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Consumer preferences for mass customization

Author

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  • Dellaert, B.G.C.

    (Marketing & Supply Chain Management)

  • Stremersch, S.

Abstract

Increasingly, firms adopt mass customization, which allows consumers to customize products by self-selecting their most preferred composition of the product for a predefined set of modules. For example, PC vendors such as Dell allow customers to customize their PC by choosing the type of processor, memory size, monitor, etc. However, how such firms configure the mass customization process determines the utility a consumer may obtain or the complexity a consumer may face in the mass customization task. Mass customization configurations may differ in four important ways – we take the example of the personal computer industry. First, a firm may offer few or many product modules that can be mass customized (e.g., only allow consumers to customize memory and processor of a PC or allow consumers to customize any module of the PC) and few or many levels among which to choose per mass customizable module (e.g., for mass customization of the processor, only two or many more processing speeds are available). Second, a firm may offer the consumer a choice only between very similar module levels (e.g., a 17” or 18” screen) or between very different module levels (e.g., a 15” or 21” screen). Third, a firm may individually price the modules within a mass customization configuration (e.g., showing the price of the different processors the consumer may choose from) along with pricing the total product, or the firm may show only the total product price (e.g., the price of the different processors is not shown, but only the computer’s total price is shown). Fourth, the firm may show a default version (e.g., for the processor, the configuration contains a pre-selected processing speed, which may be a high-end or low-end processor), which consumers may then customize, or the firm may not show a default version and let consumers start from scratch in composing the product. The authors find that the choices that firms make in configuring the mass customization process affect the product
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Suggested Citation

  • Dellaert, B.G.C. & Stremersch, S., 2004. "Consumer preferences for mass customization," Research Memorandum 042, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    • Handle: RePEc:unm:umamet:2004042
    DOI: 10.26481/umamet.2004042
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    References listed on IDEAS

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    Cited by:

    1. Bharadwaj, Neeraj & Naylor, Rebecca Walker & ter Hofstede, Frenkel, 2009. "Consumer response to and choice of customized versus standardized systems," International Journal of Research in Marketing, Elsevier, vol. 26(3), pages 216-227.
    2. Jin, Liyin & He, Yanqun & Song, Haiyan, 2012. "Service customization: To upgrade or to downgrade? An investigation of how option framing affects tourists’ choice of package-tour services," Tourism Management, Elsevier, vol. 33(2), pages 266-275.

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    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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