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Markets of One: Creating Customer-Unique Value through Mass Customization
... • relevant organizational structure that improves coordination between modules [12]. Benefits: ...
... Because Individual Claims are different order management is a critical factor in the relationship between the customer and the company. Therefore, any company that wants to meet the requirements should have an established system that would include the open profiles of each customer and would be so easy to meet its requirements [9][10][11][12][13]. ...
... The result is a much higher degree of decentralization in decision-making. In addition, the structure is open to both suppliers and customers because (suppliers and customers) are seen as an extension of the organization [5,12]. ...
Mass customization does not mean the production of products of one type, as was the case in classical mass production. It is the production of a large number of product variants, of the same product family at competitive costs of mass production and quantity economics. New production concepts for Industry 4.0 and mass customization will require totally revolutionary ways of planning and managing production. These must be based on the autonomy and application of artificial intelligence and evolutionary principles.
... Dayold homogeneous markets have left their place to heterogeneous and fragmented markets in terms of consumer needs and preferences (Hart, 1995). With the increase in income and the ease to access to information, consumers have achieved a much stronger position in the market (Gilmore and Pine, 2000). As a result, consumers are no longer satisfied with what is offered to them and demand more variety and uniqueness. ...
... Although these changes in the dynamics of the market have made it imperative for business to be consumer-oriented, most of them have embraced market-oriented approach and taken into consideration the average demands of market segments instead of consumers' individual desire for a long time (Anderson, 1998). This approach, however, leads to a gap between what customers want and what businesses offer (Gilmore and Pine, 2000). Recognizing the market trend toward individualization, more companies have customized their offerings to be responsive to individual customer's needs and gain competitive edge (Moser, 2007). ...
... Many managers still act with mass marketing and mass production approach. increasing product variety with aim of gaining competitive edge in dynamic and fragmented markets without considering consumers' individual needs and wants often results in nothing but making consumer confusion (Gilmore and Pine, 2000). ...
Mass customization is a hybrid competitive strategy that combine differentiation and low-cost strategies. Although mass customization has recently attracted increasing attention from academia, researchers have largely focus on business related topics and ignored the customer aspect of the issue. It is obvious that more researches from customer perspective are needed to gain a deeper understanding of how customer react to customization. The purpose of this paper is to investigate mass customization from customer perspectives. The research model developed to investigate the mediation role of customer customization sensitivity was tested using structural equation modelling. The result indicates that customer customization fully mediates the relationship between consumers' need for uniqueness, product involvement and confusion from overchoice, and behavioral intention. In contrast to theoretical assumptions, the current study did not find evidence to support the effect of customer sacrifice on customer customization sensitivity and behavioral intention .
... o The construction product or service is not a commodity, rather it is highly tailored to the individual customer. Correspondingly, the construction companies prefer to consider each customer to be a market-of-one, rather than grouping several different customers into one segment (Gilmore and Pine 2000). To sum up, it appears unproductive to discover disruptive innovations by observing the behaviour of low-end customers of construction. ...
... Today, many construction companies deliver a customized solution for each customer i.e. they deal with markets of one (Gilmore and Pine, 2000;Thuesen, Jensen and Gottlieb, 2009). In contrast, disruption theory presupposes a mass market where companies target customer segments with different offerings. ...
The thesis explores how digital technologies may disrupt the construction sector. It builds on four interconnected studies: A) A horizon scanning that identifies 133 potentially disruptive technologies. B) A literature-based analysis revealing to which extent disruption theory applies to a construction sector context. C) The identification of three future visions for a digitally transformed construction sector, based on interviews with 13 innovation-savvy construction professionals. D) The development of a design game, called the Technology Cards, which facilitates future-oriented, strategic dialogues on the potential of 22 selected technologies.
Synthesising the four studies, the thesis proposes that construction companies benefit from applying inclusive, long-term-oriented foresight methods to prepare for disruptive change. The thesis provides recommendations for established construction companies to realise the emerging benefits of digital technologies, hereby enabling a democratic and deliberate digital transformation of construction.
... Customers do not want more choices, they want exactly what they want, when they want it, and where they want it (Gilmore & Pine, 2000;I. Pine et al., 1993). ...
... Mass customisation is a widely adopted strategy for this, as it is a value-chain based concept (Silveira et al., 2001), where individually configured products are delivered at a cost near mass production (Gilmore & Pine, 2000;Pine et al., 1993;Salvador et al., 2009). However, it does not make much sense to talk about mass production in relation to the building and construction industry as no buildings or constructions would as good as never be mass produced, even though there have been examples of standard house companies making and selling standard houses. ...
Research demonstrate that productivity in the Danish building and construction industry has only doubled over the last fifty years, whereas the manufacturing industry has increased six times. Utilisation of mass customization as a strategy has achieved results in the manufacturing industry in terms of increasing productivity and competitiveness, so the strategy might have potentials in the building and construction industry as well. However, mass customization as a strategy for improving the productivity of the building and construction industry has not been explored as much as in the manufacturing industry. The purpose of this paper is to analyse the assumptions and possibilities for applying the principles of mass customisation related to establishing an adaptable integrated system of entities in the value chain of the building and construction industry. The outset of the paper is a literature review concerning the utilisation of mass customization as a strategy in terms of increasing productivity within the building and construction industry. An essential part of the paper is a case study of 11 building and construction companies and an analysis of the conditions for cooperation between the entities in the value chain of the building and construction industry. The paper induces to which extent it makes sense to talk about utilisation of mass customisation by applying the Industry Foundation Classes (IFC) and standardisation initiatives of the construction industry provided by buildingSMART, and at the same time harvesting the benefits of the mass customization.
... Idiolingualism involves intensified but isolated hyperlingualism and the increasing tailoring and personalizing of online language provision. The hyperlingualism era is in part a product of the contemporary focus on "excessive variety" in marketing, whereby "companies are diversifying their products to respond to almost every conceivable customer taste" (Gilmore & Pine, 2000). ...
... The ultimate goal of contemporary marketing is often seen as the "market of one," where there is "mass-customization, making products only in response to actual demand" (Gilmore & Pine, 2000). We can also see this at work in language provision in current digital communication. ...
