Adoption of in-store mobile payment: Are perceived risk and convenience the only drivers?

Smartphones are changing the way consumers shop, even in brick-and-mortar settings. This study explores consumers’ adoption of proximity mobile payment technology (p-m-payment), which enables them to pay with their smartphones for purchases in a physical store. With a perceived value perspective, the authors identify utilitarian, hedonic, and social benefits and financial and privacy risks as key drivers. They also investigate differences compared with the drivers of more familiar mobile shopping usages and highlight the role of experience. The paper discusses implications for both mobile and channel research and recommendations to help retailers take advantage of p-m-payment technology.     

Organizing Products with Complements versus Substitutes: Effects on Store Preferences as a Function of Effort and Assortment Perceptions

Retailers often organize at least part of their assortment by displaying complementary products from different product categories together (e.g., a pair of pants with a shirt) rather than grouping items by product type (e.g., a pair of pants with other pants). However, little is known about how retailers should choose between complement-based and substitute-based organizations. The present paper shows that consumers’ preferences for such store organizations are a function of the effort and assortment perceptions cued by these organizational formats. Holding the underlying assortment constant, complement-based organizations are always more effortful than substitute-based organizations. This difference in effort can create downward pressure on complement-based store choice. Moreover, the effects of organization format on assortment perception depend on whether consumers hold a hedonic or utilitarian focus. When consumers have a highly hedonic focus, complement-based based stores create more positive assortment perceptions than substitute-based stores. Such positive assortment perceptions can, in turn, raise complement-based store choice. However, as consumers’ utilitarian focus increases, substitute-based assortments are seen as both easier and more attractive, leading to a strong advantage in store choice. Our findings provide actionable guidance for retailers considering various store organizations and suggest opportunities for future research.     

Do Consumption Goals Matter? The Effects of Online Loyalty Programs in the Satisfaction‐Loyalty Relation

This study investigates the effects of online loyalty programs in the customer satisfaction‐loyalty relationship. It is proposed that loyalty programs may induce loyalty toward programs (program loyalty), which may then influence loyalty toward stores (store loyalty). According to the results of a two‐wave survey, consumption goals matter in the effects of program loyalty on online store loyalty. For consumers with hedonic goals, hedonic program loyalty (e.g., free gifts) has a significant effect on online loyalty. For consumers with utilitarian goals, however, utilitarian program loyalty (e.g., coupons) has a significant influence on online loyalty. Theoretical and managerial implications are also discussed.     

Predicting consumers’ cheating behavior. The role of mental representation of goods and psychological ownership

This study examines the likelihood of cheating when consumers are offered with the option of using postponed payment plans after purchasing hedonic goods. It addresses how the nature of the good combined with payment timing affects its perceived psychological ownership, which in turn influences consumers’ cheating behavior. Three experimental studies indicate that when consumers mentally represent a hedonic (vs. utilitarian) good, they are more likely to cheat. This effect is greater with a postponed payment than with an immediate one. Findings also show that perceived psychological ownership is lower for hedonic goods and this explains different levels of cheating behavior. The paper offers managerial guidance on how to increase perceived psychological ownership for hedonic goods, with the goal of reducing cheating behavior.     

Beyond presence: Creating attractive online retailing stores through the cool AR technology

Augmented reality (AR) is increasingly coming into the spotlight for its potential to improve the consumer experience through the creation of presence. This research aims to explore the theoretical mechanisms through which AR-based product presentation influences online store attractiveness and whether the effects differ in the purchasing contexts of hedonic and utilitarian product types. From the perspective of consumers' bidimensional experience, we find that AR increases online store attractiveness by creating perceived coolness (intrinsic attribute) and spatial presence experience (extrinsic attribute), which would further have a positive impact on consumers' purchase intention. The mediating mechanisms are different in purchasing contexts of various product types: for hedonic products, perceived coolness and spatial presence are parallel mediating factors leading to the improvement of online store attractiveness; while for utilitarian products, only the mediation effect of spatial presence presents. Our findings enrich the literature on AR marketing by proposing an insightful mediating force (i.e., perceived coolness) to complement the effect of presence, and explore the different purchasing contexts. We also provide managerial guidance for e-retailers to differentiate AR interface design for diverse product types to apply AR technology effectively.     

