Complementing Mass Customization Toolkits with User Communities: How Peer Input Improves Customer Self‐Design^*

Abstract

In this paper, the authors propose that the canonical customer-toolkit dyad in mass customization (MC) should be complemented with user communities. Many companies in various industries have begun to offer their customers the opportunity to design their own products online. The companies provide Web-based MC toolkits that allow customers who prefer individualized products to tailor items such as sneakers, personal computers (PCs), cars, kitchens, cereals, or skis to their specific preferences. Most existing MC toolkits are based on the underlying concept of an isolated, dyadic interaction process between the individual customer and the MC toolkit. Information from external sources is not provided. As a result, most academic research on MC toolkits has focused on this dyadic perspective. The main premise of this paper is that novice MC toolkit users in particular might largely benefit from information given by other customers. Pioneering research shows that customers in the computer gaming and digital music instruments industries are willing to support each other for the sake of efficient toolkit use (e.g., how certain toolkit functions work). Expanding on their work, the present paper provides evidence that peer assistance appears also extremely useful in the two other major phases of the customer's individual self-design process, namely, the development of an initial idea and the evaluation of a preliminary design solution. Two controlled experiments were conducted in which 191 subjects used an MC toolkit to design their own individual skis. The authors found that during the phase of developing an initial idea, having access to other users' designs as potential starting points stimulates the integration of existing solution chunks into the problem-solving process, which indicates more systematic problem-solving behavior. Peer customer input also turned out to have positive effects on the evaluation of preliminary design solutions. Providing other customers' opinions on interim design solutions stimulated favorable problem-solving behavior, namely, the integration of external feedback. The use of these two problem-solving heuristics in turn leads to an improved process outcome-that is, self-designed products that meet the preferences of the customers more effectively (measured in terms of perceived preference fit, purchase intention, and willingness to pay). These findings have important theoretical and managerial implications.

The Lag-User Method: Using laggards as a source of innovative ideas

“…We select our sample as groups of MBA or master students in a friendly atmosphere with a shared enthusiasm for the discussed topic, "whose members engage jointly in group actions to accomplish collective goals and/or to express mutual sentiments and commitments" (Bagozzi & Dholakia, 2006:45). Research shows that peer input has a positive impact on delivered solution (Franke, Keinz & Schreier, 2008) and fosters creativity (Chenag and Yang, 2014). Moreover, working with peers and receiving their valuable feedback can facilitate the process of NPD (Hienerth & Lettl, 2011).…”

Exploring the Nature and Implementation Process of User-Centric Business Models

“…Toolkits are usually defined as userfriendly online tools which allow individuals to design customized products based on their individual needs. The underlying perspective is that of a dyadic human-toolkit interaction which starts with designing the product and ends with placing an order (Franke et al, 2008; von Hippel und Katz, 2002;von Hippel, 2005). However, our three case studies point to the value of established, long-lasting relationships between the company and the users as well as among the users themselves.…”

“…Last not least, allowing users to co-create also includes an additional value proposition: In the co-creation perspective, users not only derive value from using a certain product which satisfies their unmet needs. The mere opportunity to co-create with the company or with other users frequently delivers value due to effects such as pride of authorship and increased self-esteem, perceived empowerment, learning from peer feedback, peer recognition, and the fun of creative tasks (Franke et al 2008 and. To sum up, if users are to be integrated into a company's core business processes effectively and efficiently, companies require better insight into the fundamental changes associated with transforming their traditional business models into more user-centric ones (Chesbrough, 2010;McGrath, 2010;Teece, 2010;Wirtz et al, 2010).…”

How Firms Can Get Ideas from Users for Sustainable Business Innovation

“…A lot of firms in software industries prefer to use open source software as a platform to grab users' ideas [39][40][41]. User toolkits have been used to make users self-design their own product, and firms adopt users' ideas to develop new products or services in computer game [42], ski [43], and watch industries [44].…”