Marketing Essay 代写:Mass Customization And Customers Satisfaction In Paint

Marketing Essay 代写:Mass Customization And Customers Satisfaction In Paint

 大规模定制是一种先进的管理工具,在该工具中,产品的设计和生产的密切关系,并与客户的期望和愿望的协调。许多研究人员已经证明了大规模定制的商业组织的增长和福利的重要性。有些人已经宣布,大规模定制作为未来成功的一个重要工具。然而,这是真的,一方面,这一策略创造了价值客户的创新产品,另一方面它倾向于增加产品的成本。

本研究探讨了大批量定制策略对巴基斯坦涂料行业顾客满意度的影响。它还比较了两个不同的组织的客户满意度的水平; Marketing Essay 代写:Mass Customization And Customers Satisfaction In Paint

一个采用大规模定制的战略和其他的质量战略

生产。分析组织的客户的满意度水平,一个 Marketing Essay 代写:Mass Customization And Customers Satisfaction In Paint

编制并给予顾客的问卷调查。在带回问卷调查结果和数据分析的结果发现,客户的组织,采取的战略

大规模定制更满意。因此,我们得出的结果,从观察和假设,大规模定制战略产生更满意的客户。

关键词:大规模定制,大众生产,创新,满意度,唯一组合

产品,资本支出,同质化 Marketing Essay 代写:Mass Customization And Customers Satisfaction In Paint


INTRODUCTION

Mass Customization is an advanced management tool in which product is designed and produced in close relationship and coordination with customer’s expectations and desires. Many researchers have proved the importance of mass customization for the growth and welfare of business organizations. Some have given declaration, Mass Customization as an essential tool for future success. However, this is true that on one side, this strategy invents the innovative products for valued customers and on the other side it inclines to increase the cost of product.

This study investigates the effect of mass customization strategy on the customers’ satisfaction in “Paint Industry of Pakistan”. It also compares the level of customer’s satisfaction of two different organizations;

one adopting the strategy of mass customization and other following the strategy of mass

production. To analyze the satisfaction level of customers of both the organizations, a

questionnaire was prepared and given to the customers. On bringing back the results of questionnaire and analysis of data it was found that customers of organization that is adopting the strategy of

Mass Customization are more satisfied. Hence, we derived the results from observation and the hypotheses that Mass Customization Strategy produce’s more satisfied customers.

Key words: Mass Customization, Mass Production, Innovative, Satisfaction Level, Unique

Product, Capital Expenditure, Homogeneous

Background

In 21st century, companies are realizing the Mass Customization as unique, distinctive and strong factor of leading organizations (Fitzgerald, 1995). Mass Customization and Mass Production are two different production strategies that lead manufacturing organizations to manufacture products or deliver services. In mass customization, that is also known as individualization or personalization of products,

needs and demands of customers are observed keenly and efforts are made to satisfy the customer’s

desires as for as possible (BARUTCU, 2007). On the other hand, in mass production process, all

decisions about the design, shape, color, and performance are made by the managers. Today,

under highly competitive business environment, personalization is necessarily increasing more

important. Market un-certainty is the major reason of the shift from Mass Production to Mass

Customization (Pine, 1993). While explaining the importance of Mass Customization Joseph

Pine says, now, the scenario is entirely different from the old markets of Mass Production.

Today the trend has been changed many fold. Now variegated and distinguished products,

manufactured for individual customers have taken place of standardized products.

HYPOTHESIS AND SECONDARY SOURCES:

This research was basically depending upon primary research which is structured questionnaire. These questionnaires were distributed through survey forms. As the use of mass customization is increasing Customized products motivate and incline the competitive advantage to the companies. It is obviously understood that customers of different regions have specific expectations from the products or services. Some customers are inventive and creative mind while others are price conscious due to their limited income and resources.

A main question of this research is :

Does small organizations pay attention to their customer’s demands and requirements while producing their low-cost products.

Following are the some author’s hypothesis that they developed:

Customers’ readiness and agreeableness to try new product is different in different cultures of the world,

(Kotler,1997). The logic of mass production that Henry Ford described briefly and put into that lower prices increase the sales volume, as the volume of sales is greater cost of

production is lower, and lower costs again looped back to allow offering of lower prices (Pine,

1993). Under Mass Customization, production volume cannot be increased so far; so product

price remains comparatively high. Moreover, every customer is not mastermind of designs and

innovation, so sometimes, product manufactured as per the desires and demands of the customer leads to poor

product performance and hence unsatisfied customer in the long run. Expectations from

products or services are not same by all customers (Armstrong, 1977). Focusing on meeting the

customer’s requirements and attaining customer satisfaction are strong and remarkable factors in the

businesses success (Kotler, 1999).

