Product Customization via Starting Solutions

Abstract

Customizing a product by choosing each of its attributes individually tends to be onerous for consumers, and the benefits of product customization may thus be offset by an increase in choice complexity. As a remedy for this dilemma, the current research introduces the customization via starting solutions (CvSS) architecture, which substantially reduces the complexity of product customization while preserving all of its advantages. Under CvSS, consumers first select one starting solution from a set of prespecified products, which they then refine to create their final customized product. Evidence from nine studies (three of which were conducted in field settings) across a wide range of product domains (shirts, cars, vacation packages, jewelry, and financial products) shows that the CvSS architecture results in substantial benefits relative to the standard attribute-by-attribute product customization format for both consumers (increased satisfaction with their product choices, reduced choice complexity, and enhanced mental simulation of product use) and firms (purchases of more feature-rich, and thus higher-priced, products).