Key Fators in the Suess of the Customization of Produts in Taiwan Chen-Yi Hsu, Department of International Business, Kainan University, Taiwan Jyun-Nan Tang, Department of International Business, Kainan University, Taiwan ABSTRACT Purpose The goal of an ompany is to produe produts that an satisfy their onsumers. The purpose of this study is to explore the key suessful fators of the produt ustomization in Taiwan and how to improve it. Design/methodology/approah Based on the three onstruts and 12 priniples onluded from the past researh and using DEMATEL in ombination with ANP, this study explores the related influene and weights among these key suessful fators. Findings Researh results demonstrate that, in the phase of onstruts, onsumer behavior possesses the highest level of influene. In the phase of priniples, onsumer environment and produt pries are regarded as the key suessful fators that have the highest influene and affeted level. In addition, produt pries are the most ritial priniple. Originality/value This study find out the key suessful fators of the produt ustomization in Taiwan and propose suggestions for business and aademi researh to make referene to relevant researh topis for future ustomization. Keywords: Customization of Produt, DEMATEL, ANP, Paper type Researh paper INTRODUCTION People aknowledge fitness exerise as ruial to maintaining good health, therefore, the level of partiipation in these ativities has grown ontinuously. Tharrett and Peterson (2006) identified fitness ativities, suh as running, biking, Pilates, yoga, aerobi dane, biking, aquatis, and weight training. The growing popularity of fitness exerise has driven the development of fitness ativity produt markets. In this onsumer-oriented soiety, the goal of many ompanies is to produe produts that an satisfy their onsumers and develop a ompetitive edge. Every aspet of a produt suh as utility, value and quality should satisfy the needs of onsumers. However, whilst ahieving ustomized produts and produing them in an effiient and appropriate way,ompanies should take into aount the real thoughts and feelings of onsumers. In addition to a survey on the after-sales, an understanding of the market and onsumers before prodution ommenes should be emphasized by many ompanies. Through the exploration of the researh bakground and motivation, the goal of this study is to disuss the related literatures. Moreover, the study further explores the key priniples, weights, and related fators of the topi. Bakground and motivation With inreasing onsumption awareness, onsumers are now altering attention to their needs and the uniqueness of produts. In order to satisfy the needs of onsumers and inrease satisfation, manufaturers tend to adopt a ustomized strategy for their produts. From the viewpoint of produt management, ustomization is a strategy that is gradually applied to inrease produt value. A onfiguration system ould meet the onsumer needs, ensuring that onsumer 82 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
needs an be satisfied and that osts are maintained at the same time (Kurt Matzler et al., 2010). Nikola et al. (2011) pointed out that many ompanies believe that if ustomization ould be appropriately understood and exeuted, a ommerial and strategi mehanism an be applied to most ompanies. Through ustomization, ompanies ould realize the produt needs of their onsumers and ould produe those produts that an satisfy the individual needs of those onsumers. Developed ountries also reognize the importane of ustomized produts' ompetitive edge. ompanies produing ustomized produts have gained a ompetitive edge to realize onsumer needs. Researh Purpose With fiere ompetition in the market, traditional standardized produts may not be able to satisfy some onsumers. In order to inrease satisfation and loyalty of onsumers and strengthen their ompetitive edge in the market, more and more ompanies provide ustomized produts or servies. Based on the above researh bakground and motivation, this study aims to explore the key suessful fators for the ustomization of produts. It will also further explore the related influene and importane of produt ustomization onstruts, hoping to offer a referene for the evaluation and improvement of ustomized strategies in this industry. Researh Method This study made use of a review of literatures to asertain three onstruts for the ustomization of produts stated by sholars in the past, inluding onsumer behavior, onsumer satisfation, and onsumer loyalty. In this study, 12 priniples are used for design?; DEMATEL is used for the assessment and analysis. Questionnaires were distributed to experts and sholars to omplete and the analyzed data were studied based on the returned questionnaires. The influening weights were alulated through the basi ANP onept and improved planning that is based on the weights and plan performane to find out the influening suessful fators of the ustomization of produts Literature Exploration This setion, through a literature review, was onduted mainly to