The Dual Role of Price on Consumers' Purchase Intentions of Hedonic Versus Utilitarian Products

Description

Literature shows that consumers interpret price information as either an indicator of quality or as indicator of monetary sacrifice. However, despite extensive pricing research focusing on price information processing, it is not clear how the “signaling” and “sacrifice” effects differ among hedonic versus utilitarian product purchases. We conduct a field experiment to investigate the informational and sacrifice effects of price for two products (wine versus laptop cases). Our results indicate that price effects vary depending on the product category. Specifically, the influence of price increases for hedonic products is opposite to utilitarian products. The signaling effect for wine (hedonic product) is strongly positive, whereas the sacrifice effect is stronger for laptop cases (utilitarian product). Managerial implications and future research suggestions will be discussed.

Period	27.06.2018 → 29.06.2018
Event title	21st Academy of Marketing Science Wolrd Marketing Congress - AMS WMC 2018: Finding New Ways to Engage and Satisfy Global Customers
Event type	Conference
Conference number	21
Location	Porto, PortugalShow on map
Degree of Recognition	International