When Do Online Consumers Shop in an Offline Store: The Moderating Effects of Product Characteristics

This study serves as an initial attempt to demonstrate empirically how online consumers react to the offline channel extensions (i.e., opening physical stores) of e-tailers. Specifically, we examine how the attributes of offline channels influence consumer intentions to switch to offline channels and how they also lead to incremental demands on online channels. We investigate how these effects vary across highly complex utilitarian and hedonic products. The results of the study indicate that although store openings encourage online consumers to shop there when purchasing highly complex utilitarian products, the addition of offline stores results counterintuitively in incremental patronage of the online channels when consumers shop for highly complex hedonic products. This study validates the guiding role of product characteristics in designing offline channels for e-tailers and suggests that incorporating product type and complexity into the design is likely to contribute to the development of stores tailored to specific consumer segments.     

The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay

Extant literature on payment methods has focused on comparing cash and credit cards and emphasized the lower pain of paying (i.e., fewer negative consequences) for the latter. This finding, in turn, explains why consumers express higher willingness to pay (WTP) when paying with credit cards. The current study introduces mobile technology as a new payment method to this literature. Specifically, it highlights convenience as a positive driver of increased WTP for mobile payment. However, for consumers to perceive mobile payment as convenient, a personal adoption (enabled through an existing system in the respective country market) is necessary. A set of three studies across several country markets tests these assumptions empirically. Convenience emerges as a new mediator between mobile payment and increased WTP, contingent on personal adoption. These findings thus extend extant literature on the mechanisms consumers use with different payment methods, and they offer differentiated recommendations regarding payment channels for country managers.     

The effects of shopping value on retail outcomes: a comparison between department stores and hypermarkets

Shopping in various retail formats involves both utilitarian and hedonic value. Taiwan residents shop at department stores and hypermarkets frequently, compared to other retailers. This study contrasts the differential effects of shopping value on retail outcomes in department stores and hypermarkets. The results support predicted relationships: (1) in the department store context, (a) hedonic shopping value perceived by shoppers is higher than utilitarian shopping value; (b) hedonic shopping value has a greater effect on satisfaction and word-of-mouth than utilitarian shopping value; and (2) in the hypermarket context, (a) utilitarian shopping value perceived by shoppers is higher than hedonic shopping value; (b) utilitarian shopping value has a greater effect on satisfaction and repatronage intentions than hedonic shopping value.     

Paying before consuming: Examining the robustness of consumers’ preference for prepayment

Prior research on consumers’ preference for timing of payment suggests that consumers prefer to prepay for certain kinds of purchases (e.g., vacations) and postpay for others (e.g., washer dryers). This research extends this finding by first comparing preference for timing of payment for products that vary by type (hedonic vs. utilitarian) and durability (nondurable vs. durable) to reveal that it is only hedonic-nondurable products that elicit a preference for prepayment (study 1). The two studies that follow examine the robustness of the prepayment preference by (1) varying the favorability of the transaction (study 2), and, (2) by eliminating the choice of payment timing from the transaction (study 3). Results reveal that the preference for prepayment for hedonic-nondurable goods is robust when transaction characteristics are favorable but shifts when transaction characteristics are unfavorable. Furthermore, when the choice of payment timing is not offered, consumers become indifferent towards when they prefer to pay for hedonic-nondurable products. The implications of these findings for marketers and retailers are discussed.     

Running for pleasure or performance? How store attributes and hedonic product value influence consumer satisfaction

Previous retailing studies have linked consumer satisfaction to perceived hedonic or utilitarian product value. This research extends previous studies by examining how the context in which the product is purchased (store attributes) and product value influence consumer satisfaction. We conducted a field study with 213 consumers attending two major running events. The findings from structural equation modelling suggest that a specific combination of store attributes (tangible and intangible) and hedonic product value has a positive influence on satisfaction. Results also show that tangible store attributes have a stronger positive impact on utilitarian (vs. hedonic) product value, and that intangible store attributes have a positive impact on hedonic product value. However, we found that only hedonic product value has a positive impact on satisfaction. This research contributes to theory by showing that a match between store attributes (tangible and intangible) and hedonic product value can positively influence satisfaction. In managerial terms, the findings provide insights on how to improve consumer satisfaction in retail environments through store attributes and hedonic product value.     

