Working Papers

Paying Twice to Have It Your Way? The Backfiring Effect of Mass Customization on a Product’s Resale Value

Matthias Fuchs

University of St.Gallen

Martin Schreier

WU Vienna

Jan 24, 2021

Demonstrates that consumers who pay more for self-customized cars may pay again in the reduced price of such cars in resale markets. Self-customization also adds initial value in other markets (sneakers, furniture) but erodes value in resale. Companies can mitigate these effects by informing consumers about them during customization.

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