Work and Fun on the Internet: The Effects of Utilitarianism and Hedonism Online

Consumers may act on the spur of the moment, driven by fun and curiosity, or be goal-oriented, task-focused utilitarians. This study investigates the effects of consumers’ hedonic and utilitarian orientation online on price consciousness, frequency of purchase, purchased amount, intention to re-patronize a Web site and expertise with the Internet. It specifically considers purchasing, not mere browsing, basing on data collected on customers of one of the largest Italian online retailers for electronics. The data show significant differences between hedonic and utilitarian orientation online with regard to past purchase frequency, the amount purchased and the intention to re-patronize the Web site in the future. The findings suggest that utilitarianism is strongly present online, and is valuable, thus utilitarian consumers should not be neglected, but hedonism is even more profitable, impacting on the number of items purchased and the intention to come back to the Web site. No differences are found in the level of price consciousness or in the degree of expertise with the Internet.     

The Influence of Hedonic Values on Consumer Behaviors

Summary

This study investigated the influence of hedonic values on the consumer behavior of young Chinese. The results show that hedonic values are negatively associated with utilitarian orientation and positively associated with novelty seeking, responsiveness to promotion stimuli, and preference for foreign brands. Personal income moderates the relationship between hedonic values and brand consciousness. Conceptual importance and managerial implications are discussed.     

Outlet patronage in on-the-go consumption: An analysis of patronage preference drivers for convenience outlets versus traditional retail outlets

This study investigates patronage preferences of consumers who purchase and consume food and beverages while they are on-the-go (on-the-go consumption). The focus is on the drivers of patronage preferences for convenience outlets versus traditional retail outlets. A literature based model of patronage preferences is developed in this paper. It is tested based on data collected from a Dutch online sample (n=669) through binary logistic regression. The results reveal that significant relationships exist between patronage preferences in on-the-go consumption and the assortment offered as well as the opportunity to consume products without effort. Moreover, significant relationships between patronage preferences and consumers' time pressure as well as their health orientation exist. Consumers' income and their place of residence allow for limited inferences only. Based on the findings managerial recommendations are developed and avenues for further research are pointed out.     

What drives customers’ post-purchase price search intention in the context of online price matching guarantees

Using a research model based on customer value theory, this study investigates the determinants of customer post-purchase price comparison searches in the context of online price-matching guarantees (PMG). Data collected from 222 eligible respondents are tested against the proposed research model using partial least squares structural equation modeling (PLS-SEM). The results indicate two PMG characteristics, refund length and refund scope, influence utilitarian benefit (i.e., refund depth) and hedonic benefit (i.e., playfulness). These two benefits subsequently contribute to customer perceived value, which leads to price search intentions. This study pioneers the exploration of online PMGs and the determinants of customer post-purchase price search intentions. Several important theoretical and practical implications can be drawn from the findings to guide online retailers’ PMG strategies.     

Design for synergy with brand or price information

Customers' preference for the hedonic benefits (e.g., aesthetics) and utilitarian benefits (e.g., functionality) offered by a product varies depending on the context—buying versus selling, and choice versus willingness‐to‐pay. However, a customer's preference formation could involve brand information or price information in addition to the benefits offered by the product. It is unclear how the consideration of brand or price information influences customers' relative preference for hedonic and utilitarian product benefits. Does this information alter preference in favor of a product that offers greater utilitarian or greater hedonic benefits, and why? The results show that (1) hedonic (utilitarian) attributes have a significantly stronger influence on consumer preference when accompanied by a strong (weak) versus a weak (strong) brand; and (2) in the presence of price information, hedonic attributes have a dominant influence on consumer preference compared to in the absence of price information. The article concludes with a discussion of the theoretical contributions and managerial implications of design for synergy with brand or price information. © 2010 Wiley Periodicals, Inc.     

Untangling the relationships between consumer characteristics,shopping values,and behavioral intention in online group buying

This study examines the link among consumer characteristics (price-sensitive behavior, variety-seeking behavior, and compulsive buying behavior), shopping values (utilitarian and hedonic shopping values), and behavioral intention in online group buying (OGB). This study tests usable responses collected by means of mall-intercept systematic sampling from consumers who previously participated in OGB. Structural equation modeling was used to analyze data and test the hypothesized relationships. Findings suggest that price-sensitive and variety-seeking behaviors are significantly related to utilitarian shopping value, whereas price-sensitive, variety-seeking, and compulsive buying behaviors are significantly related to hedonic shopping value. Both utilitarian and hedonic shopping values significantly influence consumers’ OGB intentions. For a successful OGB strategy, Internet marketers and site operators should emphasize the utilitarian shopping value of price saving and selection and introduce the hedonic shopping values of promotions and sensory experiences. This study provides a link between two streams of prior research – that is, consumer characteristics and shopping values. Furthermore, it validates an empirical model whose results can help business practitioners make better-informed marketing management decisions for OGB and help academics and consumers better understand OGB behavior.     

