• Title/Summary/Keyword: utilitarian benefits

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Utilitarian Value and its Effect on Continuance Intention in Smartphone-based Mobile Commerce (스마트폰 기반 모바일상거래의 실용적가치와 지속이용의도)

  • Choi, Su-Jeong
    • The Journal of Information Systems
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    • v.25 no.3
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    • pp.31-60
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    • 2016
  • Purpose In 2016, the market size of mobile(m-) shopping goes beyeond more than half of a total of online shopping. People use smartphones as the main device for m-commerce. Under the circmustances, this study attempts to address why people prefer to use smartphone-based m-commerce. In other words, it is necessary to understand the main value that smartphone-based m-commerce creates. Drawing on the studies of consumption value, this study focuses on utilitarian value in predicting customers' continuance intention in the context of smartphone-based m-commerce, recognizing that utilitarian value is a key extrinsic motivation in the goal-oriented, performance-oriented shopping contexts. Furthermore, this study identifies factors affecting customers' utilitarian value from the perspective of benefits and costs, following the notion that it represents the result of evaluating a trade-off of benefits and costs caused by smartphone-based m commerce. More specifically, in this study, ubiquitous service, location-based service (LBS), transaction speed, and price utility belong to the benefit dimension, whereas technology anxiety and cognitive effort belong to the cost dimension. Design/methodology/approach To test the proposed hypotheses, the study conducted partial least squares (PLS) analysis with a total of 294 data collected on users with experience in smartphone-based m-commerce. Findings The results show that first, utilitarian value is increased by the benefits, such as ubiquitous service, transaction speed, and price utility. However, LBS has no direct effect on utilitarian value. Second, the noteworthy finding is that ubiquitous service and LBS greatly increase transaction speed. Third, technology anxiety and cognitive effort considered as the cost dimension are negatively associated with utilitarian value but their impacts on it are non-significant. Finally, the results support the argument that utilitarian value is a determinant of continuance intention. Overall, the findings imply that utilitarian value greatly depends on the peception on benefits rather than the aspect of cost in smartphone-based m-commerce. Overall, the findings offer new insight into the studies of m-commerce by considering and verifying the impacts of its benefits and costs simultaneously.

The effects of consumers' regulatory focus on the relationship between visiting intention and VMD benefits (VMD혜택이 방문의도에 미치는 영향에 있어 소비자의 조절초점 역할 연구)

  • Suh, Yong-Han
    • Management & Information Systems Review
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    • v.33 no.1
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    • pp.263-278
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    • 2014
  • The purpose of our research was to understand the effect of consumers' regulatory focus (i.e., promotion focused vs. prevention focused) on their evaluation of clothing store's VMD and store visiting intention. The results showed that the hedonic and utilitarian benefits of store VMD have significantly a positive impact on visiting intentions. In addition, the relationship between perceived hedonic benefits and store visiting intention was significantly different for PO and PE groups; hedonic benefits explained significantly more of the variance in store visiting intention for promotion-focused group than prevention-focused group. Conversely, utilitarian benefits explained significantly more of the variance in store visiting intention for PE than PO group. These results supported both hypotheses and showed that consumers with a promotion focus have stronger visiting intention toward the VMD with hedonic benefits compared with VMD with utilitarian benefits. Conversely, consumers with a prevention focus have stronger visiting intention toward the VMD with utilitarian benefits compared with VMD with hedonic benefits.

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Shopping Value, Shopping Goal and WOM - Focused on Electronic-goods Buyers (쇼핑 가치 추구 성향에 따른 쇼핑 목표와 공유 의도 차이에 관한 연구 - 전자제품 구매고객을 중심으로)

