MASS CUSTOMIZATION AS A METHOD OF PROVIDING CLIENT’S PERSONALIZED SERVICE (A CASE STUDY OF NICON LUXURY HOTEL)
CHAPTER ONE
INTRODUCTION
1.1Background of the Study
The Henry Ford adage is no longer relevant. Keep in mind his well-known adage, “you can have any color car you want as long as it’s black,” which is connected to the beginning of the industrialization era in the 20th century when Henry Ford and others converted the system of craftsmanship into the system of mass production by developing a new method of producing goods. It was distinguished by the efficient operation of the assembly line, specialized equipment, and worker duties, which led to significant economies of scale by standardizing the cars (B. J. Pine, 1993).
Yet, this is no longer true for the vehicle sector today. We are introduced to a “new frontier in commercial competition” by Pine (1993, p. 7). By the adaptability and reactivity of enterprises using this new method of management, customers and businesses in this frontier have access to a plethora of diversity and personalization. Mass customisation is this new frontier. Mass customisation in the manufacturing sector entails developing highly customized products with the effectiveness of a mass-produced product (Gardner, 2009, p. 3). When businesses are able to offer inexpensive, dependable output (supply) that matches consumers’ rising demand for products that are specially made to meet their unique demands, mass customization presents prospects for businesses (Papathanassiou, 2004).
According to Piller and Kumar, this trend toward higher demand individualization leads to a growth in the number of product variations, which is facilitated by flexible and agile manufacturing methods (2006a). Hence, mass customisation benefits both customers and businesses. Customers benefit from flexibility and variety due to the option of developing modular components. Hence, mass customization can be described as a production system with a significant level of customer contact. McCarthy (2004) provides five competitive considerations that define why a firm should pursue a mass customization strategy and summarizes the need for this:
1. The network of specialised and heterogeneous market requirements has replaced the wide base of uniformity and sameness in the expectations of customers;
2. Product life cycles have considerably shrunk, and trends and consumer preferences can change essentially overnight;
3. Strategies that offer options and differentiation while preserving performance in terms of cost, quality, and delivery include assembling products to order and building product families;
4. A corporation can improve its strategic fit with consumers’ long-term demands by comprehending and meeting specific customer expectations;
5. Better and more frequent engagement with clients improves the capacity to foresee and comprehend market opportunities.
1.2 Problem statement
Mass customisation is frequently promoted as a production technique that minimizes costs while still allowing for high levels of customer customization. Pine (1993) asserts that the production of modular components is the best method for manufacturing a wide range of product or service variants. So, it would appear that customization and modularization are tightly related. The framework created by Bask et al. (2011), which links modularity with customization and illustrates the many stages of both variables, was employed in this study. This study investigates their framework and satisfies the demand for a framework with an empirical foundation that measures both modularity and customisation in the service sector.
The framework is helpful for both service organizations and individual services since it serves as an important tool for gauging how well customers’ varied needs are met. This usefulness is supported by Salvador, de Holan, and Piller’s (2009) emphasis that a company should align all of its organizational components with its customers’ demands rather than simply adopt mass customisation as a strategy for the effective use of its operations.
1.3 Purpose of the study
This study uses Nicon Luxury Hotel as a case study to investigate the effects of mass customisation as a means of offering clients individualized service. The study’s specific goals are:
1. To determine whether mass customisation is relevant in Nicon Luxury Hotel
2. To assess Nicon Luxury Hotel’s awareness of mass customisation
3. To evaluate the effect of mass customisation on the provision of individualized service to clients at Nicon Luxury Hotel.
1.4 Significance of the study
Mass customisation has been suggested as a solution to this problem since customers seek services that satisfy their increasingly diversified needs. This study closes by proposing an evaluation framework that points service businesses in the proper direction in determining whether their service offers satisfy the varied needs of their customers with modular, customized service offerings at mass production efficiency. According to Piller and Tseng, the created framework can also be used for future studies on the comparatively untapped topic of service mass customization (2010).
1.5 Study hypothesis
The study hypothesis is:
HO: Mass customization is not relevant in Nicon Luxury Hotel
HO2: The level of awareness of mass customization in Nicon Luxury Hotel is not significant
HO3: there is no significant impact of mass customization in providing client’s personalized service at Nicon Luxury Hotel
1.6 Scope and Limitations of the Study
The focus of the study is the Nicon Luxury Hotel in Abuja and how mass customisation affects providing clients with personalized care. The investigation was constrained by its limited time and budget.
1.7 Definition of Basic terminologies
Mass customisation is a manufacturing and marketing strategy that combines mass production’s affordable unit prices with the adaptability and personalisation of custom-made items.
In this study, service management is defined as “an interest in the customer and the customer’s relationship with the provider’s staff in delivering the service and producing value.”
1.8 Organisation of Study
There are five chapters in the study. The study is introduced in this chapter, which serves as its opening chapter. A review of the relevant literature is presented in Chapter 2. The research methodology is presented in Chapter 3; the data analysis, interpretation, and discussion of the findings are presented in Chapter 4. An overview of the conclusions and suggestions is provided in chapter five.
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