Research on customer participation based on utility and cost

Customized production is one of the important approaches to satisfy customers, since customers have more and more requirements of individuation. Customer can be involved in the customized production in different degrees which leads to the compromise of customer utility and customer cost. The effects of the degree of customer participation on the customer utility and cost were analyzed, through questionnaire investigation on compatible computer users. A model of customer participation based on utility and cost was established and the optimal strategy of customer participation in conception and design phases of generating the product was analyzed. The research result shows that firms should encourage customers totally participate in the conception phase and work together with customers in the design phase.