Interactive Value Creation - Mass Customization: About “Testing the Value of Customization: When Do Customers Really Prefer Products Tailored to Their Preferences?”
Essay from the year 2011 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 2,0, RWTH Aachen University, language: English, abstract: Due to the shift from seller to buyer markets in recent times, where instead of productivity and cost efficiency now other goals like quality, time and flexibility become more important, firms have to react. Furthermore, availability of modern information and communication technologies, notably the internet and the resulting market transparency enhances the bargaining power of customers. Along with globalization, shorter product life cycles, a wide variety of variants and increasing market saturation firms are confronted with highly competitive global markets. Therefore, it is all the more crucial that companies distinguish themselves in the market to succeed. An extremely important point in this context is the ability of firms to innovate. Only with innovative and marketable products a company can survive in a market in the long-term. To ensure innovativeness that is strongly linked with competitive advantage, sustainability and long term profitability firms are increasingly in search of new sources. Customer co-creation, customer integration, user innovation, open innovation and mass customization are just some terms behind which a new paradigm in technology and innovation management is hidden. The accurate umbrella-term for all these concepts is “interactive value creation”. Firms, most notably in the last four decades , recognized that external actors, especially customers and users, are a crucial source for innovative knowledge. Accordingly interactive value creation means the active integration of customers and users in the value creation process within a firm, so far mainly performed internally. In this regard, interactive value creation is primarily divided in two basic types: open innovation and mass customization (product individualization). Whereas, put simply, open innovation targets the innovation of new products by opening the innovation process to external actors, mass customization implies the development of individualized products. Within this thesis the focus lies particularly on mass customization.
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ability to express additionally based on Franke benefit gain Conclusion and Outlook conduct two independent context create higher benefits Crowdsourcing Customers Really Prefer customization literature customized newspapers customized products different products evaluate express one’s express preferences external actors factors firms five subsamples fountain pen Franke et al given expert paper Hippel Hypotheses individual preferences individualized products Innovation and Mass innovation process interactive value creation Keinz KNOWLEDGE HAS VALUE Lead user located at customers mass customization mass marketing methodology need information needs and preferences number of headlines online questionnaire open innovation opening the innovation Paper review participants were confronted perceived value Piller Prefer Products Tailored preference insight process to external product categories product involvement purchase intention Reichwald 2009 second study segment-specific newspaper segmentation and mass simulated solution information sticky information stimuli strategies Testing the Value toolkit User Innovation Value of Customization von Hippel 1988 www.GRIN.com Yasemin Sari