character customization - morphing shapes

In my game i want to have a character customization menu in which you can change the shape of your character. Like, bigger chest, nose etc.

I know one way of doing this, and this is by adding extra bones in places which can be enlarged. Like, placing a bone in the nose part.

I was wondering if this is the best method or are there better ways to achieve this effect??

You should have a look at MegaFiers, it has a complete morphing solution with exporters for Max and blender, the code is fully multithreaded so it is super fast, and on top of that it has 30 or so extra deformations you can apply to the character in Unity for extra effects like boosting muscles, giving a charcter a tummy and so on. The thread for it ishttp://forum.unity3d.com/threads/89750-Mega-Fiers.-A-mesh-deformation-system-RELEASE?p=680540&viewfull=1#post680540 and if you take the time to scan the whole thread or visit the youtube channel you will see a load more of what you can do with the system, page flips, old fashioned scrolls all sorts.