Order in Product Customization Decisions: Evidence from Field Experiments

Journal of Political Economy, Vol. 118, No. 2, pp. 274-299, 2010

26 Pages Posted: 31 Oct 2011

See all articles by Jonathan Levav

Jonathan Levav

Columbia Business School - Marketing

Mark Heitmann

Columbia College

Andreas Herrmann

University of St. Gallen - MCM Institute

Sheena S. Iyengar

Columbia Business School - Management Division

Date Written: April 2010

Abstract

Differentiated product models are predicated on the belief that a product's utility can be derived from the summation of utilities for its individual attributes. In one framed field experiment and two natural field experiments, we test this assumption by experimentally manipulating the order of attribute presentation in the product customization process of custom-made suits and automobiles. We find that order affects the design of a suit that people configure and the design and price of a car that people purchase by influencing the likelihood that they will accept the default option suggested by the firm.

Suggested Citation

Levav, Jonathan and Heitmann, Mark and Herrmann, Andreas and Sethi-Iyengar, Sheena S., Order in Product Customization Decisions: Evidence from Field Experiments (April 2010). Journal of Political Economy, Vol. 118, No. 2, pp. 274-299, 2010, Available at SSRN: https://ssrn.com/abstract=1951203

Jonathan Levav

Columbia Business School - Marketing ( email )

New York, NY 10027
United States

Mark Heitmann

Columbia College ( email )

600 South Michigan Avenue
60605
United States

Andreas Herrmann

University of St. Gallen - MCM Institute ( email )

Blumenbergplatz 9
CH-9000 St. Gallen
Switzerland
+41-71-224-3026 (Phone)

Sheena S. Sethi-Iyengar (Contact Author)

Columbia Business School - Management Division ( email )

3022 Broadway
New York, NY 10027
United States

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