Abstract
Mass customization is an approach which aims to reduce cost and increase efficiency simultaneously through modularization and information technology. In contrast to the mass production, the advantage of mass customization can increase product variety, and satisfy most of customers. However, there are some limitations in mass customization. Firstly, customers do not completely participate with designers in the design phase. Secondly, the concept of mass customization is not able to satisfy every individual’s requirements and not capable of providing personalized services and goods. In order to overcome the gap between mass customization and mass personalization, this study proposes a service engineering methodology to break through the limitations of mass customization and finally design personalized services through customer co-creation. Service Engineering is a field that investigates service design and development with a systematic perspective and with an integration of product and service (Cavalieri and Pezzotta, 2012). The research applied personalized hotel room layout service as a case study. The customer satisfaction would be measured to validate the proposed methodology according to service strategic module. The result also validated that the proposed personalized service could increase customer satisfaction largely. The study also found that customer would pay extra expense for personalized hotel service. The result performed by Structural Equation Modeling (SEM) shows that customer experience not only has a significant influence on customer satisfaction, but also has a significant influence on customer loyalty. The proposed methodology provides customers with diversified services and let them experience the process of value co-creation to achieve the efficiency of mass personalization.