  • Park, Kyoung-Won;Park, Ju-Young
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.2
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    • pp.68-79
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    • 2009
  • The interplay between hedonic and utilitarian attributes has assumed special significance in recent years; it has been proposed that consumption offerings should be viewed as experiences that stimulate both cognitions and feelings rather than as mere products or services. This research builds on previous work on hedonic versus utilitarian benefits, regulatory focus theory, customer satisfaction to address two question: (1) Is the shopping goal at the point of purchase different from the shopping value? and (2) Is the customer loyalty after the use different from the shopping value and shopping goal? We surveyed 345 peoples those who have bought the electronic-goods within 6 months. This research dealt with the shopping value which is consisted of 2 types, hedonic and utilitarian. Those who pursue the hedonic shopping value may prefer the pleasure of purchasing experience to the product itself. They tend to prefer atmosphere, arousal of the shopping experience. Consistent with previous research, we use the term "hedonic" to refer to their aesthetic, experiential and enjoyment-related value. On the contrary, Those who pursue the utilitarian shopping value may prefer the reasonable buying. It may be more functional. Consistent with previous research, we use the term "utilitarian" to refer to the functional, instrumental, and practical value of consumption offerings. Holbrook(1999) notes that consumer value is an experience that results from the consumption of such benefits. In the context of cell phones for example, the phone's battery life and sound volume are utilitarian benefits, whereas aesthetic appeal from its shape and color are hedonic benefits. Likewise, in the case of a car, fuel economics and safety are utilitarian benefits whereas the sunroof and the luxurious interior are hedonic benefits. The shopping goals are consisted of the promotion focus goal and the prevention focus goal, based on the self-regulatory focus theory. The promotion focus is characterized into focusing ideal self because they are oriented to wishes and vision. The promotion focused individuals are tend to be more risk taking. They are more sensitive to hope and achievement. On the contrary, the prevention focused individuals are characterized into focusing the responsibilities because they are oriented to safety. The prevention focused individuals are tend to be more risk avoiding. We wanted to test the relation among the shopping value, shopping goal and customer loyalty. Customers show the positive or negative feelings comparing with the expectation level which customers have at the point of the purchase. If the result were bigger than the expectation, customers may feel positive feeling such as delight or satisfaction and they would want to share their feelings with other people. And they want to buy those products again in the future time. There is converging evidence that the types of goals consumers expect to be fulfilled by the utilitarian dimension of a product are different from those they seek from the hedonic dimension (Chernev 2004). Specifically, whereas consumers expect the fulfillment of product prevention goals on the utilitarian dimension, they expect the fulfillment of promotion goals on the hedonic dimension (Chernev 2004; Chitturi, Raghunathan, and Majahan 2007; Higgins 1997, 2001) According to the regulatory focus theory, prevention goals are those that ought to be met. Fulfillment of prevention goals in the context of product consumption eliminates or significantly reduces the probability of a painful experience, thus making consumers experience emotions that result from fulfillment of prevention goals such as confidence and securities. On the contrary, fulfillment of promotion goals are those that a person aspires to meet, such as "looking cool" or "being sophisticated." Fulfillment of promotion goals in the context of product consumption significantly increases the probability of a pleasurable experience, thus enabling consumers to experience emotions that result from the fulfillment of promotion goals. The proposed conceptual framework captures that the relationships among hedonic versus utilitarian shopping values and promotion versus prevention shopping goals respectively. An analysis of the consequence of the fulfillment and frustration of utilitarian and hedonic value is theoretically worthwhile. It is also substantively relevant because it helps predict post-consumption behavior such as the promotion versus prevention shopping goals orientation. Because our primary goal is to understand how the post consumption feelings influence the variable customer loyalty: word of mouth (Jacoby and Chestnut 1978). This research result is that the utilitarian shopping value gives the positive influence to both of the promotion and prevention goal. However the influence to the prevention goal is stronger. On the contrary, hedonic shopping value gives influence to the promotion focus goal only. Additionally, both of the promotion and prevention goal show the positive relation with customer loyalty. However, the positive relation with promotion goal and customer loyalty is much stronger. The promotion focus goal gives the influence to the customer loyalty. On the contrary, the prevention focus goal relates at the low level of relation with customer loyalty than that of the promotion goal. It could be explained that it is apt to get framed the compliment of people into 'gain-non gain' situation. As the result, for those who have the promotion focus are motivated to deliver their own feeling to other people eagerly. Conversely the prevention focused individual are more sensitive to the 'loss-non loss' situation. The research result is consistent with pre-existent researches. There is a conceptual parallel between necessities-needs-utilitarian benefits and luxuries-wants-hedonic benefits (Chernev 2004; Chitturi, Raghunathan and Majaha 2007; Higginns 1997; Kivetz and Simonson 2002b). In addition, Maslow's hierarchy of needs and the precedence principle contends luxuries-wants-hedonic benefits higher than necessities-needs-utilitarian benefits. Chitturi, Raghunathan and Majaha (2007) show that consumers are focused more on the utilitarian benefits than on the hedonic benefits of a product until their minimum expectation of fulfilling prevention goals are met. Furthermore, a utilitarian benefit is a promise of a certain level of functionality by the manufacturer or the retailer. When the promise is not fulfilled, customers blame the retailer and/or the manufacturer. When negative feelings are attributable to an entity, customers feel angry. However in the case of hedonic benefit, the customer, not the manufacturer, determines at the time of purchase whether the product is stylish and attractive. Under such circumstances, customers are more likely to blame themselves than the manufacturer if their friends do not find the product stylish and attractive. Therefore, not meeting minimum utilitarian expectations of functionality generates a much more intense negative feelings, such as anger than a less intense feeling such as disappointment or dissatisfactions. The additional multi group analysis of this research shows the same result. Those who are unsatisfactory customers who have the prevention focused goal shows higher relation with WOM, comparing with satisfactory customers. The research findings in this article could have significant implication for the personal selling fields to increase the effectiveness and the efficiency of the sales such that they can develop the sales presentation strategy for the customers. For those who are the hedonic customers may be apt to show more interest to the promotion goal. Therefore it may work to strengthen the design, style or new technology of the products to the hedonic customers. On the contrary for the utilitarian customers, it may work to strengthen the price competitiveness. On the basis of the result from our studies, we demonstrated a correspondence among hedonic versus utilitarian and promotion versus prevention goal, WOM. Similarly, we also found evidence of the moderator effects of satisfaction after use, between the prevention goal and WOM. Even though the prevention goal has the low level of relation to WOM, those who are not satisfied show higher relation to WOM. The relation between the prevention goal and WOM is significantly different according to the satisfaction versus unsatisfaction. In addition, improving the promotion emotions of cheerfulness and excitement and the prevention emotion of confidence and security will further improve customer loyalty. A related potential further research could be to examine whether hedonic versus utilitarian, promotion versus prevention goals improve customer loyalty for services as well. Under the budget and time constraints, designers and managers are often compelling to choose among various attributes. If there is no budget or time constraints, perhaps the best solution is to maximize both hedonic and utilitarian dimension of benefits. However, they have to make trad-off process between various attributes. For the designers and managers have to keep in mind that without hedonic benefit satisfaction of the product it may hard to lead the customers to the customer loyalty.

