Finding the Apple of My Eye: Categorization and Satisfaction from Hedonic Consumption

Abstract

The categorization of choice sets often allows for the matching of preferences, thereby increasing outcome satisfaction, reducing satiation, boosting consumption level, and driving in-store traffic. I apply the understanding of categorization to hedonic goods, and examine its effects on consumers’ satisfaction from making hedonic versus utilitarian choices. I find that participants who hypothetically purchased a cup of coffee for a hedonic (vs. utilitarian) purpose indicated more reasons for their purchase, were willing to pay more money, and were more satisfied when they made their choice from a menu of 18 blends under six than no categories. These findings suggest that the structure of choice sets can influence satisfaction from hedonic but not utilitarian consumption, offering new perspectives on the benefits of categorization to particular consumer goods in today’s marketplace.