Effect of consumers’ materialistic values on consumption guilt as reflected in price preferences

Abstract

ABSTRACT While simplistic arguments portend a possible relationship between consumers’ materialistic values and consumption guilt, empirical evidence in this regard, however, remains equivocal at best. In this paper, we address this issue by establishing the effect of materialism on consumption guilt – delimited by regulatory influence (promotion/prevention) – as reflected in consumers’ relative preferences for structurally distinct but financially equivalent price alternatives. Specifically, we conduct an experiment with consumers’ trait materialistic values, measured as a continuous variable, as an independent variable, with extraneous social influence as a two-level (promotion/prevention) manipulated moderator, consumption guilt as the mediating variable, and consumers’ relative price preference (as mentioned above) as the dependent variable of choice. Subsequently, we conduct a regression analysis, followed by a floodlight analysis, and, a series of mediation analyses, including a mediated moderation analysis, in establishing the effect of materialism on consumption guilt. Our results indicate that consumers higher/lower in materialism, both experienced consumption guilt. Subsequently, these consumers mitigated consumption guilt by preferring the price structure that best allowed them to do so in consummating the purchase of a new product – the mediating effect of consumption guilt. Our findings imply indirect price-discrimination opportunities for sellers, wherein demand for products increases as consumers (self) mitigate consumption guilt through price preferences, irrespective of their dominating materialistic tendencies. In summary, herein, we empirically establish the long-conjectured relationship between materialism and consumption guilt, unequivocally, both for consumers high, or low, in materialism.