The focus in this article is on the evolution of language and technology in relation to multilingualism, in particular on how multilingual provision has developed in tandem with the development of the internet and the World Wide Web (WWW). In trying to understand how multilingualism has evolved, it is also necessary to understand how the technical aspects of digital technology as well as the politico-economic dimensions to that technology have changed. Four distinct periods emerge in the development: monolingualism, multilingualism, hyperlingualism, and idiolingualism. Monolingualism covers the origins of the internet and later the WWW as monolingual spaces. This was followed by a long period that charts the slow but gradual development of increased language provision and what I am terming “partial multilingualism.” Multilingualism expanded substantially, potentially limitlessly, with the development of Web 2.0. This has involved the diversification of online spaces to the point of “hyperlingualism.” I argue that we are still in this hyperlingual phase, but alongside it, a new phase is developing, that of “idiolingualism” as a result of mass linguistic customization. In this article, I discuss these phases, paying attention to both their technical and economic contexts, as well as their implications for linguistic diversity online and in wider society.
... As technology has paved the way for customization and personalization of offerings, it generates more individualized options, omnichannel interfaces and social connectedness that have yielded unprecedented growth in the importance of unique, experiential offerings beyond just products themselves [5,6,7]. "Markets of one", a single consumer who also comprises many markets within herself [8], open innovation [9], and the "hiring" of offerings by consumers to "do jobs" [10] have prompted even faster progressions of the evolution of consumer value. Today, the realities of experiences formerly dreamed of are becoming commercially viable. ...
... For example, an individual could be in an office, at home, on the beach, or in an airplane when preparing or responding to an email. Therefore, the concept of place is what one wants, when and where one wants, a variation on the basic element of what the consumer seeks in MC [8,19]. This poses an interesting component to the design of a MR toolkit. ...
... The market is increasingly demanding offerings customized to their personal needs [10] for which reason it is expected that manufacturers should be able to manage even higher levels of product variety in the future and thus also higher levels of service customization and variety than today. Adding services to the value proposition while at the same time trying to customize the PSS to customer preferences thus implies a further increase in internal complexity [6,7,9,11] in regard to e.g. ...
... In a modular architecture, standard modules with standardized interfaces can be combined to customize the offering to fit the customer's personal needs [10]. Consequently, modularity is a well-known approach in mass customization and has previously been used in design of e.g. products [12,13] and production systems [14,15] to reduce complexity without compromising the opportunity to customize the solution provided to the customer [6,12]. ...
Customers are increasingly expecting customized and personalized physical products and service offerings to fit their unique needs. To manage these diverse customer needs, applying modularity is relevant. Modularity in product design is a widespread and well-established research field while research on service modularity is still rather immature. Research on service modularity mainly relates to the service industry and only limited research exists on service modularity in manufacturing industry. Based on case studies in industry, this paper examines challenges when developing modular services in a product-service-system context. The study concludes that several challenges exist, such as lacking foundation for service control.
... Service encounters for co-design are often mentioned in the literature on value co-creation. They also received some emphasis at the end of the last century with the coming of mass customization derived from the third industrial revolution, based on flexible automation and product modularity (Feitzinger and Lee, 1997;Gilmore and Pine, 2000). In fact, the condition for consumers to be able to find what exactly they want can only be realized through the development of effective co-design services for goods, whether they are offered by a manufacturer's retailer or directly by the manufacturer. ...
Service-dominant logic (SDL) cannot satisfactorily explain processes regarding value in consumption contexts. Thus, this paper attempts to build a framework that can better meet this need. The aim is pursued by sharing with SDL the idea that value is always related to the services that consumers benefit from, either directly by interacting with a service provider or indirectly by using goods as mechanisms for service provision thanks to the knowledge they embed. The second key idea is the need to contextualize value processes in order to understand them. The paper analyzes different contexts highlighting dualities that together define an original approach to value creation in consumption contexts: potential value versus actual value, value creation versus value determination, demand-side beneficiary versus supply-side beneficiary, service self-production/value self-creation versus service co-production/value co-creation, use value versus symbolic value. The approach to value proposed in the paper consists of this set of invariant dual constructs necessary to analyze consumption contexts. At the same time, it conceptualizes the variety of such contexts, that is, the different ways in which consumers self-produce or co-produce services, self-create or co-create value.
... Today, cooperative IO ventures are widely seen in the private sector, and equally so in the public and nonprofit sectors. A partnership perspective has sprung up between providers, customers, and citizens alike (Love et al., 2005;Pinto, 2005;Wong et al., 2007), outsourcing clients and vendors (Lacity et al., 2010), and even competitors (Gilmore & Pine, 2000). ...
Realizing or appropriating value from individual firm-level IT investments has been a recurring theme in the IS literature for decades. Further, failure rates related to IT investments have been high for many years. However, realizing value from IT in settings where numerous organizations need to work together to co-develop sizable digital platforms has been undertheorized and/or hobbled with conflated theoretical constructs. To address this dearth of novel theory and accompanying empiricism, high-quality processes such as benefits management have been suggested in the scientific literature and have gained substantial interest in practice as a means for organizations to structure their routines and processes in ways that actually capture value. The complexity of this challenge suggests that there should be a renewed theoretical effort in IS to reconceptualize several extant scholarly streams. We address this challenge first by deconstructing traditional scholarly frameworks into a moderated theoretical model of multi-creation and multi-realization of IT value termed “MUIT.” The first construct in the model is based on the resource-based view; then, the model is further informed by appropriation theory, adaptive structuration theory, network governance theory, and, finally, the benefits management literature. Our variance model is a Type IV theory according to Gregor’s typology—a theory for explaining and predicting how large-scale strategic consortia can collaborate to realize greater value from IT than they could in isolation. Regarding praxis, we contribute to the understanding of how interorganizational resources and capabilities, relationships, and value realization can be spring-boarded into both successful large-scale platforms and superior realization of benefits.
