How to Increase Demand by Cultivating Customers’ Ability to Find and Choose Attractive Alternatives in a Configurator
45 Pages Posted: 11 Jul 2014
Date Written: July 8, 2014
Retailers of consumer durables often enable customers to configure products; this study reveals how companies can structure this customization process to increase sales. Three empirical studies demonstrate that combining choices about standardized products and configurator tasks is more beneficial than letting customers immediately configure a preferred product. Initial choices among standardized products function like training tasks that facilitate subsequent product configuration and product acceptance decisions. Respondents thus regard the products as more attractive and are more likely to accept them. Companies in turn can increase sales and revenues by implementing two-step configurator tasks.
Keywords: customization, sales strategy, context-dependent preferences, configurator tasks
JEL Classification: M30, M31
Suggested Citation: Suggested Citation