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Article
Publication date: 28 November 2022

Xiaolun Wang, Xiaofeng Yu, Fan Feng and Peijian Song

Customization, a marketing strategy through providing personalized products, might be a new solution to motivate consumer feedbacks in electronic commerce (e-commerce) websites…

Abstract

Purpose

Customization, a marketing strategy through providing personalized products, might be a new solution to motivate consumer feedbacks in electronic commerce (e-commerce) websites. Taking the dual-value of customization (emotional involvement and uniqueness expression) as the theoretical basis, this study aims to investigate the impact of customization on consumer's word-of-mouth (WOM) behaviors and contents by motivating: (1) more, (2) faster, (3) positive at first and then negative, (4) longer and (5) more helpful WOMs.

Design/methodology/approach

A field study was conducted with multi-sourced data: customer order data from a Chinese retailer and WOM data from Amazon.com. The two datasets were matched to filter out 463 online reviews among 6,892 customers who placed customized orders. Heckman's two-stage model, logistic regression, Ordinary least squares regression, Tobit regression, analysis of covariance and Lind–Mehlum U Test were used in the data analysis.

Findings

This study has found that (1) customization level motivates WOM behaviors including WOM posting and WOM speed, (2) an inverted U-shaped relationship exists between customization level and consumer rating and (3) customization level has a significantly positive impact on WOM helpfulness but not on WOM length.

Originality/value

This study advances theoretical development in the area of WOM motivators by proposing a new product-centric approach, customization, to stimulate voluntary WOMs. Empirical field research that analyzes consumer's real responses to customization is in scarcity. The dual-value of customized products is proposed as the underlying mechanism to explain the impact of customization level on consumer's WOM behaviors/contents. An interesting inverted U-shaped relationship is found between customization level and customer rating. This research provides nuanced practical guidance for websites, companies and consumers.

Details

Information Technology & People, vol. 36 no. 7
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 8 May 2017

Juneho Um

A trade-off exists between product variety and supply chain (SC) performance. To help mitigate the impact on SC of increased product variety, the purpose of this paper is to…

2241

Abstract

Purpose

A trade-off exists between product variety and supply chain (SC) performance. To help mitigate the impact on SC of increased product variety, the purpose of this paper is to examine how variety management activities including variety management strategy (VMS), supplier partnerships and close customer relationships affect SC flexibility and agility at different levels of customisation.

Design/methodology/approach

A survey-research methodology is employed using data from 363 manufacturing firms from the UK and South Korea. In particular, cluster analysis and structural equation modelling were used to evaluate the proposed model according to the level of customisation.

Findings

The results suggest that internal variety management strategy and external SC integration have a positive influence on SC flexibility and agility. Customer relationships and variety management strategies influence SC flexibility more than partnerships with suppliers whereas variety management strategies and partnerships with suppliers influence SC agility more than customer relationships. In fact, for external integration in particular, customer relationships influence SC flexibility (i.e. reaction capability) rather than agility (i.e. reaction time) whereas partnerships with suppliers influence SC agility rather than flexibility. In a high-customisation context, close customer relationships are the most effective way to increase SC flexibility, whereas partnerships with suppliers are the most effective way to increase SC agility. In a low-customisation context, a VMS and customer relationships are the most effective way to increase both SC flexibility and agility.

Originality/value

This paper suggests key variety management activities to aid managers to better manage product variety ambitions in SC under varying customisation profiles through internal and external approaches.

Details

The International Journal of Logistics Management, vol. 28 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Abstract

Purpose

Ubiquitous web applications (UWA) are a new type of web applications which are accessed in various contexts, i.e. through different devices, by users with various interests, at anytime from anyplace around the globe. For such full‐fledged, complex software systems, a methodologically sound engineering approach in terms of model‐driven engineering (MDE) is crucial. Several modeling approaches have already been proposed that capture the ubiquitous nature of web applications, each of them having different origins, pursuing different goals and providing a pantheon of concepts. This paper aims to give an in‐depth comparison of seven modeling approaches supporting the development of UWAs.

