Experiential Goods Research Articles

Cognitive and affective reflection increases appreciation for less preferred subcategories of experiential goods.

Attitudes, particularly negative attitudes toward experiential goods, are difficult to change. As a result, people tend to choose and consume experiential goods from their preferred subcategory (e.g., prefer impressionist art so primarily choose to view impressionist paintings) while disregarding options from less preferred subcategories (e.g., ignore cubist or surrealist paintings). This research investigates the consequences of reflection while consuming experiential goods from less preferred subcategories. Namely, an initial, negative reflexive response can be overridden by a reflective appraisal which increases appreciation for experiential goods from less preferred subcategories. Six studies show how a reflective appraisal differs from a reflexive response (i.e., a reflective appraisal has more cognitive and affective thoughts than evaluative thoughts, respectively), that reflective appraisals can supplant reflexive responses to experiential goods in less preferred subcategories, and that reflective appreciation training encourages reflective appraisal. A reflective appraisal improves the intent to consume, enhances appreciation of the consumption, and increases the consumption of novel experiential goods in less preferred subcategories.

중고거래 플랫폼에서의 소유효과에 관한 연구

The purpose of this study is to examines how the endowment effect in second-hand trading platforms differs depending on product type and materialism. We classified into products into material goods and experiential goods, and predicted that the endowment effect would be greater in experiential goods than in material goods. In addition, unlike experiential goods, in material goods, it is expected that the endowment effect would vary depending on materialism.
 To test our hypotheses, a total of 312 people were surveyed online. The results showed that the gap between willingness to accept(WTA) and willingness to pay(WTP) for experiential goods was larger than the gap between WTA and WTP for material goods. In other words, it was confirmed that the endowment effect is greater in experiential goods than in material goods. However, it was found that the endowment effect on material goods did not vary depending on materialism, and therefore, the impact of materialism on the endowment effect could not be confirmed.

The Effect of Power Distance Belief on the Evaluation of Experiential and Material Purchases

Depending on the level of power distance belief (PDB), individuals have different motivations to compare themselves with other people. This study suggests that the relationship between purchase type (material versus experiential) and purchase evaluation is moderated by PDB. Furthermore, the effect of purchase type and PDB on purchase evaluation is mediated through comparison motivation. To investigate the effect of PDB on the evaluation, we conducted two experiments by manipulating a 2 (purchase type: material vs. experiential purchase) × 2 (PDB: low vs. high) between-subjects design. In the case of experiential purchases, individuals with high PDB exhibit lower purchase evaluations than those with low PDB, as they are more inclined to compare these with other experiential goods (study 1). Conversely, under material purchases, the impact of PDB on purchase evaluation does not differ as material purchases already motivate individuals to compare other material goods (study 1). Additionally, individuals with high PDB are more motivated to compare purchases due to their greater need for structure (study 2). Our findings provide guidelines for the development of advertising strategy with social networking services and live-streaming commerce platforms.

Online group buying behavior: A study of experiential versus material purchases

AbstractMore than 50 million consumers participate in online group buying, hence its importance to retailers cannot be ignored. Four studies are conducted to determine (a) whether customers' preferences to participate in group buying relative to buying alone are more in the case of experiential (vs. material) purchases; (b) underlying psychological mechanisms affecting an individual's willingness to invite additional buyers; and (c) the moderating role of analytic versus holistic thinking orientation within the mediational framework. Consistent with expectations, preferences to invite additional buyers to receive a further discount (vs. buying alone and taking the deal‐of‐the‐day) were greater for experiential purchases than material purchases. Three psychological motivators, namely social relatedness, conversational value, and anticipatory enjoyment, act as parallel mediators. Finally, moderated‐mediation analysis shows holistic thinking accentuates the mediational pathway of anticipatory enjoyment but not for social relatedness, whereas analytical thinking accentuates the mediational pathway of conversational value. Of practical relevance to those designing group buying websites is that offering an additional discount to buyers if they are willing to expend the effort to form a larger group not only reduced the number of individuals indicating that they would not make a purchase at all, but about a quarter of respondents indicated that they would endeavor to find additional buyers. In addition, there is a clear preference for experiential goods; and for material goods, the findings suggest drawing attention to the experiences that material goods offer.

Less than Zero?

