Name Customization, Psychological Ownership, and Resale Penalty

Abstract

As second-hand markets expand, firms increasingly confront how customization transfers into second-hand market evaluations. That is, although it can enhance preference fit and self-expression in primary markets, it may lower value in secondary markets. This study examines whether name customization (vs. aesthetic customization and original design) reduces resale price by weakening secondhand consumers’ psychological ownership, and whether contagion per- ception intensifies this effect. In a between-subjects experiment, we analyzed data from 185 U.S. participants who viewed a secondhand T-shirt listing. The T-shirt featured a letter of the alphabet that was framed as the prior owner’s initial (name customization), an element chosen purely for visual appeal (aesthetic customization), or part of the original brand- ing (original design). Participants reported psychological ownership, contagion perception, and resale price evaluations. Results showed that name customization lowered psychological ownership relative to both aesthetic customization and original design, whereas the latter two did not differ. Moderation analyses further indicated that the negative effect of name customization on psychological ownership was stronger among participants higher in contagion perception and became non-significant among those lower in contagion perception. Overall, the findings identify a boundary condition for psychological ownership in resale settings and demonstrate how identity-based traces interact with contagion beliefs to shape secondhand value, offering guidance for managing customization strategies across a product’s lifecycle.