Impacts of product type and representation type on the perception of justice and price fairness

Consumers make purchasing decisions every day. This paper investigates perceptions of justice and price unfairness, where the product (hedonic vs. utilitarian) is presented either in a more abstract (verbal) or a more concrete (photo) way in a context of discriminatory pricing—a widely-employed marketing practice. Two experimental studies were completed. Results show an interaction between product and representation types. When consumers pay more than others to purchase utilitarian products that are concretely represented, participants perceive more unfairness when compared to hedonic products. However, when consumers pay more than others to purchase utilitarian products abstractly represented, the perception of unfairness decreased compared to hedonic products. For consumers and practitioners, this study offers important contributions—it presents situations in which a discriminatory price can result in a different perception of injustice or price unfairness to informed consumers. Accordingly, implications of these findings for the literature, consumers, and managers are discussed.     

Different Effects of Utilitarian and Hedonic Benefits of Retail Food Packaging on Perceived Product Quality and Purchase Intention

Since consumers primarily make in-store purchase decisions, firms use product packaging to attract potential consumers. Ever-increasing market competition in many food product industries has further fueled this phenomenon in firms. However, the question of how retail food packaging affects consumer processes has received very little attention. This study investigates the benefits of food packaging on consumer responses to hedonic products by comparing different benefits (i.e., utilitarian and hedonic) of food packaging to understand which one has more impact on consumers’ perceived quality and purchase intention. The results show that both utilitarian and hedonic benefits of retail food packaging are critical predictors of consumer evaluations but play different important roles in determining customers’ reactions. Utilitarian benefits of food packaging impact perceived quality more than hedonic benefits do. Compared to utilitarian benefits, hedonic benefits of retail food packaging have more impact on consumer purchase intention.     

Shopping orientations as antecedents to channel choice in the French grocery multichannel landscape

This paper investigates the influence of consumer shopping orientations on grocery channel attractiveness and choice. It extends the concept of shopping orientation (utilitarian and hedonic) to account for emerging motivations among French consumers: shopping in line with sustainable and ethical values. In doing so, it helps profile segments of consumers who choose to shop through new online channels (Drive through) and newly deployed store formats (city stores). A sample of 300 French customers, responsible for shopping in the household, was surveyed. Hypotheses were tested through Latent Class Analysis and Structural Equation Modeling with categorical outcomes. Our findings indicate that consumers shopping orientations influence the way consumers will combine the different channels and store formats for grocery purchase. In particular, our results highlight the importance of responsible retail practices and ethical assortments in consumers' choice of online formats whilst local product orientation influences the choice of city stores and market places.     

Payment method and perceptions of ownership

How consumers pay influences how they feel about a transaction. In particular, paying by card has been argued to have an effect on the perception of cost, making it less salient and painful. We propose and show that payment method also influences how consumers feel about the acquired good. Specifically, we focus on effects of the payment method on psychological ownership, i.e., the perception of an object as “mine.” We propose that cash payment results in stronger psychological ownership because it influences the extent of perceived investment in an object. We provide evidence for the proposed effect from field and laboratory settings. Results of a longitudinal exit survey and an experiment show that cash payers report higher levels of immediate psychological ownership than card payers. However, this effect seems to depend on the meanings associated with a payment method. Asian students (who associate credit card payment with investment and debt) do not exhibit this effect. Moreover, the initial boost in psychological ownership seems to be comparably short-lived. While those paying in cash experience no further increase in psychological ownership over time, those paying by card do.     

Consumer perceived value and impulse buying behavior on mobile commerce: The moderating effect of social influence

This study examines how the consumers' perceived values (utilitarian and hedonic values) impact their impulse buying behavior (IBB) in the mobile commerce (m-commerce) context. Moreover, we view interpersonal influence as a moderator and test its impact on the correlation between the consumers' perceived value and their IBB. Data were collected through a survey in China (n = 199). The results show that environmental stimuli significantly influence consumer perceived values (i.e., perceived utilitarian value and perceived hedonic value), and the consumers’ perception of hedonic value significantly and directly impacts their IBB. In addition, the interaction effect of perceived hedonic value and interpersonal influence significantly affects IBB. The findings provide valuable guidance for m-commerce retailers to induce consumer IBB.     

Willingness to Pay for Non‐biotech Foods in the U.S. and U.K.

