Probability and Mode of Acquisition Effects on Choices between Hedonic and Utilitarian Options
Marketing Letters, Vol. 12, No. 1, pp. 37-49, 2001
13 Pages Posted: 19 Dec 2010
Date Written: 2001
Abstract
We examine the effects of probability and mode of acquisition on choices between hedonic and utilitarian alternatives. The results suggest that the lower the probability of receiving the selected item, the more likely individuals will be to choose the more hedonic alternative in a choice set. Mode of acquisition (i.e., whether subjects are choosing in a windfall or a standard purchase situation) is also found to affect preferences, even when probability of acquisition is held constant. Hedonic options appear to be more popular as prizes than as purchases, whereas utilitarian options appear to be more popular as purchases than as prizes.
Keywords: consumer choice, hedonic consumption, behavioral decision theory, anticipation
JEL Classification: M30, M31, M37, M39
Suggested Citation: Suggested Citation
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