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What distinguishes customization from mass customization?
ACustomization uses longer production runs than mass output
BEach customized product or service produced is unique
CCustomization always costs less per unit to produce
DCustomization is only possible in service industries
Answer & Solution
Correct answer: B. Each customized product or service produced is unique
1. Both approaches end with something shaped to a particular customer, so the difference lies further back in the process.
2. Under mass customization the early stages are identical for everyone and only the finishing differs.
3. Under customization the firm produces goods or services one at a time to the specific needs or wants of individual customers.
4. The consequence is that each product or service produced is unique rather than a variant of a common base.
5. Because runs are one unit long, option A reverses the truth about run length.
6. Custom homes are as customized as legal services, so option D is wrong to confine the approach to services.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Just for You: Customizing Goods_
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