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Article
Publication date: 8 January 2018

Hassan Daronkola Kalantari and Lester Johnson

The purpose of this paper is to find out how consumers constantly trade off the potential extra cost of mass customisation with the additional time they have to wait to receive…

1260

Abstract

Purpose

The purpose of this paper is to find out how consumers constantly trade off the potential extra cost of mass customisation with the additional time they have to wait to receive their customised products.

Design/methodology/approach

The authors examine this issue by using conjoint analysis to estimate the trade-offs using a sample of Australian consumers. The authors use cluster analysis to form market segments in the three product categories examined.

Findings

The segments demonstrate that there are groups of customers who are quite willing to trade-off price with waiting time. The results have significant implications for Australian manufacturers who are contemplating moving into mass customisation.

Originality/value

Many researchers have investigated the issue of a customer’s readiness to buy a customised product. In particular, they have examined whether customers are willing to pay extra for a mass-customised product, whether they would spend some time to design it, as well as wait to receive it. There has been no study that has examined all three factors simultaneously. The results of this study can help manufacturers form a better understanding of customer willingness for purchasing mass-customised products.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 30 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 11 February 2021

Ali Mursid and Cedric Hsi-Jui Wu

This study aims to elucidate customer participation and value co-creation in enhancing customer loyalty in the context of Umrah travelers. First, it identifies the antecedents of…

1501

Abstract

Purpose

This study aims to elucidate customer participation and value co-creation in enhancing customer loyalty in the context of Umrah travelers. First, it identifies the antecedents of Umrah travelers’ participation including service brand image, service employee performance and willingness to customize. Second, this study explores the impact of Umrah travelers’ participation in Umrah travelers’ loyalty. Finally, it explores co-creation value (hedonic, refreshment and price) and Umrah travelers’ satisfaction emerging in the relationship between Umrah travelers’ participation and Umrah travelers’ loyalty.

Design/methodology/approach

The survey draws its respondents from Umrah participants in Central Java Province, Indonesia, using the purposive sampling method with 459 samples. Data analysis used confirmatory factor analysis and structural equation modeling.

Findings

The results reveal that service brand image, service employee performance and willingness to customize significantly affect Umrah travelers’ participation. Umrah travelers’ participation has an insignificant effect on Umrah travelers’ loyalty; conversely, Umrah travelers’ participation has a significant effect on co-creation value (hedonic value, refreshment and price). Only the price of the co-creation value has a significant effect on Umrah travelers’ loyalty, while hedonic value and refreshment value do not. Finally, Umrah travelers’ participation directly affects Umrah travelers’ satisfaction, and, in turn, Umrah travelers’ satisfaction impacts Umrah travelers’ loyalty.

Originality/value

This study attempts to elucidate the theory of customer participation and value co-creation in the Umrah travelers setting. It identifies the factor determiner of customer participation from the professional aspects of the company, namely, service brand image, service employee performance and willingness to customize. This study explored the importance of value co-creation and customer satisfaction in enhancing customer loyalty.

Article
Publication date: 12 April 2011

Yu‐Xiang Yen, Edward Shih‐Tse Wang and Der‐Juinn Horng

This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and…

3787

Abstract

Purpose

This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and trust regarding perceived switching costs.

Design/methodology/approach

Research data were collected from electronics firms in Taiwan; 281 questionnaires were collected. Structural equation model (SEM) analysis was applied to the data.

Findings

The study suggests that perceived trust contributes to perceived switching costs. The perceived willingness of a supplier to customize for a buyer can indirectly impact on perceived switching costs by way of perceived trust toward the supplier. Furthermore, analysis of the direct and indirect effects reveals that effective communication plays a dominant role and has a significant influence on trust and perceived switching costs.

Originality/value

While recent research increasingly examines customer switching costs in terms of antecedents, this study provides greater insight into switching costs from the trust‐forming perspective to ensure customer retention.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 29 January 2007

Yu‐Hui Chen and Stuart Barnes

Online trust is one of the key obstacles to vendors succeeding on the internet medium; a lack of trust is likely to discourage online consumers from participating in e‐commerce…

30371

Abstract

Purpose

Online trust is one of the key obstacles to vendors succeeding on the internet medium; a lack of trust is likely to discourage online consumers from participating in e‐commerce. This research aims to investigate how online consumers develop their initial trust and purchase intentions. The research in conducted in the context of Taiwanese online bookstores.

Design/methodology/approach

The research examines consumers' online initial trust by using four major categories of determinants: perceived technology, perceived risk, company competency, and trust propensity. It also investigates the impacts of both online initial trust and familiarity with online purchasing on purchase intention. The research model is statistically tested using the web sites of four online bookstores in Taiwan. The web site selected by each respondent is unfamiliar.