Design/methodology/approach

This methodology is conducted by applying a detailed set of evaluation criteria and by demonstrating its applicability on basis of an exemplary tourism web application. In particular, five commonly found ubiquitous scenarios are investigated, thus providing initial insight into the modeling concepts of each approach as well as to facilitate their comparability.

Findings

The results gained indicate that many modeling approaches lack a proper MDE foundation in terms of meta‐models and tool support. The proposed modeling mechanisms for ubiquity are often limited, since they neither cover all relevant context factors in an explicit, self‐contained, and extensible way, nor allow for a wide spectrum of extensible adaptation operations. The provided modeling concepts frequently do not allow dealing with all different parts of a web application in terms of its content, hypertext, and presentation levels as well as their structural and behavioral features. Finally, current modeling approaches do not reflect the crosscutting nature of ubiquity but rather intermingle context and adaptation issues with the core parts of a web application, thus hampering maintainability and extensibility.

Originality/value

Different from other surveys in the area of modeling web applications, this paper specifically considers modeling concepts for their ubiquitous nature, together with an investigation of available support for MDD in a comprehensive way, using a well‐defined as well as fine‐grained catalogue of more than 30 evaluation criteria.

Details

International Journal of Web Information Systems, vol. 4 no. 3
Type: Research Article
ISSN: 1744-0084

Keywords

Article
Publication date: 15 October 2020

Parisa Bagheri Tookanlou and Hartanto Wijaya Wong

The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical…

1166

Abstract

Purpose

The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical dimensions.

Design/methodology/approach

This paper develops a model to evaluate when it is preferable for a firm to extend the product line in a vertical or horizontal direction. Consumers are modeled as being vertically heterogeneous with respect to their valuation of quality and horizontally heterogeneous with respect to their preference on the esthetic component of the product. These model characteristics allow us to consider a broader set of product line extension strategies. By considering both a vertically integrated channel and a decentralized channel, this study investigates how channel structure influences optimal product line design. The problem with supplemental numerical analyses is mathematically analyzed.

Findings

The analysis shows that a horizontal product line extension strategy that offers the customized product can be used as an alternative to a vertical product line extension strategy. If the fixed cost is not too high, offering the customized product with low quality may be preferred to the quality-based segmentation strategy. Furthermore, the analysis shows that the channel structure is influential as the preference for the horizontal product line extension strategy is more pronounced in the decentralized channel than in the centralized channel.

Research limitations/implications

The analysis presented in this paper is limited by the consideration of full market coverage. Further research is needed to see how the results can be generalized to the case with partial market coverage.

Practical implications

The analysis suggests that a firm may consider product customization as part of its product line strategy. Information regarding market characteristics and channel structure is important when deciding on the optimal product line design.

Originality/value

The model reflects a more realistic marketing strategy and channel structure than previous studies that typically consider product line extension in only one direction and focus on the centralized distribution channel. Combining the standard product line extension and customization strategies also represents an important contribution to the literature. These extensions produce interesting new results and insights into a firm’s optimal product line design strategy.

Details

European Journal of Marketing, vol. 55 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 August 2006

Thorsten Blecker and Nizar Abdelkafi

To identify and examine the origins of complexity in a mass customization system and to propose an effective application sequence of variety management strategies in order to cope…

5422

Abstract

Purpose

To identify and examine the origins of complexity in a mass customization system and to propose an effective application sequence of variety management strategies in order to cope with this complexity.

Design/methodology/approach

Through the application of Suh's complexity theory an understanding of the causes of complexity in the specific context of a mass customization environment is developed. This facilitates the identification of the strategies that are adequate to tackle the problems induced by complexity.

Findings

The mass customization system is a coupled system that cannot be mastered simply. It is definitely impossible to transform it to an uncoupled system with a low complexity level. However, the effective and targeted implementation of variety management strategies at the product and process levels enables the management of this complexity by making the system more decoupled.