explore the key suessful fators for ustomized produts, and was based on the exploration and arrangement of previous researhes in all fields. It is used as the theoretial basis in this study. Customization Anderson et al. (1999) said that the onept of ustomization is to manufature and design individualized produts to inrease the satisfation of onsumers. Kaplan and Haenlein (2006) pointed out that a ustomized strategy adopted by ompanies to satisfy the individual needs inreases produt value,. In the proess of manufaturing and assembling produts, through the interation between ompanies and onsumers, the produt needs of ustomization are established to suit the prodution osts and produt prie. Baran et al. (2008) believe that the ustomization of onsumer relationship management refers to an organization s apability to use produt, prie and marketing hannels to suit onsumers or ompanies. Bharadwaj et al. (2009) pointed out that there are more researhes that understand the preferenes of onsumers, in whih onsumers prefer to hoose ustomized produts. However, Strauss and Frost (2009) held that ustomization is to satisfy the personal needs of onsumers. In other words, a unique tehnique or method is onduted to satisfy the needs of onsumers who need a ertain produt. Ivia and Natasa (2011) said that different onsumers an selet individual produt omponents to meet their The Journal of International Management Studies, Volume 11 Number 1, February, 2016 83
different needs. Therefore, onsumers ould aquire a unique omposite produt from many produt funtion portfolios with many possibilities. Hira Cho and Susan (2009) held that ustomization is a type of strategy that an offer onsumers extra produt value. Synthesizing all the ideas of the above sholars' researhes about the ustomization of produts to explore and define the ustomization of produts as the strategy that an satisfy the behavioral needs of onsumers. The orret strategy an also improve the satisfation of onsumers in order to ahieve onsumer loyalty, and mainly inrease value for produts, ompetitive edge in the market, and produt uniqueness et. Consumer Behavior In 1985, the Amerian Marketing Assoiation (AMA) defined onsumer behavior as the dynami interation between feelings and ognition, behavior and environment to satisfy personal or organizational objets through the exhange of human behavior. Leon and Leslie (2000) believed that onsumer behavior is the ations onduted through the proess of thinking, psyhologial ognition and previous learning in order to ahieve a speifi goal. MKenzie (2001) proposed four onsumer produt appeals of produts from ompanies: (1) appeal through pries: a redued prie or effiient purhase experiene an be regarded as bringing value to ommon onsumers; (2) appeal through produts: in order to divide onsumers into some group to reate value, ustomized produts need ollaboration and oordination to enourage the design of good produts; (3) appeal through demands: based on the personal servies required by onsumers, these are onduted to bring value; (4) appeal through value: based on ommonly stipulated solutions, the servie model and the produts that are benefiial to both parties are onduted to inrease value. Hoyer and MaInnis (2008) pointed out that onsumer behavior onsists of all the ontent related to the deisions made by onsumers over a ertain period of time and is on the basis of their ultural bakground, living environment, psyhologial fators as well as the proess of behavior and oneption of produt pries, features, servies, purhase hannel, onsumption and other funtions. Leon and Leslie (2001) proposed that purhase deisions are affeted by surrounding people, events, objets as well as onsumers feelings, mood, and emotions. This proess onsists of input, proessing and output. This study is based on the idea that onsumer behavior is affeted by onsumption environments, soial ulture, produt information, onsumption assessments of pries, utilities, needs, and the onveniene of produts that eventually affet onsumers' purhase behavior. Consumer Satisfation Westbrook (1980) believed that the effetive management of onsumer satisfation with onsumer servies will generate signifiant interest and have a huge impat on the sales and performane of a business. Consumer satisfation begins with the design of produts and servies, in whih produt design onsists of the prodution apaity planning, manufaturing proess seletion, system design, and analysis of loations. The deisions made in the produt and servie designs will affet the omprehensive ompetitiveness of a business and organization; proess seletion and apaity planning will also affet the operation of the prodution system and onsumer satisfation (Stevenson, 2010). Stevenson (2010) proposed Kano Model to oneptualize the satisfation of onsumers and divided onsumers into three types: harming, expeting and neessary, whih an desribe the needs and degrees of the satisfation of onsumers. Neessary basially meets the satisfation of onsumers but does not inrease it. Expeting 84 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
