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.     

Cause-related marketing ads in the eye tracker: it depends on how you present,who sees the ad,and what you promote

We compare the effectiveness of three visual types of cause-related marketing ads (product-oriented vs. cause-focused with an image of the beneficiary's face- vs. cause-focused with an image of the social cause), along with two moderators: product type and gender differences. In Study 1, the results of an eye-tracking experiment show that a product-oriented ad leads to a longer fixation duration than does a cause-focused ad. Females process the ads faster than do males, regardless of visual type. A cause-focused ad for a hedonic product results in a shorter fixation duration when an image of the beneficiary's face is used than when an image of the social cause is used. The opposite results are observed for a utilitarian product. Gender differences enhance such differences in ad processing. Study 2 is conducted to validate the arguments for the hypotheses proposed in Study 1. We find that using a cause-focused image vs. a product-oriented image impacts the effectiveness of the ad since consumers process these different visual types of ads differently.     

Missing Ingredients in Metaphor Advertising: The Right Formula of Metaphor Type,Product Type,and Need for Cognition

Metaphors appear frequently in contemporary advertising. The purpose of this study is to distinguish between two types of metaphor (explicit versus implicit) and to further examine potential influences associated with product type and consumer differences in need for cognition (NFC). Experimental results from two studies indicate that, regardless of metaphor type, ads with metaphors are more effective than nonmetaphor ads. An implicit metaphor is more effective than an explicit metaphor in hedonic product advertising. In contrast, an explicit metaphor is more effective than an implicit metaphor in utilitarian product promotion. These results hold only for individuals with high NFC, not for those with low NFC. Hence, in practice, marketers stand to gain not only by matching the metaphor type with their advertised products or brands but also by appropriately framing the products as hedonic or utilitarian.     

“First in first out” or “last in first out”: Presentation of information order on evaluation of utilitarian products

This study investigates how the presentation order of information may affect the evaluation of utilitarian products. Three experiments with different conditions (hedonic/utilitarian product; experience/search advertisement; unattractive/attractive packaging) were conducted with a total of 334 participants in Macau. This study tests both the affective and cognitive product evaluation. The findings indicate that assimilation effect occurs if the search advertisement of a utilitarian product is presented before and if the consumers have better cognitive evaluation. When an experience advertisement is presented before, contrast effect occurs and affective evaluation is reduced. However, when unattractive packaging is presented before, assimilation effect occurs, and cognitive evaluation is increased. When attractive packaging is presented before, the consumers demonstrate a positive cognitive and affective evaluation for the utilitarian product. These findings contribute to a better understanding of the role of presentation order on the consumers’ evaluation of utilitarian products from theoretical and managerial perspectives.     

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.     

Beauty in the eyes of its beholders: Effects of design novelty on consumer preference

In this research, we propose that promotion- (vs. prevention-) focused consumers should prefer a novel product design, an effect that we attribute to increased processing fluency. In addition, we propose that the effect of consumers’ regulatory focus should be moderated by product type, such that promotion- (prevention-) focused consumers should prefer more (less) novel designs only for utilitarian products; for hedonic products all consumers should prefer a novel design regardless of their regulatory foci. We obtain empirical evidence for these predictions across four experiments that use different operationalizations of regulatory focus and product type. We conclude by discussing the theoretical contributions and managerial implications of our research.     

Emotional advertising: Revisiting the role of product category

In contrast to the Affect Infusion Model, popular advertising planning grids suggest that emotional advertising is effective for low involvement and hedonic products, but not for high involvement or utilitarian products. In two experiments, 400 and 392 consumers respectively evaluate a non-emotional and a product-congruent or product-incongruent emotional appeal promoting four different product types. In a third study, 909 respondents evaluate 323 existing TV commercials. The findings confirm expectations based on the Affect Infusion Model and indicate that for none of the product types negative effects of emotional advertisements appear. However, emotional ads do work better for some than other product types. In addition to clearing out the moderating role of product type, this paper contributes to the literature by showing that previous poorer results of emotional ads for some products may be partly due to less positive attitudes towards the products themselves instead of to the inappropriateness of the appeal.     

Effort justification for fun activities?: The effect of location-based mobile coupons using games

Based on the effort justification explanation, this study tested whether consumers perceive the value of mobile coupons differently depending on how they received them. A 3 (activities to receive a coupon: none vs. online survey vs. game) x 2 (product type: hedonic vs. utilitarian) between-subject design experiment (N = 200) was conducted. Findings suggested that game condition, compared to others, resulted in a higher perceived coupon value. A significant conditional indirect effect was found such that games enhance positive affect especially when the product type was utilitarian, and enhanced positive affect results in further boosting the perceived coupon value.     

