Company-customer interaction in mass customization

Peter-J. Jost and Theresa Süsser

International Journal of Production Economics, 2020, vol. 220, issue C

Abstract: In a game-theoretic model of mass customization, we integrate consumers into a manufacturer's production process and define the degree of company-customer interaction as level of mass customization. Adjusting an individually customized product to her preferences implies opportunity costs for the consumer. We study how the manufacturer's trade-off between diseconomies of scale and higher profit margins is affected by each consumer's trade-off between tailoring the product to her need and her interaction costs.

Keywords: Mass customization; Product differentiation; Customer integration; Degree of customization (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:220:y:2020:i:c:s0925527319302646

DOI: 10.1016/j.ijpe.2019.07.027

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