In the context of competitive markets, what is the primary goal of mass customization?

• A. To eliminate competition by standardizing all market offerings
• B. To efficiently produce goods tailored to individual customer preferences
• C. To minimize product variety in order to reduce costs
• D. To maximize economies of scale by producing identical products

Answer: (B)

Verified step by step guidance

1. Understand the concept of mass customization: it refers to the process of producing goods and services to meet individual customer's needs with near mass production efficiency.
2. Recognize that in competitive markets, firms aim to satisfy diverse consumer preferences while maintaining cost efficiency.
3. Analyze the options: eliminating competition by standardizing products contradicts customization; minimizing product variety reduces customization; maximizing economies of scale by producing identical products also reduces customization.
4. Identify that the primary goal of mass customization is to combine the benefits of customization (tailoring products to individual preferences) with the efficiency of mass production.
5. Conclude that the correct goal is to efficiently produce goods tailored to individual customer preferences, balancing variety and cost.