Why customers value self-designed products: The importance of process effort and enjoyment

In this study, the authors analyze which factors prompt customers to attribute value to products they design themselves using mass customization (MC) toolkits. Developing and implementing such a system involves costs, and it only makes economic sense if it also yields benefits. The assumption that self-design delivers superior customer value is fundamental to the concept of MC toolkits and can be found in almost any conceptual work in this field. However, spectacular failures reinforce the practical relevance of developing a deeper understanding of why and when MC toolkits generate value for customers – and when they do not. Research to date has assumed that the closer fit between the self-designed product's characteristics and the preferences of the customer is the dominant source of value. In this research, it is asked whether the enjoyment and perceived effort of the self-design process have an additional impact on the perceived value of self-designed products. This question is interesting because one could argue that a rational actor would hardly be willing to pay ex post for an economic good already consumed. The hypotheses are tested on 186 participants designing their own scarves with an MC toolkit. After completing the process, they submitted binding bids for "their" products in Vickrey auctions. Therefore real buying behavior is observed, not merely stated intentions. The authors find that the subjective value of a self-designed product (i.e., one's bid in the course of the auction) is indeed not only impacted by the preference fit the customer expects it to deliver, but also by (1) the process enjoyment the customer reports, (2) the interaction of preference fit and process enjoyment, and (3) the interaction of preference fit and perceived process effort. In addition to its main effect, preference fit can be interpreted as a moderator of the valuegenerating effect of process evaluation: In cases where the outcome of the process is perceived as positive (high preference fit), the customer also interprets process effort as a positive accomplishment, and this positive affect adds (further) value to the product. It appears that the perception of the self-design process as a good or bad experience is partly constructed on the basis of the outcome of the process. In the opposite case (low preference fit), effort creates a negative affect which further reduces the subjective value of the product. Likewise, process enjoyment is amplified by preference fit, although enjoyment also has a significant main effect, which means that regardless of the outcome, customers attribute higher value to a self-designed product if they enjoy the process. The importance of the self-design process found in this study bears clear relevance for companies which offer or plan to offer MC systems. It is not sufficient to design MC toolkits in such a way that they allow customers to design products according to their preferences. The affect caused by this process is also highly important. Toolkits should therefore stimulate positive affective reactions and at the same time keep negative affect to a minimum.