will steadily inrease onsumer satisfation while harming will offer even further satisfation than expeting with the disproportional growth in satisfation. This study defined the satisfation of onsumers as whether or not the results arising after the purhase and usage of produts met the expetations that onsumers had before the purhase produts. Fators affeting onsumer satisfation inlude produt value, brand image, produt quality, and ompany ommitment. Consumer Loyalty Jones and Sasser (1995) believed that onsumer loyalty is the willingness to repurhase a partiular produt or servie and an be divided into two kinds: long-term and short-term loyalty. The onsumers who have long-term loyalty will not easily hange their minds and the onsumers who have short-term loyalty will turn to other brands when having a better produt. Aording to the traditional marketing theories, Oliver (1999) proposed the oneptual model of beliefs, attitudes, and intentions formed by onsumer attitudes. Putting behavioral onstrut into onsideration, he divided onsumer loyalty into four types: (1) ognitive loyalty: with onsideration of prie only, onsumers think that the produts of this brand are relatively better hoose; (2) affetive loyalty: when onsumers identify with information related to the produts and further generate their preferene towards this brand. Therefore, onsumers will ommit to this brand. The loyalty behind this behavior omes from the ognitive emotions of onsumers; (3) onative loyalty: onsumers have positive omments and evaluations of the produts of this brand, and further generate a willingness to purhase. The attration of this brand to onsumers will be strengthened; (4) ation loyalty: onsumers have strong repurhase willingness for this brand and atual purhases will not be affeted by other fators. Kandampully (1998) believed that onsumer loyalty is the guarantee of ompanies toward onsumers in quality of produts or servies. Joel et al. (2008) pointed out that the emphasis on the harateristis and differentiation of produts should ensure that produts have the olor, funtions, styles, and senses that onsumers prefer. Those fators will strengthen the feelings of onsumers to try a produt, and thus inrease the added value of the produts and onsumers willingness to repurhase. Synthesizing the ideas of onsumer loyalty proposed by the above sholars to explore and define onsumer loyalty as the willingness to repurhase a produt after purhasing and usage. The satisfation of produt reliability, servie, and expetation guarantee affets the willingness to repurhase. Researh Design The first setion of this hapter establishes the researh onstruts and priniples for this study. The seond setion sets up the evaluation mode and the third setion elaborates the basi onepts and operating proedures. Researh Framework The priniples and onstruts of this study are based on the exploration of the literatures in Chapter Two. They onfirm the ustomization of produts in all affeted ompanies and further ondut an evaluation of the related important elements in this study, whih are shown in the following Figure 1: The Journal of International Management Studies, Volume 11 Number 1, February, 2016 85
Figure 1: Model of Deision on the Multi-Evaluation of Customized Produts Constrution of Evaluation Model Based on the exploration and indution of the literatures in this study, the important fators in the establishment of ustomization an be onluded as three onstruts and 12 priniples. The relevant onstruts and priniples are illustrated in the following table 1.. Table 1: Construts and Priniples Construts Priniples Meanings Produt Prie (a1) Whether or not the prie of ustomized produts on sale is aepted by onsumers Whether or not the funtions offered by ustomized produts are Produt Funtions (a2) needed by onsumers CONSUMER Consumer Whether or not the funtions satisfy what onsumers desire, need or BEHAVIOR Demands(a3) expet (A) Produt Conveniene Whether or not ustomized produts have enough hannels for (a4) purhase Consumer Environment(a5) Whether or not the onsumer onsumption environment or ulture are appropriate Produt Value (b1) Whether or not the funtions, quality or style of the ustomized produts meet original expetations Whether or not the ompany brand image of ustomized produts CONSUMER Produt Image (b2) owned by the ompanies meets the original expetation SATISFACTION Whether or not the quality of ustomized produts suits the (B) Produt Quality (b3) expetation Produt Guarantee (b4) The guarantee given by the brand of ustomized produts, inluding stability, minor breakdown, meets the original guarantee or not Produt Trust (1) Whether or not ustomized produts are reliable for onsumers CONSUMER Whether or not there is a omplete after-sales servie for the Produt Servies (2) LOYALTY ustomized produts (C) Whether or not ustomized produts offer a guarantee after Produt Guarantee (3) purhase 86 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
