Okonkwo Prelims

customer would be defeating the purpose of customization. Dell’s customized
personal computers are delivered within three days of ordering and Apple
delivers the personalized iPod within two days of ordering. Luxury brands
should however strive to exceed the pace of customization of these consumer
goods because their consumers have high expectations. Customization is,
however, not restricted to products as is mistakenly supposed by several
brands, but can also be extended to services. Therefore quick response should
also form a part of the service aspect of customization.

What are the challenges of customization?

The prospect of customizing products and services to a wide audience consti-
tuting of millions of global consumers is a task that holds several challenges
for luxury brands.
The first major challenge of mass customization is the transformation and
integration of the complete internal organization for mass customization. This
is a challenging task as it involves a complete change of operations systems
and processes as well as the reorientation of the employees to be receptive to
customization. It also involves the absorption of the different functional units
involved in the customization process and the separation of specialized
resources and dynamic boundaries. The luxury brands that seek to implement
a successful mass customization strategy must first launch an internal change
process that involves every employee, department, unit, function and process
being attuned towards a relentless focus on the individual customer and their
personal needs. This is no easy task.
The second major challenge that luxury brands could encounter in the
process of mass customization is the issue of ethics in retail marketing. This
is related to customer data collection methods and use. Mass customization
involves interaction with consumers on an individual level, with an implica-
tion of the exchange of vital personal information such as name, age, contact

chapter 8 265

customize me!

Figure 8.12 The changes in the value chain during the consumer
customization of products and services
Source: Adapted from B. Joseph Pine II (1997) Mass Customization: The New Frontier for
Business Competition.

Development

Customized

products and

services

Production

Customized

products and

services

Retailing

Customizable

products and

services

Delivery

Customized prod-

ucts and services