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Research Note—User Design of Customized Products

Author

Listed:
  • Taylor Randall

    () (David Eccles School of Business, University of Utah, 1645 E Campus Center Drive, Salt Lake City, Utah 84112)

  • Christian Terwiesch

    () (The Wharton School, University of Pennsylvania, 500 Huntsman Hall, Philadelphia, Pennsylvania 19104)

  • Karl T. Ulrich

    () (The Wharton School, University of Pennsylvania, 500 Huntsman Hall, Philadelphia, Pennsylvania 19104)

Abstract

User design offers tantalizing potential benefits to manufacturers and consumers, including a closer match of products to user preferences, which should result in a higher willingness to pay for goods and services. There are two fundamental approaches that can be taken to user design: systems and systems. With parameter-based systems, users directly specify the values of design parameters of the product. With needs-based systems, users specify the relative importance of their needs, and an optimization algorithm recommends the combination of design parameters that is likely to maximize user utility. Through an experiment in the domain of consumer laptop computers, we show that for parameter-based systems, outcomes, including measures for comfort and fit, increase with the expertise of the user. We also show that for novices, the needs-based interface results in better outcomes than the parameter-based interface.

Suggested Citation

  • Taylor Randall & Christian Terwiesch & Karl T. Ulrich, 2007. "Research Note—User Design of Customized Products," Marketing Science, INFORMS, vol. 26(2), pages 268-280, 03-04.
  • Handle: RePEc:inm:ormksc:v:26:y:2007:i:2:p:268-280
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    File URL: http://dx.doi.org/10.1287/mksc.1050.0116
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:joinma:v:36:y:2016:i:c:p:15-30 is not listed on IDEAS
    2. Marco Bertini & Luc Wathieu, 2008. "Research Note—Attention Arousal Through Price Partitioning," Marketing Science, INFORMS, vol. 27(2), pages 236-246, 03-04.
    3. Oksana Loginova, 2010. "Brand familiarity and product knowledge in customization," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(3), pages 297-309.
    4. repec:eee:touman:v:32:y:2011:i:4:p:750-758 is not listed on IDEAS
    5. Marrocu, Emanuela & Paci, Raffaele, 2011. "They arrive with new information. Tourism flows and production efficiency in the European regions," Tourism Management, Elsevier, vol. 32(4), pages 750-758.
    6. Nikolaus Franke & Martin Schreier & Ulrike Kaiser, 2010. "The "I Designed It Myself" Effect in Mass Customization," Management Science, INFORMS, vol. 56(1), pages 125-140, January.
    7. Ayd{i}n Alptekinou{g}lu & Charles J. Corbett, 2008. "Mass Customization vs. Mass Production: Variety and Price Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 204-217, August.
    8. repec:eee:ijrema:v:26:y:2009:i:2:p:136-152 is not listed on IDEAS
    9. Amit Pazgal & David Soberman, 2008. "Behavior-Based Discrimination: Is It a Winning Play, and If So, When?," Marketing Science, INFORMS, vol. 27(6), pages 977-994, 11-12.
    10. repec:eee:ijrema:v:29:y:2012:i:4:p:363-369 is not listed on IDEAS
    11. Gérard P. Cachon & Christian Terwiesch & Yi Xu, 2008. "On the Effects of Consumer Search and Firm Entry in a Multiproduct Competitive Market," Marketing Science, INFORMS, vol. 27(3), pages 461-473, 05-06.
    12. Anuj Kumar & Rahul Telang, 2011. "Product Customization and Customer Service Costs: An Empirical Analysis," Manufacturing & Service Operations Management, INFORMS, vol. 13(3), pages 347-360, July.
    13. Youn Kang & Won Lee, 2015. "Self-customization of online service environments by users and its effect on their continuance intention," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 321-342, June.
    14. Tuck Siong Chung & Roland T. Rust & Michel Wedel, 2009. "My Mobile Music: An Adaptive Personalization System for Digital Audio Players," Marketing Science, INFORMS, vol. 28(1), pages 52-68, 01-02.
    15. repec:eee:ijrema:v:26:y:2009:i:3:p:216-227 is not listed on IDEAS
    16. Rajeev Kohli & Kamel Jedidi, 2007. "Representation and Inference of Lexicographic Preference Models and Their Variants," Marketing Science, INFORMS, vol. 26(3), pages 380-399, 05-06.

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