=Paper= {{Paper |id=Vol-1128/intro10 |storemode=property |title= The Effect of Sales Configurator Capabilities on the Value Perceived by the Customer Through the Customization Process |pdfUrl=https://ceur-ws.org/Vol-1128/paper10.pdf |volume=Vol-1128 |dblpUrl=https://dblp.org/rec/conf/confws/PerinTF13 }} == The Effect of Sales Configurator Capabilities on the Value Perceived by the Customer Through the Customization Process == https://ceur-ws.org/Vol-1128/paper10.pdf
Elisa Perin, Alessio Trentin, Cipriano Forza                                                                                     71




 The effect of sales configurator capabilities on the value perceived by the customer
                           through the customization process
                                Elisa Perin1 and Alessio Trentin and Cipriano Forza
                                              University of Padova, Italy
                                                 1
                                                   perin@gest.unipd.it


                          Abstract                                 customized goods [Franke and Schreier, 2010; Franke et al.,
    Literature has recently conceptualized five                   2010], and therefore it represents an important lever for
                                                                   mass customizers aiming at increasing their profitability. To
    capabilities that a sales configurator should deploy
                                                                   help narrow this research gap, the present work develops
    in order to help avoid the product variety paradox,
                                                                   and tests hypotheses about the positive impact of the
    namely the risk that offering more product variety             abovementioned sales configurator capabilities on the value
    and customization to the market paradoxically
                                                                   the customization experience provides to the potential
    results in a loss of sales. However, no studies have
                                                                   customers.
    investigated the effect of such capabilities on the
    value that users derive from the experience of
    customizing their own products. To help narrow                 2   Theoretical background and conceptual
    this research gap, in the present work we develop a                development
    number of hypotheses about the positive impact of
    such capabilities on the hedonic and creative value            2.1 The value of the customization process
    obtained by potential customers through the                    Consumer research has long recognized that shopping
    customization experience. We then test the                     involves not only instrumental outcomes related to the
    hypothesized relationships and find empirical                  merits of the goods or services acquired, but also
    support for all of them.                                       experiential outcomes [Holbrook and Hirschman, 1982;
                                                                   Babin et al., 1994]. The latter are emotional responses to the
1   Introduction                                                   shopping experience that, when positive and rewarding, let
                                                                   customers obtain greater value from their shopping time
Sales configurators are software applications that support         [Holbrook and Hirschman, 1982; Babin et al., 1994].
firms in identifying the complete and consistent commercial        Greater perceived value, in turn, makes customers more
description of the product variant that best fits the              willing to buy a product or pay a higher price for it [Baker et
customers’ requirements among the company’s offer [Forza           al., 1992; Babin et al., 1994; Franke and Schreier, 2010].
and Salvador, 2008; Peng et al., 2011]. The functions of a              Experiencial value has been shown to influence
sales configurator include presenting the company’s product        customer’s purchasing behaviour not only in the case of
space, meant as the set of products offered [Tseng and             standard items, but also when products can be configured by
Piller, 2003], and preventing inconsistent or unfeasible           using a Web-based sales configurator. Specifically,
solutions from being defined [Franke and Piller, 2003; Forza       literature has unveiled that the value elicited by the
and Salvador, 2008].                                               configuration experience carry over to the evaluation of the
    Drawing upon prior research on sales configurators and         self-configured product and increment the customer’s
customer decision processes, literature [Trentin et al., 2013]     willingness to pay [Franke and Schreier, 2010; Franke et al.,
has recently distilled five capabilities that a sales              2010; Merle et al., 2010]. In particular, two types of
configurator should deploy in order to help avoid the              experiencial values have been linked with the process of
product variety paradox. This is the risk that offering more       self-configuring a product, namely hedonic value and
product variety and customization to the customer, in an           creative achievement value [Merle et al., 2010].
attempt to increase sales, paradoxically results in a loss of      Hedonic value
sales [Salvador and Forza, 2007].                                  Hedonic value is defined as the value acquired from the
    However, no studies have analyzed the effect of these          experience’s capacity to meet needs related to enjoyment,
capabilities on the value that potential customers may derive      fun, or pleasure [Merle et al., 2010]. In particular, with
from the experience of customizing their own products.             regard to a purchase situation, hedonic value reflects the
Such a subjective value is posited by previous literature as       consumers’ appreciation for the shopping experience in
increasing the customers’ willingness to pay for mass-