DEMATEL Origin and basi assumption of the DEMATEL Deision Making Trial and Evaluation Laboratory (DEMATEL) was developed by the Battelle Institute, based in Geneva, in 1971 to solve the issue of tehnology and humans. The DEMATEL is used to solve ompliated and mutually intriate problems in order to understand the nature of problems, whih is onduive to the study of deisions. Tzeng et al. (2008) employed the basi onept of this method to extend the evaluation of many non-independent problems. In DEMATEL, the elements of the analysis shall satisfy the following hypotheses: (1) the need to onfirm the nature of the problem: in the generation and planning stage, the nature of the problem shall be learly understood; the right way to ut into the problem and to define the problem. (2) the need to show the orrelation of problems: starting from the fators of eah problem and showing the orrelation with other fators. The numbers of 0, 1, 2, 3, 4, et are used to show the strength of the orrelation; (3) the need to understand the features of the nature of the fators of eah problem: for eah fator of the problem, a related problem analysis is onduted one again to illustrate the arguments based on the results (inluding agreement and disagreement). Generally speaking, it is hard for a mathematial model to express soial or biologial systems. Regarding the ommon method, based on objetive things, DEMATEL onfirms the mutual dependene and restrition among variables. Therefore, it an reflet the features of the nature of the system and the tendeny of evolution. Framework and Operational Mode of DEMATEL Tzeng et al. (2008) pointed out that the Battelle Institute developed DEMATEL in order to find a strategy to solve urrent interrelated problems. This method arries the following features: (1) Quantitative analysis of the orrelation among riteria (2) The strutural onfirmation through a questionnaire (3) The statistial analysis of multi-item strutures. (4) Finding the differene between respondents in the framework Regarding the DEMATEL questionnaire analysis method, the feature of the questionnaire is a matrix. For the neessary analysis and onlusion in the future, a quantitative analysis will be onduted to measure the relationship and the diret influene among the riteria. The respondents an be integrated into the strutural mode as a group. Strutural Model With data indiating the strength of the orrelation among eah priniple olleted and demonstrated in the form of a matrix or network map, a strutural model of the respondents is reated. This an alulate the strength of the orrelation with eah problem and the gap in the orrelation with other fators an be displayed. The numbers of 0, 1, 2, 3, 4 et. are used to display the strength of the relationship, and understand the nature of the fators of eah problem. In the establishment of the group strutural model, the mathematial mean of the subjets is taken to aquire the point of ontat for the inrease in omplexity. After having deleted the relationship under the point of ontat, a simplified group strutural model is formed. Strutural Analysis A. There are three steps to ondut a DEMATEL strutural analysis (1) Find out the average matrix The Journal of International Management Studies, Volume 11 Number 1, February, 2016 87
If there are R experts and fators involved in this study, eah expert is required to point out the degree of influene of fatorion fator j. A omparison matrix a is formed between every two fators, in whih the orrelation is labeled with 0 (no effet), 1 (low impat), 2 (normal impat), 3 (high impat), and 4 (extremely high impat) in order,. These positive values evaluated by experts an be use to form an k n * n matrix k x x ij, 1 k R, i.e. X ^ 1, x ^ 2,..., and X ^ R, indiating that in every matrix without k negative values among R experts, every fator x ij in x k is an integer. If we set the diagonal fator in every answer matrix x 1 as 0, we an alulate the average n * n matrix A among R experts; the formula is as follows (1): 1 R k a xij (1) R k1 The average matrix A aij an be also alled a diret relationship matrix. A represents the initial relationship between A and other fators. In addition, through the ausal relationship of every pair of fators, we an draw the map of the diret relationship for the fators. (2) alulate the standardized Diret Relationship Matrix A standardized Diret Relationship Matrix D is aquired from the average matrix A with the following formulas (2) and (3) n n S max max, max aij a (2) ij 1 i n 1jn j1 i1 Let A D (3) S In matrix A, the sum of every row j refers to the total diret influene of fator i on other n fators. lim a ij 1 refers to the total diret influene of the fator with the strongest influene on other i n j 1 fators; the sum of every row i refers to the total diret influene of fator i on other fators. max n 1 i n a j1 ij refers to the strongest diret influene of the affeted fators, andsis the upper limit for the relatively large value. Matrix D is aquired from the separation of every single fator in matrix A and every single d fator ij in matrix D varies