... Further, Lim et al. (2016) discuss the local flora and fauna, along with the tourist attractions in the area, are the factors that draw tourists to a certain destination. In their study, Gilmore and Pine (2000), argue that the concept of experience should be considered a category of attributes that can be differentiated from the usual products. The more a tourist goes to a destination for pleasure, the more he or she is likely to seek an experience that will satisfy both his or her senses. ...
The COVID 19 pandemic has caused people to rethink their thoughts on health tourism. They are now emphasising the idea that health is wealth. This is an opportunity for players in the industry to create value by offering a variety of services. Therefore, it becomes imperative to find out the factors a potential wellness tourist is looking for before making a travel choice. The study aims to find out the influence of the perceived image of a wellness destination, wellness travel motives, and wellness tourist expectations from a destination on the future travel behaviour of the potential wellness tourist using Structural Equation Modelling. The empirical results indicate that factors of destination image affect tourist expectations. Further, expectations positively affect the factors of wellness travel motivation, which in turn affect travel behaviour positively. The study shows that for a positive image, a wellness destination must have an adequate blend of soft and hard wellness infrastructure and trained wellness professionals. Moreover, the tourists are looking for solace and tranquility, therefore, a destination where a mix of health and wellness-related activities are offered but without much indulgence of technology will attract tourists.
... It may attest, however, to a further challenge to the definition of monopoly in an economy driven to mass-customization. Gilmore and Pine's (2000) collection of marketing studies, Markets of One, explicitly outlines this challenge: in an economy of mass-customization, the relevant market for the definition of monopoly may ideally be 'one'. In its control over memories, then, Facebook may be a model form of monopoly in an economy of mass-customization. ...
The full text can be downloaded with this link:
https://www.tandfonline.com/eprint/RZQU3QZE3IEZQRADSUKA/full?target=10.1080/09505431.2021.1990874
... Computer (Anderson, 2004;Magretta 1998;Gilmore and Pine, 2000) have been seen as exemplars in the electronic product industry. Through the direct sales channel, Dell pioneered customer-driven configuration and achieved rapid response with their assemble-to-order strategy. ...
The concept of Mass customization (MC) is the ability to provide individually designed products and services to each customer through high process flexibility and integration. In recent years, MC has been identified as a competitive strategy; however, the investigations of MC in the service context are limited. In this dissertation, the published classification of MC approaches have been discussed and tested through cases which are from four different service industries. The limitations of these methods and the main characteristics which they have not covered have been highlighted. The analysis of the findings leads to the development of a service operations process framework, which comprises five fundamental service MC modes based on the framework of MC modes for manufacturing developed by MacCarthy et al. (2003). The framework and models have been extended through integrating modularity approach in order to improve the ability of full utilization of operations resource in the service industries. Some feasible approaches related to the application of modularity approaches have been suggested for the enterprises, who adopt mass customization strategy, in the service industry.
... 2.10.5. The positive effect of Customization on Attitude to Use According to Gilmore and Pine (2000), customization is an important factor in user evaluations and attitudes. A website that has been customized will adjust its own system according to user input and navigation so that they will receive unique information (Kobsa et al., 2001). ...
p>The increasing number of internet users in Indonesia, especially mobile internet users, has changed consumer habits and behavior in consuming entertainment. Internet penetration leads to the increasing consumption of streaming video on demand (SVOD) services in Indonesia, which is increasingly popular. Netflix is one of the largest SVOD service providers in the world that has a customer subscription system. The tight competition in the SVOD industry caused Netflix to experience a significant reduction in the number of global subscribers. Therefore, the researcher's goal is to predict which factors influence the consumer's decision-making process to continue to use Netflix in view of the model of consumer attitudes toward technology adoption. The research data come from non-probability sampling with judgmental sampling techniques of 237 Netflix’s subscribers across Indonesia that have subscribed Netflix for more than three months, and having an intensity of use for 2-5 hours or more per day. This research was conducted with a quantitative descriptive method using Structural Equation Modelling method. This study indicate that there’s a positive relationship between perceived system quality and perceived enjoyment of attitude to use. Furthermore, there is a negative influence between the perceived price level and attitude to use. This study also reaffirms that the SVOD attitude to use is a predictor of continuance intention to use SVOD. This research also proved that perceived ease of use, perceived content quality, customization, and perceived psychological risk did not affect the attitude to use SVOD.
Abstrak dalam Bahasa Indonesia. Dengan semakin meningkatnya jumlah pengguna internet di Indonesia, khususnya dari sisi pengguna internet seluler, telah mengubah kebiasaan dan perilaku konsumen dalam mengonsumsi hiburan. Penetrasi internet juga berdampak pada meningkatnya konsumsi layanan Streaming Video on Demand (SVOD) di Indonesia yang semakin populer. Netflix merupakan salah satu penyedia layanan SVOD terbesar di dunia yang memiliki sistem layanan pelanggan. Persaingan ketat di industri SVOD menyebabkan Netflix mengalami penurunan jumlah pelanggan global yang signifikan. Oleh karena itu, tujuan peneliti ini adalah untuk memprediksi faktor-faktor apa saja yang mempengaruhi proses pengambilan keputusan konsumen untuk terus menggunakan Netflix yang dilihat dari sisi model sikap konsumen terhadap adopsi suatu teknologi. Teknik pengambilan sampel dalam penelitian ini menggunakan non-probability sampling dengan teknik judgemental sampling terhadap 237 pelanggan Netflix di seluruh Indonesia yang telah berlangganan Netflix selama lebih dari tiga bulan, dan intensitas penggunaan selama 2-5 jam atau lebih per hari nya. Analisis Penelitian ini menggunakan metode deskriptif kuantitatif dengan metode Structural Equation Modeling (SEM). Hasil penelitian ini menunjukkan bahwa terhadap pengaruh positif antara kualitas sistem yang dirasakan (Perceived System Quality) dan kenikmatan yang dirasakan (Perceived Enjoyment) terhadap sikap untuk menggunakan (Attitude to Use). Selain itu, ada pengaruh negatif antara persepsi tingkat harga (Perceived Price Level) dan sikap penggunaan (Attitude to Use) SVOD. Penelitian ini juga menegaskan kembali bahwa sikap penggunaan SVOD merupakan prediktor niat untuk terus menggunakan SVOD (Continuance Intention to Use). Penelitian ini juga membuktikan bahwa persepsi kemudahan penggunaan (Perceived Ease of Use), persepsi kualitas konten (Perceived Content Quality), pengaturan ulang (Customization), dan persepsi risiko psikologis (Perceived Psychological Risk) tidak berpengaruh terhadap sikap penggunaan SVOD. </p
... Initially, mass customisation was intended for mass producers, who would be able to gain differentiation and competitiveness by introducing increased product variety at a price near to mass production (Gilmore and Pine 2000). However, as methods and technology evolved, it was discovered that these could also be successfully applied in a context already characterised by high product variety, i.e. ...