                                                                                     Michel Aldanondo and Andreas Falkner, Editors
                                                                        Proceedings of the 15th International Configuration Workshop
                                                                                                  August 29-30, 2013, Vienna, Austria
72                                                                                     Elisa Perin, Alessio Trentin, Cipriano Forza

itself, regardless of any instrumental value of the purchased    efforts, time, and attention [Franke et al., 2010]. As the
product [Babin et al., 1994].                                    favorableness of the outcome of the experience is a
    The importance of fulfilling the customer’s needs for        prerequisite for the user’s perception of pride, the creative
enjoyment, fun, or pleasure through the shopping experience      achievement benefit is said to be “output-oriented”
has long been advocated by the marketing literature [e.g.        [Schreier, 2006].
Hirschman and Holbrook, 1982; Babin et al., 1994; Childers
et al., 2001]. For example, literature has uncovered that        2.2 Sales configurator capabilities to improve
instilling those feelings in the customer is a way to foster         customers’ perceived value through the
unplanned shopping decisions [Babin et al., 1994],                   customization process
repurchase intentions [Jones et al., 2006; Scarpi, 2012] or
the use of online forms of shopping [Childers et al., 2001].     In the following subsections we argue that five capabilities,
                                                                 identified by previous research as key in avoiding the
    Similar findings have also been reported in the mass-
                                                                 product variety paradox [Trentin et al., 2013], also allow a
customization literature. Recent studies have uncovered that
consumers configuring their own products are likely to           sales configurator to increase the value perceived by a
                                                                 customer through the configuration process. These
experience process enjoyment [Franke and Schreier, 2010;
                                                                 capabilities are: benefit-cost communication, user-friendly
Merle et al., 2010]. These feelings can derive, for example,
from learning one’s own preferences by using the                 product-space description, easy comparison, flexible
                                                                 navigation, focused navigation capabilities (see Table 1).
configuration process and/or from playing an active role in
the design of a good [Franke and Schreier, 2010].                Capability          Definition
Noteworthy, these mechanisms are not inflenced by the            Benefit-cost        The ability to effectively communicate the
characteristics of the products eventually configured, rather    communication       consequences of the available choice options
they result from the characteristics of the configuration                            both in terms of what the customer gets
process itself. For this reason the hedonic benefit is said to                       (benefits) and in terms of what the customer
be “process-oriented” [Franke and Schreier, 2010].                                   gives (monetary and nonmonetary costs)
                                                                  User-friendly      The ability to adapt the product space
Creative achievement value                                        product-space      description to the needs and abilities of
Creative achievement value is defined as the value acquired       description        different potential customers, as well as to
by the customer from the feeling of accomplishment related                           different contexts of use