from 0 to 0.99. (3)Calulation of the Total Relationship Matrix Among all fators related to problems, the non-diret influene will be on a onstant derease with 2 the inrease in the times of power, suh as D, D 3,, D I. The onvergent solution of the insurane R is an inverse matrix, whih is similar to the Markov Chain Matrix, lim D 0 DII nxn, in whih 0 is a zero matrix of nxn while 1 is a unit matrix of nxn. The total relationship matrix T is a zero matrix of nxn. The definition is as follows: I 1 2 1 T DD D... D D( I D ) (4) Protrating a Causal Figure T t ij, tij 1,2,..., nare the fators of the total relationship matrix T, and the total sum and the sum of eah line are represented, respetively, by r i and with the definitions as follows (5), (6). j ij 88 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
r j n tij (5) j1 nx1 j t (6) n ij i1 1xi r i represents the total diret or indiret influene ast by fator i on other fators; j refers to the sum of influene affeted by other fators when fator j is regarded as the result. ri j is alled prominene referring to the total degree of affeting and being affeted through this fator, whih an show prominene in this issue; ri j is alled relation. After the subtration, if the value is positive, this fator tends to be the ause, with the horizontal axis, ri j, and the vertial axis, ri j. Therefore, a ausal relationship will be redued to a lear struture and offer solutions in order to deepen the understanding. In addition, based on the interpretation of this ausal figure, the deision-maker an make appropriate deisions based on different types of auses or effets. Integration DEMATEL and ANP Analytial Network Proess Management (ANP) was proposed by the sholar Saaty in 1996. It is the extended method of Analytial Hierarhy Proess (AHP) and was an improvement on the latter. Saaty used ANP to obtain the weights of multi-priniple deisions in order to offer the hoies for researh shemes or information system plans. Having used DEMATEL to onfirm the model framework and the relationship of mutual influene among priniples, this study further employed ANP to aquire more preise influening weights. This study then adopted the total influene relationship matrix T of DEMATEL in the appliation and extension of the super matrix of ANP in order to divide the problems into many different types of lusters. If the usage of DEMATEL an only aquire the mutual relationship of inner dependene and needs ANP to onfirm the mutual relationship of the outer dependene among lusters, this study will break the bottlenek of the traditional hypotheses. It employed DEMATEL to aquire the total influene relationship matrix, in whih the dynami influene relationship of important degrees is similar to the importane of the priniples and the onept of influene aquired through the questionnaires and ANP. The deision-making programs of ANP an be divided into the following four stages: (1) Confirm the problems about deision-making and establish the struture of the problems. After having desribed the problems, it an establish the problem with a network hierarhy struture. (2) Employ the total influene relationship matrix aquired from DEMATEL to standardize the degree of total influene of eah layer and onstrut an un-weighted super-matrix shown in formula (7) T C D1 D 2 D n 11 1m 1 21 2 m 2 n 1 nm n 11 12 1n 11 T T T C C C D 12 1 1 m 1 21 21 22 2n D 22 2 T T T C C C 2 m 2 n 1 D 3 n 2 n1 n 2 nn nm n T T T C C C (7) The Journal of International Management Studies, Volume 11 Number 1, February, 2016 89
After having standardized the total degree of the important influene relationship matrix aquired matrix T, the results are shown in formula (8): T, we T C D1 D 2 D n 11 1m 1 21 2 m 2 n 1 n m n 11 12 1n 11 T T T C C C D 12 1 1 m 1 21 21 22 2n D 22 2 T T T C C C 2 m 2 n 1 D 3 n 2 n1 n 2 n n nm n T T T C C C (8) In whih, the way to standardize 11 T is the same as nn T before, as shown in the following formulas (9) and (10): n d i tij (9) j1 T 11 C 11 11 11 11 11 11 t 11 / d1 t 1 / 1 1 / C C j d t C n d 1 11 11 11 11 11 11 t 1/ 2 / 2 / Ci d t Cij d t Cin d 2 11 11 11 11 11 11 t 1/ 3 / 3 / Cn d t Cnj d t Cnn d3 t t t t t t t t t 11 11 11 C11 C1 j C1n 11 11 11 Ci1 Cij Cin 11 11 11 C n1 C nj C nn (10) At the same time, the standardized total degree of important influene relationship matrix is filled in the super-matrix based on the mutual dependene relationship among the lusters, whih is an un-weighted super-matrix shown in formula (11): W D1 D 2 D n 11 1m 1 21 2 m 2 n1 nm n 11 12 1n 11 W W W D 12 1 1 m 1 21 21 22 2n D 22 W W W 2 2 m 2 n 1 D n n 2 n1 n 2 nn nm n W W W If there are gaps or 0 matrix, there will be independent and not a relied relationship among lusters nn 11 12 or priniples. The way to aquire otherw is the same as those of W and W shown in formula (12): (11) 90 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
