Asia Marketing Journal

Korean Marketing Association (한국마케팅학회)
권호 표지
DOI QR코드

DOI QR Code

Exploring the Customization Decision Support System Using Waypoint Solutions

  • Received : 2015.12.25
  • Accepted : 2016.04.06
  • Published : 2016.04.30
Download PDF
⟨ Previous Next ⟩

Abstract

Product customization has been popular since Internet shopping began. Many firms have introduced customization configuration systems, allowing customers to choose a wide range of product attributes, attracting them to participate in the shopping process, and increasing customer satisfaction. Paradoxically, the attribute-by-attribute (AbA) choice in the customization process requires a high-information processing load resulting in shopper confusion. To reduce this confusion, the CvSS (customization via starting solution) system has recently been developed. However, this system provides solution support only for the starting point of the configuration process. Thus, in this study, the authors proposes the CvWS (Customization via Waypoint Solutions) system, which would greatly reduce the customer effort needed to complete the configuration process by using a novel approach to solve the nonlinear knapsack problem. The newly proposed system is theoretically compared with the AbA customization as well as the CvSS system. Also, its feasibility is discussed in the context of the nonlinear multiconstraint knapsack problem.

Keywords

Acknowledgement

This article was supported by JSPS KAKENHI Grant #16K03940.

References

  1. Dellaert, Benedit G. C. and Stefan Stremersch (2005), "Marketing Mass-customized Products: Striking a Balance Between Utility and Complexity," Journal of Marketing Research, 42 (May), 219-27.
  2. Duray, Rebecca (2002), "Mass Customization Origins: Mass or Custom Manufacturing?" International Journal of Operations and Productions Management, 22 (3), 314-28.
  3. Flynn, Anthony and Emily Flynn Vencat (2012), Custom Nation: Why Customization is the Future of Business and How to Profit From It, Dallas, TX: BenBella Books.
  4. Glover, Fred (1968), "Surrogate Constraints," Operations Research, 16 (July-August), 741-49.
  5. Hoch, Stephan J., Eric T. Bradlow, and Brian Wansink (1999), "The Variety of an Assortment," Marketing Science, 18 (4), 527-46.
  6. Huffman, Cynthia and Barbara E. Kahn (1998), "Variety for Sale: Mass Customization or Mass Confusion," Journal of Retailing, 74 (Autumn), 491-513.
  7. Hildebrand, Christian, Gerald Haubl, and Anderses Herrmann (2014), "Product Customization via Starting Solutions," Journal of Marketing Research, 51 (December), 707-25.
  8. Isada, Yuriko, Ross J. W. James, and Yuji Nakagawa (2005), "An Approach for Solving Nonlinear Multi-objective Separable Discrete Optimization Problem with One Constraint," European Journal of Operational Research, 162 (April), 503-13.
  9. Kumar, Ashok (2004), "Mass Customization: Metrics and Modularity," International Journal of Flexible Manufacturing Systems, 16 (December), 287-311.
  10. Kurniawan, Sri Hartati, Richard H.Y. So, and Mitchell M. Tseng (2006), "Consumer Decision Quality in Mass Customization," International Journal of Mass Customization and Personalization, 1 (2/3), 176-94.
  11. Liechty, John, Venkatram Ramaswamy, and Steven H. Cohen (2001), "Choice Menus for Mass Customization: An Experimental Approach for Analyzing Customer Demand with an Application to a Web-Based Information Service," Journal of Marketing Research, 38 (May), 183-96.
  12. Mine, Hisashi (1959), "Reliability of Physical System," Transactions International Symposium Circuit and Information Theory, 5, 138-51.
  13. Moskowitz, Fred and John W. McLean (1956), "Some Reliability Aspects of System Design," IRE Transactions on Reliability and Quality Control, PGRQC-8, 7-35.
  14. Nakagawa, Yuji (2003), "An Improved Surrogate Constraints Method for Separable Nonlinear Integer Programming," Journal of the Operations Research Society of Japan, 46 (2), 145-63.
  15. Nakagawa, Yuji, Ross J. W. James, Cesar Rego, and Chanaka Edirisinghe (2014), "EntropyBased Optimization of Nonlinear Separable Discrete Decision Models," Management Science, 60 (May), 695-707.
  16. Ogawa, Susumu and Frank T. Piller (2006), "Reducing the Risks of New Product Development," MIT Sloan Management Review, 47 (Winter), 65-71.
  17. Ramdas, Kamalini (2003), "Managing Product Variety: An Integrative Review and Research Directions," Production and Operations Management, 12 (Spring), 79-101.
  18. Randall, Taylor, Christian Terwiesch, and Karl T. Ulrich (2005), "Principles for User Design of Customized Products," California Management Review, 47 (Summer), 68-85.
  19. Shannon, Claude E. (1948), "A Mathematical Theory of Communication," Bell System Technical Journal, 27 (July), 379-423.
  20. Shapiro, Carl and Hal R. Varian (1999), Information Rules: A Strategic Guide to the Network Economy, Boston, MA: Harvard Business School Press.
  21. Simonson, Itamar (2005), "Determinants of Customers' Responses to Customized Offers: Conceptual Framework and Research Propositions," Journal of Marketing, 69 (January), 32-45.
  22. Valenzuela, Ana, Ravi Dhar, and Florian Zettelmeyer (2009), "Contingent Response to Self-Customization Procedures: Implications for Decision Satisfaction and Choice," Journal of Marketing Research, 46 (December), 754-63.
  23. Zipkin, Paul (2001), "The Limits of Mass Customization," MIT Sloan Management Review, 42 (Spring), 81-87.