Bundling, Mass Customization and Competition under Consumption Uncertainty

Luca Petruzzellis and Ernesto Somma
Additional contact information
Luca Petruzzellis: Dipartimento Studi Aziendali e Giusprivatistici, University of Bari, Italy
Ernesto Somma: Dipartimento Scienze Economiche, University of Bari, Italy

Chapter 15 in Handbook of Research in Mass Customization and Personalization:(In 2 Volumes), 2009, pp 275-294 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractMass customization is redefining firm strategies as well as consumer expectations and consumption. This paper analyzes and compares the profitability of two distinct business strategies: bundling vs mass customization within a duopoly with differentiated goods and consumer uncertainty. The number and categories of highly customized and customizable products is wide. On the other hand, bundling is ever more pervasive in today's markets, such as entertainment, consumer goods, Internet services, multimedia personal computers, catering, and education.The attention is focused on information goods, i.e. products with large amount of digital content, which facilitates the customizability of the products. In conclusion, mass customization is seen as an alternative strategy to differentiate firms in a highly competitive and segmented market, since it helps to provide customers with personalized products and services at a reasonably low costs through flexible mass production, thus reaching both a vast number of customers while responding to individual needs.

Keywords: Mass Customization; Personalization; Engineer-to-Order; Open Innovation; User Co-Creation; Modularity; Platform Design; Customer Centricity (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814280280_0015 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814280280_0015 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789814280280_0015

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().