Practical implications

Complexity can be decreased if managers ensure less dependency between the satisfaction of customer requirements and position of the decoupling point. It is also advantageous to reduce the coupling level between fast delivery requirement in mass customization and the decoupling point placement. Furthermore, an effective variety management calls for the implementation of the identified strategies in an ascending order of complexity reduction potential.

Originality/value

The article relates the complexity theory of Suh to mass customization system, provides a framework for the classification of variety management strategies and derives managerial recommendations so as to reduce the complexity in a mass customization environment.

Details

Management Decision, vol. 44 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 14 June 2011

Anu Bask, Mervi Lipponen, Mervi Rajahonka and Markku Tinnilä

Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and…

4968

Abstract

Purpose

Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and customization also exist and are appropriate for various business situations. The objective of this paper is to introduce a framework with which different customer service offerings, service production processes, and service production networks can be analyzed in terms of both modularity and customization.

Design/methodology/approach

The paper builds theory and offers a systematic approach for analyzing service modularity and customization. To illustrate the dimensions of the framework, the authors also provide service examples of the various aspects.

Findings

In the previous literature, the concepts of modularity and customization have often been discussed in an intertwined manner. The authors find that when modularity and customization are regarded as two separate dimensions, and different perspectives– such as the service offering, the service production process, and the service production network – are combined we can create a useful framework for analysis.

Research limitations/implications

Rigorous testing is a subject for future research.

Practical implications

The framework helps companies to analyze their service offerings and to compare themselves with other companies. It seems that in practice many combinations of modularity and customization levels are used in the three perspectives.

Originality/value

This paper develops a framework for analyzing service offerings in terms of modularity and customization. The framework provides a basis for analyzing different combinations of these two aspects from the three perspectives, and herein lies its value.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 January 2014

Pingjun Jiang, Siva K. Balasubramanian and Zarrel V. Lambert

Despite significant business spending in areas such as personalization tools and add-on options representing levels of product attributes, most marketers do not know the amount of…

2338

Abstract

Purpose

Despite significant business spending in areas such as personalization tools and add-on options representing levels of product attributes, most marketers do not know the amount of value that is directly attributable to their e-customization strategies. This study aims to offer an in-depth investigation of consumers' value perceptions of e-customization and their relationship with perceived sufficiency of information and cognitive cost. The context effects on value perception in e-customization are studied together with antecedent constructs.

Design/methodology/approach

The research consists of a 2×2 between-subjects factorial design. The full model is tested using multiple-group structural equation modeling analysis to verify the significance of the inter-relationships between constructs, as well as the main and the interaction effects of two experimental factors (product information framing and product type).

Findings

The experimental results showed that perceived e-customization value does not simply stem from the ability to “narrow-cast” content more specifically related to a shopper's interests (i.e. anticipated fulfillment value). Rather, this value also stems from the dynamic flexibility of the information system and its ability to entertain and educate during the information dissemination process (i.e. process value and knowledge value). Furthermore, when the customization framing features are better matched with product type characteristics, e-customization seemed to increase value in ways that are difficult to achieve in conventional shopping environments.

Originality/value

By testing the proposed structural model simultaneously with two experimental factors of product type and information framing, this work is the first to address the question of context effects on value creation in an area of increasing substantive importance.

Details

Journal of Consumer Marketing, vol. 31 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 30 March 2012

Pedro S. Coelho and Jörg Henseler

Although practitioners and scholars alike embrace service customization as a possibly powerful management instrument, its impact on customer relationships as well as contingencies…

26708

Abstract

Purpose

Although practitioners and scholars alike embrace service customization as a possibly powerful management instrument, its impact on customer relationships as well as contingencies for its effective application are not well understood. Drawing from relationship marketing and exchange theory, this paper aims to develop a model of customer relationship outcomes of service customization and the efficacy of service customization.

Design/methodology/approach

Two large‐scale, representative, cross‐sectional studies in different service industries based on the European Customer Satisfaction Index framework are conducted, and PLS path modeling is applied to test the model.

