Computing the Mass Customization and Personalization Effectiveness Index for Evaluating the Strategic Position of a Company

Ashok Kumar; Kathryn E. Stecke

Ashok Kumar

Grand Valley State University, USA

Kathryn E. Stecke

Naveen Jindal School of Management, University of Texas at Dallas, USA

Volume 9: 2015, pp. 129-148; ABSTRACT

Companies can usefully employ mass customization strategy in order to gain strategic ascendancy over their competitors. Mass customization strategy is designed to allow a company to significantly increase the customization level of its products while maintaining affordability in its pricing. This serves to increase customer satisfaction with the product(s) and, in turn, results in increased market share and profitability for the company. One of the mechanisms for identifying where and how much improvement can be made in price and customization levels is known as the MCPEI (Mass Customization and Personalization Effectiveness Index) methodology (Kumar and Stecke 2007). This index shows on a unit scale how effectively the mass customization strategy can be implemented by a company. This current work shows how two components of MCPEI (capability-based and market-based) are computed and integrated into a single MCPEI value.

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