Engineer-to-Order (ETO) companies are embracing the mass customisation strategy to face the challenges posed by global competition. Product configurators are key enablers of such strategy. Despite the benefits, the actions to perform to manage the challenges of implementing product configurators are still understudied. This paper aims to fill this gap by empirically exploring seven case studies of ETO companies that are embracing a mass customisation strategy and have implemented a product configurator. The results provide a classification of the challenges that ETO companies have to manage in each phase of the implementation of product configurators, and a framework that supports managers in defining the actions necessary for the development and implementation of product configurators. This study, thereby, contributes to the debate on how ETO companies can move towards a mass customisation paradigm.
... Individualization forms the foundation of MC (Hankammer, Hora, Canetta, & Sel, 2016), as MC results in outcomes unique to each consumer (S. M. Davis, 1987;Gilmore & Pine, 2000;Pine, 1993;Salvador, de Holan, & Piller, 2009). Numerous companies provide consumers MC offerings, rendering distinctive value on an individual basis. ...
This research examines the extent to which the consumer’s perceived value of the co-design experience influences satisfaction with that experience and loyalty intentions toward the online mass customization (MC) program, and whether the consumer’s thinking style during the co-design experience affects the perception of value. A total of 178 millennial consumers used Converse’s “Design Your Own” MC program, completing a survey regarding their co-design experience. Results validate the positive (negative) influence of control and enjoyment (complexity) on satisfaction with the co-design experience and the positive impact of satisfaction on loyalty intentions toward the MC program. Additionally, individual thinking style influences perceived value. Experiential thinking during the co-design experience positively (negatively) influences control (complexity) and has no significant effect on enjoyment, whereas rational processing increases complexity and enjoyment, exerting no significant effect on control. Managerial implications of these results can help providers build value-laden, MC co-design experiences.
... A cross-analysis of the categories of AI applications described above leads us to acknowledge a dimension that they share: each in their own way, they all have to do with mass customization, in the sense of capability to offer individually tailored products or services on a large scale (Gilmore & Pine, 2000;Zipkin, 2001). Whether in AI-based robots and products or the shipping-then-shopping model, customization is achieved through the interaction between an artifact (robot, product, software) and a consumer. ...
Various recently-introduced applications of artificial intelligence (AI) operate at the interface between businesses and consumers. This paper looks at whether these innovations have relevant implications for marketing theory. The latest literature on the connection between AI and marketing has emphasized a great variety of AI applications that qualify this relationship. Based on these studies but focusing only on the applications with a direct impact on the relationship at the very heart of marketing, i.e., the one between firms and consumers, the paper analyzes three categories of AI applications: AI-based shipping-then-shopping, AI-based service robots, and AI-based smart products and domestic robots. The main result of this first analysis is that all three categories have to do, each in their own way, with mass customization. A discussion of this common trait leads us to recognize their ways to mass customization that-unlike the traditional approach developed thanks to flexible automation and product modularity technologies-place the customization process within a broader perspective of consumer needs management. This change in approach means that marketing should focus more on managing consumers' needs than directly on the satisfaction of those needs. This finding marks a genuine discontinuity that opens up a new space for reflection for scholars and marketing managers alike.
... Companies need to take a holistic, integrated approach to create memorable experiences where multidimensional value can be delivered through multiple and sequential stages of experience [48], namely through the customer journey. Mass customization is a route up the progression of economic value, where it is not about being everything to everybody, but rather producing only and exactly what individual customers want, when they want it [49]. To increase the value for the customer, companies should rethink how they want their customers to experience doing business with them, not focusing solely on what tasks employees do, but also considering how those tasks are performed [50]. ...
Digital technology can change the customer journey from a regular customer experience (CX) into a
digital CX where touchpoints are supported by digital means. However, a focus on merely digital CX
may be risky because CX is dependent on what occurs at touchpoints other than those that are digital.
Some experts assert digital experience exerts a small influence on the total customer experience
(TCX). In this paper, we discuss whether a strategic focus on digital CX is beneficial or
disadvantageous to a company that operates online. In addition, we consider the conditions a
company must contemplate in evaluating if digital CX has more impact on TCX. The paper presents a
conceptual discussion based on a review of the literature and evidence from practice. Findings from
two case studies indicate that emphasis on TCX is more important than focusing only on digital CX,
which can lead to counter-productive results for customers and decrease the importance of non-digital
CX.
... Под "контекст" следва да разбирамемножество конкретни моменти от ежедневието на ау-диторията, върху които брандовете могат да влияят, стига менидж-мънтът да може да ги предвиди и да се подготви за тях, а не да мис-ли за пазара в абстракции и модели, които са твърде широки, за да обхванат наистина случващото се в ситуация на покупка или консу-мация. Предвидената още през 90-те години на миналия век вълна на персонализация на маркетинговите дейности (Pine & Gilmore, 1998) вече е факт благодарение на напредъка на технологиите и пре-ди всичко на мобилните комуникации, които подпечатаха въпросни-те промени в отношението кампания/бранд/продукт-консуматор (Trendafilov, 2016). Масовата реклама продължава да е фактор, но определено като ефективност отстъпва на персонализираните съоб-щения, формите на потребителска ангажираност посредством соци-алните мрежи и други форми на пряк, двупосочен контакт, осъщест-вяващ се (почти) в реално време (апликации, участие в игри, томбо-ли и дори социални каузи). ...