However. Some of the alternative hypothesis could be used by authors are as:

There is healthy mutual relation between customer satisfaction and customer retaining. (Bhave, 1999). It is reasonably mention here that customer satisfaction does not remain same . It changes with the passage of time. There are many reasons for the change of customer expectations over time. Some of them are invention of new technology, improvement in manufacturing process, change in customer’s priorities, and offering of superior services etc. (Bhave, 1999). Customer satisfaction is very important factor in any market. Without measurement of customer satisfaction, implementation of any business strategy in industries is vague. Measuring and keeping record of Customer Satisfaction is now also a

requirement of ISO standards. It is mandatory requirement for organizations; to get certification

under these standards to define parameters that have impact on the satisfaction or dissatisfaction

level of customers. (Bhave, 1999).

The producers of Mass production focus on developing and marketing of low priced products

or services that maximize customer’s requirements. The practitioners of Mass Customization

focus on the products or services, which can meet the demands and desires of many customers, by

providing enough variety through customization (Pine, 1993).

Data Analysis:

Primary research type is quantitative in which survey is conducted among different small industries through questionnaire. This research used survey method that involved structured questionnaire to obtain specific information. Due to rapid increase in the importance of Mass Customization and contradictory approaches of authors and customers, the question, whether mass customization improves the satisfaction level of customers is still worthy of further research. Moreover, in spite of the availability of some studies on this topic in the world no importance has been given to the subject study in Pakistan.

This means that the impact of mass customization on customers’ satisfaction has not received

adequate research attention in many industries of Pakistan. Thus, there seems to be a gap in the

available literature and its implication in Pakistan, which requires exploration through research.

This research is an effort to fill this space by evaluating the circumstances of paint industry in

Pakistan and offering more empirical evidence on the subject.

Literature Review

Alvin Toffler (1970) introduced the specific expression “Mass Customization”. With the invention of

latest technology and needs of growing businesses, Stan Davis (1987) deliberated on to the term

mass customization. However, due importance to the term / strategy of “Mass Customization”

was given first time by Joseph Pine-II (1993). He clearly defined the concept of Mass

Customization, stated why it an important for businesses, why customers were shifting from

homogenous products to heterogeneous products and what was standard product development

life cycle under Mass Customization. He expressed Mass Customization as “Producing

individually customized and highly varied products or services and finally a tremendous

increase in variety and customization without a corresponding increase in cost(2007), define it as a special product planned and prepared for special customers to meet their

special needs is customized product.

A contrast between Mass Production and Mass Customization extracted from

the theory of Joseph Pine-II is shown below:

in table form

Mass Customization and Mass Production

Differentiating

Factor Standard Products Manufacturers customized products Manufacturers

Attention • Achievement of high efficiency

through constant processes.

• Provision of ample range of products through flexible

processes.

Objective • Provision of low price products and

services, affordable by everyone. • Provision of products that

someone requires.

­­­­­­­­­­­­­­­­­­­­­­­­­­­ Stable demand

• Large, homogeneous market

Low-cost, consistent quality,

standardized goods and services

Long product development cycles

• Long product life cycles

• Fragmented demand

Heterogeneous niches

• Low-cost, high quality,

customized goods and

services

• Short product development

cycles

• Short product life cycles.

Source: Joseph Pine-II (1993), Mass Customization.

In product development process under mass customization, manufacturers increase flexibility

by offering innovation and by shortening production operations that accommodates the

modifications and alternations to fulfill the customer requirements. By making differentiated product, with high pace, price of the product is also kept low. Regular and effective communication between

suppliers and customers is essential in mass customization process. The production systems for

both strategies i.e. Mass Customization and Mass Production” are listed in Figure 1. 31

diagram circles

According to one survey, the cost, which companies have to bear to motivate one new

customer, is ten times more than retaining their one existing customer (Kotler, 1997). That’s

why; organizations are more interested to retain their existing customers, while focusing on new

customers. To retain the existing customers, their satisfaction is crucial to be considered by the

organizations. Measurement of customer satisfaction provides signal to the organization if it is

successful in providing goods and services up to the perceptions of the customers (Joby, 2003).

It is recognized by business community that ability of an organization to manufacture

innovative product is closely related to its talented resources and efficient utilization of these

resources by the organization (Edwards, 1984).

