An example, using the commodity of corn, illustrates how this progression of value has resulted in an innovative small business. Value is added to corn when the commodity is processed and boxed as breakfast cereal shown in Figure 1.2. The local diner that brings the cereal in a bowl with milk to the customer is adding value through service. But how do you make cornflakes memorable?  The small business, Cereality has changed breakfast cereal into an engaging experience through mass customization.  In mass customization, consumers engage in creating a unique product to their individual specification by selecting from an array of options offered by the business.

The creative process becomes an important source of value for the consumers in mass customization (Fiore, Lee, & Kunz, 2004).  Cereality customers creatively combine two cereals, a milk, and a topping, including malted milk balls, and eat from a traditional take-out container.

Cereality: Tempe, AZ http://www.cereality.com

Figure 1.2