Промените в концепцията на маркетинга се провокираха не само от глобализацията и всепроникващите „нови технологии“, но и от драстична промяна в мисленето на мениджмънта и подхода към пазара. Понятието за маркетинг има нужда от предефиниране, а системата, чрез която той носи стойност за компаниите е все по-нееднородна и следва да се разглежда като сбор от модули, които авторът ще направи опит да посочи конкретно. Този доклад има още нелеката задача да коментира някои от най-значимите новини от сектора във връзка с маркетинговите реалности, в рамките на които трябва да работят както мениджърите, така и преподаващите дисциплината. Въпросните новости в работата на водещи компании като Coca-Cola и Starbucks водят към една посока-маркетингът да се превърне в инструмент за управление на от-ношенията с потребителите на различни нива, най-вече по отношение на повишеното изживяване.
Ключови думи: маркетинг мениджмънт, стойност, растеж, потребителско изживяване, иновации
The shift in the concept of marketing as a set of activities in business organizations has been provoked not only by globalization and the omnipresenting "new technologies", but also by the drastic change in management mindset and its approach towards the market. This paper aims to comment some of the most significant recent news in the sector with regards to the realities that both marketers and university teachers should follow. Those novelties in the policies of the companies such as Coca-Cola and Starbucks lead to one crucial conclusion – marketing should be transformed from strictly determined set of product-oriented activities and processes into a tool for consumer relationship management on various levels, predominantly focused on consumer experience providing.
Keywords: marketing management, value, growth, consumer experience, innovations
JEL: M100, M300
... Another important measure is the learner's intention to recommend the service to others after positive service experiences (Kang and Lee 1998). Gilmore and Pine (2000) found that word of mouth recommendations trigger positive or negative emotions in others to affect their purchasing decisions. ...
The purpose of this study is to suggest an alternative to maximize the relationship between education service provider and learner in CRM in the implementation of CRM strategy by lifelong education institutions and members. This study clarified the relationship between CRM strategy (e.g., customer orientation, education service quality, and customer value), rapport, and behavioral intention of lifelong educational institutions and employees. Content validity was verified by experts and a total of 274 preliminary surveys were used for reliability analysis and scale validation. 566 respondents were finally analyzed. The results showed that the relationship between customer orientation and customer value was mediated by the quality of education service; the quality of education service fully mediated the relationship between customer orientation and customer value; rapport had a mediating effect on the relationship between customer orientation and quality of education service, but it was found that rapport had no mediating effect in relation to quality of education service and customer value. Based on the results, this study suggested practical implications for HRD practitioners.
... This course is made through a session of lectures, activity based sessions, assignments, group-based activities, pain storming sessions, brain storming sessions, presentations, skill development [7] and designing a prototype. ...
This course describes an introductory level course to the freshman engineering students to all the branches and of all different specialisations. In this introductory course a lecture based, activity based, assignments based, group discussion based, individual approach based, technical activities, non technical based and skill development topics are put into practice for the professional students and even inspiration, pain storming and brainstorming topics were introduced in this paper to help the introductory level students to design a prototype. Designed prototype can be further developing to convert it to a working model even in the coming years. Details of the lecture topics and prototyping design project are provided in this paper, on par with the discussion on the outcomes of the course. Overall, this introductory course lecture-activity course looks to meet all of our intentions for engineering, and student feedback on this subject has been very assertive.
... However, MacCannell (1976) argues that standardization is not condu- cive to maintaining a unique corporate image, and is likely to erode the differential advantage of a spontaneous tourist experience. Mass- customizing may increase the perceived value by hotel or restaurant guests ( Gilmore and Pine 2000) and raises an important question: How can res- taurant groups offer authentic service to customers within the context of a standardized production system? The pursuit of standardization for pro- duction efciency contrasts starkly with the corporate aim to boost authen- ticity for customer satisfaction purposes. ...
This book explores the paradox of the hospitality industry: customers demand not only personal and innovative tourism products and services, but also cost-effective ones. Enterprises have the option to meet the former demand by offering authentic products and services while the latter could be achieved through standardization. Although it seems ideal to combine both concepts, they seemingly contradict each other leading to suppliers facing an authenticity-standardization paradox. The authors identify, analyze, and provide solutions for this authenticity-standardization paradox based on a series of case studies of restaurants in China. This book will be of interest to scholars, business owners, and consultants.
Guojun Zeng is Professor and Director of the Department of Hospitality Management, School of Tourism Management at Sun Yat-sen University. He has authored and coauthored publications in the International Journal of Hospitality Management, Journal of China Tourism Research, China Geographical Science, and many other journals.
Henk J. de Vries is Associate Professor of Standardisation at the Rotterdam School of Management, Erasmus University in Rotterdam, Netherlands, and Guest researcher at the Delft University of Technology, Delft, Netherlands.
Frank M. Go passed away in 2017. He was Professor of Event and Tourism Marketing at the Rotterdam School of Management, Erasmus University in Rotterdam, Netherlands. He was ranked among the top 40 scholars in the world for academic leadership in tourism research, as measured by the number of articles published in eight journals in the field between 1985 and 2004.
... These results were achieved with no advertising other than on the firm's web site and in its catalog [Tedeschi, 2002]. They also, at least temporarily, defied the predictions of one expert in mass customization who believed that suits were a better candidate than jeans for customization because, while suit buyers expect delays associated with alterations, jean buyers want instant gratification [Pine, 2000]. ...