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.     

The influence of hedonic versus utilitarian consumption situations on the compromise effect

This article reports the influence of two specific consumption situations—hedonic and utilitarian—on the magnitude of the compromise effect. Based on the literatures of different valuation processes (valuation by calculation vs. valuation by feeling) and hedonic versus utilitarian consumption, the authors suggest that the compromise effect will be stronger under the utilitarian (vs. hedonic) consumption situation due to different valuation processes. Three experimental studies were conducted, and the results have supported the prediction. In addition, the authors successfully excluded alternative explanations such as differences in willingness to pay, justification, and attribute importance. The authors concluded with a discussion of the theoretical and managerial implication of this research.     

Which Products are More Responsive to In-Store Displays: Utilitarian or Hedonic?

In-store displays aim to boost sales of both utilitarian and hedonic products. Noting typical differences in the information processing and purchase behavior evoked by these product types, and building on congruency theory principles, the authors propose that different types of in-store displays (i.e., island, end-of-aisle, or shelf signage) are more appropriate for utilitarian versus hedonic products, and the use of price or product promotions might reinforce these effects. With a database that combines three data sources (scanner, observational, and survey), this article presents an analysis of a market share model at the SKU level. The results confirm that in-store displays have differential effects on sales, depending on their characteristics; congruency between the decision-making process of utilitarian versus hedonic products and the characteristics of in-store display types moderates their effectiveness in terms of SKU sales. Shelf signage strongly increases the sales of utilitarian products, whereas island and end-of-aisle displays increase sales of hedonic product categories more effectively. The use of congruent promotions creates synergistic influences that reinforce these effects. In particular, price promotions improve the impact of shelf signage on utilitarian products, and product promotions strengthen the impacts of island and end-of-aisle displays on hedonic products. These results extend prior research on in-store marketing actions and the nature of utilitarian versus hedonic products, as well as providing recommendations for retailers and manufacturers seeking to optimize their retail space and commercial budgets.     

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.     

When income matters: Customers evaluation of shopping malls’ hedonic and utilitarian orientations

This study, based on 772 shopper's interviews in two shopping malls, establishes that malls can achieve differentiation from their competitors through the pursuit of singular orientations following the hedonic and utilitarian dimensions of shopping. Furthermore, perceived differentiation from competitors is found to positively influence customers’ attachment to the mall, a determining factor in the mall's evaluation. Interestingly, mall's orientation related to hedonic elements was found appealing by all subjects, although slightly more by those with lower income. However, utilitarian orientation appeared strictly effective on those with higher income. Theoretical and managerial implications along with limitations are discussed.     

Shopping is truly a joy

Some groups of consumers derive great pleasure from shopping; we refer to this as hedonic shopping value. This study contributes to the current literature by establishing construct equivalence in a cross-culture study and testing the relationship of positive and negative price cues with hedonic shopping value. We investigated this concept using confirmatory factor analysis to test equivalence between the two cultures on six dimensions of price and hedonism. Results indicate that the two-group path equality provided acceptable results (chi-square?=?203.92 with 217 df, p?=?0.73; GFI?=?0.94). This indicated that the six dimensions of the price construct and hedonic shopping values are the same for the two countries. Therefore, we proceeded to test the hypotheses. As expected, neither of the two positive dimensions of price was significantly related to hedonic shopping value. Two of the four negative price cues, price mavenism and value consciousness, were positively related to hedonic shopping 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.     

Adolescents' utilitarian and hedonic Web consumption behavior: Hierarchical influence of personal values and innovativeness

This study addresses the Web‐consumption behavior of adolescents from a cognitive, hierarchical decision‐making perspective. Using a structural equation analysis technique on data collected from high school students, two a priori domains of Web consumption (utilitarian and hedonic) were confirmed. The utilitarian and hedonic domains of Web consumption were influenced directly by innovativeness and indirectly by the personal values of the adolescents. A theoretical discussion based on the results and the implications of these results are presented for the benefit of youth practitioners, educators, parents, and social marketers. © 2006 Wiley Periodicals, Inc.     

Payment formats and hedonic consumption

Payment formats have many important influences on consumer behavior. However, few studies have examined how the payment format affects hedonic consumption. This study explores how the transparency of the payment format (e.g., bonus points vs. cash) influences consumers’ willingness to pay, budget assignments, and consumption choices through differences in their perceived pain of purchasing (exchanging) hedonic and utilitarian options. Specifically, consumers who pay with highly transparent payment formats (e.g., cash), compared with consumers who pay with less transparent payment formats (e.g., store points, bonus points, and gift certificates), are willing to pay less, assign a lower budget, and are less likely to choose hedonic products. The perceived pain of purchasing (exchanging) a hedonic product plays an important mediating role on the influence of the payment format on hedonic consumption. However, the perceived pain of purchasing (exchanging) a utilitarian option plays a parallel mediating role only when people have paid for the less transparent payment format (e.g., buying store points) rather than when they accumulate the points through previous consumption events. The research findings provide insights that can benefit both theory and practice.     

