Willing to pay for quality personalization? Hyper-personalization – fashion sustainability through co-creation, digital clienteling and transformation in Vietnam

Abstract

In an era dominated by advanced technology, where artificial intelligence (AI) and AI - driven services reshaping industries, traditional marketing approaches are no longer sufficient to meet evolving customer demands. Hyper - personalization, a sophisticated form of personalization leveraging AI to deliver services tailored to customers, emerges as a compelling solution to address. This study aims to explore how hyper -personalization drives sustainable fashion development and extend Technology-based Services (TBS) framework and Technology Acceptance Model (TAM) in Vietnam’s fashion industry through co - creation, digital clienteling, and transformation practices. By examining consumers’ willing to pay for personalized and provide personal information to enable tailored services, the research investigates the potential of these strategies to employ in real world marketing. This research conducted by both qualitative and quantitative methods. Data was collected through survey of 422 respondents who had experienced with personalized services and lives in South of Vietnam. Data analysis was subsequently conducted through the application of Structural Equation Modeling (SEM). The findings reveal that innovativeness, subjective norms, and need for interaction significantly influence customer involvement, confirming the TBS framework. Furthermore, innovativeness and personalization were found to influence on co - creation. Besides, the results demonstrated that adoption intention is positively associated with customer’s willingness to pay a premium and provide information. These insights emphasize the potential of hyper - personalization to transform Vietnam’s fashion industry, aligning sustainable practices with innovative