Customer is never wrong. This is supplier’s duty to provide him what kind of product he

demands and when he wants to get it. (Fitzgerald, 1995). As the term “Mass Customization” is

not much old and use of this strategy is recent tool for business development, so, there is need

to analyze all aspects of this strategy. It may happen that in the short run mass customization

may cause to develop the business but in the long run produces dis-satisfied customers.

The basic objective of this research study is to evaluate the strategy of Mass Customization in

the environment of Pakistan and suggest empirically if this strategy is successful in the Paint

Industry of Pakistan. Mass customization is not possible in each industry. Advance technology

and innovative plants are required to integrate changes according to the desires of the

customers. Here in Pakistan, businessmen are not ready to launch heavy investment due to

political and economic in-stability, lack of infrastructure and so many other reasons. Only few

organizations are using the strategy of Mass Customization. Pakistani customers are also price

conscious rather than differentiated.

So all aspects of Mass Customization strategy cannot be explored, while investigating the only

one industry. Further research is required to know (1) satisfaction level of customers in the short

run and in the long run (2) Favorable cultures for Mass Customization (3) Mass Customization

in developed and developing countries and (4) Mass Customization and growth of the country.

Data Presentation:

Presentation of data is playing a major role for any research paper. How is it presented? Are any tables, schemes, graphs used to present data or not? If data presentation is clearly understandable then it is easy for reader to read. Information about the data in a sample can be presented in several ways. For example, if it is shown by the picture of a graph or chart, this may make it easier for reader to understand what has been found, compared to simply presenting information about the central tendency and dispersion. (Eysenck, 2004)

In this research paper, author used tables to show and summarize the results of different questions. One table created in against to each question, which they ask in their questionnaire. In the last table they used significant concern of technology used and find out p-value. However, they did not use any graphs to express the tables used in this research. They can use different pictorial view to represent their data. For example, they could use frequency polygon, histogram and bar chart to represent the information. They should be needed to draw the diagram of normal distribution of the data.

EVALUATION OF CONTRIBUTION OF THIS RESEARCH PAPER MAKES TO OVERALL BODY OF KNOWLEDGE:

After understanding of customers’ perceptions. They can evaluate the opportunities available in

the market and threats that may be faced by the organization. Similarly, they also evaluate their

strengths to avail the market opportunities and can chart out ways for future improvements.

Customer expectations are the features of products or services that are defined by the customers

and that must be fulfilled or should exceed to achieve satisfaction of the customers (Nigel Hill,

1999).

Evaluation of Customer Satisfaction is useful to give attention to customer requirements and to

formulate processes for the improvement of products or services that are used in the

Organization. Lord William (1907) says about satisfaction “If you cannot measure it, you

cannot improve it”.

Customer is never wrong. This is supplier’s duty to provide him what kind of product he

demands and when he wants to get it. (Fitzgerald, 1995). As the term “Mass Customization” is

not much old and use of this strategy is recent tool for business development, so, there is need

to analyze all aspects of this strategy. It may happen that in the short run mass customization

may cause to develop the business but in the long run produces dis-satisfied customers.

Moreover, due to high capital expenditures, this strategy may decrease return on investment in

some industries. If so, this strategy may dis-qualify soon in such industries. Only long run

satisfied customers are asset of the organization and long run satisfied investors are guarantee of

the businesses, hence source of organizational and economic development in a real sense.

The basic objective of this research study is to evaluate the strategy of Mass Customization in

the environment of Pakistan and suggest empirically if this strategy is successful in the Paint

Industry of Pakistan. Mass customization is not possible in each industry. Advance technology

and innovative plants are required to integrate changes according to the desires of the

customers. Here in Pakistan, businessmen are not ready to launch heavy investment due to

political and economic in-stability, lack of infrastructure and so many other reasons. Only few

organizations are using the strategy of Mass Customization. Pakistani customers are also price

conscious rather than differentiated.

So all aspects of Mass Customization strategy cannot be explored, while investigating the only

one industry. Further research is required to know (1) satisfaction level of customers in the short

run and in the long run (2) Favorable cultures for Mass Customization (3) Mass Customization

in developed and developing countries and (4) Mass Customization and growth of the country.

V. RESEARCH HYPOTHESES

In order to examine the research problems and to achieve the purpose of this study, the below

mentioned hypotheses were developed and tested: –

Hypothesis 1 Customers, using the products of organization that is adopting the strategy of

Mass Customization are more satisfied than the customers of organization that is adopting the

strategy of Mass Production.

Hypothesis 2

The four independent variables, quality, price, services and product performance will

significantly explain the variance in Customers’ satisfaction.

THEORITICAL FRAMEWORK

It is difficult to exactly measure the satisfaction level due to its intangible nature (Bhave, 1999).

