How to Increase Demand by Cultivating Customers’ Ability to Find and Choose Attractive Alternatives in a Configurator

45 Pages Posted: 11 Jul 2014

See all articles by Michael Steiner

Michael Steiner

University Witten/Herdecke

Thomas Otter

Goethe University Frankfurt - Department of Marketing

Date Written: July 8, 2014

Abstract

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

Steiner, Michael and Otter, Thomas, How to Increase Demand by Cultivating Customers’ Ability to Find and Choose Attractive Alternatives in a Configurator (July 8, 2014). Available at SSRN: https://ssrn.com/abstract=2464506 or http://dx.doi.org/10.2139/ssrn.2464506

Michael Steiner (Contact Author)

University Witten/Herdecke ( email )

Alfred-Herrhausen-Straße 50
Witten, D-58448
Germany

HOME PAGE: http://https://www.uni-wh.de/wirtschaft/lehrstuhl-marketing/

Thomas Otter

Goethe University Frankfurt - Department of Marketing ( email )

Frankfurt
Germany
++49.69.798.34646 (Phone)

HOME PAGE: http://www.marketing.uni-frankfurt.de/index.php?id=97?&L=1

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