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Mass Customization in the Hospitality Industry:
Concepts and Applications
Presenter: Duong Nguyen
Table of Contents
1. Definition of mass customization
2. Key decision factors in implementing mass customization
3. Four a...
What is Mass Customization?
• Visionary definition: Ability to provide customers anything they want profitably, at any
tim...
Should companies pursue a mass customization
strategy?
• Customer sensitivity
• Do customers care whether a company offers...
Four Approaches to Mass Customization
Transparent Collaborative
Adaptive Cosmetic
No change
No change
Representation
Chang...
Where to start Mass Customization
• Modularize your capabilities - Break everything apart into modular elements like LEGO
...
Source: Hilton Hhonors Android App
Mass Customization in Fast-food Industry
Source: Google Image
Mass Customization in Lodging:
Ritz Carlton Hotel
Commodity Hotels Novelty Hotels
Price Location Style
Ritz Carlton Hotels...
Take-away
• Mass customization helps companies to offer customers the products / services they
want at a low cost.
• There...
References
• Mok C., Stutts A., & Wong L. (2000) Mass Customization in the Hospitality Industry:
Concepts and Applications...
Mass customization in the hospitality industry
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Mass customization in the hospitality industry

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Mass customization in the hospitality industry

  1. 1. Mass Customization in the Hospitality Industry: Concepts and Applications Presenter: Duong Nguyen
  2. 2. Table of Contents 1. Definition of mass customization 2. Key decision factors in implementing mass customization 3. Four approaches to mass customization 4. Mass customization in hospitality industry 5. Case study: Ritz Carlton Hotel 6. Take-away
  3. 3. What is Mass Customization? • Visionary definition: Ability to provide customers anything they want profitably, at any time, anywhere and in any way. • Practical definition: The use of flexible processes & organizational structures to produce varied and often individually customized products and services at the low cost of a standardized, mass production system. Mass Customization Invention Mass Production Continuous Amelioration stable dynamic Change of processes stable Changeofproduct dynamic Source: Mass Customization in the Hospitality Industry: Concepts and Applications. Mok C., Stutts A., & Wong L. 2000.
  4. 4. Should companies pursue a mass customization strategy? • Customer sensitivity • Do customers care whether a company offers more customization? • Process amenability • Technology • Marketing • Design • Production & Distribution • Competitive environment • First-movers??? • Competitor’s analysis • Organizational readiness • Company’s culture & resource Source: Mass Customization in the Hospitality Industry: Concepts and Applications. Mok C., Stutts A., & Wong L. 2000.
  5. 5. Four Approaches to Mass Customization Transparent Collaborative Adaptive Cosmetic No change No change Representation Change Product Change Source: The Four Faces of Mass Customization. Gilmore J. & Joseph B. 1997. ***Many companies combine two or more approaches in order to meet individual customers’ specific needs.
  6. 6. Where to start Mass Customization • Modularize your capabilities - Break everything apart into modular elements like LEGO building bricks • Create a design tool to find out customers’ needs • Provide the design tool to customers • Customize products / services as customers’ requests • Remember your customers’ preferences to lower your customers’ sacrifice next time Source: Beyond Mass Customization. Joseph B. 2011. Don’t overwhelm customers with too much choice. Fundamentally customers don’t want choice; they just want exactly what they want.
  7. 7. Source: Hilton Hhonors Android App
  8. 8. Mass Customization in Fast-food Industry Source: Google Image
  9. 9. Mass Customization in Lodging: Ritz Carlton Hotel Commodity Hotels Novelty Hotels Price Location Style Ritz Carlton Hotels • Use information systems to collect, store and disseminate customers’ information among Ritz Carlton Hotels • CRM app: CLASS (Customer Loyalty Anticipation and Satisfaction System) • Employees quietly observe guests, learn their preferences and store the data into the system • Offer pre-orders via Ritz Carlton websites & apps  When guests check-in, front desk staffs will give them the room, location, pillow, blanket and basket of fruit they prefer Source: Invented Here: Maximizing Your Organization's Internal Growth and Profitability. Victor B. & Boynton A.
  10. 10. Take-away • Mass customization helps companies to offer customers the products / services they want at a low cost. • There are four approaches to mass customization • Transparent • Adaptive • Cosmetic • Collaborative • Information technology can take an important role in helping companies to do mass customization • But don’t overwhelm customers with choices.
  11. 11. References • Mok C., Stutts A., & Wong L. (2000) Mass Customization in the Hospitality Industry: Concepts and Applications. Fourth International Conference “Tourism in Southeast Asia and Indo China: Development, Marketing, and Sustainability. • Gilmore J. & Joseph B. (1997) The Four Faces of Mass Customization. Harvard Business Review. • Joseph B. (2011) Beyond Mass Customization. Harvard Business Review. • Victor B. & Boynton A. (1998) Invented Here: Maximizing Your Organization's Internal Growth and Profitability. Harvard Business School Press. • Hilton Hhonors Android App • Google Image

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