The effect of behavioral drivers on patient-practitioner interaction is of major importance. They influence the costs and benefits of healthcare outcomes for all stakeholders. Behavioral economics explores biases as errors and heuristics as shortcuts in human judgment. As such, these contribute to medical provider failures to understand and satisfy differentiated patients, putting into peril not only the wellbeing and health of the person, but also of society. We explore the behavioral drivers identified in the extant literature that contribute to or detract from the patient-practitioner relationship, approaching “systemic errors” as “natural errorless processes” to be used as positive tools in interventions to lower bias in decision-making. Specifically, we propose that co-design in the context of mass customization may be an effective means of better accomplishing individualization by improving patient-provider interactions and strengthening relationships between parties, ultimately enhancing healthcare quality. In so doing, we fill a gap in research on use of the mass customization co-design process in individualized healthcare and the elements that could enhance its value for the person, practitioner, and society as a whole.KeywordsMass customizationCo-designToolkitIndividualizationBehavioral scienceConfiguratorHealthcareBiasHeuristicsValueLoyalty
Digital media have become a mainstream source of data for sociolinguistics, reflecting the ubiquity of such media and the centrality of their role in people’s everyday speech as well as changed attitudes towards what constitutes a valid object of study in sociolinguistics. As our personal and professional reality becomes more technologized, there is, however, an urgent need to engage with a deeper understanding of the current and evolving digital economy underpinning this reality in order to assess critically the data that we now encounter. Trends such as personalization, securitization, and hierarchization, for example, mean that the sociolinguistic data we encounter are increasingly shaped by users’ digital identities. In the current digital economy, language is a key tool for steering, recording, and tracking these identities, for example, in the form of algorithms; however, the sociolinguistic dimension to these processes has not yet been explored fully. As well as more integrated approaches to studying digital sociolinguistic data, our increasingly technologized reality demands that we build algorithmic reflexivity into our teaching and our research.
This article has been withdrawn: please see Elsevier Policy on Article Withdrawal (https://www.elsevier.com/about/our-business/policies/article-withdrawal).
This article has been withdrawn as part of the withdrawal of the Proceedings of the International Conference on Emerging Trends in Materials Science, Technology and Engineering (ICMSTE2K21). Subsequent to acceptance of these Proceedings papers by the responsible Guest Editors, Dr S. Sakthivel, Dr S. Karthikeyan and Dr I. A. Palani, several serious concerns arose regarding the integrity and veracity of the conference organisation and peer-review process. After a thorough investigation, the peer-review process was confirmed to fall beneath the high standards expected by Materials Today: Proceedings.
The veracity of the conference also remains subject to serious doubt and therefore the entire Proceedings has been withdrawn in order to correct the scholarly record.
This article has been withdrawn: please see Elsevier Policy on Article Withdrawal (https://www.elsevier.com/about/our-business/policies/article-withdrawal).
This article has been withdrawn as part of the withdrawal of the Proceedings of the International Conference on Emerging Trends in Materials Science, Technology and Engineering (ICMSTE2K21). Subsequent to acceptance of these Proceedings papers by the responsible Guest Editors, Dr S. Sakthivel, Dr S. Karthikeyan and Dr I. A. Palani, several serious concerns arose regarding the integrity and veracity of the conference organisation and peer-review process. After a thorough investigation, the peer-review process was confirmed to fall beneath the high standards expected by Materials Today: Proceedings.
The veracity of the conference also remains subject to serious doubt and therefore the entire Proceedings has been withdrawn in order to correct the scholarly record.
In this paper we describe characteristics of mass customization firms and use it to draw inferences about its leaders by using theories of personality.This paper lists hypotheses related to companies following mass customization. Based on the analysis of theoretical propositions,we conclude that leaders of mass customization firms are intuitive,thinking,and perceptive.Also leaders of mass customization firms are high on extroversion,openness to experience,neuroticism and conscientiousness; and low on agreeableness.
Sensory activities are used to increase social engagement for people with dementia, who may struggle to participate in activities due to deteriorating cognitive functions. Sensory tools are used but these can be inappropriate since they are not designed for people with dementia. This paper details the design of an e-textile sensory tool for people with dementia, with stakeholders in Mainland China. The concept, a sensory wall, was derived from a previous co-design project in Hong Kong. However, the design context differs, and this work highlights barriers to implementing co-design in sensory tool design. Instead, this project took a collaborative customization approach. This paper describes the design processes and evaluations for the first and second sensory wall, with context on dementia care in Mainland China. This paper highlights considerations in the design of a sensory tool for people with dementia, and the benefits of stakeholder engagement in sensory tool design.
يعد توفير الإسكان الملائم وتمكين المواطنين من الحصول عليه وامتلاكه مطلباً اجتماعياً واقتصادياً؛ لضمان استقرار المجتمعات ورفاه أفرادها. وقد ظهرت مؤخراً مشكلة نقص المعروض من المساكن وارتفاع تكلفة الحصول عليها وصعوبة امتلاكها بصفتها واحدة من المشكلات التي تواجه كثيراً من أفراد المجتمع السعودي، وهو ما حدا بالحكومة في السنوات القليلة الماضية إلى إصدار عدد من الأوامر التنظيمية، وتخصيص دعم يفوق ثلاثمائة مليار ريال للإسكان، واستحداث وزارة للإسكان وتكليفها ببناء خمسمائة ألف وحدة سكنية. ومع هذا لم تتمكن الوزارة إلا من طرح نسبة ضئيلة من حجم العدد المستهدف للتنفيذ؛ بسبب انتهاجها الأسلوب "التقليدي" المطبق في السوق، والمعتمد على نماذج الوحدات السكنية الكبيرة ونظام البناء بالخرسانة الهيكلية والذي يتطلب عدداً كبيراً من العمالة الحرفية والوقت الطويل.
وتهدف هذه الورقة إلى صياغة منهج لمعالجة مشكلة توفير الأعداد المطلوبة من المساكن التي تلبي رغبات الأسر السعودية في فترة قياسية بتكلفة منخفضة وجودة عالية، وبما يعمل كذلك على توجيه الموارد المخصصة لقطاع الإسكان السعودي لتحقق أفضل النتائج، وإحداث نقلة نوعية في صناعة الإسكان في المملكة.
Providing adequate housing and enabling citizens to obtain shelter is a requirement for ensuring the stability of any society and the well-being of its members. Lack of housing supply, the high cost of dwelling units and the difficulty to obtain and own housing have appeared recently as one of the problems facing many members of Saudi society, which has prompted the government to issue a number of regulatory orders in the past few years, allocate over three hundred billion Saudi riyals (eighty billion US dollars) as funding for housing, establish and commission the Ministry of Housing to build five hundred thousand dwelling units. However, due to pursuing the “traditional” method applied in the market, based on models of large dwelling units and concrete frame structural system, which require a large number of craftsmanship labors and longer time; the ministry managed to deal only with a small fraction of the target number of units for implementation.
