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korean management review - Vol. 51 , No. 6

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korean management review - Vol. 51, No. 6, pp. 1619-1647
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2022
Received 24 Jan 2022 Revised 11 Jul 2022 Accepted 21 Jul 2022
DOI: https://doi.org/10.17287/kmr.2022.51.6.1619
An Exploratory Study on Consumer Perceptions of Price, Quality, and Consumer Service for Personalized Products
Suhan Woo ; Sundong Kwon ; JungJoo Jahng
(First Author) Seoul National University (suhanwoo0312@snu.ac.kr)
(Corresponding Author) Chungbuk National University (sdkwon@cbnu.ac.kr)
(Co-Author) Seoul National University (jahngj@snu.ac.kr)
스마트팩토리 개인 맞춤형 제품의 가격, 품질, 서비스의 소비자 인식 및 선호도에 관한 탐색적 연구

Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.


Funding Information ▼ Institute of Management Research at Seoul National University

Abstract

In addition to technological development, the key to the success of personalized production is to increase customer acceptance by considering them as key strategic factors. However, there is a lack of attempts to approach smart factory from the end-user's perspective, particularly with regard to personalized products that may be more expensive, of lower quality, and have lower customer service levels than existing products. These practical limitations of personalized products may be perceived as a risk by consumers. This study examines consumers' perception of price, quality, and consumer service, as well as their preference for personalized products and types of customization. The results indicate that consumers' willingness to pay a premium for personalized products was found, while their tolerance for quality reduction was extremely low, and their tolerance for service degradation was low. In addition, it was found that there was a preference for personalized products, and among the three customized types, option selection customized types were the most preferred. This study provides practical implications by analyzing realistic factors that companies should consider when supplying personalized products.


Keywords: Smart Factory, Personalized Products, Consumer Perceptions, Preference

Acknowledgments

This research is supported by the Institute of Management Research at Seoul National University.

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∙ The author Suhan Woo is a Ph.D. candidate in Management Information Systems at Seoul National University. His research interests focus on digital business strategy and digital transformation.

∙ The author Sundong Kwon is a professor in the Department of Management Information Systems at Chungbuk National University. He received his Ph.D. in MIS major from Seoul National University. He has published papers in journals such as British Journal of Management, Asia Pacific Journal of Information Systems, Information Systems Review, Journal of Information Technology Application and Management, and Korean Management Review. His interests include Smart Factory and Machine Learning/Deep Learning-based data management.

∙ The author JungJoo (JJ) Jahng is a professor of Information Systems at the College of Business School, Seoul National University. He received a B.S. degree in business administration and Master of Business Administration (MBA) from Seoul National University, and a Ph.D. degree in management information systems from the University of Wisconsin-Milwaukee. His research interests are in the domains of digital business strategy, and digital transformation. His research has appeared in a number of journals such as IEEE Transactions on Systems, Man, and Cybernetics, the European Journal of Information Systems, the Journal of Information Technology, and the E-Service Journal.