Competing through manufacturing: countering a product's liability of foreignness through mass customization

Abstract

PurposeThe operational capability of mass customization (MC) allows consumers to obtain products tailored to their idiosyncratic needs. This study aims to provide insights into the potential of this capability for countering a product's liability of foreignness – the negative effect of the out-group status of a product's country of origin (COO) on consumers' evaluations of the product.Design/methodology/approachBased on the social identity approach, it is hypothesized that this liability is reduced when a consumer product is mass-customized rather than standardized as per a mass-production strategy. This hypothesis is tested using a mixed between- and within-subject experiment.FindingsWhen evaluating mass-produced sneakers, native German-speaking (Italian-speaking) South Tyrolean consumers rated the quality of Italian (German) sneakers significantly lower than that of German (Italian) sneakers. However, when the sneakers were mass-customized, this difference in perceived product quality was non-significant for both groups of consumers, supporting the research hypothesis.Research limitations/implicationsFuture research could replicate this study in other samples, with other product types, COOs and countries of destination, as well as at different degrees of product customization.Practical implicationsBusiness-to-consumer firms contemplating the development of their MC capability are made aware that the benefits of this operational capability might go beyond the typical advantages highlighted by the existing literature.Originality/valueThis paper joins the discussion on MC value by offering a theoretical explanation and empirical support for another mechanism through which the operational capability of MC can create value, at least in business-to-consumer industries: by countering a product's possible liability of foreignness and thus increasing perceived product quality in export markets.

The missing link in the evolution of product design: a strategy roadmap towards product development success

“…Strategies mentioned in the PD literature have tended to be limited, tacit, vague or generic and unrelated to the viewpoint of this study. On the one hand, many of them are associated with NPD and its processes (Luchs and Swan, 2011; Di Benedetto, 2012; Dahl, 2011); co-development, co-creation or co-design (Eppinger, 2011; Chang and Taylor, 2016); R&D (Homburg et al , 2015; Cui and Xiao, 2019); mass customisation (Luchs et al , 2016; Trentin et al , 2020); sustainability (Luchs et al , 2012; Paparoidamis et al , 2019; Li et al , 2020); extending product life (Luchs et al , 2016); external context (consumers’ needs, environment and competitors); and firm strategy (objectives, capabilities and production process) (Luchs et al , 2016; Luchs and Swan, 2011). On the other hand, most strategies that are mentioned indeed do have managerial implications and contain recommendations that should be considered during the PD process to increase positive consumer responses and gain more market success.…”

Configuration challenges for the “Made in Italy” Agrifood industry

“…This unification is possible due to a distinctive driver of MC, that is, the integration of customers into value creation via their involvement in the design of a product prior to manufacturing. Moreover, the operational capability of MC enables configured products to fulfil customers' idiosyncratic need by countering a product's possible liability of foreignness, which also increases the perceived product quality in export markets [20].…”

“…The B2C selling of customized products is increasingly occurring via online sales configurators [20][21][22][23][24][25][26]. OSCs are defined as knowledge-based software applications designed to help customers' decisions and to support and ease the mass customization process.…”

“…Configurators, as a mass customization tool, depending on their characteristics can enhance the relationships between consumers and firms [29][30][31]. They can affect customer satisfaction and provide data to firms to increase their knowledge of their customers and to improve customer experience and their offerings [20,[32][33][34]. Configurators can be employed for these purposes because customization can engage consumers [35] and give them perceived control of authorship during the self-design of their products, which affect the customer's affective state [13].…”

“…Benefit-cost communication capability (BCC)The ability of an OSC to effectively communicate the consequences of the configuration choices made by a potential customer both in terms of what he/she would get and in terms of what he/she would give Source: Trentin et al[20] International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)…”