Abstract

Users seek a more complete experience with software products, an experience that not only achieves well-defined goals, but also involves the senses and generates affective response. There is therefore a need to develop product characteristics that provide both instrumental and hedonic value to users of even utilitarian software products. But software product development organizations will be motivated to provide these features only if enhances business outcomes such as User Loyalty (UL) and positive Word-of-Mouth (WOM). Keeping this context in view, this study investigates how utilitarian product characteristics, as measured by perceived usefulness, and hedonic product characteristics, that generate perceived enjoyment and playfulness, impact UL and WOM. The results of the study show that hedonic and utilitarian product characteristics have distinctive impacts on UL and WOM with hedonic characteristics positively and significantly impacting WOM while utilitarian characteristics positively and significantly impacting UL. The reasons for this rather unexpected findings are discussed.

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