to the creative task of codesigning [Merle et al., 2010]. The     Easy               The ability to minimize the effort required of a
elicitation of this type of value has also been referred to as    comparison         potential customer to compare previously
                                                                                     created product configurations
the “I designed it myself” effect [Franke et al., 2010]. Here
                                                                  Flexible           The ability to minimize the effort required of a
the term “design” is used as including the configuration of a     navigation         potential customer to modify a product
product within a predefined solution space [Franke et al.,                           configuration that he/she has previously
2010].                                                                               created or is currently creating
    The concept of creative achievement value finds its           Focused            The ability to quickly focus a potential
theoretical support in the psychology literature. When            navigation         customer’s search on a product space subset
people successfully complete a challenging task by their                             that contains the product configuration that
own efforts, they feel a positive emotion of self-reward,                            best matches his/her idiosyncratic needs
namely, pride [Weiner, 1985; Lea and Webley, 1997]. In           Table 1: sales configurator capabilities (Trentin et al., 2013)
other terms, when someone attains an outcome that signals
                                                                 Impact of sales configurator capabilities on hedonic
his/her success in dealing with a challenge, s/he feels pride
                                                                 value
[Weiner, 1985; Franke et al., 2010]. For example, when one
does a complex Jigsaw puzzle, a favourable outcome of the        Benefit-cost communication capability
process (i.e. having the puzzle completed) constitutes a         When a sales configurator has high benefit-cost
positive feedback on one’s own competences [Schreier,            communication capability, during the configuration task the
2006]. This, in turn, gives the individual a strong feeling of   customer is given pre-purchase feedbacks on the effects of
pride for having done it oneself [Schreier, 2006].               the available choice options [Trentin et al., 2013]. This is
    The feeling of pride has also been studied with relation     done, for example, by explaining what potential needs a
to the product customization task. The completion of such a      given choice option contributes to fulfill and which is the
task has been shown to give customers a sign of their            price for such an option.
competence and effectiveness in creating something, thus             One of the product benefits customers are typically
eliciting feelings of pride “of authorship” [Schreier, 2006].    interested in is the aesthetic or, more in general, the
This happens because, when faced with a configurable             sensorial aspect of the product s/he is considering for
product instead of a standardized product, the customer          purchase [Li et al., 2001; Fiore et al., 2005]. A sales
perceives the shopping experience as being more difficult        configurator with high benefit-cost communication
[Franke et al., 2010]. Therefore, a favourable outcome to the    capability is able to convey these sensorial aspects, for
configuration experience (i.e. a customized product that fits    example through 360° product representation, the presence
the customer’s wants) embodies one’s success in                  of sound recording, or virtual try-on technologies [Fiore et
overcoming a challenge through the investment of personal        al., 2005]. This allows customers to understand whether the




Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria
Elisa Perin, Alessio Trentin, Cipriano Forza                                                                                  73

sensorial aspects of the configured product fit their needs.    product configurations that potential customers can explore
At the same time users are also allowed getting in closer       and add to their consideration set, given their level of mental
contact with the company’s offer through their senses,          abilities or time availability [Alba and Lynch, 1997].
which is a need customers generally have while shopping         Decreased constraint to the exploration of the company’s
[Hirschman and Holbrook, 1982]. When the shopping               product space augments the users’ feeling of freedom and
experience involves higher sensorial relation with products,    spontaneity perceived during the configuration process.
the consumer’s fantasy and imagination are stimulated           These feelings in turn drive the potential customer to obtain
suggesting elements of fun and playfulness [Jeong et al.,       higher hedonic value out of the experience [Babin et al.,
2009]. This, in turn, increases the hedonic value that is       1994].
perceived through the shopping experience [Shih, 1998;              Based on the above argument we posit that:
Fiore et al., 2005; Jeong et al., 2009].
   Based on the above argument we posit that:                         H3: The higher the level of easy comparison capability
                                                                      deployed by a sales configurator, the higher the
     H1: The higher the level of benefit-cost communication           hedonic value perceived by the customer through the
     capability deployed by a sales configurator, the higher
                                                                      configuration process
     the hedonic value perceived by the customer through
     the configuration process                                  Flexible navigation capability
                                                                When a sales configurator has high flexible navigation
User-friendly product-space description capability
                                                                capability, customers can quickly make and undo changes to
When a sales configurator has high user-friendly product-
                                                                a current configuration or to previously created ones. This
space description capability, customers do not have to
                                                                can be done, for example, through the use of bookmarks that
process product information that is not comprehensible for
                                                                redirect to previous steps of the configuration process
them [Alba and Lynch, 1997; Trentin et al., 2013]. This is
                                                                [Randall et al., 2005; Trentin et al., 2013].
because the system adapts information contents according to
                                                                    As going back to previous steps of the configuration is
their needs and abilities [Trentin et al., 2013].
                                                                easier, the potential customer can conduct many trial-and-
    Since information content is customized based on one’s
                                                                error tests to evaluate the effects of different choices made
needs and abilities, users perceive that the configuration
                                                                available by the company [Trentin et al., 2013]. In this way,
process is up to their skills. Only when potential consumers
                                                                the exploration of the solution space is pursued more
perceive that a computer-mediated environment is
                                                                actively by the customer, compared to cases where
congruent with their own skills can fun and enjoyment
                                                                excessive time/mental resources demands discourage
potentially occur [Hoffman and Novak, 1996]. Differently
                                                                customer’s non-linear movements through the solution
the consumers either become bored (i.e., their skills exceed
                                                                space. A more active role, in turn, makes the potential
the challenges) or anxious (i.e.. the challenges exceed their
                                                                customer perceive the process as an exciting play, thus
skills) [Hoffman and Novak, 1996].
                                                                fulfilling his/her need for enjoyment and fun [Babin et al.,
    Moreover when the customers are able to understand the
                                                                1994; Arnold and Reynolds, 2003; To et al., 2007].
product space characteristics, while using the sales
                                                                    Based on the above, we posit that:
configurator they learn about new products released in the
market or new trends. Since learning about new products or            H4: The higher the level of flexible navigation
trends is a source of enjoyment and entertainment for                 capability deployed by a sales configurator, the higher
consumers [Childers et al., 2001; Parsons, 2002; Arnold and           the hedonic value perceived by the customer through
Reynolds, 2003], this increases the hedonic value they                the configuration process
perceive through the configuration experience.                  Focused navigation capability
    Therefore, we posit that:                                   A sales configurator with focused navigation capability does
      H2: The higher the level of user-friendly product-space   not force potential customers to go through and evaluate a
      description capability deployed by a sales                number of product options that they regard as certainly
      configurator, the higher the hedonic value perceived      inappropriate for themselves [Trentin et al., 2013]. A way to
      by the customer through the configuration process         do this is, for example, to provide starting points, that is,
                                                                product configurations that are close to the customer’s ideal
Easy comparison capability
                                                                solution and that may be further customized to meet
When a sales configurator has high easy comparison
                                                                customer’s needs more accurately [Trentin et al., 2013].
capability, customers do not have to rely on their limited
                                                                    The restriction of the search only to a limited set of
working memory to recover and compare configurations
                                                                product solutions that are of interest to the customer,
they have previously created [Trentin et al., 2013]. This is
                                                                increases the likelihood that s/he soon finds something that
because the system supports the retrieval of saved
                                                                raises his/her attention and engagement. This, in turn, leaves
configurations and their comparison, for example through
                                                                more time to the person to focus on what is more engaging
their side-by-side display [Trentin et al., 2013].
                                                                and stimulating for him/her, thus increasing the enjoyment
    The transformation of the decision from a memory-aided
                                                                perceived during the configuration process.
to a computer-aided process increases the number of
                                                                    Therefore, we posit that:




