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Company-customer interaction in mass customization

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  • Jost, Peter-J.
  • Süsser, Theresa

Abstract

In a game-theoretic model of mass customization, we integrate consumers into a manufacturer's production process and define the degree of company-customer interaction as level of mass customization. Adjusting an individually customized product to her preferences implies opportunity costs for the consumer. We study how the manufacturer's trade-off between diseconomies of scale and higher profit margins is affected by each consumer's trade-off between tailoring the product to her need and her interaction costs.

Suggested Citation

  • Jost, Peter-J. & Süsser, Theresa, 2020. "Company-customer interaction in mass customization," International Journal of Production Economics, Elsevier, vol. 220(C).
    • Handle: RePEc:eee:proeco:v:220:y:2020:i:c:s0925527319302646
    DOI: 10.1016/j.ijpe.2019.07.027
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