Hello! I have been slacking this week and totally forgot today was Wednesday. I need 2 different responses from this with at least 3 references, at least 400 words and no plagiarism.
Chapter 7: Mass customization of products has become a common approach in manufacturing organizations. Explain the ways in which mass customization can be applied to service firms as well.
Mass customization has become a popular wave of our current economy. With customers becoming more and more demanding with the specifics they would like for the products they buy. By definition, mass customization “refers to using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers” (Daft, 2013, p. 271). Our textbook goes further to highlight the demands of BMW consumers in Europe, stating that “60 percent of the BMW car sells in Europe are built to order” (Daft, 2013, p. 271). This mass customization aids in customer satisfaction, however, it greatly increases the difficulty of manufacturing. Mass customization can be applied to service firms almost more readily than in a manufacturing organization. The reason for this is that a service firm exists to serve the specific needs of the customer. A good example of a type of service firm that would benefit from mass customization is in the financial services and wealth management industry. As a financial advisor, it is of great benefit to yourself to serve as many clients as you can because you are almost always paid based off the amount of assets that you manage. However, the specific desires of each client might can based off their age, amount of wealth, and tolerance for a fluctuating market. Because of these very unique and specific characteristics for each client, it is behoove of the financial service industry to adopt mass customization strategies for its customers. These customizations can be explained by selecting a variety of different types of mutual fund investments and entering in markets that either preserve or grow the clients wealth based off their individual preference.