I was reading this behavioral economics paper [PDF] On product customization and customers willing.
It cites how our bias plays its role (endowment effect, IKEA effect) and why credit card companies, E-commerce giants stress on personalized care and recommendation. Why we end up paying more for the customized coffee mug and feel worse if it gets broken.
Three important points:
1. Our willingness to pay more on a customized product depends on the cost.
2. Our earning defines our willingness to pay for customization.
3. We decide on customization in accordance with social trends.