How do utilitarian versus hedonic products influence choice preferences: Mediating effect of social comparison

Abstract

AbstractThe present research explores how product type influences the trade‐off between relative and absolute best choice. We measure consumers' choice preferences and willingness to pay in five studies by manipulating different utilitarian versus hedonic products or different utilitarian versus hedonic goals of the same product. The results demonstrate that consumers prefer the absolute best choice for hedonic products and the relative best choice for utilitarian products (Studies 1a and 1b). When choosing a hedonic product, consumers are willing to pay significantly more for absolute than relative best choice. However, when choosing a utilitarian product, consumers are willing to pay more for the relative than absolute best choice, but the differences are not significant (Studies 2 and 3). Social comparison mediates the relationship between product type and choice preference. Specifically, compared to hedonic products, social comparison increases the relative best choice preference of utilitarian products (Study 4). Moreover, rivals moderate the effect of product type on choice preference (Study 5). The theoretical implication includes demonstrating the comparative advantage of product type on choice preference and interpreting the underlying mechanisms using social comparison. The findings also have important practical implications for utilitarian and hedonic consumption.