The importance of perceived fairness in product customization settings

Abstract

Customization tools enable computerized service interactions that increase customer value. This value is affected by customers’ co-creation efforts. During the customization process, customers weigh the cost of their resources (e.g. ideas, time, knowledge) against the resources invested by a service company (e.g. online support, product warranty) to evaluate the fairness of the process. This study examines how customer satisfaction is affected by perceptions of fairness during the customization process, as well as the number of customization options offered by a customization tool. Two experiments show that, regardless of the number of customization options, customers always evaluate a company more positively when the customization process is fair. Product category involvement and customer expertise also moderate the relationship between customization and satisfaction. As this research indicates, customization must be designed carefully to avoid undesirable marketing outcomes.