Willingness to Pay for Customization: The Impact of Choice Variety and Specification Assistance

Research in mass customization suggests that consumers are willing to pay more for customization, but limited studies to date have investigated product or process related factors that would affect consumers' willingness to pay for a customized product. In a foodservice context, we empirically tested the impact of choice variety and specification assistance on consumers' willingness to pay for the customized product. The study results indicate that consumers would pay more for the customized product if extensive choice variety was provided for each product component. However, specification assistance was not found to affect consumers' willingness to pay.