                                                                                  Michel Aldanondo and Andreas Falkner, Editors
                                                                     Proceedings of the 15th International Configuration Workshop
                                                                                               August 29-30, 2013, Vienna, Austria
74                                                                                   Elisa Perin, Alessio Trentin, Cipriano Forza

     H5: The higher the level of focused navigation                   H7: The higher the level of user-friendly product-space
     capability deployed by a sales configurator, the higher          description capability deployed by a sales
     the hedonic value perceived by the customer through              configurator, the higher the creative value perceived
     the configuration process                                        by the customer through the configuration process
Impact of sales configurator capabilities on creative            Easy comparison capability
value                                                            By enabling the comparison between previously created
                                                                 configurations, a sales configurator deploying easy
Benefit-cost communication capability
By delivering pre-purchase feedback on the effects of the        comparison capability fosters the users’ learning about the
available choice options, a sales configurator with high         instrumental value they would derive from the product
                                                                 being configured. This is because, in assessing the value of
benefit-cost communication capability allows potential
                                                                 a particular product solution, customers tend to rely on
customers to understand the value that they can derive from
                                                                 comparisons with other product alternatives [Simonson and
these options [Trentin et al., 2013]. The learning process
                                                                 Tversky, 1992; Simonson, 2005]. The learning process
enabled by such a capability makes a potential customer
more confident that the product configuration s/he has           enabled by easy comparison capability makes a potential
selected is the one that best fits her/his needs within the      customer more confident that s/he is selecting the product
                                                                 configuration that best fits his/her needs [Trentin et al.,
company’s product space [Trentin et al., 2013]. In other
                                                                 2013]. As pride arises when a favorable outcome is ascribed
terms, a configurator with high benefit-cost communication
                                                                 to one’s contribution [Weiner, 1985], higher easy
capability makes the customers feel they have obtained the
most favorable outcome out of the configuration process          comparison capability augments the feeling of pride
and out of the efforts that they have invested in such a         perceived by the user through configuring their product.
                                                                     Moreover, the possibility to compare previously saved
process. As pride arises when it is possible to attribute a
                                                                 configurations relieves the customer from manually or
favorable outcome to the self [Weiner, 1985], the benefit-
                                                                 mentally recording relevant information (e.g., design
cost communication capability has a role in augmenting the
                                                                 parameters and product attributes) of the previously chosen
feeling of pride perceived by the users through configuring
their own products. This feeling, in turn increases the          configurations [Randall et al., 2005]. In this way, the
creative achievement value that the customer derives from        customer’s mental abilities, or the time availability for
                                                                 manually recording information, become less salient and
the customization process [Merle et al., 2010].
                                                                 s/he is enabled to configure a higher number of products. By
    Based on the above arguments, we posit that:
                                                                 being able to configure a higher number of products, the
      H6: The higher the level of benefit-cost communication     customer can give free reins to his/her creativity, exploring
      capability deployed by a sales configurator, the higher    multiple combinations of product features (for example
      the creative value perceived by the customer through       different combinations of colors). This provides more
      the configuration process
                                                                 chances for the evaluation of one’s creative skills, and thus
User-friendly product-space description capability               for eliciting pride feelings [Harter, 1985]. Pride, in turn,
By tailoring both information content and information            increases the creative achievement value that the customer
format to the abilities of different potential customers, a      derives from the customization process [Merle et al., 2010].
sales configurator deploying user-friendly product-space             Therefore, we posit that:
description capability facilitates the users’ understanding of         H8: The higher the level of easy comparison capability
the solution space characteristics [Trentin et al., 2013].             deployed by a sales configurator, the higher the
Without such understanding, it would be difficult for the              creative value perceived by the customer through the
customer to complete the configuration task and obtain a               configuration process
product configuration that corresponds to one’s expectations
and needs [Fürstner et al., 2012; Trentin et al., 2013]. This,   Flexible navigation capability
                                                                 By enabling potential customers to quickly make and undo
in turn, would make the customer attribute a negative
outcome to the efforts employed in the process. Conversely,      changes to previously created product configurations, a
                                                                 sales configurator with high flexible navigation capability
when potential customers, supported by the user-friendly
                                                                 enables users to conduct more trial-and-error tests to
product-space description capability, are able to obtain the
                                                                 evaluate the effects of available choices [Trentin et al.,
needed products, they feel “smarter” than their counterparts
                                                                 2013]. This experimentation promotes potential customers’
(co-workers, neighbors, relatives). This is because they are
able to co-designed a product instead of buying something        learning about the value they would derive from the product
created by somebody else [Schreier, 2006]. This makes            being configured. Such learning process makes potential
                                                                 customers more confident that the product configuration
them feel pride of authorship, and increses the creative
                                                                 they have selected is the one that best fits their needs within
achievement value derived from the process [Schreier,
                                                                 the company’s product space [Trentin et al., 2013]. As the
2006; Merle et al., 2010].
                                                                 potential customers feel they have obtained the most
    Based on the above arguments, we posit that:
                                                                 favorable outcome out of the configuration process, they




Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria
Elisa Perin, Alessio Trentin, Cipriano Forza                                                                                        75

