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Demand for customization, moreover, is limited and likely to remain so. Current technology can support large-scalecustomization at reasonable prices with reasonable response times for only a few attributes of a few products. Formass customization to deliver real value, those attributes must be ones on which people's preferences differ sharply
— ones that are easy to discern. Certain industries meet those conditions: Apparel, sports equipment and building
accessories are some examples. But it is clear that mass customization is not for everybody.[1]

 

REFERENCES
1. Even those conditions are not sufficient for success. Reichwald et al. discuss the demise of Custom Foot, whose business
model seemed promising. See R. Reichwald, F. Piller and K, Möslein, “Information as a Critical Success Factor for Mass
Customization, or Why Even a Customized Shoe Does Not Always Fit” (paper presented at ASAC-IFSAM Conference,
Montréal, July 10, 2000).
2. For an alternative depiction of mass customization, ibid.
3. S. Shugan, “The Cost of Thinking,” Journal of Consumer Research 7 (September 1980): 99–111; and C. Huffman and B.
Kahn, “Variety for Sale: Mass Customization or Mass Confusion?” Journal of Retailing 74, no, 4 (1998): 491–513.
4. Gilmore and Pine call that “cosmetic” customization. J. Gilmore and B.J. Pine, “The Four Faces of Mass Customization,”
Harvard Business Review 75 (January–February 1997): 91–101.
5. “Database Marketing,” Business Week, Sept. 5, 1994, 56–62; D. Peppers and M. Rogers, “Enterprise One to One” (New
York: Doubleday, 1997); and S. Brown, “Customer Relationship Management” (New York: Wiley, 2000).
6. “Custom-Made, Direct from the Plant,” Business Week Special Issue: 21st Century Capitalism, 1994, 158–160.
7. “Distribution Dilemmas,” The Economist, Feb. 26, 2000, 27–38.
8. M. Tseng, J Jiao and C. Su, “Virtual Prototyping for Customized Product Development,” Integrated Manufacturing Systems
9, no. 6 (1998): 334–343.
9. K. Ulrich, T Randall, M. Fisher and D. Reibstein, “Managing Product Variety,” in “Product Variety Management: Research
Advances,” eds. T. Ho and C. Tang (Dordrecht, Netherlands. Kluwer, 1998), 177–205.
10. S. Kotha, “From Mass Production to Mass Customization: The Case of the National Industrial Bicycle Company of Japan,”
European Journal of Management 14. no. 5 (1996), 442–450.
11. “Sweatshops to Body Scans,” The Economist, April 29, 2000, 60–61.
12. The limited research on demand for variety gives no clear indication whether such demand is increasing. See for example,
B. Kahn. “Variety: From the Consumer's Perspective,” in “Product Variety Management: Research Advances,” eds. T. Ho and
C. Tang (Dordrecht, Netherlands: Kluwer, 1998) 19–37.
Reprint 4237
Copyright ©2001 by the Massachusetts Institute of Technology. All rights reserved
~~~~~~~~
By Paul Zipkin
Paul Zipkin is a professor of business at Duke University's Fuqua School of Business. Contact him at
paul.zipkin@duke.edu.
MASS CUSTOMIZATION VS. MASS PRODUCTION
What exactly does a mass-customization system consist of? How does it differ from traditional mass production?
Commodities from grain to gasoline are typically manufactured under mass-production systems. The great virtue of
mass production is economy of scale. Production facilities are typically expensive and inflexible, but variable
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