Mass Customization

What is 'Mass Customization'

Mass customization is the process of delivering wide-market goods and services that are modified to satisfy a specific customer need. Mass customization is a marketing and manufacturing technique that combines the flexibility and personalization of "custom-made" with the low unit costs associated with mass production. Many applications of mass customization include software-based product configurations that allow end-users to add and/or change certain functionalities of a core product. Sometimes called "made to order" or "built to order."

BREAKING DOWN 'Mass Customization'

B. Joseph Pine II's 1992 book "Mass Customization: The New Frontier In Business Competition" describes four types of mass customization:

1. Collaborative Customization - where companies work in partnership with individual customers to develop precise product offerings to best suit each customer's needs.

2. Adaptive Customization - where companies produce standardized products that are customizable by the end-user.

3. Transparent Customization - where companies provide unique products to individual customers without overtly stating the products are customized.

4. Cosmetic Customization - where companies produce standardized products but market the products in different ways to various customers.

RELATED TERMS
  1. Customer

    An individual or business that purchases the goods or services ...
  2. Mass Market Retailer

    A company that sells affordably priced products that appeal to ...
  3. Critical Mass

    Critical mass is the point at which a growing company becomes ...
  4. Productize

    To take a new service, product or product feature - that a company ...
  5. Mass Production

    The manufacturing of large quantities of standardized products, ...
  6. Relationship Banking

    A strategy used by banks to enhance their profitability. They ...
Related Articles
  1. Financial Advisor

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  2. Entrepreneurship & Small Business

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  3. Trading

    Advanced Guide To MetaTrader 4 - Custom Indicators

    Custom Indicator CreationIndicators are used to analyze past and current price information to help traders predict future price movement. In addition to a wide variety of technical indicators ...
  4. Investing

    The Importance Of Analyzing Accounts Receivable

    While investors often focus on revenues, net income, and earnings per share, they should not overlook the importance of analyzing accounts receivable.
  5. Investing

    How Can Companies Increase Market Share?

    Companies that increase their market share enjoy a competitive advantage. They receive better prices from suppliers, and they’re able to produce goods faster.
  6. Financial Advisor

    Be A One-Stop Shop For Your Clients

    Offering comprehensive financial services can bring in business, but coordination is the key to success.
  7. Retirement

    Picking the Best Insurance Provider for Your Needs

    Whole life insurance can come in different flavors and varieties. Scroll through this list to see which options best suit your insurance needs.
  8. Entrepreneurship & Small Business

    How To Make $1 Million In Your Small Business

    Make your dream a reality. Find out what you can do to reach this financial goal.
  9. Managing Wealth

    Common Interview Questions for Personal Bankers

    Discover how to prepare for your next personal banking job interview by showing your passion for personal finance and desire to help people reach their goals.
  10. Investing

    What are Acquisition Costs?

    A company can recognize acquisition costs as those costs used to buy property and equipment.
RELATED FAQS
  1. How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading ... Read Answer >>
  2. Is good customer service something to look for in a company in which I am considering ...

    Learn about the importance of customer service when deciding whether to invest in a stock. Good customer service can ensure ... Read Answer >>
  3. How does a merger affect the customer?

    Learn how a merger may affect customers of the industry. The effects of mergers may be positive or negative, but there's ... Read Answer >>
  4. What is a common strategy traders implement when using the Mass Index?

    Learn about the mass index technical indicator and the common market reversal trading strategy that is designed to be utilized ... Read Answer >>
  5. How can small businesses manufacture demand?

    Create demand for a small business product or service by focusing on the brand and market. Continue to learn offer excellent ... Read Answer >>
  6. How do I use Mass Index for creating a forex trading strategy?

    Discover how forex traders can use Donald Dorsey's mass index to spot possible reversals in the price action trends of currency ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center