Understanding the Perceived Value of Mass Customization: The Distinction between Product Value and Experiential Value of Co-Design

Abstract

Research on mass customization suggests that this type of offer delivers more value to the customer. However, the failures of mass-customization strategies tend to prove the contrary. This article provides answers to the following research questions: (1) Why and to what extent do consumers value mass customization? (2) How and to what extent do these sources influence total perceived value? Two components of perceived value are differentiated: (1) mass-customized product value, which is reflected in three dimensions: utilitarian, uniqueness and self-expressiveness, and (2) experiential co-design value, which is reflected in two dimensions: hedonic and creative achievement. Furthermore, our results underline the indirect impact of the experiential value of co-design on total perceived value, through mediation of mass-customized product value.