scholarly journals Mass Customization Versus Mass Production: Variety and Price Competition

2005 ◽  
Author(s):  
Aydin Alptekinoglu ◽  
Charles J. Corbett
Keyword(s):  
Mass Customization ◽  
Mass Production ◽  
Price Competition

scholarly journals Social Housing Customization in Brazil

Encyclopedia ◽  
2021 ◽  
Vol 1 (3) ◽  
pp. 589-601
Author(s):  
Luisa Felix Dalla Vecchia ◽  
Nirce Saffer Medvedovski
Keyword(s):  
Mass Customization ◽  
Mass Production ◽  
Social Housing ◽  
Construction Process ◽  
Negative Consequences ◽  
Family Needs ◽  
Unit Design ◽  
The City ◽  
Development And Evolution ◽  
Housing Units

Social housing customization in Brazil refers to the current processes of development and evolution of government-funded neighborhoods for the lowest-income population. The mass production of small housing units that do not satisfy family needs instigates a self-design and self-construction process post-occupancy to customize the units. Ultimately, these changes to the units bring unintended negative consequences for the families and the city. In this context, mass customization is seen as an alternative to address some of the problems related to unit design.

scholarly journals Competitive Effects of Mass Customization

2012 ◽  
Vol 10 (1) ◽  
Author(s):  
Oksana Loginova
Keyword(s):  
Product Differentiation ◽  
Mass Customization ◽  
Operations Management ◽  
Price Competition ◽  
Comparative Statics ◽  
Consumer Involvement ◽  
The Other ◽  
Fixed Cost ◽  
Competitive Effects ◽  
Customized Products

Abstract The existing theoretical literature on mass customization maintains that customization reduces product differentiation and intensifies price competition. In contrast, operations management studies argue that customization serves primarily to differentiate a company from its competitors. Interactive involvement of the customer in product design creates an affective relationship with the firm, relaxing price competition. This paper provides a model that incorporates consumer involvement to explain the phenomena described in the operations management literature.Two firms on the Hotelling line compete for a continuum of consumers with heterogeneous brand preferences. An exogenously given fraction of consumers is potentially interested in customization. Consumer benefits from customization are the rewards from a special shopping experience and the value of product customization (a better fitting product); these benefits are higher for consumers located closer to the customizing brand. When a consumer purchases a customized product, he/she incurs waiting costs. Each firm simultaneously decides whether to offer standard products, customized products, or both, and then engage in price competition. I show that customization increases product differentiation, leading to less intense price competition. Depending on the parameter values, in equilibrium either both firms offer customized products, one firm offers customized products and the other standard and customized products, or one firm offers customized products and the other standard products. I perform comparative statics analysis with respect to the fraction of consumers interested in customization, the waiting costs, and the fixed cost of customization.

scholarly journals The Features of the Concept of Mass Customization

2015 ◽  
Vol 16 (2) ◽  
pp. 132-139 ◽  
Author(s):  
Ilona Skačkauskienė ◽  
Sigitas Davidavičius
Keyword(s):  
Comparative Literature ◽  
Competitive Advantage ◽  
Mass Customization ◽  
Mass Production ◽  
Research Area ◽  
Service Organizations ◽  
Synthesis Methods ◽  
Literature Analysis ◽  
Delivery Time ◽  
Market Conditions

In order to achieve competitive advantage organizations are forced to analyse and discuss application possibilities of customized solutions. Unfortunately, the application of such solutions is associated with increases in costs, raising the time of delivery and decreasing the level of quality compared to mass-produced products. Circa 1990 the concept of mass customization was proposed which solved mentioned problems and which, compared to the mass production, has properties necessary for more efficient adaptation to changing market conditions without making concessions in price, quality and delivery time. This paper analyses the concept of mass customization aiming to define research area in order to adapt the concept for service organizations. The analysis of mass customization definitions presented in the literature was processed and summary presented, this enabled to identify the main dimensions which are characterizing mass individualization. The main types of mass customization were presented and analysed in this article as well. Comparative literature analysis, abstraction and synthesis methods were applied during the research. The results of analysis enabled to formulate guidelines of further research.