Findings

It is found that perceived usefulness, perceived security, perceived privacy, perceived good reputation, and willingness to customise are the important antecedents to online initial trust. It is also discovered that different levels of trust propensity moderate perceptions toward the web site and online with respect to online initial trust, including perceived usefulness, perceived security, perceived privacy, perceived good reputation, and willingness to customise. Both online initial trust and familiarity with online purchasing have a positive impact on purchase intention.

Originality/value

The research provides insight into the development of online initial trust by consumers, and the relationships between online initial trust and purchase intention. The research model was created and then tested in the context of online bookshops in Taiwan.

Details

Industrial Management & Data Systems, vol. 107 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 23 January 2024

Rapeeporn Rungsithong and Klaus E. Meyer

Trust is an important facilitator of successful B2B relationships. The purpose of this study is to investigate affect-based antecedents of both interpersonal and…

146

Abstract

Purpose

Trust is an important facilitator of successful B2B relationships. The purpose of this study is to investigate affect-based antecedents of both interpersonal and interorganizational trust, and their impact on the performance of buyer–supplier relationships. The authors ask two research questions: (1) What are affect-based dimensions of interpersonal and interorganizational trust? (2) How do interpersonal and interorganizational trust influence buyers’ operational performance?

Design/methodology/approach

The authors use data from an original survey of 156 buyer–supplier relationships between multinational enterprise subsidiaries and local suppliers in the Thai manufacturing sector to develop a structural model in which the authors test the hypotheses.

Findings

Consistent with social exchange theory and social psychology, the empirical analysis shows that affect-based dimensions at the individual level, namely, likeability, similarity and frequent social contact, and at the organizational level, namely, supplier firm willingness to customize and institutionalization of cooperation, are important for establishing trust. In addition, interpersonal trust enhances buyers’ operational performance indirectly via interorganizational trust.

Practical implications

Buying and selling firms may develop organizational trust by developing processes that enhance organizational trust. Individuals with purchasing or sales responsibilities may enhance trust in their personal relationship. However, such interpersonal trust needs to be translated to the organizational level to benefit organizational performance.

Originality/value

The findings contribute to the literature on affect-based antecedents and outcomes of trust. Specifically, the authors offer theory and empirical evidence regarding the contribution of salespersons toward affect-based dimensions of trust and its impact on buyer’s operational performance.

Details

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

Keywords

Article
Publication date: 15 March 2022

Ana Isabel Rodríguez-Escudero, Carmen Camarero-Izquierdo and María Redondo-Carretero

The decision concerning the degree of product and service customization is crucial, yet has scarcely been studied for small businesses in business-to-business (B2B) contexts…

Abstract

Purpose

The decision concerning the degree of product and service customization is crucial, yet has scarcely been studied for small businesses in business-to-business (B2B) contexts. Although such a decision allows relationships with potential customers to be strengthened, it might involve high opportunity costs given the investment required. This paper aims to analyse the profitability of customization undertaken by small businesses in terms of cost–benefit and examine the drivers of profitable customized projects vis-à-vis the ability to strengthen relationships with clients (relationship investment and customer involvement) and the firm’s resources related to processes and technology (expertise and modularity).

Design/methodology/approach

To test the proposed hypotheses, data were collected from 140 small Spanish firms involved in two sectors characterized by the offer of customized solutions: information and professional, scientific and technical services.

Findings

Analysis reveals that customer involvement in the customized solution, even when it requires investing in equipment, time or human resources has a positive effect on customization and ultimately on profitability, as the cost of this customer interaction is lower than the revenue it provides. Likewise, supplier investment in the relationship allows for a solution that is adapted to the client, although it requires a cost associated with investing in specific assets. Such costs cancel out the positive indirect effect through the customized solution. Finally, expertise enables appropriate use of the flexibility derived from modularity to satisfy customer requirements, with both being key company resources for driving profitability through customized solutions.

Originality/value

This study makes a contribution to the domain of customization. The authors extend current knowledge on B2B customization by proving that small firms can use their available capabilities and knowledge to achieve a successful customization strategy.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 24 April 2023

Chen Wang, Ran Zhang, Taiwen Feng and Jingyi Tao

This study aims to investigate the impact of environmental responsibility (ER) on consumers' green customization intention (GCI), as well as the separate and joint moderating…

Abstract

Purpose

This study aims to investigate the impact of environmental responsibility (ER) on consumers' green customization intention (GCI), as well as the separate and joint moderating effects of consumers' negative perceptions and environmental claim type (ECT) on the relationship between ER and GCI.

Design/methodology/approach

In this study, two online experimental questionnaires and one between-subject lab experiment were conducted to test all hypotheses.

