Building-Up versus Paring-Down: Consumer Responses to Recommendations When Customizing

In this research we explore how consumers respond to recommendations when customizing products. In four studies, we find that consumers’ responses to recommendations are contingent on the type of customization strategy and level of recommendation offered by the firm. Specifically, consumers incorporate vendor recommendations in a build-up customization strategy but ignore recommendations when paring-down, as long as the recommendation is offered at a level which does not cause consumers to question the motives of the firm. However, when the level of recommendation is substantially different from the starting point of customization, consumers begin to question the motives of the firm which reveres the effect of recommendations on consumers’ customized choices. Important theoretical and managerial implications are also discussed.