The Customization Competence Decisions of Information Goods Under Uncertainty of Product Quality

Considering the errors of communication between producer and consumer during customization, this paper studies how to decision when information goods producer provides both standard and customized goods, and how to avoid the uncertainty originated from communication errors. In three kind competence circumstances, this study compares with the optimal conventional good prices, optimal customization ranges and optimal marginal earnest. The results show that under the market incompletely covered condition, the producer can increase his profits by adopting customization. Despite the uncertainty of customization goods' quality, producer can collect earnests to evade such risk and facing with different uncertainty the producer should adopt different competence strategy.