Research on product customization and pricing strategy considering consumer value co-creation under uncertain environment

Abstract

Manufacturers are increasingly embracing consumer participation in value co-creation. However, existing research pays limited attention to the uncertain aspects of consumer psychology. We employ intuitive fuzzy numbers to quantify consumers’ subjective perceptions of customization attributes, reflecting their sensitivity to changes in product complexity. Furthermore, by modeling the scenario of consumer involvement in product customization, we apply cumulative prospect theory to convert perceived complexity into a definitive scalar. Based on this, we develop a consumer utility function and a manufacturer profit function, and analyze the manufacturer’s optimal customization and pricing strategy through profit maximization. Finally, we validate the effectiveness and feasibility of the model using the customization case of Nike sports shoes.