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Consumer Preferences for Mass Customization

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Author Info
Dellaert,Benedict G.C.
Stremersch,Stefan (METEOR)

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Abstract

Increasingly, firms allow consumers to mass customize their products. In this study, the authors investigate consumers’ evaluations of different mass customization configurations when asked to mass customize a product. For instance, mass customization configurations may differ in the number of modules that may be mass customized. The authors find – in the context of mass customization of personal computers – that mass customization configuration affects the product utility consumers can achieve in mass customization as well as their perception of mass customization complexity. In turn, product utility and complexity affect the utility consumers derive from using a certain mass customization configuration. More specifically, product utility has a positive, and complexity has a negative effect on mass customization configuration utility. The effect of complexity is direct as well as indirect, because complexity also lowers product utility. The authors also find that consumers with high product expertise find mass customization configurations less complex than consumers with low product expertise and that for more expert consumers complexity has a less negative impact on product utility. The study has important managerial implications for how companies can design their mass customization configuration to increase utility and decrease complexity.

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Publisher Info
Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 044.

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Date of creation: 2004
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Handle: RePEc:dgr:umamet:2004044

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Keywords: marketing

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Chatterjee, Subimal & Heath, Timothy B., 1996. "Conflict and Loss Aversion in Multiattribute Choice: The Effects of Trade-Off Size and Reference Dependence on Decision Difficulty," Organizational Behavior and Human Decision Processes, Elsevier, vol. 67(2), pages 144-155, August. [Downloadable!] (restricted)
  2. Heath, Timothy B, et al, 2000. "Asymmetric Competition in Choice and the Leveraging of Competitive Disadvantages," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 27(3), pages 291-308, December.
  3. Alba, Joseph W & Hutchinson, J Wesley, 1987. "Dimensions of Consumer Expertise," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 13(4), pages 411-54, March.
  4. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, December. [Downloadable!]
  5. Tversky, Amos & Kahneman, Daniel, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1039-61, November. [Downloadable!] (restricted)
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