Findings

Customization increases perceived service quality, customer satisfaction, customer trust, and ultimately customer loyalty toward a service provider. Customization has both direct and mediated effects on customer loyalty and interacts with the effects of customer satisfaction and customer trust on loyalty.

Research limitations/implications

Service customization is a viable instrument for relationship marketing. Its efficacy depends on customer satisfaction and customer trust. While this study solely focuses on the impact of service customization, future research could assess the relative importance of service customization in the presence of other relationship marketing instruments.

Practical implications

Service providers can use service customization as an effective instrument for achieving not only higher customer satisfaction, but also higher customer loyalty. Service customization is most effective for companies that have deficits in satisfying their customers, while at the same time their customer relationships are characterized by a high level of trust. These results help managers to decide upon resource allocation to enhance customer satisfaction, trust and loyalty.

Originality/value

This paper investigates the simultaneous effects of service customization on customer loyalty and other relationships variables and offers new insights relatively to the nature and size of customization effects. It fills an important gap in the knowledge of customization outcomes, and clarifies under which circumstances service customization is most effective. The paper is of great value for service providers that face the decision whether to customize their offering or not.

Details

European Journal of Marketing, vol. 46 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 5 December 2016

Soon-Goo Hong, Keng Siau and Jong-Weon Kim

This paper aims to assess how enterprise resource planning (ERP) performance of Korean small and medium enterprises in manufacturing differs according to different levels of…

6021

Abstract

Purpose

This paper aims to assess how enterprise resource planning (ERP) performance of Korean small and medium enterprises in manufacturing differs according to different levels of business process reengineering (BPR), information strategic planning (ISP) and ERP customization.

Design/methodology/approach

A questionnaire survey was carried out in this research. Responses from 96 small and medium manufacturing companies that have adopted ERP systems were analyzed.

Findings

The results of this study suggest that ISP and BPR implementation are positively correlated to ERP performance.

Originality/value

While consulting and customization costs have positive impacts on ERP performance, the level of customization does not influence performance. As one of the pioneering studies that investigate the impact of BPR, ISP and ERP customization on small and medium manufacturing companies, this research contributes to both theory and practice.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 10 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Article
Publication date: 24 July 2020

Chunmin Lang, Sibei Xia and Chuanlan Liu

This study intends to examine consumers' fashion customization experiences through a web content mining (WCM) approach. By applying the theory of customer value, this study…

1197

Abstract

Purpose

This study intends to examine consumers' fashion customization experiences through a web content mining (WCM) approach. By applying the theory of customer value, this study explores the benefits and costs of two levels of mass customization (MC) to identify the values derived from style (i.e. shoe customization) and fit customization experiences (i.e. apparel customization) and further to compare the dominating dimensions of value derived across style and fit customization.

Design/methodology/approach

A WCM approach was applied. Also, two case studies were conducted with one focusing on style customization and the other focusing on fit customization. The brand Vans was selected to examine style customization in study 1. The brand Sumissura was selected to examine fit customization in study 2. Consumers' comments on customization experiences from these two brands were collected through social networks, respectively. After data cleaning, 394 reviews for Vans and 510 reviews for Sumissura were included in the final data analysis. Co-occurrence plots, feature extraction and grouping were used for the data analysis.

Findings

The emotional value was found to be the major benefit for style customization, while the functional value was indicated as the major benefit for fit customization, followed by ease of use and emotional value. In addition, three major themes of costs, including unsatisfied service, disappointing product performance and financial risk, were revealed by excavating and evaluating consumers' feedback of their actual clothing customization experiences with Sumissura.

Originality/value

This study initiates the effort to use web mining, specifically, the WCM approach to thoroughly investigate the benefits and costs of MC through real consumers' feedback of two different types of fashion products. The analysis of this study also reflects the levels of customization: style and fit. It provides an in-depth text analysis of online MC consumers' feedback through the use of feature extraction analysis and word co-occurrence networks.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 25 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

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