Article: Understanding the customer value of co-designing individualised products Journal: International Journal of Technology Management (IJTM) 2017 Vol.73 No.1/2/3 pp.114 - 131 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. Inderscience Publishers - linking academia, business and industry through research

Title: Understanding the customer value of co-designing individualised products

Authors: Hagen Habicht; Stefan R. Thallmaier

Addresses: Center for Leading Innovation and Cooperation, HHL Leipzig Graduate School of Management, Jahnallee 59, 04105 Leipzig, Germany ' Center for Leading Innovation and Cooperation, HHL Leipzig Graduate School of Management, Jahnallee 59, 04105 Leipzig, Germany

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.

Keywords: mass customisation; customer co-design; customer value; online toolkits; individualisation services; SEM; PLS; partial least squares; structural equation modelling; individualised products; luxury shoes; product perception.

DOI: 10.1504/IJTM.2017.082359

International Journal of Technology Management, 2017 Vol.73 No.1/2/3, pp.114 - 131

Received: 31 Jul 2014
Accepted: 04 Mar 2015
Published online: 21 Feb 2017 *

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Title: Understanding the customer value of co-designing individualised products

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