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2015 | Buch

Customer Co-Design

A Study in the Mass Customization Industry

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Stefan R. Thallmaier’s investigation enables mass customization businesses to better understand how co-design increases customers’ value perception. He focuses on the increasing proliferation of service channels (online, mobile and in-store) and digital media (toolkits, social media and live help) at the co-design interface. Based on qualitative and quantitative research, the author examines how this proliferation impacts customers’ value perception in the different stages of the co-design process. The research shows that customers’ value perception profits from varying levels of social presence throughout the co-design process. The work helps researchers and practitioners with surprising insights as well as hands-on recommendations to improve and adapt interfaces for customer co-design.

Inhaltsverzeichnis

Frontmatter

Introduction

Frontmatter
1. Relevance of Customer Co-Design
Abstract
As indicated with the introductory citation above, it is frequently recognized that customer co-design plays a major role in managing business initiatives successfully. It ensures that products or services are designed through the customer’s eyes. This perspective is expected to increase the likelihood of customer needs being met more accurately with co-design than with conventional design processes, which are predominantly operated from a business perspective. Thereby customer co-design denotes the process of creative interaction between a customer and a business to develop a specification for a product or service, which is denoted design.
Stefan R. Thallmaier
2. Definition of Customer Co-Design
Abstract
Before diving deeper into customer co-design, it is important to define the concept. In order to do so, the inherent notions of design and co-design are introduced before a final definition of customer co-design is presented, which will serve as the basis for the entire thesis and its multiple empirical studies in the mass customization industry.
Stefan R. Thallmaier
3. Structure of the Thesis
Abstract
The present thesis is structured into six parts supporting the goal to better understand how various service channels and digital media affect customer co-design in the mass customization industry. The overall structure follows the gradual research process conducted, hence each part represents one specific research step. On the next structural level, every part is divided into chapters, which - on the lowest hierarchical level - are divided into sections and subsections.
Stefan R. Thallmaier

Theoretical Framework

Frontmatter
1. Elucidation of Key Concepts
Abstract
As outlined in the previous part I, the present thesis empirically investigates customer co-design within the mass customization industry. To guide these empirical studies, the present part II derives the theoretical framework to clarify what interrelations will be explored and specifies the research design to depict how this will be achieved.
Stefan R. Thallmaier
2. Derivation of Theoretical Framework
Abstract
Based on the research question proposed in part I and the elucidation of the four key concepts on the previous pages of part II, the present chapter will derive, explain and graphically depict the theoretical framework which guides the empirical research.
Stefan R. Thallmaier
3. Specification of Research Design
Abstract
Based on the previous work, the present chapter specifies the research design chosen and clarifies the partitioning of the detailed research question into subordinated research questions to be answered within three empirical studies.
Stefan R. Thallmaier

Empirical Study 1: Challenges of Customer Co-Design

Frontmatter
1. Need and Goals
Abstract
Customer co-design exhibits a process in which customers and business providers collaboratively map the personal requirements of the customers into the design specification of the individual product.
Stefan R. Thallmaier
2. Theoretical Underpinning
Abstract
Within the literature stream of mass customization it is frequently argued that customers may perceive value from two basic sources. The first source relates to the characteristics of the customized product, which are expected to fit each customer’s personal needs. The second source concerns the process of co-design, which is an essential prerequisite to building and receiving the product. The current study focuses on the second source, i.e. the perceived value from the process of co-design. Important benefits, as well as cost components, which are assumed to originate from the process of co-design, are introduced, based on a literature review of perceived value within the context of mass customization (section 2.1).
Stefan R. Thallmaier
3. Method and Data
Abstract
This chapter details the method and the data of the empirical study. The first section introduces the research approach. It argues for a qualitative case study design. The second section describes the steps of data gathering and details the applied techniques. Finally, section three lays out the process of data analysis according to the principles of grounded theory building.
Stefan R. Thallmaier
4. Findings
Abstract
This chapter details the findings of the empirical study. It is divided into two sections. Section 4.1 presents the six mass customization cases by providing a short description for each company. It emphasizes the characterization of the respective customer co-design process along its basic elements (4.1 In-depth Cases of Customer Co-Design). Section 4.2 introduces the empirically derived key challenges which characterize the interplay between the process of customer co-design, customers’ perceived value and the impact of digital media (4.2 Key Challenges of Customer Co-Design).
Stefan R. Thallmaier
5. Conclusions and Future Research
Abstract
In this study three key challenges of customer co-design were identified, in response to the proliferation of digital media in the context of mass customization from a customer perspective. The first challenge considers the ability of the co-design process to further the discovery by customers of the product solution space. The collected data revealed that customers who engage in media with a higher social presence are more likely to discover unexpected product adaptations. It seems that digital media with a lower social presence tend to have a limited discovery yield and thus lower the perception of the potential solution space. When customers felt that they were not aware of the potential solution space, they perceived less value. In addition, managers reported that the variety of individualized products purchased substantially increased after introducing a new medium with a higher social presence.
Stefan R. Thallmaier

