Customer value analysis of mass customization

Abstract: Research show that customer patterns in the textile industry are changing and the degree of personalization of products is getting more important to meet personal needs and preferences. Mass customization is a strategy named to create higher customer value by customizing products through a close interaction during the design and production process, high production flexibility and efficient logistics. The lack of research on the implementation of mass customization strategies and an identified gap between customer expectations and perception (customer value) of these types of products, are the incentives to conduct this research. The thesis has the purpose of identifying the drivers of customer value of mass customized garments and assess the value chain of the company Brohall & Son from a perspective of mass customization as a strategy, and from the results draw conclusions of customer value aligned with the implementation mass customization strategies. In order to perform the research a quantitative approach, doing a customer value analysis through a self-completion questionnaire, was conducted. Attributes of price, quality, fit, service and delivery capacity were investigated to get an understanding of what drives value for the customers. In addition a qualitative method was used, doing interviews with the CEO of Brohall & Son to gain a deeper understanding of their operations and value chain. The results show that quality, fit, delivery capacity and service are the most important attributes of customer value. Price is the least important attribute and also the least correlated/dependent variable to the rest of the attributes, showing a high willingness to pay for the garments. The analysis of the value chain indicates some areas of improvements regarding logistics, design process and production process. Solutions are brought up to get the value chain to get more aligned with the strategies of mass customization.