feel proud of their accomplishment, which can be attributed           configure a product, according to his/her individual needs,
to their own efforts [Weiner, 1985].                                  on nine Web-based sales configurators for consumer goods
    Moreover, as the users are able to conduct many trial-            and to fill out a questionnaire for each experience. In this
and-error tests, they can give free reins to their creativity, by     questionnaires, participants had to rate the capabilities of
exploring more combinations of product features. This, in             each configurator and the level of hedonic and creative
turn, provides more chances for evaluating one’s creative             value they had derived from the configuration process. The
competences. As pride is a positive, self-rewarding emotion           items used to measure these constructs are reported in
arising from the evaluation of one’s competence [Harter,              Appendix A.
1985; Schreier, 2006], a sales configurator with flexible                 The chosen data analysis method is the structural
navigation capability is likely to make the users experience          equation modeling, using LISREL 8.80. Following
stronger feelings of pride. This in turn increases the creative       Anderson and Gerbing [1988], we decided to adopt a two-
achievement value they obtain [Merle et al., 2010].                   step approach, assessing construct validity before the
    Therefore, we posit that:                                         simultaneous estimation of the measurement and structural
      H9: The higher the level of flexible navigation                 models. Moreover, since our variables did not meet the
                                                                      assumption of multivariate normal distribution (Mardia’s
      capability deployed by a sales configurator, the higher
                                                                      test significant at p<0.001) we applied the Satorra-Bentler
      the creative value perceived by the customer through
      the configuration process                                       correction to produce robust maximum likelihood estimates
                                                                      of standard errors and Chi-square.
Focused navigation capability
A sales configurator with focused navigation capability               4   Results
prevents potential customers from going through a number
                                                                      Prior to conducting the analysis, we decided to control for
of product options that they regard as certainly inappropriate
                                                                      possible     effects    of     participants’   characteristics.
for themselves [Trentin et al., 2013]. As the size of their
                                                                      Consequently, and consistent with prior studies [Liu et al.,
search problem is reduced, potential customers can spend              2006; Trentin et al., 2013], we regressed our observed
more time and effort in exploring the product options for             indicators on 75 dummies representing the participants in
which their preferences are less certain. In addition, they can       our study and used the standardized residuals from this
rely on more time-consuming, compensatory decision                    linear, ordinary least square regression model as our data in
strategies for the resolution of between-attribute conflicts          all the subsequent analyses.
[Bettman et al., 1990]. This makes them more confident that                Confirmatory factor analysis (CFA) was subsequently
the chosen solution is the one that best fits their needs             employed to assess unidimensionality, convergent validity,
within the company’s product space. As a consequence, the             discriminant validity, and reliability of our measurement
potential customers feel they have obtained an outcome that           scales. A CFA model specifies the posited relations of the
is really up to their personal capacities, rather than a sub-         observed variables to the underlying latent constructs, with
optimum obtained under time-constraints, and they are more            these constructs allowed to correlate freely [Anderson and
likely to feel proud of themselves. Pride, in turn increases          Gerbing, 1988]. Our CFA model showed good fit indices
the creative achievement value that the potential customers           (RMSEA (90% CI)= 0.0576 (0.0531; 0.0623), Satorra-
derive from the customization process [Merle et al., 2010].           Bentler Scaled χ2/df(df) = 2.80 (231), CFI=0.990,
    Based on the above arguments, we posit that:                      NFI=0.984), meaning that our hypothesized factor structure
      H10: The higher the level of focused navigation                 reproduced the sample data well.
                                                                           The standardized factor loadings (S.F.L, see in Appendix
      capability deployed by a sales configurator, the higher
                                                                      A) were all in their anticipated direction, greater than 0.50
      the creative value perceived by the customer through
      the configuration process                                       and statistically significant at p<0.001. Altogether, these
                                                                      results suggested unidimensionality (a set of empirical indi-
                                                                      cators reflect one, and only one, underlying latent factor)
3      Method                                                         and good convergent validity (the multiple items used as
To test our hypotheses we conducted an empirical analysis             indicators of a construct significantly converge) of our
using survey data collected from a sample of 675 sales                measurement scales [Campbell and Fiske, 1959; Anderson
configuration experiences made by 75 students at the                  and Gerbing, 1988].
authors’ university (age range: 24-27; 30% females, mean                   Discriminant validity, which measures the extent to
expertise in using Internet to conduct transactions1: 3.95,           which the individual items of a construct are unique and do
standard deviation: 1.90). Each participant was asked to              not measure other constructs, was tested using Fornell and
                                                                      Larcker’s [1981] procedure. For each latent construct, the
                                                                      square root of the average variance extracted (AVE) ex-
1
    measured as in [Hernández et al 2010], on a seven-point Likert    ceeded the correlation with all the other latent variables.
    scale (7 = completely agree, 1 = completely disagree). Only one   This suggests that our measurement scales represent distinct
    factor with eigenvalue higher than 1 was extracted, with a        latent variables [Fornell and Larcker, 1981].
    principal component analysis, 85% variance explained by this
    factor, Cronbach’s alfa: 0.94.




                                                                                        Michel Aldanondo and Andreas Falkner, Editors
                                                                           Proceedings of the 15th International Configuration Workshop
                                                                                                     August 29-30, 2013, Vienna, Austria
76                                                                                        Elisa Perin, Alessio Trentin, Cipriano Forza