Empirical Study 2: Online Customer Co-Design

Frontmatter
1. Needs and Goals
Abstract
Creating attractive processes for customer co-design is key to successful online mass customization businesses. One specific challenge for businesses is to facilitate the appropriate level of social interaction to each single customer, as outlined in part III.
Stefan R. Thallmaier
2. Theoretical Underpinning
Abstract
This chapter introduces the theoretical underpinning for the present empirical study. Recently, customer co-design has been intensively investigated in the online mass customization context. Müller (2007) argues that this development is strongly related to the potential and the diffusion of the internet, which enhances product individualization through online media and direct customer integration. Moreover, providers argue that the online context allows to decrease the costs of the transaction to be decreased and efficient processes of co-design to be built.
Stefan R. Thallmaier
3. Method and Data
Abstract
The present chapter details the method and characterizes the empirical data investigated in the study. The method will be differentiated along the distinction of the overall research approach and the research design, which details the phases and research steps undertaken. Finally, the data are characterized to provide a brief overview of the empirical sample. Therefore, the present chapter is divided into three sections.
Stefan R. Thallmaier
4. Findings
Abstract
In this chapter, the results from the qualitative cross-case analysis and the iterative comparison are presented. Two primary mechanisms of interactive media are identified which help customers to engage in various forms of social interaction while designing their desired product.
Stefan R. Thallmaier
5. Conclusion and Future Research
Abstract
The present study explored social interaction within the context of online customer co-design. On the basis of a large-scale cross-case analysis of 115 online mass customization businesses, two types of online customer co-design have been identified to support social interaction. These are social customer co-design and live customer co-design.
Stefan R. Thallmaier

Empirical Study 3: Customer Co-Design & Live Help

Frontmatter
1. Needs and Goals
Abstract
Recently, scholars have paid increasing attention to the question of how the marketing strategy of customization adds value for the customer, i.e. perceived value. One superior argument in favor of this strategy is the possibility to reach a better fit between the individual preferences of each singular customer and the final product attributes, i.e. preference fit. From an economic standpoint it is further expected that a better preference fit increases customers’ willingness to pay a price premium compared to a non-customized, i.e. standardized, product.
Stefan R. Thallmaier
2. Theoretical Underpinning and Research Hypotheses
Abstract
To answer the proposed research questions, the present study builds upon knowledge in the domains of mass customization, information systems and social presence. On this basis, relevant concepts are identified and introduced stepwise. Subsequently, causal relationships are derived and formulated as hypotheses. Finally, the causal relationships and proposed hypotheses are aggregated into a structural equation model for subsequent statistical analysis.
Stefan R. Thallmaier
3. Method and Data
Abstract
The present chapter introduces the method and data used to investigate customers’ perceived value in online customer co-design and the impact of social presence via live help. For this reason the chapter is divided into three sections.
Stefan R. Thallmaier
4. Analysis
Abstract
Within the present field of research, two statistical methods of analysis, i.e. variance-based and co-variance based, are typically applied for structural equation modeling. For the present research approach, it was decided to apply the variance-based method of partial least squares (PLS), also referred to as soft modeling by Wold (1982). Two reasons led to this choice.
Stefan R. Thallmaier
5. Findings
Abstract
The present chapter details the findings and interpretations of the data analysis. It is divided into two sections. The first section focuses on research question one regarding the antecedents and consequences of customers’ perceived co-design value in the online customization system. The second section addresses research question two regarding the impact of higher social presence through live help on the entire model. Findings are reported along the results of PLS analysis of the validated structural equation model and its hypothesized relationships. Each of the two sections are further split into two subsections as detailed in the following.
Stefan R. Thallmaier
6. Discussion
Abstract
The present chapter discusses the results of the study and is divided into two sections. The first section summarizes the findings and derives implications for theory and practice. The second section captures important limitations of the study at hand and directly denotes important starting points for future research efforts.
Stefan R. Thallmaier

Discussion and Conclusion

Frontmatter
1. Summary and Discussion
Abstract
This thesis investigates processes of customer co-design in the mass customization industry to help companies to increase value perceptions and thus profits. The overall objective was to gain a deeper understanding of how various digital media and service channels impact customers’ perceived value. The present chapter summarizes part I to VI of this thesis and discusses the overall findings. Chapter 2 derives implications for the management of customer co-design in the mass customization industry. These implications are based upon the findings gained across the empirical studies and therefore deliver a holistic perspective on the entire research efforts. Finally, chapter 3 identifies and details avenues for further research.
Stefan R. Thallmaier
2. Managerial Implications
Abstract
This dissertation focuses on customer co-design in the mass customization industry. It specifically addresses the question how to increase customers’ perceived value across various channels and media of interaction. Based on the results of a literature review as well as three separate empirical studies, this chapter derives managerial implications for businesses engaging in the mass customization industry. These implications are expected to improve the attractiveness of customization programs and thus to increase profits.
Stefan R. Thallmaier
3. Directions for Future Research
Abstract
This thesis sought to lay out fundamental insights into customer co-design to add to the evolving research stream within the mass customization domain. Although the literature review (part II) as well as the empirical studies (part III to V) help to better understand underlying mechanisms and close a relevant gap in research, directions for future investigations are identified, which remain open. The present chapter provides a brief overview of topics and the appropriate research questions for further research on customer co-design. With this chapter, the present thesis completes this comprehensive research journey on customer co-design and provides attractive starting points for scholars to fertilize further conversations from an academic as well as a managerial perspective. Table 19 summarizes these directions.
Stefan R. Thallmaier
Backmatter
Metadaten
Titel
Customer Co-Design
verfasst von
Stefan R. Thallmaier
Copyright-Jahr
2015
Electronic ISBN
978-3-658-07526-2
Print ISBN
978-3-658-07525-5
DOI
https://doi.org/10.1007/978-3-658-07526-2

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