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The Benefits Sought for the Bedding and Consumers' Characteristics: Focus on the Lifestyle and Demographic Characteristics (침구의 추구혜택과 소비자 특성: 라이프스타일과 인구통계학적 변인을 중심으로)

  • Jin, Hyun-Jeong
    • Fashion & Textile Research Journal
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    • v.14 no.2
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    • pp.242-250
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    • 2012
  • This study investigates the benefits consumers seek in buying and using bedding, sub-dimensions of lifestyle, and the relationship between those of the benefits and the dimensions of lifestyle. This study conducted a survey to verify benefits consumers seek in buying bedding. A questionnaire was developed to collect data to measure lifestyle, benefits sought for the bedding, and demographic variables. Research was conducted on married women aged between 20 and 59. Total 294 responses were analyzed using factor analysis, correlation analysis, t-test, and one-way ANOVA with SPSS 18.0. A factor analysis identified three dimensions of benefits sought for the bedding: utilitarian benefits, social benefit, and aesthetic benefit. Lifestyle consists of five dimensions: health seeking, social symbol seeking, leisure/country-living seeking, aesthetics seeking, and economy seeking. All dimensions underlying benefits consumers seek in buying bedding and all dimensions of lifestyle were correlated. As consumers get older, they tend to seek more utilitarian and social/psychological benefits of bedding.

The Effect of Pursued Benefits on Repurchase Intention when Consumers are Satisfied/Dissatisfied with Fashion Product Purchase -The Moderating Effect of Consumers' Hyperopic Disposition- (구매 후 만족·불만족 상황에서 패션제품의 추구편익이 재구매 의도에 미치는 영향 -소비자의 원시안적 특성의 조절효과를 중심으로-)

