Answer: Firms tailor their products and services to meet a customer's particular needs on a large scale.
Explanation: As the name suggests mass customization refers to customizing at a large level. In simple words it refers to a process in which an organisation combines the benefits of mass production with the benefits of customization.
This is done by the organisations when the majority of customer base is asking for a particular change or addition in the existing commodity.
Hence from the above we can conclude that the correct option is first statement.