Findings

This study found that high-ER consumers are more likely to choose environmental options in the product customization process (versus low ER). The effect of ER on consumers' GCI is moderated by consumers' negative perceptions of green consumption (e.g. green skepticism and perceived environmental premium (PEP)). Additionally, ECT's joint moderating effect and consumers' negative perception of green customization consumption can be decreased by a substantive (versus associative) claim type in message framing.

Practical implications

The findings provide new insights into the factors affecting consumers' GCIs and have significant practical implications. First, consumers' different ER levels should not be neglected when examining the value of green customization. Second, consumers' green skepticism and PEP could reduce consumers' GCI. Third, the use of substantive environmental claims may also be particularly helpful for companies' communication strategies regarding consumers' low-level negative perceptions of green options.

Originality/value

While previous studies state “environmental responsibility” as a key characteristic of general green consumption, the authors extend that to a green customization process and connect that with consumers' negative perceptions and ECT. In addition, the separate and joint moderating effects of consumers' negative perceptions and ECT were examined. Thus, these findings refine the existing understanding of the relationship between ER and green customization.

Article
Publication date: 16 August 2019

Kaisa Vehmas, Olga Lavrusheva, Anu Seisto, Kaisa Poutanen and Emilia Nordlund

The purpose of this paper is to investigate a healthy snacking and on-the-go eating concept, “Healthy Snack Machine” (HSM) that produces freshly made food and enables…

Abstract

Purpose

The purpose of this paper is to investigate a healthy snacking and on-the-go eating concept, “Healthy Snack Machine” (HSM) that produces freshly made food and enables customization of the product at site of purchase and consumption.

Design/methodology/approach

The study applied qualitative and quantitative consumer research methods and used iterative co-creation approach, meaning that the HSM concept was developed by consumer input during different phases. Specifically, the research included three qualitative methods, web platform discussion (n=109), a HSM mock-up study (n=30) and testing a prototype of the HSM user interface (n=50), as well as a quantitative study (n=215).

Findings

Generally, the consumers evaluated the HMS concept positively. The results indicated that the time of the day, personal goals and preferences affected food choice and product customization in HSM. Consumers preferred HSM products that were healthy, satiating and suitable for on-the-go eating. They also felt that HSM would save time, and that the possibility to customize the food gives them additional value. The results also pointed out the importance of privacy and security issues in the HSM concept.

Practical implications

The results indicated that consumers are in favor of a new delivery concept that can help them to consume healthy food and enable customization of the product. This encourages to proof the findings in consumer tests with a real food-producing prototype machine.

Originality/value

The work gives original insight on consumer preferences for healthy snacking and snack customization enabled by digital technologies and consecutive co-creation methodologies.

Details

British Food Journal, vol. 121 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 April 1999

Graça Amaro, Linda Hendry and Brian Kingsman

Presents a new taxonomy for the non make‐to‐stock sector to enable a like‐with‐like comparison, arguing that existing taxonomies within the literature are inadequate for…

3814

Abstract

Presents a new taxonomy for the non make‐to‐stock sector to enable a like‐with‐like comparison, arguing that existing taxonomies within the literature are inadequate for strategic research purposes. Presents empirical evidence which has been collected from 22 companies in three European countries – the UK, Denmark and The Netherlands. The data support the structure of the proposed new taxonomy and provide insights into competitive advantage and customisation issues in the non make‐to‐stock sector. Finally, two new labels for this sector of industry are proposed. “Versatile manufacturing company” is used to describe those manufacturers which are involved in a competitive bidding situation for every order which they receive, customisation by individual order. In contrast, the “Repeat business customiser” may only be in this position for the first of a series of similar orders from a particular customer, customisation by contract.

Details

International Journal of Operations & Production Management, vol. 19 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 27 May 2014

Tsu-Wei Yu and Feng-Cheng Tung

The purpose of this paper is to explore the antecedents and consequences of insurer trust and salesperson trust, as well as the relationships between insurer, salesperson, and…

Abstract

Purpose

The purpose of this paper is to explore the antecedents and consequences of insurer trust and salesperson trust, as well as the relationships between insurer, salesperson, and customer loyalty in order to build a conceptual model which investigates the relationships of insurer trust and salesperson trust, and finds ways to build trust and customer loyalty in the non-life insurance industry in Taiwan.

Design/methodology/approach

The data for this study were collected from the customers of non-life insurers’ policyholder service centres and were analysed using in-depth interviews and questionnaires. Structural equation modelling (SEM) was to assess the proposed research model empirically.

Findings

This study finds that firm size did not have a significant effect on insurer trust. Customer trust in the insurer was negatively but not significantly related to customer trust in the salesperson. Additionally, when relatives or friends are insurance salespersons; it is easy to build trust with them.

Originality/value

This study provides non-life insurers with new avenues for promoting and marketing their insurance.

Details

Marketing Intelligence & Planning, vol. 32 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

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