Identifying smart design attributes for Industry 4.0 customization using a clustering Genetic Algorithm

Industry 4.0 aims at achieving mass customization at a mass production cost. A key component to realizing this is accurate prediction of customer needs and wants, which is however a challenging issue due to the lack of smart analytics tools. This paper investigates this issue in depth and then develops a predictive analytic framework for integrating cloud computing, big data analysis, business informatics, communication technologies, and digital industrial production systems. Computational intelligence in the form of a cluster k-means approach is used to manage relevant big data for feeding potential customer needs and wants to smart designs for targeted productivity and customized mass production. The identification of patterns from big data is achieved with cluster k-means and with the selection of optimal attributes using genetic algorithms. A car customization case study shows how it may be applied and where to assign new clusters with growing knowledge of customer needs and wants. This approach offer a number of features suitable to smart design in realizing Industry 4.0

Why Customers Value Mass-customized Products: The Importance of Process Effort and Enjoyment

We test our hypotheses on 186 participants designing their own scarves with an MC toolkit. After completing the process, they submitted binding bids for "their" products in Vickrey auctions. We therefore observe real buying behavior, not merely stated intentions. We find that the subjective value of a self-designed product (i.e., one's bid in the course of the auction) is indeed not only impacted by the preference fit the customer expects it to deliver, but also by (1) the process enjoyment the customer reports, (2) the interaction of preference fit and process enjoyment, and (3) the interaction of preference fit and perceived process effort. In addition to its main effect, we interpret preference fit as a moderator of the valuegenerating effect of process evaluation: In cases where the outcome of the process is perceived as positive (high preference fit), the customer also interprets process effort as a positive accomplishment, and this positive affect adds (further) value to the product. It appears that the perception of the self-design process as a good or bad experience is partly constructed on the basis of the outcome of the process. In the opposite case (low preference fit), effort creates a negative affect which further reduces the subjective value of the product. Likewise, process enjoyment is amplified by preference fit, although enjoyment also has a significant main effect, which means that regardless of the outcome, customers attribute higher value to a self-designed product if they enjoy the process. The importance of the self-design process found in this study bears clear relevance for companies which offer or plan to offer MC systems. It is not sufficient to design MC toolkits in such a way that they allow customers to design products according to their preferences. The affect caused by this process is also highly important. Toolkits should therefore stimulate positive affective reactions and at the same time keep negative affect to a minimum. (authors' abstract

Applying marketing’s new dominant logic for interpreting customer experiences with brands

The concept of customer experience is evolving to an imperative area of study within the marketing discipline. Despite its importance and the positive attention this concept is receiving in the literature, the explanation of customer experiences remains vague and a thorough theoretical foundation is lacking. This paper addresses the gap in the literature and to facilitate a brand-management understanding of the concept of customer experience and its antecedents and consequences. The paper examines the impact of customer experience on brand loyalty via a comprehensive review of existing literature on the concept of customer experience and service brand literatures. Additionally, twelve propositions describe and explain the antecedents of customer experience and impacts upon brand loyalty within a service-centered marketing logic. This paper contributes a novel customer-brand experience perspective and conceptual tools relevant for further theory development and for effectively managing customer-brand relationships

Psychological elements explaining the consumer's adoption and use of a website recommendation system: A theoretical framework proposal

The purpose of this paper is to understand, with an emphasis on the psychological perspective of the research problem, the consumer's adoption and use of a certain web site recommendation system as well as the main psychological outcomes involved. The approach takes the form of theoretical modelling. Findings: A conceptual model is proposed and discussed. A total of 20 research propositions are theoretically analyzed and justified. Research limitations/implications: The theoretical discussion developed here is not empirically validated. This represents an opportunity for future research. Practical implications: The ideas extracted from the discussion of the conceptual model should be a help for recommendation systems designers and web site managers, so that they may be more aware, when working with such systems, of the psychological process consumers undergo when interacting with them. In this regard, numerous practical reflections and suggestions are presented

Critical review of the e-loyalty literature: a purchase-centred framework

Over the last few years, the concept of online loyalty has been examined extensively in the literature, and it remains a topic of constant inquiry for both academics and marketing managers. The tremendous development of the Internet for both marketing and e-commerce settings, in conjunction with the growing desire of consumers to purchase online, has promoted two main outcomes: (a) increasing numbers of Business-to-Customer companies running businesses online and (b) the development of a variety of different e-loyalty research models. However, current research lacks a systematic review of the literature that provides a general conceptual framework on e-loyalty, which would help managers to understand their customers better, to take advantage of industry-related factors, and to improve their service quality. The present study is an attempt to critically synthesize results from multiple empirical studies on e-loyalty. Our findings illustrate that 62 instruments for measuring e-loyalty are currently in use, influenced predominantly by Zeithaml et al. (J Marketing. 1996;60(2):31-46) and Oliver (1997; Satisfaction: a behavioral perspective on the consumer. New York: McGraw Hill). Additionally, we propose a new general conceptual framework, which leads to antecedents dividing e-loyalty on the basis of the action of purchase into pre-purchase, during-purchase and after-purchase factors. To conclude, a number of managerial implementations are suggested in order to help marketing managers increase their customers’ e-loyalty by making crucial changes in each purchase stage