Adequate theories of well-being must also explain ill-being. While it is formally possible to explain ill-being without postulating robust bads, certain experiential states do qualify as robust bads and thus require theoretical recognition. Experiential bads are recognized by some hedonists, experientialists, and pluralists, but these theories face well-known difficulties. This paper considers whether perfectionist and value-fulfillment accounts of well-being can accommodate such bads. Perfectionists might propose that we all have the avoidance of negative experiential states as a standing end, so that failure to avoid them is robustly bad. This view is unacceptable. A version of the value-fulfillment theory can instead say that such experiential states are intrinsically aversive, so that enduring them represents diminished agential functioning. After explaining this version of the value-fulfillment theory, this paper considers possible objections to it relating to “hurts so good” experiences, appropriate negative emotions, and the aggregative value of experiential goods.

Find me strength in things: Fear can explain materialism

AbstractIndividuals feel fear when they face potential dangers and threats. It causes individuals to take actions and make choices that help them face the threat, such as by seeking out others because there is “strength in numbers.” We conjecture that fear also increases materialism in individuals because there is “strength in things.” The results from four experiments illustrate that situationally felt fear can increase materialistic orientation (Study 1) because of a desire for safety (Study 2). Importantly, fear increases preference for material and not experiential goods (Study 3). Finally, consistent with our theoretical account, having more material products (vs. experiences) can reduce fear (Study 4). Together, our findings across four studies suggest that fear increases materialism. Our findings also offer unique insights into another precursor or antecedent to materialism, a human value related to both possessiveness and selfishness and that restricts individuals' pursuit of true happiness.

Interest-Free Financing Promotions Increase Consumers’ Demand for Credit for Experiential Goods

This research provides a first investigation into how interest-free financing promotions influence consumer behavior. Five experiments demonstrate that framing an economically equivalent financing offer in a way that makes salient that it is interest-free increases consumers’ demand for credit to finance experiential, but not material goods. This increased willingness to finance manifests for primarily experiential goods (e.g., vacations), goods with mixed benefits (e.g., bike) if their experiential aspects are highlighted, and mixed shopping baskets that provide primarily experiential benefits. Using mediation and moderation, the results suggest that this occurs because interest-free cues mitigate feelings of debt aversion for experiential purchases. Based on our findings, we highlight public policy and managerial implications.

Evolution of Consumption: A Psychological Ownership Framework

Technological innovations are creating new products, services, and markets that satisfy enduring consumer needs. These technological innovations create value for consumers and firms in many ways, but they also disrupt psychological ownership––the feeling that a thing is “MINE.” The authors describe two key dimensions of this technology-driven evolution of consumption pertaining to psychological ownership: (1) replacing legal ownership of private goods with legal access rights to goods and services owned and used by others and (2) replacing “solid” material goods with “liquid” experiential goods. They propose that these consumption changes can have three effects on psychological ownership: they can threaten it, cause it to transfer to other targets, and create new opportunities to preserve it. These changes and their effects are organized in a framework and examined across three macro trends in marketing: (1) growth of the sharing economy, (2) digitization of goods and services, and (3) expansion of personal data. This psychological ownership framework generates future research opportunities and actionable marketing strategies for firms aiming to preserve the positive consequences of psychological ownership and navigate cases for which it is a liability.

Digitally forecasting new music product success via active crowdsourcing

Deciding which artist or song to sign and promote has always been a challenge for recording companies, especially when it comes to innovative newcomer singers without any chart history. However, the specifics of a creative industry such as the hedonic nature of music, socio-network effects, and ever fastening fashion cycles in combination with digitalization have made the recording industry even more competitive and these initial decisions even more crucial. With respect to the ongoing digital transformation and shift in power from organizations to consumers, we leverage digitally mediated wisdom of the crowd to build a forecasting model for better understanding chart success. Therefore, we draw on the literature of hedonic and experiential goods to investigate the relationship between crowd evaluations based on listening experience and popular music chart success. We track 150 song positions in reported music charts and also evaluate these songs via the crowd. Our model indicates that the wisdom of the crowd can improve forecasting chart success by almost 30% relatively to factors that have been earlier identified in the literature. However, this forecasting relevance is bound to certain conditions, namely the composition of the crowd, the underlying chart and market mechanisms, and the novelty of the musical material. In sum we find that crowd-based mechanisms are especially suited to forecast the performance of novel songs from unknown artists, which makes them a powerful yet very affordable decision support instrument for very uncertain contexts with limited historical data available. These findings can support recording companies to address the challenge of signing newcomers and thereby further enable the innovation system of the industry.