Shopping value in online auctions: Their antecedents and outcomes

Online auctions present unique characteristics in the consumer decision-making process that raise new issues related to consumer shopping behaviors in auction-based purchases. The present research examined the relationship between consumer characteristics (i.e., compulsive buying behavior, variety-seeking tendency, and price sensitivity) and shopping value (i.e., utilitarian and hedonic) in online auctions and found that both compulsive buying behavior and variety-seeking tendency are critical factors of shopping value in the online auction environment. There were no positive relationships between price sensitivity and shopping value. The results of this study also revealed that consumers’ shopping value positively influenced their preference, which, in turn, formed behavioral intentions in online auctions. While utilitarian value was found to be a significant predictor of behavioral intentions, hedonic value was not. However, hedonic value influenced intentions indirectly through preference.     

Understanding the barriers and factors associated with consumer adoption of wearable technology devices in managing personal health

This research seeks to identify the barriers and factors associated with adopting wearable technology devices (WTDs) for managing personal health. Based on a partial least square (PLS) analysis of 277 US-based residents, the findings demonstrate that performance expectancy, social influence, facilitating conditions, hedonic motivation, habit, and personalization are significant predictors of consumers' intention to use WTDs. Interestingly, price value, privacy concerns, and health consciousness are not significant. This study will inform future research on WTDs in personal health management. Theoretical and practical implications of the study are also presented.     

Social anxiety as a moderator in consumer willingness to accept AI assistants based on utilitarian and hedonic values

This study develops a comprehensive research model to explain user willingness to accept AI assistants, and the acceptance path pertaining to this process. User data was used to test how the advantages of AI assistant (accuracy, responsiveness, compatibility, anthropomorphism, & affinity) influence consumer utilitarian and hedonic value, and explore how their willingness to accept AI assistants is affected by their value perceptions. This research also examines whether social anxiety moderates the relationship between AI assistant advantages and utilitarian/hedonic value. The study reveals that AI assistant advantages are important factors affecting the utilitarian/hedonic value perceived by users, which further influence user willingness to accept AI assistants. The relationships between AI assistant advantages and utilitarian and hedonic value are affected differently by social anxiety. Marketers and managers in the AI context can refer to the study methods to help improve AI assistants and develop more effective marketing strategies for product promotion.     

Content analysis of fake consumer reviews by survey-based text categorization

As the influence of online consumer reviews grows, deceptive reviews are a worsening problem, betraying consumers' trust in reviews by pretending to be authentic and informative. This research identifies factors that can separate deceptive reviews from genuine ones. First, we create a novel means of detection by contrasting authentic versus fake word patterns specific to a given domain (e.g., hotel services). We use a survey on a crowdsourcing platform to obtain both genuine and deceptive reviews of hotels. We learned the word patterns from each category to discriminate genuine reviews from fake ones for positively and negatively evaluated reviews, respectively. We show that our All Terms procedure outperforms current benchmark methods in computational linguistics and marketing. Our extended analysis reveals the factors that determine fake reviews (e.g., a lack of details, present- and future-time orientation, and emotional exaggeration) and the factors influencing people's willingness to write fake reviews (including social media trust, product quality consciousness, deal proneness, hedonic and utilitarian consumption, prosocial behavior, and individualism). We also use our procedure to analyze more than 250,000 real-world hotel reviews to detect fake reviews and identify the hotel and review characteristics influencing review fakery in the industry (e.g., star rating, franchise hotel, hotel size, room price, review timing, and review rating).     

Understanding on-the-go consumption: A retail mix perspective

On-the-go (OTG) consumption is a growing phenomenon in the food and beverage industry. Drawing on the theory of consumption values, this study is conducted to acquire a better understanding of the influence that retail-mix elements have on OTG consumption outcomes. Specifically, this study examines the role of value for money, customer service, general assortments and healthy assortments in driving intention and satisfaction related to OTG consumption. The study also assesses the conditional value generated by the consumer's health orientation, impulsiveness and perceived time pressure. Based on a sample of 433 OTG consumers, and applying multi-group structural equation modelling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA), value for money was identified as the key driver of OTG consumption outcomes. Impulsiveness and time pressure are shown to increase the effects of value for money perceptions on OTG consumption intention, while health orientation enhances the relationship between customer service and satisfaction. This study contributes to the literature on OTG consumption, explains the managerial implications for retailers, and offers recommendations to target OTG consumers better.