Abstract: In recent years, handmade products have experienced a surprising surge in popularity among consumers, largely driven by a wave of de-industrialization. However, the literature on handmade products remains unclear. First, the influence of the handmade effect is still controversial in prior research. While most studies emphasize its positive aspects, the potential negative implications have been largely overlooked. Second, existing research struggles to clearly define and explain the newly emerged category of handmade merchandise. To address these gaps, this research draws from multiple disciplines, including marketing, art, and sociology, to compile concepts, classifications, impacts, mechanisms, and boundaries of the handmade effect. The goal is to provide a robust theoretical foundation for future research, while also offering practical guidance for business managers. By leveraging handmade attributes effectively, businesses can enhance their brand image, boost product sales, and achieve long-term development objectives.
To clarify the fundamental distinction between handmade and machine-made products, this research emphasizes the crucial role of human involvement in the production process and its significant influence on product value. Existing literature tends to classify products merely as machine-made or handmade, which often leads to overlapping definitions and conceptual ambiguity, thereby hindering further research development. We propose a more nuanced definition: handmade products are those created with direct human engagement, where individuals actively control the creation, manufacture, or processing using their hands and tools, incorporating a variety of materials and techniques. Additionally, we categorize handmade products based on both production methods and technical expertise. This clear and distinct definition enhances our understanding of the characteristics of handmade effects and their impact on consumer perceptions.
Second, handmade cues, as an important marketing tool for firms, may have a double-edged effect. However, the academic community currently lacks a consensus on the marketing impact of handmade items, with various scholars still debating the effect of handmade elements on products and brands. For example, handmade products are often labeled as traditional and natural. Therefore, products that are handmade are typically evaluated more favorably by consumers. Handmade cues can often evoke consumers’ willingness to pay a premium and prompt positive usage behavior. Furthermore, consumers’ appreciation and acknowledgment of the value of handmade products also serve to facilitate positive word-of-mouth. Conversely, handmade cues may also trigger adverse consumer perceptions and more conservative consumption patterns due to quality risks and cost of use. Handmade products are typically challenging to standardize, less efficient to produce, and may have a higher rate of defective items, which could lead to negative consumer perceptions of these products. Excessive marketing by some companies for handmade products may also create a negative brand image. For these reasons, this research systematically summarizes and organizes both the positive and negative marketing impacts of handmade cues.
Finally, this research delves into the mediating mechanisms of the handmade effect across six distinct dimensions: perceived nature, uniqueness, quality, effort, love, and psychological ownership. These dimensions encompass a range of psychological and emotional factors that consumers associate with handmade products, collectively shaping their attitudes and behaviors. Furthermore, to better understand the influence of various contexts on consumer perceptions, we examine the boundaries of the handmade effect from three critical perspectives: product type, consumption context, and consumer characteristics. By exploring these facets, we aim to provide a nuanced understanding of how the handmade effect operates in different settings and among diverse consumer groups.
With advancements in industrial technology and shifting consumer perspectives, there remains significant potential for further exploration in the study of handmade effects. Researchers can delve into the diverse impacts of handmade products, including their influence on consumers’ pro-social behavior. Additionally, future research could examine the mechanisms and boundaries of these effects, thereby enriching the theoretical framework surrounding handmade products. As technology continues to evolve, there is an opportunity to investigate the role of intelligent auxiliary tools in online and virtual environments, providing theoretical guidance on the application of handmade elements within these new contexts. Moreover, researchers should consider how technological advancements affect handmade effects, which could lead to re-evaluating and refining the conceptual scope of handmade products.

Key words: handmade, spirit of craftsmanship, perceived uniqueness, psychological ownership, consumer behavior