This paper aims to formulate a methodology to tackle the difficulty of providing the required numbers of housing to meet the requirements of Saudi households with high-quality, low-cost solutions in a short period, and to make allocated resources for the Saudi housing sector to achieve the best results in order to generate a quantum leap in Saudi’s housing industry.
Modular product architectures are for many manufacturing companies seen as one of the solutions to an ever-increasing demand for more customized products. However, the transition from a non-modular to a modular product portfolio can be difficult and hard to realize. Previous research has focused on creating ontologies and data models in order to create new knowledge to be used during this transformation process. However, these models require extensive information and data and are therefore difficult to incorporate in today’s industry. Therefore, the purpose of this research is to present an approach to create a data model in which it is possible to use data mining technics to generate valuable knowledge for the transition process and the continuous management of a portfolio of modular product architectures. The approach and techniques are presented through a company case and a discussion is made on the usability of the result.KeywordsProduct modularizationInterface managementData miningProduct modelling
Periklanan adalah bentuk penyajian dan promosi suatu ide, barang
atau jasa secara nonpersonal oleh suatu sponsor tertentu yang
memerlukan adanya pembayaran. Periklanan tidak pernah sepi
sebagaimana fungsinya dalam mengenalkan produk yang memiliki
beraneka ragam bentuk dan kreasinya.
Industri periklanan adalah salah satu subsector ekonomi kreatif
dengan pertumbuhan tertinggi. Banyak karya karya iklan yang
dihasilkan oleh orang kreatif dalam negeri terbukti dapat
memberikan penyejuk dan mengharumkan nama Indonesia di
berbagai kompetisi periklanan.
Iklan dan lingkungan sosial sangatlah berpengaruh satu sama lain.
Didalam bidang periklanan sekalipun banyak sekali bagian yang
memang mampu menaikkan perkembangan periklanan dari masa
ke masa, mulai dari Etika, Media, maupun desain dalam
memproduksi iklan tersebut.
The purpose of this chapter is to contrast the value structure of platform systems (e.g. a computer or a marketplace) with step processes (e.g. an assembly line or a steel mill). A step process is a technology that changes the material world in a predictable way that humans find useful or valuable. In contrast, a platform system is a technology designed to support the creation of options.
I begin by explaining why platform systems have modular technical architectures, and to trace the history of modularity in early digital computers and software. I then use option theory to identify a set of complementary conditions—risk, modularity, and openness—that are favorable to the adoption of platform systems, I contrast these to the conditions—growing markets, automated machinery, and systematic management— favorable to the creation of large-scale flow production processes.
Finally, I show how the benefits of flexible platform systems may be balanced against the benefits of efficient step processes in designing large technical systems.
To promote quality education and esteem engineered services and to provide quality engineering education by including innovating teaching-learning practices are presented in this paper. Conveys our teaching values, goals and beliefs to wider learners and provides a set of criteria and standards to evaluate the quality of our teaching. To help my students acquire skills, I engage them in learning by explaining the context of the subjects, their importance and their implementation in the real world.
Experience co-creation has been acknowledged as an important process to generate and sustain value. However, research in the arena of heritage visitor attractions remains limited. A qualitative cross-sectional design was used to assess UK heritage attractions providers’ engagement with guided tour experiences’ co-creation and the barriers faced in the adoption of this process. Findings from 11 interviews with visitor experience managers show most of the heritage attraction providers engage in processes of guided tour experience “co-production” rather than “co-creation”. Barriers include limited knowledge, and “know-how” of value co-creation processes; financial, time, and human resource constraints. Importantly, findings show visitors’ satisfaction with current arrangements influence the type of tour offering. This study reveals the need to further investigate heritage audiences’ variations in preferences and suggests better sector integration in terms of knowledge sharing and best practice to fully explore the benefits and worth of value co-creation in this tourism sector.
Personalized medical devices adapted to the anatomy of the individual promise greater treatment success for patients, thus increasing the individual value of the product. In order to cater to individual adaptations, however, medical device companies need to be able to handle a wide range of internal processes and components. These are here referred to collectively as the personalization workload. Consequently, support is required in order to evaluate how best to target product personalization. Since the approaches presented in the literature are not able to sufficiently meet this demand, this paper introduces a new method that can be used to define an appropriate variety level for a product family taking into account standardized, variant, and personalized attributes. The new method enables the identification and evaluation of personalizable attributes within an existing product family. The method is based on established steps and tools from the field of variant-oriented product design, and is applied using a flow diverter—an implant for the treatment of aneurysm diseases—as an example product. The personalization relevance and adaptation workload for the product characteristics that constitute the differentiating product properties were analyzed and compared in order to determine a tradeoff between customer value and personalization workload. This will consequently help companies to employ targeted, deliberate personalization when designing their product families by enabling them to factor variety-induced complexity and customer value into their thinking at an early stage, thus allowing them to critically evaluate a personalization project.
The objective of this case study is to illustrate how text mining of open-ended responses from a student survey could yield valuable information for improving student experience management (SEM). The concept of student SEM was borrowed from the notion of customer experience management (CEM), which aims for ongoing improvement of customer relations through understanding of the customer's point of view (Pine & Gilmore 1998). With the advance of text mining technology, textual data that were previously underutilized are found to be valuable in CEM. To illustrate how text mining can be applied to SEM, we discuss an example from a campus-wide survey conducted at Arizona State University. The purpose of this survey was to better understand student experiences with instructional technology in order for administrators to make data-driven decisions on its implementation. Rather than imposing the researchers’ preconceived suppositions on the students by using force-option survey items, researchers on this project chose to use open-ended questions in order to elicit a free emergence of themes from the students. The most valuable lesson learned from this study is that students perceive an ideal environment as a web of mutually supporting systems. Specifically, online access should be augmented by use of laptops and availability of course materials, whereas virtual classes should be balanced by human interactions.
From the 1930s through today, many economists have conceived of large technical systems for the production of goods and services as a series of transactions. This point of view has led eminent economists to assert that transactions are the fundamental unit of analysis in the economic system.