    Reliability of the measurement scale was assessed using           customizers to increase customers’ willingness to pay for a
both AVE and the Werts, Linn, and Joreskog (WLJ)                      customized product [Franke and Schreier, 2010; Franke et
composite reliability (C.R.) method [Werts et al., 1974]. All         al., 2010], and thus to increase the value of a mass
the WLJ composite reliability values were greater than 0.70           customization strategy.
and all the AVE scores largely exceeded 0.50 (see Appendix
A). This indicates that a large amount of the variance is             Acknowledgements
captured by each latent construct rather than due to                  We acknowledge the financial support of the University of
measurement error [Fornell and Larcker, 1981; O'Leary-                Padova, Project ID CPDA109359.
Kelly and J. Vokurka, 1998].
    Finally, we examined the measurement model                        Appendix A
complemented by the structural paths corresponding to our             Sales configurator capabilities(a)
hypotheses. All five sales configurator capabilities are              Benefit-cost communication capability (AVE: 0.697; C.R.:
posited as helping firms increasing the hedonic and creative          0.873):
value perceived by their potential customer through the                 BCC1 Thanks to this system, I understood how the
configuration experience. Accordingly, these capabilities                 various choice options influence the value that this
were restricted to impact both hedonic value and creative                 product has for me (S.F.L.: 0.858, P<0.001).
value. Results show that all the path coefficients of the               BCC2 Thanks to this system, I realized the advantages and
estimated model are positive and statistically significant,               drawbacks of each of the options I had to choose from
indicating that all our hypotheses are supported. Table 2                 (S.F.L.: 0.792, P<0.001).
reports the Lisrel estimates of the path coefficients, with             BCC3 This system made me exactly understand what
standard errors in brackets.                                              value the product I was configuring had for me (S.F.L.:
                                                                          0.853, P<0.001).
       BCC        EC            UFDC       FlexN       FocN           Easy comparison capability (AVE: 0.796; C.R.: 0.939):
HE     0.221      0.102         0.151      0.283       0.502            EC1 The system enables easy comparison of product
       (0.086*) (0.037**)       (0.067*) (0.065***) (0.088***)            configurations previously created by the user (S.F.L.:
CA 0.150          0.166         0.137      0.267       0.261
                                                                          0.894, p<0.001).
       (0.085§) (0.035***) (0.066*) (0.055***) (0.082***)               EC2 The system lets you easily understand what
                                                                          previously created configurations have in common
Table 2: path coefficients of the estimated model
                                                                          (S.F.L.: 0.948, p<0.001).
Significant at: *** p < 0.001; ** p < 0.01; * p < 0.05; § p < 0.10;
                                                                        EC3 The system enables side-by-side comparison of the
BCC = benefit-cost communication; EC= easy comparison; UFD=
                                                                          details of previously saved configurations (S.F.L.: 0.807,
user-friendly product-space description; FlexN= flexible
                                                                          p<0.001).
navigation; FocN=focused navigation; HE= hedonic value; CA=
                                                                        EC4 The systems lets you easily understand the
creative achievement value
                                                                          differences between previously created configurations
                                                                          (S.F.L.: 0.913, p<0.001).
5    Conclusion                                                       User-friendly product-space description capability (AVE:
The present paper has developed and tested hypotheses                 0.730; C.R.: 0.890):
about the positive impact of five sales configuration                   UFDC1 The system gives an adequate presentation of the
capabilities on the hedonic value and the creative value                  choice options for when you are in a hurry, as well as
perceived by users through the customization process. These               when you have enough time to go into the details
capabilities are: focused navigation, flexible navigation,                (S.F.L.: 0.883, p<0.001).
                                                                        UFDC2 The product features are adequately presented for
easy comparison, benefit-cost communication, and user-
                                                                          the user who just wants to find out about them, as well
friendly product-space description capabilities [Trentin et
                                                                          as for the user who wants to go into specific details
al., 2013].                                                               (S.F.L.: 0.907, p<0.001).
     By finding empirical support for the hypothesized                    UFDC3 The choice options are adequately presented for
relationships between such sales configurator capabilities                    both the expert and inexpert user of the product
and the value provided by a configuration process, this work                  (S.F.L.: 0.766, p<0.001).
adds to the debate surrounding information technology                 Flexible navigation capability (AVE: 0.614; C.R.: 0.826):
support to mass customization [e.g. Blecker and Friedrich,              FlexN1 The system enables you to change some of the
2007; Forza and Salvador, 2008]. Mass customization                       choices you have previously made during the
involves not only improving compatibility between product                 configuration process without having to start it over
customization and the firm’s operational performance, but                 again (S.F.L.: 0.738, p<0.001).
also augmenting the value of the customization as perceived             FlexN2 With this system, it takes very little effort to
by the customer [Franke and Schreier, 2010; Franke et al.,                modify the choices you have previously made during the
2010; Merle et al., 2010]. The results of this study improve              configuration process (S.F.L.: 0.788, p<0.001).
our understanding of how product configurators should be                FlexN3 Once you have completed the configuration
designed to foster such a value, which is a way for mass                  process, this system enables you to quickly change any




Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria
Elisa Perin, Alessio Trentin, Cipriano Forza                                                                                 77

   choice made during that process (S.F.L.: 0.822,             [Bettman et al., 1990] James R. Bettman, Eric J. Johnson,
   p<0.001).                                                       and John W. Payne. A componential analysis of
Focused navigation capability (AVE: 0.724; C.R.: 0.913):           cognitive effort in choice. Organizational Behavior and
   FocN1 The system made me immediately understand                 Human Decision Processes, 45(1): 111-139, 1990.
      which way to go to find what I needed (S.F.L.: 0.857,    [Blecker and Friedrich, 2007] Thorsten Blecker and Gerhard
      p<0.001).                                                    Friedrich. Mass Customization Information Systems in
   FocN2 The system enabled me to quickly eliminate from           Business. IGI Global, London, UK, 2007.
      further consideration everything that was not
      interesting to me at all (S.F.L.: 0.790, p<0.001).       [Campbell and Fiske, 1959] Donald T. Campbell and
   FocN3 The system immediately led me to what was                 Donald W. Fiske. Convergent and discriminant
      more interesting to me (S.F.L.: 0.893, p<0.001).             validation by the multitrait-multimethod matrix.
   FocN4 This system quickly leads the user to those               Psychological Bulletin, 56(2): 81-105, 1959.
      solutions that best meet his/her requirements (S.F.L.:   [Childers et al., 2001] Terry L. Childers, Christopher L.
      0.860, p<0.001).                                             Carr, Joann Peck, and Stephen Carson. Hedonic and
                                                                   utilitarian motivations for online retail shopping
Perceived benefits of mass customization from a
consumer viewpoint
                     (b)                                           behavior. Journal of Retailing, 77(4): 511-535, 2001.
Hedonic value (AVE: 0.882; C.R.: 0.957):                       [Fiore et al., 2005] Ann Marie Fiore, Jihyun Kim, and
  HE1 I found it fun to customize this product (S.F.L.:            Hyun-Hwa Lee. Effect of image interactivity technology
   0.952, p<0.001).                                                on consumer responses toward the online retailer.
  HE2 Configuring this product was a really gratifying             Journal of Interactive Marketing, 19(3): 38-53, 2005.
   thing to do (S.F.L.: 0.908, p<0.001).                       [Fornell and Larcker, 1981] Claes Fornell and David F.
  HE3 Customizing this product was a real pleasure(S.F.L.:         Larcker. Evaluating Structural Equation Models with
   0.956, p<0.001).                                                Unobservable Variables and Measurement Error.
Creative achievement value (AVE: 0.757; C.R.: 0.925):              Journal of Marketing Research, 18(1): 39-50, 1981.
  CA1 I see myself as the author of the product which I
   configured (S.F.L.: 0.913, p<0.001).                        [Forza and Salvador, 2008] Cipriano Forza and Fabrizio
  CA2 I felt really creative while configuring this product        Salvador. Application support to product variety
   (S.F.L.: 0.913, p<0.001).                                       management. International Journal of Production
  CA3 The company gave me a lot of freedom while                   Research, 46(3): 817-836, 2008.
   creating this product (S.F.L.: 0.913, p<0.001).             [Franke and Piller, 2003] Nikolaus Franke and Frank T.
  CA4 By personalizing this product, I had the impression          Piller. Key Research Issues in User Interaction with
   of creating something (S.F.L.: 0.877, p<0.001).                 Configuration Toolkits in a Mass Customization System.
(a)                                                                International Journal of Technology Management, 26(5-
      Trentin et al 2013 ; (b) Merle et al. 2010, adapted
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                                                                                 Michel Aldanondo and Andreas Falkner, Editors
                                                                    Proceedings of the 15th International Configuration Workshop
                                                                                              August 29-30, 2013, Vienna, Austria
78                                                                                Elisa Perin, Alessio Trentin, Cipriano Forza

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Michel Aldanondo and Andreas Falkner, Editors
Proceedings of the 15th International Configuration Workshop
August 29-30, 2013, Vienna, Austria