Research on contract for clothing mass customization based on customer value

As participant and decision maker, customers play important role in customized production process. Different from that of other products, the value of clothing is evaluated by customers not only based on the quality and style but also the added value of the product. This feature is particularly prominent in the field of clothing customization. The value of customized clothing includes elements such as the brand value, product attribute, service level, price and personal factors, etc. Customers make purchasing decisions according to the principle of utility maximization, and providers of customized clothing pursuit their profit maximization. In this paper, the utility function of customer value for clothing customization is analyzed, and then a contract model between customer and customization firm based on customer value is built. Using the solution of the model, coordination of clothing mass customization supply chain can be obtained when customer and provider make decisions considering the equilibrium of Stackelberg game.