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Mass Customization

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Many implementations of mass customization are operational today,

such as software-based product configurators that make it possible to

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add and/or change functionalities of a core product or to build fully

custom enclosures from scratch. This degree of mass customization,

however, has only seen limited adoption. If an enterprise's marketing

department offers individual products (atomic market fragmentation)

it doesn't often mean that a product is produced individually, but

rather that similar variants of the same mass-produced item are

available.

Companies that have succeeded with mass-customization business

models tend to supply purely electronic products. However, these are

not true "mass customizers" in the original sense, since they do not

offer an alternative to mass production of material goods.

Variants

Pine II (1992) described four types of mass customization:

Collaborative customization (also considered co-creation) - Firms talk

to individual customers to determine the precise product offering that

best serves the customer's needs (see personalized marketing and

personal marketing orientation). This information is then used to

specify and manufacture a product that suits that specific customer.

For example, some clothing companies will manufacture blue jeans to

fit an individual customer. This is also being taken into deeper

customization via 3D printing with companies like Shapeways.

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Examples: Tailored suits; Converse lets consumers chose the color or

pattern of every element of certain types of shoes, either in-store or

online.

Adaptive customization - Firms produce a standardized product, but

this product is customizable in the hands of the end-user (the

customers alter the product themselves). Example: Lutron lights,

which are programmable so that customers can easily customize the

aesthetic effect.

Transparent customization - Firms provide individual customers with

unique products, without explicitly telling them that the products are

customized. In this case there is a need to accurately assess customer

needs. Example: Google AdWords and AdSense

Cosmetic customization - Firms produce a standardized physical

product, but market it to different customers in unique ways.

Example: Soft Drink served in: A can, 1.25L bottle, 2L bottle.

He suggested a business model, "the 8.5-figure-path", a process going

from invention to mass production to continuous improvement to

mass customization and back to invention.