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The cost/variety issues of forecast-based form postponement [Elektronski vir]
Fatur, Peter
Purpose - Traditionally, the objective of individualizing goods and services is to attain increased revenue by the ability to charge premium prices derived from the added value of a solution meeting ...the specific needs of a customer. However, the present competitive situation is changing because customers demand relatively high standards of quality, service, variety or functionality even when the sales price is favorable or, vice versa, suppliers have to meet additional requirements in pricing when a product is marketed differentiated. The paper presents a research investigating the drivers of different models of form postponement. Findings - The study results confirm a relationship between a selected model of forecast-based form postponement and either cost reduction or increase of external variety (i.e. level of product variety as perceived by the customers). Not every form postponement model results in equal effect to cost reduction and increase in variety. Thus, selecting an appropriate model needs to be a strategic managerial decision.
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