W 11 12 1m 21 22 2m 1 2 t t t t t t C C C C C C W C C C C C C t t t t t 11 11 11 12 12 12 11 11 21 m1 11 11 21 m1 11 11 11 11 12 12 12 12 12 t 12 t 22 t m2 12 t 12 t 22 t m2 11 11 11 12 12 12 1m 1 1 2 m m m mm 1m 2m t C mm 1 1 C 1 C 1 C 1 C 1 C 1 1 (12) (3) In order to aquire a weighted super-matrix, let the total degree of important influene relationship matrix be integrated and standardized based on the degree of influene for eah onstrut of eah layer shown in formula (13): T D t t t D D D t t t D D D t t t D D D 11 1 j 1n i1 ij in n1 nj nn (13) Standardize the total degree of important influene relationship matrixt D and aquiret D, the results are shown as formula (14): 11 1j 1n 11 1 j 1n t / d1 t / d1 t / d t t t D D D 1 D D D i1 ij in D t / d2 t / d2 t / d i1 ij in T D D D 2 t t t D D D (14) n1 nj nn n1 nj nn t / d3 t / d3 t / d D D D 3 t t t D D D Lead the standardized total degree of important influene relationship matrix T D into an un-weighted super-matrix and aquire a weighted super-matrix shown in formula (15): 11 11 21 12 n1 1n t W t W t W D D D 12 21 22 22 t W t W D D ji ij ni ni W t W t W D D (15) 1n n1 2n n2 nn nn t W t W t W D D D (4) In order to aquire a limited super-matrix, make the weighted super-matrix multiply many times and aquire a limit super-matrix. We an then get the weights for eah evaluation priniple, in whih W is the limit super-matrix and h stands for any number The Journal of International Management Studies, Volume 11 Number 1, February, 2016 91
Analysis of Empirial Studies This hapter offers an analysis of the researh bakground and problem desription. After having verified the influene relationship of DEMATEL and alulated the onstruts, through DANP, the degree of influene and value of weights, this study explored the valued items of all fators with the help of the degree of importane established by experts and sholars. Basi Data of the Questionnaires This study used questionnaires and a one-to-one interview was arried out to aquire the experts and sholars' perspetives. The main objets were experts and sholars equipped with many years of marketing, produt management and related bakgrounds. In total, there were 30 questionnaires and 26 of them were effetive. These questionnaires were sent out from February 2012 to April 2012. Analysis of Researh Bakground and Problem Desription In an inreasingly ompetitive market and with the promotion of onsumer awareness, onsumers pay more and more attention to their demands and the unique harateristi of produts. In order to satisfy onsumers and inrease onsumer satisfation, manufaturers are more likely to adopt a ustomized strategy. The studies of Senanayake and Little (2010) showed that a ustomized strategy is one of the most important strategies for modern ompanies. It not only strengthens an ompany s ompetitive edge in the market, but also offers multiple hoies for onsumers and, most importantly, adds produt value in order to inrease onsumer satisfation. This study synthesizing those perspetives will explore eah influening fator and value those fators to ondut market planning in the exeution of a ustomized strategy to offer a referene for ompanies and ompanies. The Verifiation of the Influene Relationship of the DEMATEL This study employed DEMATEL to onfirm the struture of problems and analyzed the mutual influene relationship among three onstruts and 12 priniples. The relationship tables between Matrix T of the total influene relationship and the degree of influene are shown in table 2 to table 5: Table 2: Matrix T of the Relationship with Total Influene among the Construts T A B C A 0.705 0.778 0.756 B 0.775 0.832 0.83 C 0.749 0.83 0.778 Table 3: The Relationship of the Degree of Influene among the Construts H d i( affeting) r j( being affeted) d i +r j (prominene) d i -r j (relation) A 2.2391 2.229 4.468 0.01 B 2.4367 2.4402 4.877-0.004 C 2.3575 2.364 4.721-0.007 Max 2.4367 2.4402 4.877 0.01 Min 2.2391 2.229 4.468-0.007 92 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
Table 4: Matrix T of the Relationship of Total Influene on the Priniples t a1 a2 a3 a4 a5 b1 b2 b3 b4 1 2 3 a1 0.77 0.789 0.786 0.699 0.647 0.84 0.832 0.843 0.793 0.786 0.791 0.825 a2 0.853 0.697 0.782 0.705 0.64 0.834 0.808 0.821 0.777 0.777 0.764 0.809 a3 0.859 0.803 0.709 0.71 0.663 0.838 0.822 0.838 0.794 0.788 0.79 0.822 a4 0.756 0.7 0.701 0.562 0.585 0.737 0.73 0.738 0.701 0.694 0.704 0.73 a5 0.729 0.675 0.688 0.615 0.507 0.718 0.711 0.713 0.674 0.674 0.678 0.705 b1 0.891 0.815 0.811 0.725 0.679 0.79 0.867 0.869 0.826 0.821 0.82 0.862 b2 0.848 0.761 0.766 0.686 0.648 0.835 0.739 0.826 0.788 0.79 0.78 0.818 b3 0.935 0.853 0.849 0.76 0.704 0.927 0.907 0.825 0.871 0.87 0.854 0.905 b4 0.845 0.784 0.782 0.704 0.651 0.844 0.832 0.842 0.724 0.802 0.794 0.842 1 0.841 0.765 0.774 0.689 0.643 0.839 0.823 0.832 0.798 0.71 0.781 0.824 2 0.853 0.783 0.78 0.705 0.663 0.849 0.836 0.846 0.814 0.802 0.717 0.829 3 0.844 0.778 0.775 0.693 0.649 0.838 0.832 0.843 0.811 0.803 0.791 0.747 Table 5: Table of the Degree of Influene on the Priniples H d i( affeting) r j( being affeted) d i + r j (prominene) d i - r j (relation) a1 9.4014 10.024 19.43-0.622 a2 9.2675 9.2028 18.47 0.065 a3 9.4365 