Satisfaction level of customers is a qualitative variable, which can’t be measured exactly by any

instrument. However, a process can be defined and used to evaluate the satisfaction level of

customers. It is revealed from past studies and experiences from economic surveys that there are

many elements, which affect the satisfaction level of customers. Published standards are also

available that are helpful for the organizations to improve the satisfaction level of their

customers. Different scholars have studied the relationship between different independent

variables and customer satisfaction. Some authors focused on quality of product, while others

gave due importance to the services of the company. Quality of Services; being an important

factor of customers’ satisfaction has been explored by many authors during past years. As

defined by Garvin (1984), service quality is the individually apparent quality of service

acknowledged by the customers. Gronroos (1984) said that service quality is the result of an

evaluation process, in which a comparison of expectations with the perceptions of the services

that they have received is made by the consumers. (Myungsook An and Yonghwi Noh, 2009).

Today, the service industry is considered the most important factor of the world market (Lee et

al. 2007). In USA, the contribution of service industry towards annual GDP is about 60%. In the

worldwide history of recent past, almost 70% of new jobs are due to the expansion of service

industry. (Mckee 2008). So, importance of service variable cannot be ignored, while measuring

the satisfaction level of customers. Many other researches, defining the variables of customer

satisfaction also exist. Berry and Brodeur developed ten Quality Values during 1993 and 1999,

which effect satisfaction of customers. These values were further explored by Berry in 2002 and

are remembered as the ten domains of satisfaction. These are value, quality of services, in time

availability, effortless access, competence to produce, environmental conditions, collaboration

of workers, services at front bench, newness, and loyalty to the customers.

Here the objective of this study is not to evaluate the satisfaction

measurement elements and to state that which factor is more important and

which is less important in the measurement of satisfaction, but the purpose is

to determine the overall satisfaction level of customers, considering all

possible elements. Satisfaction elements for different products, by different

customers of different regions may be different. So, to clearly find out the

results of study, customers of paint industry were chosen to be explored. The

idea of study was to assess the satisfaction level of customers under the

strategy of mass customization and under the strategy of mass production.

Four variables Quality, Price, Service, and Product performance were selected

as independent Variables for the measurement of dependent variable

Customer Satisfaction. The relationship between Dependent Variable and

Independent Variables can be seen in diagram below

Diagram customer satisfaction

Customer’s Satisfaction is somewhat dependent on these variables. However, these may not be

the only variables for the measurement of customer satisfaction. We consider them due to their

due importance, while measuring customer satisfaction by previous researchers. Philip Kotler

says “Customer Satisfaction is closely linked to quality. Quality has direct impact on product

performance and hence on customer satisfaction”. The importance of Price Variable cannot be

ignored, while studying the Law of Demand. The philosophy behind this law is the satisfaction

level of customers. Whether the price is raised or lowered, the action will affect buyers (Philip

Kotler, 1997). So price of the product is considered major element, which affects the

satisfaction level of customer. Gary A Capps (1997) argues about service that your image as a

professional is augmented by your services. If your services are perceived good by the

customers, your handling is considered friendly, dealing with clients as efficiently, the

customers will think that you are running your business in a professionally manner. They won’t

think non-professional, and probably they’ll trust you Gary A Capps (1997).

Validity and Soundness of Methodology:

Methodology means the clear rules, regulations and procedures on the basis of which research is designed, results are proved and knowledge is ascertained. (Ojo, 2003). This section contains the

methodology, selected for this study and used in this research to find the objectives of this

study. Here, in this study the sampled elements were required to evaluate without any

manipulation. So survey research design was used to obtain the desired objectives. The

theoretical population, selected for this study belongs to the customers of the paint industry in

Rawalpindi / Islamabad, cities of Pakistan. The choice of Rawalpindi / Islamabad stems from

the fact that these are major cities of Pakistan and corporate headquarters of both the

organizations were available in these cities. Moreover, these two cities depict entirely different

customers’ behavior and purchasing power. That is useful for more reliable research results. For

good coverage of data and to keep the cost of survey low, simple stratified sampling technique

was adopted to choose the organizations for research purposes. Paint organizations were

classified into two groups based on the production strategy; they were being used. Thus we had

Mass Customization Paint organizations and Mass Production Paint organizations. One

organization was chosen from each group. Customers of these organizations were divided into

three main groups: new customers, mid-period customers and old customers. A stratified

random sampling system was adopted to choose a total of 200 customers from each strata

organization, which constituted our total sample size of 400 customers. It is pertinent to

mention here that financial constraints at scholarly level could not allow choosing greater

sample size for study.

