Development of a Two-Step Customization Approach to Minimize Consumers' Decision Complexity and Maximize Companies' Profitability - Evidence from Field and Lab Experiments

We propose a two-step customization mode by which consumers choose from a subsample of prespecified alternatives first, before conducting a subsequent customization task. Empirical evidence from a series of two lab experiments and a field experiment in a car manufacturer's car configurator with real customers, revealed that this two-step customization mode is superior to previously proposed customization modes, leading to less choice complexity, increased preference certainty and product satisfaction from a consumer perspective as well as higher sales for companies.