9.2038 18.64 0.233 a4 8.3374 8.2512 16.59 0.086 a5 8.087 7.6798 15.77 0.407 b1 9.7755 9.8901 19.67-0.115 b2 9.2844 9.7402 19.02-0.456 b3 10.261 9.8351 20.1 0.426 b4 9.4462 9.3703 18.82 0.076 1 9.3195 9.3164 18.64 0.003 2 9.4777 9.2661 18.74 0.212 3 9.4038 9.7179 19.12-0.314 Max 10.261 10.024 20.1 0.426 Min 8.087 7.6798 15.77-0.622 In terms of the relationship of the degree of influene on the onstruts in table 4, it an be seen that onsumer satisfation (B) is the most influential fator while onsumer behavior (A) is the least influential when ompared with other fators. In terms of the relationship of the degree of influene on the priniples, as shown in table 5, produt quality (b3) is the most important fator for onsideration among the 12 priniples while onsumer environment (a5) is the least influential fator among all the priniples. In addition, it is apparent from the degree of being affeted among the priniples that the most easily affeted fator is produt prie (a1) among all the priniples. From table 3, prominene (di + rj) that represents importane an be alulated. A high value stands for a higher level of importane. From the perspetive of the onstruts, onsumer satisfation (B) is relatively valued by experts, in whih produt quality (b3) is the highest in terms of prominene (di + rj). That means experts hold that it is the most important priniple, followed by produt value(b1), produt prie(a1), produt image(b2) and produt guarantee(3). From table 3, relation (di - rj) an be alulated to represent the influene of priniples and the degree of being influened. A higher level of value stands for a higher level of importane. From the perspetive of onstrut, in terms of relation, the highest one is onsumer behavior (A). This indiates that among all three onstruts, it is the one that arries the strongest influene. The fator with the minimum influene is onsumer loyalty (C) and this onstrut is The Journal of International Management Studies, Volume 11 Number 1, February, 2016 93
the easiest to be affeted by other onstruts. From the perspetive of priniples, the highest one is produt quality (b3) in terms of relation (di - rj). This indiates that among all the priniples, it arries the most diret influene rather than other fators. The least is produt prie (b1) and this indiates that it is the easiest one to be affeted by other priniples. In protrating the figure for the ausal relationship, (di + rj) is the horizontal axis and (di - rj) is the vertial axis. Three onstruts and 12 priniples were used as indiators in the figure for the ausal relationship of eah fator for ustomized produts, as shown in Figure 2: Figure 2: The Causal Relationship of Eah Fator for Customized Produts From Figure 2, it an be realized that, in the strategy of ustomized produts, onsumer behavior (A) is the most influential and has a further influene on onsumer satisfation (B) and onsumer loyalty (C). Both were affeted by the previous two onstruts. In the onstrut of onsumer behavior (A), onsumer environment (a5) has the strongest influene. Consumer demands (a3), produt onveniene (a4), and produt funtions (a2) are all affeted by onsumer demand. Regarding produt prie, it is affeted by the previous four fators. From the onstrut of onsumer satisfation, it an be realized that good produt quality (b3) will affet produt guarantee (b4) and produt guarantee will affet produt value. Produt image is affeted by the previous three fators. In the onstrut of onsumer loyalty (C), produt servie (2) affets produt trust (1) and produt guarantee (3) is affeted by the previous two fators. Calulation of DANP Weights Based on the matrix of the dynami degree of importane alulated from DEMATEL, this study aquired an un-weighted super matrix. It also ahieved a weighted super matrix based on the matrix of dynami degree of importane for eah onstrut and a onstrut maximizing super matrix finally led to the omprehensive weight of eah fator whih is shown in Table 6: 94 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
Table 6: Ranking of weights of the fators of the three onstruts and 12 priniples Construt Priniple Weight Ranking A Consumer Behavior 0.39801 1 a1produt Prie 0.0899 1 a2produt Funtions 0.0825 10 a3consumer Demands 0.0826 9 a4produt Conveniene 0.0740 11 a5consumer Environment 0.0690 12 B Consumer Satisfation 0.3487 2 b1produt Value 0.0888 2 b2produt Image 0.0874 4 b3produt Quality 0.0883 3 b4produt Guarantee 0.0842 7 C Consumer Loyalty 0.2533 3 1Produt Trust 0.0834 6 2Produt Servies 0.0829 8 3Produt Guarantee 0.0869 5 Aording to the viewpoints of the various experts and sholars, the rankings for eah fator are as follows: a1 produt prie (Rank 1), b1 produt value (Rank 2) and b3 produt quality (Rank 3). However, although they have lower ranking and no diret relationship, a5 onsumer environment (Rank 12), a4 produt onveniene (Rank 11), and a2 produt funtion (Rank 10) do not mean that these fators are not important. Therefore, the results show that produt prie, produt value, and produt quality have relatively signifiant influene