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

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

Answer: (C)

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 balance customization with cost efficiency, allowing them to cater to diverse preferences without losing economies of scale.
3. Analyze each option by comparing it to the goal of mass customization: minimizing product variety or standardizing products contradicts customization, while maximizing economies of scale by producing identical products ignores individual preferences.
4. Identify that the primary goal of mass customization is to efficiently produce goods tailored to individual customer preferences, combining personalization with cost-effective production methods.
5. Conclude that the correct answer aligns with the idea of meeting diverse customer demands while maintaining production efficiency, which is the essence of mass customization.