User design as a double-edged sword : exploring perceived self-improvement and uncertainty in purchasing utilitarian products

Purpose: This paper aims to examine the effects of design sources (user design vs. company design) on customers’ perceived value (perceived self-improvement and perceived uncertainty) and consequently purchase intention, as well as the moderating effect of brand strength in the context of purchasing utilitarian products. Design/methodology/approach: Two studies were conducted. Study 1 used a laboratory experiment (n = 160) to test the effects of design sources on perceived self-improvement, perceived uncertainty and purchase intention. Study 2 used an online experiment (n = 312) to examine the moderating effect of brand strength. Findings: The results showed that user design is a double-edged sword for companies. Compared with company design, user design is associated with stronger self-improvement and uncertainty as perceived by customers. Perceived self-improvement is positively related to purchase intention, while perceived uncertainty undermines purchase intention. Moreover, for weak brands, perceived self-improvement is significantly stronger in user design than company design, while for strong brands, this relationship is not significant. Originality/value: This paper draws on mental accounting theory to study the perceived benefits and risks of user design of utilitarian products, and highlights the double-edged effects of user design on customers’ perceived value and purchase decision. The findings provide more rounded insights on user design of utilitarian products, complementing the one-sided view of customers’ positive perceives of user design in unclassified product categories.