Linking experience realms and experiential service brand loyalty: Determinants and outcomes for future operationalization

The concept of ‗Customer Experience‘ has evolved as an imperative area of study within the marketing discipline. Despite its importance and the positive attention this concept received during the last few years, the explanation of customer experiences have remained vague and lack a thorough theoretical foundation. This paper aims to address the gap in the literature and to facilitate better understanding of the concept of customer experience and its antecedents and consequences from the consumer perspective. The paper examines the impact of customer experience on brand loyalty via a comprehensive review of existing literature on the concept of customer experience and service brand literatures. Additionally, twelve hypotheses, which describe and explain the antecedents of customer experience and impacts upon brand loyalty within the service sector, are presented. The outcome of this paper adds novel perspective to the growing body of brand literature, particularly service brand and suggests directions for future research

Product Configuration Systems: State of the Art, Conceptualization and Extensions

Product configurators are considered to be among the most successful applications of artificial intelligence technology. In this paper, we determine different conceptualizations of configurators and condense them in a comprehensive morphological box, which should support configurator designers as well as decision makers in selecting the right system. The analysis of the criteria according to which configurators that are designed thus far reveals a neglect of the front-end perspective. Therefore, it is relevant to extend configurators with a front-end component assisting customers during product configuration through advisory. We develop a framework describing the main requirements on an advisory system and propose the technical infrastructure for its implementation. Finally, the advisory system and the configurator are integrated into a comprehensive interaction system.product configurators; advisory system; product personalization

A Typology of Mass Services: The Role of Service Delivery and Consumption Purpose In Classifying Service Experiences

Purpose — The purpose of this paper is to provide services marketers with a deeper understanding of the elements that characterize mass services. The paper shows that many studies have been conducted within the context of professional and retail services, knowledge of mass service contexts is limited despite the growth of services within this context. Design/methodology/approach — This paper provides a conceptual overview of mass services and develops a typology for mass services based on an extensive review of the services literature. Specifically, the typology developed classifies mass services on the basis of service delivery and purpose. The typology forwarded, therefore, classifies mass services using a two-by-two framework with individual and collective mass services classified as either utilitarian or hedonic in nature. Findings — The typology found in this paper provides a practical insight into the characteristics of services falling into the classification of mass services. The value of the classification is that managers can better understand the unique aspects of mass services, thus, allowing for a better utilization of limited resources. Moreover, the paper provides insights into a service classification that has received limited research emphasis, yet, is attracting increasing industry attention. Originality/value — This paper provides academics and practitioners with a framework that has both tactical and strategic implications. These implications include enhancing the customer experience and thus customer retention, resource management, employee training and service management. Given that such a framework has not been forwarded in the literature, the typology presented in the current paper makes an original contribution to the literature

Human Resource Management, Service Quality, and Economic Performance in Call Centers

This paper examines the relationship between human resource practices, operational outcomes, and economic performance in call centers. The study draws on a sample of 64 call centers serving the mass market in a large telecommunications services company. Surveys of 1,243 employees in the 64 centers were aggregated to the call center level and matched to archival data on service process quality, as measured by customer surveys; call handling time, revenues per call, and net revenues per call. Our path analysis shows that human resource practices emphasizing employee training, discretion, and rewards lead to higher service quality, higher revenues per call, and higher net revenues per call. In addition, service quality mediates the relationship between human resource practices and these economic outcomes. There is no significant relationship between HR practices and labor efficiency, as measured by call handling time; and labor efficiency is inversely related to revenue generation

Co-creation vs. mass customization in fashion industry : understanding new shoppers’ differential perceived value and preferences

Emerging literature highlights the importance of implementing user innovation in existing new product development as the offline fashion industry is stagnating. Co-creation and mass customization, denoted as an active collaboration process between fashion retailers and consumers, are user innovative concepts. There is little known how different shopper types embrace the final product outcomes of both concepts. Therefore, this research study aims to examine the differential effects on perceptions and preferences different shopper groups have towards user innovative fashion concepts. Shoppers’ perceptions were measured by quality innovativeness, and social status, whereas preferences were assessed by attractiveness and purchase intentions. Factor and Cluster analysis was conducted to identify a new shopper typology of six heterogeneous shopper types coupled with their shopping behaviour. In this between-subject research, each shopper’s perceptions and preferences on mass customized and co-created products have been assessed by using the two-way ANOVA technique. In general, it revealed that the personalized and risk-averse shopper tends towards co-creation in fashion, whereas the price-conscious one tends towards mass customization. The convenience and conventional as well as the individual shopper might not be appropriate target segments for fashion retailers. By understanding the outcomes of this study, fashion retailers can extent their product portfolio and adapt their positioning strategies to accelerate business with the help of user innovation concepts. Limitations and opportunities for further research are also discussed