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Manufacturers and online retailers are readily availing themselves of new technologies to present their merchandise using a variety of formats, including static (still image) and dynamic (video) portrayal. Building on vividness theory, the authors propose and demonstrate that presenting products and services using a dynamic visual format enhances consumer preference for hedonic options and willingness to pay for those options. The dynamic presentation format increases involvement with the product/service experience in a manner presumably similar to that of the actual product experience. The result is an increased preference for and valuation of hedonic options. This holds true for experiential and search products in single and joint evaluations and carries over to subsequent choices. Across all studies, the results demonstrate that a dynamic (relative to static) presentation format enhances choice of the hedonically superior (vs. utilitarian-superior) option by more than 79%.

The authors examine consumers’ information channel usage during the customer journey by employing a hedonic and utilitarian (H/U) perspective, an important categorization of consumption purpose. Taking a retailer-category viewpoint to measure the H/U characteristics of 20 product categories at 40 different retailers, this study combines large-scale secondary clickstream and primary survey data to offer actionable insights for retailers in a competitive landscape. The data reveal that, when making hedonic purchases (e.g., toys), consumers employ social media and on-site product pages as early as two weeks before the final purchase. By contrast, for utilitarian purchases (e.g., office supplies), consumers utilize third-party reviews up to two weeks before the final purchase and make relatively greater usage of search engines, deals, and competitors’ product pages closer to the time of purchase. Importantly, channel usage is different for sessions in which no purchase is made, indicating that consumers’ information channel choices vary significantly with the H/U characteristics of purchases. The article closes with an extensive discussion of the significant implications for managing customer touchpoints.

Using data from Pennsylvania and an array of empirical techniques to control for confounding factors, we recover hedonic estimates of property value impacts from nearby shale gas development that vary with water source, well productivity, and visibility. Results indicate large negative impacts on nearby groundwater-dependent homes, while piped-water-dependent homes exhibit smaller positive impacts, suggesting benefits from lease payments. Results have implications for the debate over regulation of shale gas development.

[Display omitted] •Not all ISD types are equally effective in stimulating product sales.•In store displays’ effects depends on the information processing they trigger.•Utilitarian versus hedonic nature moderates the effects of in store displays.•Synergistic effects of displays and promotions largely depend on their congruency. 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.

This paper extends the unified theory of acceptance and use of technology (UTAUT) to study acceptance and use of technology in a consumer context. Our proposed UTAUT2 incorporates three constructs into UTAUT: hedonic motivation, price value, and habit. Individual differences — namely, age, gender, and experience — are hypothesized to moderate the effects of these constructs on behavioral intention and technology use. Results from a two-stage online survey, with technology use data collected four months after the first survey, of 1,512 mobile Internet consumers supported our model Compared to UTAUT, the extensions proposed in UTAUT2 produced a substantial improvement in the variance explained in behavioral intention (56 percent to 74 percent) and technology use (40 percent to 52 percent). The theoretical and managerial implications of these results are discussed.

Because it is harder to justify hedonic purchases than utilitarian purchases, it is proposed that promotions will have a stronger positive effect on the purchase likelihood of hedonic than utilitarian products. This and related propositions are tested in multiple studies using a variety of product categories and promotions. The results demonstrate that promotions are more effective in driving purchase decisions when: (a) the product is hedonic rather than utilitarian; (b) the product is framed as more hedonic; and (c) the consumer has a hedonic rather than utilitarian consumption goal. Consistent with our conceptualization, the enhanced impact of promotions on hedonic purchases is attenuated when: (a) the hedonic product is intended as a gift for others; (b) consumers can construct justifications for their purchase ahead of time; (c) consumers are not accountable for their decisions; and (d) the promotion is contingent on purchasing additional product units (i.e., a quantity discount like “Buy 10, get 50% off”). Importantly, the present research reconciles and explains the seemingly inconsistent prior findings regarding the effects of price versus quantity promotions.

Several studies in consumer behavior have focused on consumers’ shopping orientation in terms of hedonic and utilitarian shopping. The present research advances a different perspective examining hedonic and utilitarian shopping orientations with the theoretical lenses of construal-level theory. Results from two studies indicate that hedonism relates to higher and utilitarianism to lower construal levels (Study 1). Consequently, individuals tend to prefer desirability-related options when shopping hedonically, and feasibility-related options when shopping in a utilitarian way (Study 2). The findings further show a moderating effect of construal level on the relationship between shopping orientation and choice, consistent with construal-level theory.

We document an important consequence of bride price, a payment made by the groom to the bride’s family at marriage. Revisiting Indonesia’s school construction program, we find that among ethnic groups without the custom, it had no effect on girls’ schooling. Among ethnic groups with the custom, it had large positive effects. We show (theoretically and empirically) that this is because a daughter’s education, by increasing the amount of money parents receive at marriage, generates an additional incentive for parents to educate their daughters. We replicate these findings in Zambia, a country that had a similar large-scale school construction program.

[Display omitted] •Partitioned pricing increases hedonic purchases, but not utilitarian purchases.•Partitioned pricing helps justify hedonic spending through a lower price perception.•Partitioned pricing alleviates guilt associated with hedonic purchases.•Partitioned pricing increases hedonic purchases for consumers high in chronic guilt. The present research investigates how purchase motives (hedonic vs. utilitarian) influence the effectiveness of partitioned versus combined pricing. Across four studies, we find that compared to combined pricing, partitioned pricing increases hedonic purchases, but not utilitarian purchases. We find this happens because consumers considering a hedonic purchase tend to feel anticipated guilt associated with their hedonic spending, and partitioned pricing is used as a guilt-mitigating justification for the spending. Specifically, consumers with a hedonic purchase motive underprocess a surcharge, which enables them to perceive the price of the product as lower than the actual, combined price. This lower price perception helps consumers justify their hedonic purchase as an act of saving money, and as a result, alleviates guilt. These effects are magnified among consumers who have high disposition to feel consumption guilt. When a price discount is offered, it attenuates the effectiveness of partitioned pricing because the price discount serves as a more effective justification by offering actual saving, not just the perception of saving. Our findings contribute to the pricing literature by uncovering a motivational factor influencing the effectiveness of partitioned (vs. combined) pricing, and offer a useful pricing guideline to product managers based on the product-pricing fit revealed in our research.