and onsumer environment, produt onveniene, and produt funtions are relatively less important. CONCLUSIONS AND SUGGESTIONS Researh Conlusions With the inreasingly fiere ompetition in the market, ompanies should pay attention to the issue of how to possess a ompetitive edge in their market. Therefore, different market strategies are onduted mainly to inrease onsumer satisfation and loyalty. Hira Cho and Fiorito (2009) pointed out that an understanding of improved ustomized produts by "onsumers themselves" is valuable and reliable. After analyzing the empirial results, this study found that onsumer behavior was the most important fator when designing a strategy for ustomized produts, followed by onsumer satisfation and onsumer loyalty. Among the 12 priniples, produt quality is the most influential one, and produt prie is the one that is being influened most. In the order of importane, produt prie is the most important, followed by produt value and produt quality. Researh Contribution and Improvement From the analytial results of this study, ompanies in Taiwan should pay more attention to onsumer environment in the first plae when they design their ustomization strategy. The ompany should first evaluate whether this market has an appropriate onsumption environment before designing and planning a ustomized strategy. Finally, in a different onsumption environment, an appropriate ustomized way is designed, together with produt prie, sales hannels, and the like. Among all the fators, produt prie, value, quality, image, and guarantee are valued by experts. Therefore, produt prie The Journal of International Management Studies, Volume 11 Number 1, February, 2016 95
and ost are the fators that should be valued by ompanies in the exeution of a ustomized strategy. For example, ustomized produts that maximize the benefits of the prie and ost are more attrative to onsumers. If produt value and quality meet or exeed the expetation and needs of onsumers, the purhase intension and onsumer loyalty will be inreased aordingly. These ould strengthen produt value and quality, and promote the ompany produt image to attrat potential onsumers. Researh suggestions Based on the results of the analysis and disussions, this study proposes a few suggestions for ompanies or aademi researhes. All of whih ould offer a referene to future related researh of ustomization. Suggestions for Companies In today s fierely ompetitive market environment, ompanies should be equipped with a ertain amount of ompetitive edge that omes diretly from the support of onsumers. Customization of produts is one of the strategies that ould inrease onsumer satisfation and loyalty. The analytial results of this study show that onsumer environment, ustomized produt prie, value, and quality are the top fators onerned by experts and sholars. First of all, ompanies ould ondut a survey among onsumers in a onsumption market to understand whether onsumers need ustomization produts or not. In produt management, ompanies should make detailed plans of the ost of ustomized produts, and strengthen produts value and quality to satisfy onsumers and inrease onsumer loyalty. All these an strengthen the image and ompetitive edge of ompanies in the market. Suggestions for Future Researh This study only studied the fators of ustomization of produts. Future researh an further explore different types of produts or fous on the analysis of ustomization fators in different onsumption environment, suh as onsumer ulture, onsumer environment, produt funtions, produt quality, and produt servies et. In order to find out the most appropriate ustomized strategies for different produts, VIKOR is a better hoie to rank the performane and indiators of eah priniple and propose a plan that ould offer a great help to the planning and exeution of produt ustomization. REFERENCES Anderson, L.J., Brannon, E.L., Ulrih, P.V., Marshall, T., Staples, N., Grasso, M., Butenhoff, P. and Beninati, M. (1999). Disovering the Proess of Mass Customization: A Paradigm Shift for Competitive Manufaturing, available at: http://infohouse.p2ri.org/ref/08/07074.pdf (aessed 28 November 2012) Bharadwaj, N., Naylor, R. W., and Hofstede, F. T. (2009). Consumer Response to and Choie of Customized Versus Standardized Systems, International Journal of Researh in Marketing, Vol. 26, pp. 216 227. Cho, H. and Fiorito, S.S. (2009). Aeptane of Online Customization for Apparel Shopping, International Journal of Retail & Distribution Management, Vol. 37, No. 5, pp. 389-407. Hoyer, W. D., and MaInnis, D. J. (2008). Consumer Behavior(5th ed.), South-Western, Mason. Joel, E., Carmina, F. and Carlos, F. (2008). A Key Fator of Consumer Loyalty and Buying Intention of a PDO Food Produt, British Food Journal, Vol. 110, No. 9, pp. 865-881. Jones, T. O. and Sasser, W. E. (1995). Why Satisfied Consumers Defet, Harvard Business Review, Vol. 73, No. 6, pp. 88-99. 96 The Journal of International Management Studies, Volume 11 Number 1, February, 2016
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