense of style with Stitch Fix's personal styling quiz. Learn how over 2,000 personal stylists use sophisticated algorithms to curate your wardrobe based on your preferences and style profile.
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