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Procurement Mechanisms for Customized Products

In: Handbook of Research in Mass Customization and Personalization (In 2 Volumes)

Author

Listed:
  • Songlin Chen

    (Nanyang Technological University, Singapore)

  • Mitchell Tseng

    (Hong Kong University of Science and Technology, Hong Kong, China)

Abstract

Customization is essentially a “pull” system and customers' demand for customized products is the ultimate force that drives a customization business. This chapter views customization from the demand side and looks into customers' procurement decisions for customized products. A conceptual framework based on contract theory and axiomatic design theory is constructed to characterize the essential decisions involved in procuring customized products. Based on the framework, this chapter identifies the key barriers that prevent customers from effectively tapping into the value of customization and explores alternative procurement mechanisms to overcome these barriers.

Suggested Citation

  • Songlin Chen & Mitchell Tseng, 2009. "Procurement Mechanisms for Customized Products," World Scientific Book Chapters, in: Frank T Piller & Mitchell M Tseng (ed.), Handbook of Research in Mass Customization and Personalization (In 2 Volumes), chapter 25, pages 513-533, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814280280_0025
    as

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