  • Seo, Hyeon Yeong;Yeo, Jun Sang;Hwang, Sun Jin
    • Journal of the Korean Society of Clothing and Textiles
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    • v.36 no.10
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    • pp.1040-1049
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    • 2012
  • This study examines the effects of pursued benefits and satisfaction (or dissatisfaction) on repurchase intentions. The research was comprised of a 2 (satisfaction after purchase: satisfaction versus dissatisfaction) ${\times}2$ (product benefit type: utilitarian benefit versus hedonic benefit) ${\times}2$ (hyperopic disposition: high versus low) model, designed with three mixed elements. The subject participants of this study were 168 female university students aged 20 to 29 from the Seoul, Gyeong-gi do, and Chung-cheong do areas. We performed a reliability analysis, T-test, and ANOVA using the SPSS statistic package. The results of this study are summarized as follows. In terms of product benefit that influences repurchase intention based on whether a consumer has experienced satisfaction after purchasing a fashion product, repurchase intention was high for hedonic benefits regardless of the level of satisfaction or dissatisfaction after a purchase. However, we found a significant difference in preference when the hyperopic disposition of a consumer was taken into account. When dissatisfied with a purchase, consumers with low levels of hyperopic disposition displayed higher repurchase intentions for the products of hedonic benefit than those of utilitarian benefits. However, when dissatisfied with a purchase, consumers with high levels of hyperopic disposition displayed low levels of repurchase intention regardless of the type of product benefit. When consumers are satisfied with a purchase, they are more likely to repurchase hedonic products than utilitarian products.

Effects of Loyalty Program Values of Beauty Services on Store Loyalty through Customer Satisfaction and Switching Barrier (미용 서비스의 로열티 프로그램 가치가 고객만족과 전환장벽을 통해 점포충성도에 미치는 영향)

  • Oh, Kyungsook;Kang, Eunmi;Park, Eunjoo
    • Fashion & Textile Research Journal
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    • v.18 no.5
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    • pp.617-624
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    • 2016
  • The purposes of this study was to investigate impacts of loyalty program value on store loyalty through customer satisfaction and switching barrier. This study suggests some basis about the direction guidance for successful store-running marketing activities and beauty service related researches. A total of 986 usable questionnaires were obtained from female adults of Busan. Data were analyzed by frequency analysis, correlation analysis, factor analysis using SPSS for Window 22.0 and confirmatory factor analysis and structural equation model analysis by AMOS 22.0. The results suggested that, loyalty program value benefits(hedonic benefits and utilitarian benefits) had positive effect on customer satisfaction, and loyalty program value costs(hedonic costs and utilitarian costs) had oppositive effect on customer satisfaction. The impact of hedonic benefits of the loyalty program values was the largest. Customer satisfaction and switching barrier directly affect store loyalty. The customer satisfaction affected the store loyalty indirectly but the direct effect was bigger.

Mixed Products: How Adding Different Attributes Influences Consumer Perceptions and Product Evaluation

  • Yi, Youjae;Muhn, Sunhee
    • Asia Marketing Journal
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    • v.15 no.1
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    • pp.83-105
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    • 2013
  • During recent decades, the number of mixed attribute products (henceforth mixed products), which have both utilitarian and hedonic benefits, has increased dramatically. Despite these products' growing popularity, academic research has paid little attention to them, and there remains a gap between theory and the real world. Hence, our study was undertaken to understand consumers' perceptions about and behaviors toward mixed products, as well as factors affecting the evaluation and choice of these products. We divided mixed attribute products into two categories: mixed utilitarian products (utilitarian products adding hedonic attributes) and mixed hedonic products (hedonic products adding utilitarian attributes). We then showed how adding different attributes affects consumers' perception, willingness to pay (WTP), and the choice of mixed attribute products compared to pure utilitarian or pure hedonic products. We conducted an experiment using a within-subject design. A total of 160 office workers and college students participated in the study. The pure utilitarian product used in the study was orange juice, and the mixed utilitarian product was carbonated orange juice. The pure hedonic product was chocolate, and the mixed hedonic product was polyphenol enriched chocolate. Results showed that consumers perceived a mixed utilitarian product to be less utilitarian, less pleasurable and more guilty than a pure utilitarian product. On the other hand, a mixed hedonic product was perceived to be more utilitarian, less pleasurable and less guilty than a pure hedonic product. Also, WTP for a mixed hedonic product was higher than WTP for a pure hedonic product, but WTP was lower for a mixed utilitarian product than for a pure utilitarian product. Furthermore, mixed hedonic products were likely to be evaluated more favorably when they were presented together with pure hedonic products, more so than when they were presented alone. Finally, when compared to low self-control participants, high self-control participants chose mixed hedonic products more frequently. The present study contributes to the existing literature on utilitarian and hedonic consumption by adding to the sparse literature on the consumption of products that have both utilitarian and hedonic purposes. Also, our research findings provide several useful implications for practitioners in related fields. First, the current study provides marketers with a useful guide for understanding consumers' perceptions of these types of products, and helps to predict how adding different attributes influences these products. Second, this study has examined the conditions that may moderate the evaluation and choice of hedonic base products and this finding will serve as a good reference for marketers of mixed hedonic products in marketing communication strategy, in-store marketing and targeting. Specifically, comparative advertising with a pure hedonic product will be beneficial for a mixed hedonic product. Also, displaying mixed hedonic products near pure hedonic products may enhance the effectiveness of in-store marketing of mixed hedonic products.

