The authors examine the implications of electronic shopping for consumers, retailers, and manufacturers. They assume that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings. They examine these advantages as a function of typical consumer goals and the types of products and services being sought and offer conclusions regarding consumer incentives and disincentives to purchase through interactive home shopping vis-à-vis traditional retail formats. The authors discuss implications for industry structure as they pertain to competition among retailers, competition among manufacturers, and retailer-manufacturer relationships.

Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in

The area of consumer cocreation is in its infancy and many aspects are not well understood. In this article, we outline and discuss a conceptual framework that focuses on the degree of consumer cocreation in new product development (NPD). The authors examine (a) the major stimulators and impediments to this process, (b) the impact of cocreation at each stage of the NPD process, and (c) the various firm-related and consumer-related outcomes. A number of areas for future research are suggested.

/pdf/consumer-cocreation-in-new-product-development-2vqxdffxj0.pdf

Consumer Cocreation in New Product Development

Social Media Peer Communication and Impacts on Purchase Intentions: A Consumer Socialization Framework

Many companies offer websites that enable customers to design their own individual products, which the manufacturer can then produce to order. To date, the economic value of products self-designed using mass customization (MC) toolkits has been attributed to the two factors of preference fit achieved (which should be as high as possible) and design effort (which should be as low as possible). On the basis of literature on behavioral decision making, we suggest a third factor, namely the awareness of being the creator of the product design. In the course of five different studies, we provide experimental evidence that this “I designed it myself” effect creates economic value for the customer. Regardless of the two other factors, self-designed products generate a significantly higher willingness to pay. This effect is mediated by feelings of accomplishment and moderated by the outcome of the process as well as the individual's perceived contribution to the self-design process. These findings have important implications for MC companies: It is not enough merely to design MC toolkits in such a way that preference fit is maximized and design effort is minimized. To capture the full value of MC, toolkits should also elicit “I designed it myself” feelings.

https://www.wu.ac.at/fileadmin/wu/d/i/mm/paper/2010_NF_MS_UK_Management_Sciene.pdf

The “I Designed It Myself” Effect in Mass Customization

The mass customization decade: An updated review of the literature

Recently, researchers have paid increasing attention to the marketing strategy of customization. A key assumption is that customized products create higher benefits for customers than standard products because they deliver a closer preference fit. The prerequisite for this effect is the ability to obtain precise information on what customers actually want. But are customers able to specify their preferences that precisely? Several theoretical arguments raise doubts about this, implicitly challenging the value of customization. The authors conduct two studies in which they find that products customized on the basis of expressed preferences bring about significantly higher benefits for customers in terms of willingness to pay, purchase intention, and attitude toward the product than standard products. The benefit gain is higher if customers have (1) better insight into their own preferences, (2) a better ability to express their preferences, and (3) greater product involvement. This suggests that c...

Testing the Value of Customization: When Do Customers Really Prefer Products Tailored to Their Preferences?

Should firms invest in customization strategies? Customization is a “hot” topic advocated in many popular books and articles. On the other hand, spectacular failures in the recent past have raised doubts. We experimentally tested the value customization generates for customers in the diverse product categories of newspapers, fountain pens, kitchens, skis, and cereals. The findings are clear: customization by far outperforms the more traditional strategies of segmentation and mass marketing

/pdf/customization-a-goldmine-or-a-wasteland-1pqw4om960.pdf

Christoph J. Steger

Papers

Testing the Value of Customization: When Do Customers Really Prefer Products Tailored to Their Preferences?

Customization: A Goldmine or a Wasteland?