Nonlinear Pricing with Product Customization in Mobile Service Industry

This paper proposes to incorporate product customization in the Maskin and Riley (1984) nonlinear pricing model in order to capture major features of mobile service data. In particular, consumers are characterized by a two-dimensional type. One dimension is observed by the provider and integrates product customization, while the other is a standard parameter of adverse selection, which is unobserved by the provider and makes it necessary for the provider to discriminate among consumers with different tastes through nonlinear pricing. We then propose a novel method to aggregate the multiple-dimensional voice consumption into one-dimensional index. We show that the model structure is identified under the following conditions: The marginal utility function is multiplicatively separable in consumers’ tastes, and consumers’ observed and unobserved heterogeneity are independent. Empirical results show that both dimensions of heterogeneity are important. Due to asymmetric information, 50% of the "second-best" social welfare is left "on the table" in order to screen heterogeneous consumers. Moreover, if costly product customization does not affect subscribers’ utility, 20% of subscribers would not be served

Facilitating social constructivist learning environments for product design Students using social software (Web2) and wireless mobile device.

It is well understood and has been well documented that there is much to gain by using social software in creating collaborative learning communities. However little is known about using a context independent interactive collaborative environment with an emphasis upon sharing, ease of use, customization and personal publishing (MobileWeb2). This paper describes an innovative and integrated MobileWeb2 technology in a product design live project setting, that assists product designers to solve a real problem to serve a real client. Students and teaching staff use a smartphone to capture design decisions and prototypes and collate and share these via an online eportfolio. From the data collected from staff/students surveys it was found that this method provided a stimulating collaborative environment that develops personal skill to bring out their latent creativity in such a way that these will become part of their project. Opportunities for mobile web2 product design projects are outlined. The logistics of providing access to appropriate hardware and software for all students are also discussed

Sustainable development strategies for product provision and manufacturing approaches

Manufacturing firms are under many pressures both financially and competitive which focus attention on the performance of their manufacturing processes. In this paper the opportunities for improving the environmental impact of products within the constraints of existing manufacturing infrastructure are examined. Approaches which support sustainability in two aspects are proposed, firstly, the provision of products to the users in ways which extend the product life and secondly, manufacturing approaches which reduce resource usage. The provision and manufacture of products in ways that are truly sustainable are inhibited by three issues: firstly, decisions are predominantly made solely from the perspective of the “vendor” (and do not consider the wider perspective); secondly, that generally the scope of business planning is still rooted in production/manufacturing costs (and not consumption costs) and thirdly, the current performance measures (e.g. KPIs) mainly focus on profitability. The rationale for this conference paper is the argument that there is a need to raise the awareness during the earliest stages of business planning that there may be alternative approaches which are more sustainable. The concepts presented here will underpin further research into performance measures which encompass sustainability and resulting business planning implications

An Economic Study of the Effect of Android Platform Fragmentation on Security Updates

Vendors in the Android ecosystem typically customize their devices by modifying Android Open Source Project (AOSP) code, adding in-house developed proprietary software, and pre-installing third-party applications. However, research has documented how various security problems are associated with this customization process. We develop a model of the Android ecosystem utilizing the concepts of game theory and product differentiation to capture the competition involving two vendors customizing the AOSP platform. We show how the vendors are incentivized to differentiate their products from AOSP and from each other, and how prices are shaped through this differentiation process. We also consider two types of consumers: security-conscious consumers who understand and care about security, and na\"ive consumers who lack the ability to correctly evaluate security properties of vendor-supplied Android products or simply ignore security. It is evident that vendors shirk on security investments in the latter case. Regulators such as the U.S. Federal Trade Commission have sanctioned Android vendors for underinvestment in security, but the exact effects of these sanctions are difficult to disentangle with empirical data. Here, we model the impact of a regulator-imposed fine that incentivizes vendors to match a minimum security standard. Interestingly, we show how product prices will decrease for the same cost of customization in the presence of a fine, or a higher level of regulator-imposed minimum security.Comment: 22nd International Conference on Financial Cryptography and Data Security (FC 2018

Enabling mobile commerce through mass customization

Mobile Commerce is a new degree of electronic commerce arises from the convergence of Internet and mobile communication technologies. In order to be successful in mobile business, it is not sufficient to simply transfer conventional Internet applications or E-Commerce business models on mobile devices. Added values for the customer are necessary. Typical informational added values in Mobile Commerce originate from ubiquity, context-sensitivity, identifying functions or command and control functions. Mobile devices implicate disadvantes, which can be equalized by individualization. For the simplest devices, this is satisfied with simple features like housings, ring tones or logos. The more upmarket the device is, the more the individualization focus is laid on the applications instead of the device itself. In terms of mass customization, the individualization of mobile devices and applications can be categorized as soft customization. Below this level, three kinds of customization habe to be distinguished: The first on is device adaptation which means the customization of the device itself. The next one is application adaptation and describes the customization of the applications through the customer or as self-individualization of the software. The last one is service composition and means the package of services or the customer-individual composition of applications and services, which ca be done either by the customer, by the provider or by collaboration of both. In this paper we show the importance of mass customization and its techniques for the success of mobile commerce.mass customization; M-Commerce; mobile added values; point-of-delivery-customization; service composition

A Factory-based Approach to Support E-commerce Agent Fabrication

With the development of Internet computing and software agent technologies, agent-based e-commerce is emerging. How to create agents for e-commerce applications has become an important issue along the way to success. We propose a factory-based approach to support agent fabrication in e-commerce and elaborate a design based on the SAFER (Secure Agent Fabrication, Evolution & Roaming) framework. The details of agent fabrication, modular agent structure, agent life cycle, as well as advantages of agent fabrication are presented. Product-brokering agent is employed as a practical agent type to demonstrate our design and Java-based implementation

Online banking customization via tag-based interaction

In this paper, we describe ongoing work on online banking customization with a particular focus on interaction. The scope of the study is confined to the Australian banking context where the lack of customization is evident. This paper puts forward the notion of using tags to facilitate personalized interactions in online banking. We argue that tags can afford simple and intuitive interactions unique to every individual in both online and mobile environments. Firstly, through a review of related literature, we frame our work in the customization domain. Secondly, we define a range of taggable resources in online banking. Thirdly, we describe our preliminary prototype implementation with respect to interaction customization types. Lastly, we conclude with a discussion on future work