How to adopt mass customization strategy: Understanding the Role of Consumers’ Perceived Brand Value

Zhenhao LI, Hong YANG, Jing XU

Research output: Journal PublicationsJournal Article (refereed)peer-review

6 Citations (Scopus)


How to make a suitable decision by balancing the benefits and costs of Mass customization (MC) has been widely discussed by scholars. While with the development of information and production technology, some traditional factors that affect firms’ MC decisions have significantly changed. Meanwhile, consumers’ brand recognition is playing an increasingly important role in consumers’ purchase decisions. Motivated by the new conditions, we develop an analytical model to investigate how a firm’s MC decisions are affected by consumers’ perceived brand value and customization cost. The solution of the benchmark model shows that (i) if brand loss outweighs maximal travel cost, the firm generally abandons MC even if MC is costless; (ii) the firm is more likely to adopt MC when the impact of MC on perceived brand value is positive; (iii) a higher customization level may not imply a higher price, but the firm always obtains higher profit with the increase of customization level, and (iv) the implementation of MC may derive an economically inefficient situation. As an extension, we consider a scenario where consumers have heterogeneous attitudes toward the impact of MC on brand value and find that: (i) the main conclusions in the benchmark model are still valid; and (ii) consumers’ heterogeneous attitudes toward brand value can benefit themselves.
Original languageEnglish
Article number108666
JournalComputers and Industrial Engineering
Early online date18 Sept 2022
Publication statusPublished - Nov 2022

Bibliographical note

Funding Information:
This work was supported in part by the Humanities and Social Sciences Foundation of the Ministry of Education [grant number 14YJAZH091 ], the Foundation and Advanced Research Project of Chongqing (Grant number cstc2014jcyjA00031 ), and the Fundamental Research Funds for the Central Universities (Grant number 106112016CDJXY020006 ).

Publisher Copyright:
© 2022 Elsevier Ltd


  • Consumers’ perceived brand value
  • Mass customization
  • Social welfare
  • Strategy decision


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