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A Study on the Perception of Credit Cards' Benefit and Risk and the Shopping Value Types among Korean Undergraduate Consumers (대학생의 쇼핑가치 유형과 신용카드의 혜택 및 위험 요인 지각에 대한 연구)

  • Hong Heeyoung;Doo Kyungja
    • Journal of Family Resource Management and Policy Review
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    • v.9 no.2
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    • pp.145-161
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    • 2005
  • This study was to examine whether the hedonic and utilitarian shopping values were expressed in shopping experience among the undergraduates and how the consumers with different shopping values vary in the perception of credit cards' benefit and risk. The 215 undergraduates in Seoul were surveyed. The results indicated that undergraduates were divided into hedonic shoppers and utilitarian shoppers according to their shopping value and that the perception of credit cards' benefit and risk was explained by the four factors including the increased cost, the removing the immediate need for money, the additional service and benefits, and the overspending and credit crime. The overspending and credit crime as one of the risk factors was affected by the types of shopping values.

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Effects of Benefit Sought of Food Products on Purchase Intention and WOM Intention on SNS - Focused on SNS WOM Information Characteristics as Mediator - (SNS 상에서의 외식상품 추구편익이 구매의도 및 구전의도에 미치는 영향 - SNS 구전정보 특성의 매개효과를 중심으로 -)

  • Han, Ji-Soo;Joung, Yang-Sik;Lee, Hyoung-Ju
    • Culinary science and hospitality research
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    • v.22 no.4
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    • pp.302-318
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    • 2016
  • The purpose of this study was to verify the effects of benefit sought of food products on SNS-WOM information characteristics, purchase intention, and SNS-WOM with regards to food products. In addition, the mediating role of SNS-WOM information characteristics was also examined. A survey was conducted from March 10th to 30th using an SNS based convenience sampling method. A total of 350 responses were collected, of which 326 were used for analysis, after excluding responses containing missing data. Multiple regression and hierarchical regression analyses were conducted to verify the hypotheses. The results from this study are as follows. First, it was found that diversity and utilitarian benefits of food products had a greater effect on consensus of SNS than the symbolic and experimental benefits. However, symbolic and experimental benefits of food products had a greater effect on neutrality of SNS than the diversity and utilitarian benefits. Second, only consensus of SNS-WOM information characteristics significantly impacted purchase intention of food products. Third, consensus of SNS-WOM information characteristics had a greater effect on SNS-WOM intention of food products than the neutrality of SNS-WOM information characteristics. Fourth, SNS-WOM information characteristics were found to mediate the relationship between benefit sought and purchase intention of food products. Fifth, SNS-WOM information characteristics were found to mediate the relationship between benefit sought and SNS-WOM intention of food products.

Importances of Smart Phone Attributes by Pursuit Benefits (추구편익에 따른 스마트폰 속성 중요도)

  • Kim, Mi-Ae;Joo, Young-Jin
    • The Journal of Society for e-Business Studies
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    • v.20 no.1
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    • pp.99-115
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    • 2015
  • This study aims to classify the pursuit benefits of smart-phone users, to find smart-phone market segments by pursuit benefits, and to analyze the relative importances of smart-phone attributes according to the smart-phone market segments. As a result, we found that smart-phone users are pursuing the network benefit as well as the two traditional benefits (the utilitarian benefit and the hedonic benefit). According to the levels of these three pursuit benefits, smart-phone users can be classified into four segments : All Benefits Cluster, Utilitarian-Network Benefits Cluster, Hedonic-Network Benefits Cluster, and Non-Network Benefits Cluster. We also verified that, according to the four smart-phone user segments by the pursuit benefits, there exist significant differences in relative importances of the seven smart-phone attributes : hand-set price, hand-set brand, hand-set speed, applications, tariff, mobile internet quality, and number of same service users.