Mass Customization with Configurable Products and Configurators

2011 ◽  
pp. 1-32 ◽  
Author(s):  
M. Heiskala
Keyword(s):  
Systematic Review ◽  
Information Systems ◽  
Mass Customization ◽  
Mass Production ◽  
Future Research ◽  
Customer Requirements ◽  
Research Directions ◽  
Customer Perspective ◽  
Future Research Directions ◽  
Configurable Products

Configurable products are an important way to achieve mass customization. A configurable product is designed once, and this design is used repetitively in the sales-delivery process to produce specifications of product individuals meeting customer requirements. Configurators are information systems that support the specification of product individuals and the creation and management of configuration knowledge, therefore being prime examples of information systems supporting mass customization. However, to the best of our knowledge, there is no systematic review of literature on how mass customization with configurable products and use of configurators affect companies. In this chapter, we provide such a review. We focus on benefits that can be gained and challenges which companies may face. A supplier can move to mass customization and configuration from mass production or from full customization; we keep the concerns separate. We also review benefits and challenges from the customer perspective. Finally, we identify future research directions and open challenges and problems.

Henry Ford and the Model T: Lessons for Product Platforming and Mass Customization

2008 ◽  
Author(s):  
Fabrice Alizon ◽  
Steven B. Shooter ◽  
Timothy W. Simpson
Keyword(s):  
Mass Customization ◽  
Mass Production ◽  
Economies Of Scale ◽  
Production Systems ◽  
Product Line ◽  
Innovative Product ◽  
The Past ◽  
Henry Ford ◽  
Current Practices

Everyone knows Henry Ford’s famous maxim: “You can have any color car you want so long as it’s black”. While he is recognized as the father of mass production, his contributions extend well beyond that, offering valuable lessons for product platforming and mass customization. While Ford’s pioneering production systems are widely known and studied, few realize that Ford’s Model T could be viewed as one of the greatest platforms ever created, enabling his workers to customize this model for a variety of different markets. In this paper, we study Ford’s Model T in depth and describe insights into Ford’s vision and his car: how the platform was built, how it was leveraged, and how the platform was maintained dynamically and with continuous improvements to maximize learning and economies of scale. Finally, we compare Ford’s approach to more current approaches to learn from his innovative product line. In some aspects this old car still runs faster than us, and we can learn valuable lessons from the past to avoid future mistakes and improve current practices.

Mass Customization Based on Energy-Saving Concept - In the New Economic Era as the Background

2012 ◽  
Vol 472-475 ◽  
pp. 3282-3285
Author(s):  
Tian Ming Xiao
Keyword(s):  
Energy Saving ◽  
Mass Customization ◽  
Mass Production ◽  
Implementation Process ◽  
Production Model ◽  
Production Mode ◽  
Traditional Production

In the new economic era as the background, explore the energy-saving advantages of the production mode of Mass Customization than the traditional production model of Mass Production.And show the implementation process of mass customization production model by an example. In the end,it is pointed that Mass Customization production model has unmatched energy-saving advantages than the traditional Mass Production production mode and should become the dominant production mode in new economic era.

From Mass Production to Mass Customization of LED Lighting Systems - Case Study

2015 ◽  
Vol 760 ◽  
pp. 671-676
Author(s):  
Traian Mazilu ◽  
Aurel Tarara
Keyword(s):  
Mass Customization ◽  
Mass Production ◽  
Business Strategy ◽  
Production Systems ◽  
Led Lighting ◽  
New Strategy ◽  
Complex Engineering ◽  
Lighting Systems ◽  
Core Capabilities

This case study describes the transition and the evolution from mass production to mass customization in the case of highly complex engineering products, LED lighting systems, and how can some of the principles of this mass customization`s business strategy may be applied. It is analyzed the capabilities of the existing production systems within a company producing lighting systems, as well as the flexibility and ability to adapt in order to introduce new customized products. The study aims to analyze the strategic principles formed around the company’s core capabilities, the competitive advantages offered by introducing this new strategy as well as its limitations. In the end we will give an overview on the development of mass customization of LED lighting system.

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