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Achieving competitive advantage through customer value: Exploring mass customization as a strategy for service organizations

Posted on:1997-08-03Degree:Ph.DType:Dissertation
University:The University of Texas at ArlingtonCandidate:Beckett, Sandra BlodgettFull Text:PDF
GTID:1469390014480546Subject:Business Administration
Abstract/Summary:
This field study draws on the services marketing and strategy literature in examining the relationship between the strategy of mass customization and core, facilitating and supporting service component characteristics. Mass customization is a strategy that delivers customized service on a mass basis and combines two sources of competitive advantage, low cost and differentiation. The study examined the responses from the presidents or heads of mortgage brokerage services.; The findings indicate that mass customization is a viable service strategy. The results suggest that service organizations pursuing mass customization divide the service into separate service components and vary the characteristics of each based on their contribution with regard to cost reduction, efficiency enhancement, and customization. The results indicate that service firms pursuing mass customization reduce costs, enhance efficiency, and increase volume in the core service component through the use of technology and formalization. Further the results indicate that the facilitating service component is used as a means of lowering costs, increasing efficiency, and permitting higher volume, but can also be used to increase differentiation through service delivery flexibility. A variety of service options can deliver service how, when, and where the customer wants it. Finally, the study findings indicate that supporting services and goods are used to increase differentiation by tailoring the service to meet the needs of each customer.
Keywords/Search Tags:Service, Mass customization, Strategy, Customer, Competitive advantage, Increase differentiation
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