Adoption of Internet-based product customization and pricing strategies

Coordination of Pricing and Inventory Decisions: A Survey and Classification

“…Dewan et al [43] examine the impact of reduced costs of collecting buyer information and menu costs on a firm's product and pricing strategies. Using a game-theoretic model, they show analytically that a seller who sell customized products at discriminatory prices will gain market share and profits at the expense of the conventional seller.…”

Multi-product Bertrand Oligopoly with Exogenous and Endogenous Consumer Heterogeneity

“…Subsequent notable contributions include Lancaster (1971), d 'Aspremont, Gabszewicz, and Thisse (1979) and Salop (1979). Existing research on competition in product lines have largely focused on product customization by either endogenizing the range of appeal for a single product, supposing that firms provide a product characterized by an interval ½a; b (see Dewan, Jing, and Seidmann (2000); Dewan, Jing, and Seidmann (2003) or Alexandrov (2008)) or by allowing firms to acquire costly information about individual consumer preferences that allow product customization (Bernhardt, Liu, and Serfes 2007) to a representative consumer.…”

Mass customization strategy development by FIRM

“…They may gain market share and profi ts at the expense of the conventional sellers. 51 Offering novel products, addressing needs which were not met and perhaps even not sensed, are the most viable policies to In the fi rst approach, fi rms establish a dialogue to help customers express their needs and then develop customized outputs to meet these needs. In the second approach, fi rms provide custom products without letting customers know those products have been customized for them.…”