Research-Thesis: Digital customization and consumer empowerment in the luxury sector: a self-determination theory perspective.

Abstract

As luxury brands navigate an era of technological disruption and shifting consumer expectations, digital customization has emerged as a strategic lever for brands. This thesis investigates the psychological and behavioral effects of digitally enabled product customization options in the luxury sector, using Self-Determination Theory (SDT) as a conceptual framework for consumer perceived empowerment. Through a controlled experiment in which participants were randomly exposed to three levels of customization offered by Louis Vuitton (ranging from none to maximal) this study examines how varying degrees of customization affect consumers' sense of autonomy, competence, and relatedness, and how these perceptions subsequently shape behavioral responses. While most hypothesis could not be supported by the model, the findings still contribute to a growing body of literature on luxury digitalization by offering a nuanced understanding of how empowerment is constructed and mediated in digital customization contexts. Additionally, the study explores moderating variables such as brand familiarity and age, and addresses inherent tensions between customization, luxury signaling value, and choice paralysis. Practical implications for luxury brand managers are discussed, alongside avenues for future research.