Trade-offs in customized services and the customer point of view

Rafael Teixeira and Ely Laureano Paiva

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2008, vol. 12, issue 2, 457-480

Abstract: Trade-offs in operations strategy can be defined as the performance incompatibility between two or more different competitive criteria. Customized services imply slower delivery time and high production costs than in standardized services. Considering that customer's preferences will affect the strategic decisions about competitive criteria and trade-offs, this research aimed to evaluate customization, delivery speed and low price attributes from the customer's perspective, analyzing the trade-offs among them. The literature has put little emphasis on the influence of the customers over trade-offs. In order to assess the importance of each service's attribute, a survey was applied to 243 customers a data communication customized service provided by a tellecommunication company. The results indicated that trade-offs analyzed do not present the relations expected, especially between customization and delivery speed. On the other hand, the results suggest that the trade-off between customization and costs is relevant for the service analyzed.

Date: 2008
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