Understanding the customer value of co-designing individualised products

Abstract

Mass customisation (MC) is a business strategy that seeks to gain a competitive edge through enhancing product-centred offers with individualisation services. In its core process of customer co-design, toolkits enable customers to translate their needs into product specifications. The present study investigates how customer value is created within the co-design process. Data from 211 customers of a luxury shoe individualiser were retrieved and subsequently analysed using SEM-PLS. We find creative achievement and perceived fun to be significant components of co-design value. Both have significant impact on product perception. Product perception fully mediates the relationship between co-design value and the intention to purchase as well as the intention to recommend the MC offer to others. Furthermore, in contrast to previous works, our study suggests that creative achievement is the primary value component of co-design. We recommend further studies that take into account multiple customer segments or product categories as well as studies which depart from conceptualising MC as technology-based self-service, e.g., by including peer assistance and professional assistance.

Customer heterogeneity and innovation‐based competitive strategy: A review, synthesis, and research agenda

“…Customers with heterogeneous needs are typically displeased with standardized solutions (Franke & Piller, 2004). Therefore, product enhancements that meet their preferences more precisely lead to greater satisfaction (Franke & von Hippel, 2003; Zhang & Xiao, 2020), higher purchase intent (Franke et al, 2009; Habicht & Thallmaier, 2017), and willingness to pay (Adner, 2002; Adner & Levinthal, 2001). But understanding and transferring market‐related information to tailor products is particularly difficult when customer needs are heterogeneous (Cui & Wu, 2016).…”

“…Toolkits, that is, design interfaces that facilitate self‐design and development, are recommended for customers that have the skills (CKH) to modify standardized product options (Franke & Piller, 2004). Besides offering a cost‐effective approach to involving customers in innovation development, toolkits also enhance satisfaction and purchase intent (Habicht & Thallmaier, 2017). Co‐developing innovations with customers is another approach to developing customized solutions.…”

Initial Identification for Development Value Co-Creation Triadic Business Model Innovation: The Case of Malang Coffee Industry

“…Fu et al (2017), stated that effective marketing strategies to increase customer value if they understand the nature and impact of quantitative data and qualitative information regarding influencing factors. Habicht and Thallmaier (2017), propose Mass Customization as a business strategy that seeks to gain a competitive advantage through increasing product-centered offerings with individualization services. They find creative achievement and feel happy to be an important component of the value of co-design.…”

User-driven innovation and technology-use in public health and social care: A systematic review of existing evidence

“…UDI is a process of drawing on users' knowledge" to develop innovation (Von Hippel, 2009). It often links with terms such as co-design (Dekelver et al, 2011;All et al, 2013;Habicht and Thallmaier, 2017) and co-production (Pestoff, 2012;Durose et al, 2017). UDI is open in character and focuses on identifying existing and potential users, systematic searching and understanding users' explicit and implicit needs, knowledge, and ideas, and intensive involving users in co-creation and innovation process (Tuomi, 2002;Wise and Høgenhaven, 2008;Von Hippel, 2009).…”