This conceptualization has been very powerful, but it is also limiting. To truly understand the relationship between technology and organizations we must look “beneath” transactions at the full set of tasks and transfers that must take place to design and produce useful goods and services in an efficient way. The purpose of this chapter is to describe how transactions fit into a larger network of tasks and transfers and to identify the technological determinants of transaction costs.
Recent advances in manufacturing and communication technology have made it possible for firms to offer products that are personalized to individual customers’ specifications. While personalizing products leads to benefits for firms, it also requires significant resources, calling into question the financial efficacy of this practice. This situation is especially salient in the pharmaceutical industry, where drugs are personalized to individuals. This type of medicine is expected to account for approximately 50% of drug spending in the U.S. market by 2022; however, the rising costs of producing and delivering such medications make their viability uncertain. In this study, we present a framework that conceptualizes a nonlinear inverted U-shaped relationship between product personalization and financial performance. We further investigate the role of supply-chain disintermediation in enhancing the benefits of personalization. Analysis of data from the pharmaceutical industry confirms that product personalization improves financial performance only up to a point, beyond which firms experience negative performance effects. Furthermore, supply-chain disintermediation moderates this relationship such that the inverted U-shape is steeper with increasing disintermediation levels. Together, these findings provide important guidelines for managers formulating their firms’ product personalization strategies.
KEYWORDS: Product personalization; Supply-chain disintermediation; Pharmaceutical industry; Precision medicine; Econometric analysis
One potential role for the architect of the future will be that of the digital craftsperson. Digital technology is allowing the designer to take control of and retool the entire design | fabrication | assembly process. With this new power, architects are crafting the digital tools and processes required to make architecture for the digital age.
First, this thesis examines the notion of craft in the traditional way—how it has applied to
architecture and building for most of history. This story recounts the architect’s role in the designing and making of architecture, from the medieval master mason to the present-day architect. Craft, it is argued, is based on an understanding and skillful application of tools and processes as they relate to designing and making.
The second part of this thesis applies this definition of craft to a new set of digital skills,
tools, and processes. Digital craft is a combination of the skills of the architect, augmented by computers and computer-driven machines. Designing and making with digital tools is very dependent on a feedback loop driven process centered around a digital master model, into which, design information and data is input, and direct fabrication information and representation is output.
The third part of this thesis describes the digital craftsperson through three case studies. The first case study recounts the process of digital tool-making. The second, describes the development of innovative fabrication and assembly techniques using digital tools and unconventional materials. The last case study recounts the design and fabrication process of a full-scale prototype by the author and a team of students.
Many organizations and industries are undergoing a significant transformation due to digital technologies. In our research, we study digital business model innovation in relation to Professional Services Firms (PSFs). In this conceptual paper, we contrast the traditional, human-centered, knowledge-intensive business model of PSFs with the new, computer-centered, data-driven business model that is developing due to the rise of big data, advanced data analytics and artificial intelligence. To better understand if, when and how data-driven business models may disrupt PSFs, we provide a strategic framework for identifying and analyzing the options for PSFs in relation to the nature and scope of their value proposition. We suggest several possible transitionary pathways using digital technology for augmentation or automation and the need so scale across services and industries. As such this paper provides valuable insights to academics and practitioners into how PSFs might develop new business models given the nature of their service offerings and industry positions.
A crescente individualização da demanda proporciona vantagens às empresas que aplicam a estratégia de customização em massa (CM). Neste contexto, o configurador de produto proporciona ao cliente identificar as suas necessidades e contribui para transformá-las em um produto customizado. O objetivo deste trabalho é analisar a associação entre o configurador online e seus recursos com variáveis comerciais das empresas automobilísticas. A amostra analisada contempla 134 empresas automobilísticas localizadas em 31 diferentes países, sendo que suas vendas correspondem a 38,83% dos automóveis produzidos mundialmente no ano de 2008. Por meio de uma análise de correlação biserial (rpb) foi constatada a associação entre o configurador online e de seus recursos com as variáveis comerciais e ainda foi identificado um conjunto de recursos dos configuradores mais correlacionado com a venda de veículos.
Translocality describes the ways in which people have loyalties of one place but are residing elsewhere. This loyalty may influence their appreciation of authenticity that relates to either of these places. Food is one of the most tangible cultural forms representing a particular regional group. Restaurant owners may integrate authenticity in their food and service offer. This chapter reviews literature on translocality in general and then links this to restaurants’ authenticity. If they have different subsidiaries, they may copy the authentic concept or elements of that concept between subsidiaries—this is the standardization dimension. In this way a combination of authenticity and standardization may be a proper strategic choice for translocal restaurants.
Restaurant customers demand both personalized and innovative, yet affordable, service delivery and may appreciate authenticity. Accordingly, restaurant groups that seek expansion must consider how to respond effectively to the standardization–authenticity paradox. How can restaurant managers use these concepts for the strategic positioning of their restaurant group? This chapter presents and discusses literature about authenticity and standardization, both in general and specific to restaurants. The combination of the concepts results in a theoretical model to analyze the variations in the standardization–authenticity relationship. Restaurant group expansion strategies are classified into four extremes: standardization of authenticity, authentic alliance, standardized chains, and heterogeneity.
The spread of traditional cuisine through China’s inter-regional immigration over time has led to the emergence of translocal restaurant chains. Using Jiumaojiu, a Guangzhou-based restaurant as a case study, the effects of translocalisation on Shanxi cuisine are analyzed through three main aspects: dishes (ingredients, recipes), environment and atmosphere, and service and value. In this Chinese case, authenticity relies mainly on the perceptions of consumers. This provides opportunities for entrepreneurs to standardize essential elements of authenticity and benefit from cost advantages at the supply side while addressing preferences at the demand side.
This book constructs the authenticity-standardization framework. The cross-case analysis provided in this last chapter confirms that this framework can be used both by researchers and entrepreneurs to study or manage restaurant chains in a systematic way. Translocality enhances consumer needs for authenticity consumption, and authenticity turns out to be a dynamic concept under different consumption contexts. Other conclusions, contributions, and limitations of this book as well are presented in this chapter.
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