Purpose – The purpose of this paper is to make contributions toward new knowledge and understanding of how marketers can provide effective online customization experiences for customers. The practicality of online mass customization has received much attention as consumers perceive more value from customized products than from their standardized counterparts. Little research has been done to understand consumers’ behavioral intentions in response to these value additions. This study incorporates product information framing in developing and empirically testing a model of the relationship between online customization and price sensitivity, endowment addition and expected likelihood of product return. Design/methodology/approach – The relationship among the constructs specified in the model was tested using multiple group structural equation modeling analysis. Findings – The findings indicate that consumers perceived knowledge gain via customization process influences the utilitarian value, which directly impacts levels of likelihood of product return and price sensitivity. The process value, on the hedonic side, influences more on the endowment addition. Endowment addition is found to mediate the relationship between the hedonic benefits and the two utilitarian outcome variables: price sensitivity and likelihood of product return. Originality/value – Understanding the consequences of customization is particularly crucial for marketers. This research is the first to expand and further our knowledge of customization, particularly in relation to its outcomes of customers’ behavioral intentions.
Stored only when both papers are in the corpus — 26 citations exist upstream.