The Impact of Mobile App Adoption on Cross-buying: The Moderating Roles of Product Category Characteristics and Adoption Timing

With more and more companies introducing mobile apps and consumers using them during the purchase journey, it is increasingly important to understand the consequences of app adoption on behavioral outcomes. This paper investigates the impact of app adoption on the number of additional products purchased by customers (i.e., cross-buying) and how this effect varies across different product categories and different customers. We focus on two key product category characteristics (utilitarian vs. hedonic nature and perceived risk) and on adopters who vary in their adoption timings (early vs. late adopters). Using data from an online retailer and a combination of propensity score weighting with difference-in-differences and Heckman correction estimation techniques, the results show that app adoption has a positive effect on cross-buying overall, but the effect varies greatly across products and consumers. App adoption promotes additional product purchases for hedonic products but leads to less cross-buying for utilitarian products. In addition, early adopters purchase a higher number of additional product categories than late adopters, with this difference decreasing over time and for new consumers compared to existing customers. These results offer novel insights into the behavioral consequences of app adoption and provide managers with useful recommendations for improving the effectiveness of their mobile app investments.     

Impact of sales Promotion's benefits on perceived value: Does product category moderate the results?

The purpose behind the development of this research article is to assess the impact of sales promotions benefits on consumer perceived value and examine the moderating effect of product categories on the relation between sales promotions, their benefits, and consumer perceived value. The study used a sample of 400 consumers from India and ‘Structure Equation Modelling’ technique is applied to evaluate the research assumption. Finally, the moderating effect of the product category is evaluated by utilizing ‘Multi-Group Analysis' technique. Research findings reveal that the product category moderates the consumer's perceived value for hedonic and utilitarian benefits of sales promotion tools. It is found that utilitarian benefits of sales promotion have more impact on consumer perceived value in the context of personal care product while hedonic benefits are having more impact on consumer perceived value in the context of food products. A sales promotion plan can be made more effective when it is hedonic benefit oriented in the case of food products and utilitarian benefit oriented in the case of personal care products. The findings of this research can be useful for marketers to develop an effective sales promotion strategy considering the category wise differential impact of sales promotions benefits.     

Getting in touch with your thinking style: How touchscreens influence purchase

Touchscreen technology has rapidly penetrated the consumer market and embedded itself into our daily lives. Given the pervasiveness of this new phenomenon, we know surprisingly little about its effect on consumers. This research updates academic theory by investigating how newly evolved touchscreen technology affects consumer behavior. Across three lab experiments with university students, we found purchase intentions differ across device and product nature. In particular, this research demonstrates that purchase intention differs between touchscreens and desktop computers. Further, situation-specific thinking style is revealed as an underlying mechanism that contributes to such differences, such that touchscreens evoke a stronger experiential thinking style, while desktops evoke a stronger rational thinking style. Moreover, the findings suggest that greater experiential thinking enhances a consumer’s preference towards hedonic products, while greater rational thinking endorses utilitarian products. Together, this pattern leads touchscreen users to prefer hedonic products over utilitarian products. Given the growing usage of touchscreen devices, this research has important implications for consumers, marketers, and policy makers.     

“New and old”: Consumer evaluations of co-branding between new brands and Chinese time-honored brands

Nowadays, rejuvenation of Chinese time-honored brands, a symbol of Chinese traditional culture, is manifested in their co-branding with new brands. With focus on sincerity and excitement, two fundamental dimensions of brand personality, the authors explore this co-branding strategy which remains unexplored by the extant literature. Based on the integration of brand personality and Stereotype Content Model, a new mechanism is constructed from the perspective of consumers, with brand admiration being the underlying mechanism, as well as product category—hedonic vs. utilitarian—being a boundary condition. Through three experimental studies, the results show that the exciting (vs. sincere) personality of new brands increases consumers’ admiration for both allied brands, which in turn enhances co-branding evaluations, and that the advantage of the exciting personality holds for the hedonic co-branded product, but disappears for the utilitarian one. The research contributes to the co-branding literature and provides implications for brand partner selection and co-branded product design.     

Multifunctional risk in the adoption of innovative technological products

This study analyses whether the perceived risk of purchasing technological products is less influential on the process of technological adoption when this effect is moderated by the product's multifunctional category (hedonic vs. utilitarian product characteristics). Four experiments were developed according to scenarios related to the multifunctional content (level of complexity according to the product category) of the technology and the number of functionalities in the products. The perception of risk has less effect on adoption when the product characteristics are manipulated to be more utilitarian or heighten the consumer's social value. This study contributes to the theoretical understanding of which categories are less influenced by the perceived multifunctional risk of purchasing and adopting a new technology, as well as of when individual values overlap with consumers' risk perceptions. It also contributes managerially by identifying the profile of individuals who are more likely to consume innovations characterized by high complexity and functionality, and by providing guidance for the development of innovative products that prioritize utilitarian, rather than hedonic, characteristics.     