This study uses closed‐ended and payment card formats to elicit willingness to pay for breakfast cereals made from non‐biotech ingredients. U.S. consumers were willing to pay a 10%∼12% premium to avoid biotech breakfast cereals, whereas U.K. consumers were willing to pay a 19%∼35% premium. Risk perceptions about agrobiotechnology proved to be an important factor shaping willingness to pay a premium for non‐biotech breakfast cereals. If consumers perceived risks to human health or environments from the use of biotechnology in crop/food production, or affiliated biotech foods unfavorably with morality or multinational corporations, they were more likely to pay a premium. Conversely, if consumers associated agrobiotechnology with various benefits (i.e., reduction in chemical use in crop production, mitigation of world food shortages, and improved nutritional content), they were less likely to pay a premium.     

Perceived control and shopping behavior: The moderating role of the level of utilitarian motivational orientation

Examining the influence of the retail environment on shopping behavior, Kaltcheva and Weitz (2006. When should a retailer create an exciting store environment? Journal of Marketing 70 (January), 107–118) showed that shopping motivation (utilitarian versus hedonic) moderates the relationship between arousal and shoppers’ behavior in the store environment. In particular, they found that high arousal decreases intentions to visit for consumers with a utilitarian motivational orientation. Focusing on this particular type of shopping motivation, we hypothesized that the negative effects of arousal-inducing store environments occur for consumers with higher utilitarian motivations because these environments prevent those specific consumers from controlling their shopping experience. We consequently adapted Kaltcheva and Weitz's (2006) framework by building a model articulating perceived control, stress, pleasure, and return intent. A multigroup analysis of consumers with high versus low utilitarian shopping motivations identified in a field study conducted in Europe gave support to our hypothesis.     

Hedonic vs. utilitarian consumption: A cross-cultural perspective based on cultural conditioning

This study investigates the effects of cultural conditioning, product type, and benefit claim type on attitudes and brand personality perceptions among consumers from a society that is more culturally conditioned towards utilitarian consumption (Shanghai, China) and an economy that is less culturally conditioned towards utilitarian consumption (Singapore). Our findings reveal that consumers in Shanghai preferred ads promoting utilitarian rather than hedonic products. They also rated brands of utilitarian products as more sophisticated, competent, exciting, and sincere than hedonic products. No such difference was observed among Singaporeans. These consumers preferred hedonic over utilitarian products but did not perceive them as being different from utilitarian products in terms of brand personality. Theoretical and managerial implications are forwarded, together with directions for future research.     

Adapting to a retail environment: Modeling consumer-environment interactions

This paper extends current thinking on the relationship between consumers and the retail environment by assessing a theory of consumer-environment interaction that reinterprets arousal and dominance, two dimensions of the PAD model (Mehrabian, Albert, Russel, James A., An approach to environmental psychology. Cambridge, MA: MIT Press, 1974.), as appraisal dimensions (affective expectations). According to the new account, the more specific the task, the less tolerant consumers are about discrepancies between expected and experienced arousal and dominance. The study evaluated the effects of matching or mismatching appraisals on judgments of emotional dimensions as participants shopped within a virtual store environment. Appraisals were manipulated by combining two goal conditions (goal specificity vs. goal ambiguity) with two levels of store arousal (high vs. low) to produce four separate hypothetical states: hedonic fit (ambiguous goal and high arousal), utilitarian fit (specific goal and low arousal), rational control (ambiguous goal and low arousal), and emotional submissiveness (specific goal and high arousal). When perceptual and cognitive appraisals matched (i.e., hedonic or utilitarian fit), participants judged pleasure to be significantly greater than when expectations mismatched (i.e., rational control or emotional submissiveness). Affective expectations concerning arousal and dominance thus are a strong determinant of consumer predisposition toward the environment.     

Context Effects on Older Consumers’ Cognitive Age: The Role of Hedonic versus Utilitarian Goals

This paper deals with older consumers’ cognitive age (i.e., the age they feel), which is self‐assessed as systematically lower than their chronological age (i.e., their actual age). Such a tendency would lead older consumers to display attitudes and purchasing behaviors, which are not typical of people of their real age. Two studies show that cognitive age is not an immutable construct but varies according to its context of reference, so that the same individual may feel different ages under different circumstances. Results demonstrate that the declared cognitive age is affected by the physical environment, the social references, and the product categories that the consumer is using when self‐assessing it. Furthermore, the tendency of older consumers to feel younger is stronger when these consumers are pursuing in these contexts hedonic rather than utilitarian goals. These findings provide novel inputs for the development of appropriate ways to measure cognitive age and to deal with it when targeting senior consumers and positioning hedonic versus utilitarian goods.