Consumers' value perceptions of e-customization – a model incorporating information framing and product type

Purpose – Despite significant business spending in areas such as personalization tools and add-on options representing levels of product attributes, most marketers do not know the amount of value that is directly attributable to their e-customization strategies. This study aims to offer an in-depth investigation of consumers' value perceptions of e-customization and their relationship with perceived sufficiency of information and cognitive cost. The context effects on value perception in e-customization are studied together with antecedent constructs. Design/methodology/approach – The research consists of a 2×2 between-subjects factorial design. The full model is tested using multiple-group structural equation modeling analysis to verify the significance of the inter-relationships between constructs, as well as the main and the interaction effects of two experimental factors (product information framing and product type). Findings – The experimental results showed that perceived e-customization value does not simply stem from the ability to “narrow-cast” content more specifically related to a shopper's interests (i.e. anticipated fulfillment value). Rather, this value also stems from the dynamic flexibility of the information system and its ability to entertain and educate during the information dissemination process (i.e. process value and knowledge value). Furthermore, when the customization framing features are better matched with product type characteristics, e-customization seemed to increase value in ways that are difficult to achieve in conventional shopping environments. Originality/value – By testing the proposed structural model simultaneously with two experimental factors of product type and information framing, this work is the first to address the question of context effects on value creation in an area of increasing substantive importance.