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http://dx.doi.org/10.9723/jksiis.2022.27.2.083

Hedonic consumption and consumer's choice under the windfall gains  

Seol, MooGone (인천대학교 경영학과)
Kim, YoungKyun (인천대학교 경영대학)
Publication Information
Journal of Korea Society of Industrial Information Systems / v.27, no.2, 2022 , pp. 83-100 More about this Journal
Abstract
In marketing, the thematic conceptual study related to hedonic consumption with product symbolism contributed to symbolic consumerism and its hedonic experience. Researching how consumers deal with expectations for unexpected income or windfall gains helps understand what makes them enjoy experiences. This paper discusses the trade-off relationship between hedonic and utilitarian consumption. it aims to determine when and why people choose hedonic (pleasant) or utilitarian (material) products under windfall gains. We suggested five hypotheses, and through a series of experiments, respondents preferred hedonic to utilitarian goods when lottery amounts increased and the probabilities did not discriminate between two products. the preference order was not discriminated in the hedonic, utilitarian goods. the shape of preference revealed an opposite direction (U vs. invert-U)when the winfall amounts increased. and when the discounting rates varied, the consumers' preference order was expected to change. Subjects selected hedonic goods the most, utilitarian goods second, and cash rewards were the last choice. Therefore, stimulating consumers' hedonism and promoting hedonic experiences might be effective marketing tactics and strategies.
Keywords
hedonic consumption; utilitarian consumption; windfall gains; pleasure preference; hedonic experience;
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