Online display advertising for CPG brands: (When) does it work?

This study examines how online display ads, alone or in combination with more conventional media (television and print), can help drive sales in the consumer packaged goods (CPG) sector. It also assesses how the combined sales effect of online and offline ads depends on the volatility of their expenditures over time. We explore these relations for 154 brands across 68 Dutch CPG product categories. We find that, even though display ads are not effective for the “average” CPG brand, they do have a significant impact for a sizable, and considerably larger than expected by chance, subset of brands. Importantly, this impact depends on the type of product. While display ads are found to be ineffective for low-involvement utilitarian products, they can significantly enhance sales for other CPG product types. Moreover, the effect depends on whether they are used in combination with other media: while display ads are best used as a stand-alone medium for high-involvement utilitarian products, it is better to combine them with traditional media for hedonic products. Finally, the long-term effectiveness of display messages increases significantly when they are spread more evenly in time.     

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.     

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 role of product type and country‐of‐origin in decisions about choice of endorser ethnicity in advertising

Two experiments examine the effects of endorser ethnicity and product country of origin on consumer responses toward ad and brand, and investigate the moderating role of utilitarian versus hedonic product type. In Experiment 1, for utilitarian products, participants showed more favorable responses when the endorser's ethnicity was incongruent with the product's country of origin compared to when it was congruent, supporting an attribution‐theory explanation. For hedonic products, however, participants preferred ads that featured an endorser whose ethnicity matched their own, irrespective of the product's country of origin. In Experiment 2, building on the attribution explanation, two endorsers of different ethnicities generated more favorable responses than two of the same ethnicity. © 2006 Wiley Periodicals, Inc.     

A contingent approach to country-of-origin effects on foreign products evaluation: Interaction of facets of country image with product classes

This study investigates the effect of country-of-origin image on consumers’ evaluations of foreign products and disaggregates the effects across facets of country image and across product classes. We disentangle country image into cognitive and affective dimensions, and additionally disaggregate the cognitive dimension into geographic and human aspects. We posit that country-of-origin effects will vary across distinct facets of country image and that the effect of each facet of country image will vary across different classes of products. By means of an online survey, data were collected from French consumers regarding their perceptions of cognitive and affective aspects of two countries – Brazil and Germany – and their evaluation of three product classes – utilitarian nature-based, utilitarian industrialized and hedonic industrialized – which were represented respectively by fruits, home appliances and clothes. Empirical results partially corroborate the hypothesized contingent impacts.     

It is all about our impulsiveness – How consumer impulsiveness modulates neural evaluation of hedonic and utilitarian banners

The increasing number of active Internet users has encouraged companies to compete to design the most efficient online ads for their target audience. While some companies build their ads based on the functional and instrumental benefits of their advertised products (i.e., utilitarian banners), others emphasize the experiential, personal, and emotional advantages of purchasing their product (i.e., hedonic banners). This is the first study to use neuroimaging to address the debate in the literature regarding the processing and effectiveness of these types of messages. By means of functional Magnetic Resonance Imaging (fMRI), we explored the neural mechanisms by which an individual consumer trait, namely consumer impulsiveness, influences the evaluation of hedonic and utilitarian banners. The neural results revealed that more impulsive consumers exhibit a higher level of activation in brain regions linked to reward, trust, emotion, as well as a reduction of activity in self-control brain networks, when viewing hedonic banners. Consumers reporting lower levels of impulsiveness (i.e., prudent users), in turn, exhibited stronger activation in brain regions associated with self-control and cognition when evaluating utilitarian banners. Consequently, on the basis of an objective and neuropsychological approach, these results can be used to inform companies about the type of online advertising they should use based on the characteristics of their target audience.     

Omnichannel-based promotions’ effects on purchase behavior and brand image

This paper examines the effects of utilizing consumers’ digital shopping traces when designing in-store promotions on purchase behavior and brand image. In two experimental studies with 526 and 550 espondents, the authors examine the effects of omnichannel-based promotions (e.g. using digital shopping trace to offer a promotion when the consumer enters the physical store) in two different product categories (utilitarian vs. hedonic), spontaneous/planned purchases and two different retail industries (durable good vs. travel). The results show that retailers benefit from using digital shopping traces as it increases purchases and enhances brand imagery. The effects are moderated by product category and type of purchase.