This research examines the effects of product type and price on consumer responses when personalized products are offered through online. To manipulate the product type electronic dictionary and designer jeans are employed as a search good and an experience good, respectively. The price factor contains three different price levels, that is, same as, 10% higher, and 20% higher than standard product. Perceived risk is included as a control variable. A laboratory experiment, employing a 2 (product type) x 3 (price) between-subjects factorial design, is used to empirically investigate the hypothesized effects. One hundred seventy one college students of a large Korean university participated in the experiment. The subject was assigned randomly to one of the six experimental conditions. Major findings of this research can be summarized as follows. First, price had a considerable and consistent impact on consumers' preference and purchase intention for the personalized products. Second, different from our expectation, product type main effect was not significant. Third, perceived risk had a strong and consistent impact on consumer responses. Managerial implications as well as theoretical implications were discussed and limitations and further research directions were suggested.

This research examines the effects of product type and price on consumer responses when personalized products are offered through online. To manipulate the product type electronic dictionary and designer jeans are employed as a search good and an experience good, respectively. The price factor contains three different price levels, that is, same as, 10% higher, and 20% higher than standard product. Perceived risk is included as a control variable. A laboratory experiment, employing a 2 (product type) x 3 (price) between-subjects factorial design, is used to empirically investigate the hypothesized effects. One hundred seventy one college students of a large Korean university participated in the experiment. The subject was assigned randomly to one of the six experimental conditions. Major findings of this research can be summarized as follows. First, price had a considerable and consistent impact on consumers' preference and purchase intention for the personalized products. Second, different from our expectation, product type main effect was not significant. Third, perceived risk had a strong and consistent impact on consumer responses. Managerial implications as well as theoretical implications were discussed and limitations and further research directions were suggested.

personalization, mass customization, search goods, experience goods, price effect, experimental design, consumer preference, purchase intention.