EVALUATION OF METHODOLOGY:

DATA GATHERING:

Primary data was used for this study. Data was collected using a structured questionnaire. The

constructs were operationalized by classifying each variable into major factors, depending upon

the nature of the variable. The questionnaire also covers the demographic information related to

the respondents. All the responses regarding variables were collected on a five point Likert

Scale. To ascertain the key satisfaction and dis-satisfaction variables for the customers, 3openended questions were also part of the questionnaire. It was also made sure that the respondents

have already used the product before some reasonable time period.

Research Sample and Response Rate:

The sample for this study was drawn from the Paint Industry of Pakistan. Due to limited time

involved in this study, only 02x organizations, one adopting the strategy of mass customization

and other adopting the strategy of mass production were selected for the study. Study

participants included new, mid-level and old customers. A variety of products from 02x

organizations were included in the sample to address possible variances in the satisfaction level 35

of customers. 400 questionnaires were distributed in selected outlets of both the organizations.Out of 400 questionnaires, only 300 responded back, out of which 212 were found complete in

all respects. All Missed Responses were related to the likes and dislikes in the product against

open ended questions. As these don’t effects directly the satisfaction level of customers, so

these were also included, while measuring the satisfaction level of customers. The response rate

is 75%. Responses were collected in a time span of 04 weeks. A general problem while the

analysis of data regarding the customer satisfaction is the stated and derived importance of

factors (Grigoroudis, 2003). Normally, customers stated and derived features of the product, for

the measurement of satisfaction level are different.

Results and Findings

For the purpose of reliability check of the variables / items, Cronbach Alpha of the data set is

analyzed. Table A explains the Reliability Analysis (C-Alpha) about the 05 variables (1

Dependent and 4 Independent), comprising of 18 items / questions, discussed in this study.

Table A

Variables No of Reliabilit

Items y

Quality 3 0.706

Price 2 0.466

Services 4 0.800

Performanc 3 0.916

e

Satisfaction 3 0.647

Reliability of one of the variables is below 0.50, while all other variables show the reliability

above 0.50. Cumulative Reliability of all items is 0.91. That is very close to 1. So, the internal

consistency reliability of the measures can be taken as good. As the reliability is near to 1, data

is considered more valid for analysis (Uma Sekaran, 2000, 2003). This shows that item of price

needed improvement.

Hypothesis Testing

It was hypothesized that customers of organization that is adopting the strategy of Mass

Customization are more satisfied than the customers of organization that is adopting the strategy

of Mass Production. Table C shows the results of means of variables, taken in this study.

Table C

Product Category Quality Price Services Product

Performance Satisfaction Overall satisfaction

Customized 77.86 83.60 83.40 88.80 86.40 84.00

Standard 58.00 69.37 67.42 75.00 66.74 67.33

The above table indicates that overall satisfaction level of customers of the organization that is

adopting the strategy of mass customization is 84% while satisfaction level of customers of

other organization that is adopting the strategy of mass production is 67.33% that is lower to

first organization. If we compare the difference of all variables individually, we see that

satisfaction level of customers of first organization is lower within all independent variables

(Quality, Price, Services, and Product Performance). The large difference is found in Quality

variable that is about 20% and the smallest different between satisfaction levels of customers of

both organizations is under the variable of Product Performance that is about 13%. The results

show that customers of the organizations, that are adopting the strategy of Mass Customization

are more satisfied than the customers of organization that is adopting the strategy of Mass

Production.

CONCLUSION:

On the basis of this research and analysis of data, we conclude that customers of the Paint

organization that is adopting the strategy of Mass Customization are more satisfied than the

customers of Paint organization that is adopting the strategy of Mass Production. Hence, the

strategy of Mass Customization is more successful in the Paint Industry of Pakistan. We can say

that Pakistani customers are innovative and have passion to accept the change. Although, it was

assumed that Pakistan is a developing country and its customers would be price conscious

rather than innovative, but the results rejected the assumption and showed that the most

desirable variable for customers’ satisfaction in Pakistan is Quality of the product instead of

price. Analysis of Demographic Information, received through questionnaires also indicates that

Pakistani customers are innovative irrespective of their qualification and profession. They want

and like customized products.

This research opens the doors for other industries of Pakistan to Benchmark the strategy of

Mass Customization to become leading organizations of the world. On the basis of this

research, we are right to say that if Mass Customization strategy is implemented in other

industries of Pakistan, it will not only produce satisfied customers but also will be beneficthe success of the organizations. It may be a better tool of success for organizations in this age

of competition.

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