트위터 데이터 분석을 통한 고객관점 선행지표에 관한 연구

The purpose of this study is to analyze the happiness and perceived value of experiential goods in order to grasp the characteristics of the leading indicators of customer perspective. Data collected 26,364 Twitter dessert data from July 8, 2018 to July 16, 2018. Data analysis used text mining, sentiment analysis, and social network analysis.BR The results of this study are as follows. First, the emotional value of experiential goods showed 90.2% positive emotions and 9.8% negative emotions. Second, the informative value of experiential goods shows that various information related to dessert is obtained through Twitter. Third, the social value of experiential goods was found to be 8,821 participants in the study period, but the relationship among participants was not high and the top 10 participants were influential to people as dessert opinion leaders.BR This study is meaningful in that it provides detailed information and analysis method on perceived value as a leading indicator of Customer perspective.

A Post-Purchase Satisfaction of Skin Care Cosmetics Depending on a Pre-Purchase Utilization of Information Sources among Consumers in Their 20s

Cosmetics market information is important due to advances in information communication technology and the growth of cosmetics market. This study analyzed the relationship between the pre-purchase utilization of information (commercial, neutral, personal and experiential) and the post-purchase satisfaction of skin care cosmetics, categorized as functionality, safety, economic feasibility, information reliability, purchase convenience, condition of purchase place, packaging/design of product and service. This study analyzed reliability, frequency, differences, correlation and regression analysis using SPSS ver. 24.0. The study results are summarized as follows. First, gender was a significant variable in the level of information source utilization. Women used commercial, neutral, and experiential information sources more actively than men. However, women had lower post-purchase satisfaction that could be understood through expectation disconfirmation theory. Women have very high expectations that can lower post-purchase satisfaction. Second, information source utilization can improve post-purchase satisfaction for cosmetics. The consumer post-purchase satisfact the lowest in the commercial information source; however, consumers were satisfied when the commercial informationinformation sourceenon and regre. Third, the consumeried itnformation sourceenon and regression analysis ial, neutral,source and reflected the characteristics of experiential goods. Therefore, companies should provide accurate commercial, personal and experiential information to increase consumervide accurate commercial, per as well as conduct experiential marketing Keywords: skin care cosmetics, pre-purchase utilization, information source, post-purchase satisfaction

CONSPICUOUS CONSUMPTION OF ONLINE SOCIAL NETWORKING DEVICES AND SUBJECTIVE WELL-BEING OF BANGKOKIANS

Empirical evidence of the conspicuous consumption theory is limited and ambiguous. It has been shown, however, that the consumption of life experiences makes people happier than the consumption of material goods. Yet, these studies typically conduct dichotomous comparisons and do not distinguish between conspicuous and inconspicuous consumption. Conspicuous and inconspicuous online social networking devices (OSND) are experiential goods and as such fall between life experiences and material goods. The objective of this paper, thus, is to examine the relationship between conspicuous consumption of OSND and subjective well-being, which is proxied by happiness and mental health. Cross-sectional data ([Formula: see text]) were collected in 2015 using probability sampling. The ordered logistic regression results reveal that conspicuous consumption of OSND is negatively related with happiness and mental health in all regressions as hypothesized, while the coefficient on inconspicuous consumption of OSND is positive. Also, the number of virtual friends is negatively associated with happiness. Among the control variables, it is noteworthy that respondents with high blood pressure, used to capture physical health, have lower happiness and mental health, while respondents with higher education and high own monthly income exhibit higher happiness and mental health. Respondents, whose personality can best be characterized as “agreeable”, have lower happiness and mental health which is in line with the old saying that “nice guys finish last”.

Hans Jonas, Brave New World, and Utopian Business Ethics

This essay explores ways a shift in focus from material to experiential consumption might address the criticisms of industrialization made by Hans Jonas and Aldous Huxley. Hans Jonas argued that the extent to which the market economy drives humans to manufacture material goods is causing us to produce pollution at levels that will make humans go extinct. He concluded we will need to be such cuts in material production that future generations will sacrifice much happiness. Huxley on the other hand, criticized industrialization because it focuses consumers on material goods and away from more personally enriching experiences. Yet, research in the business scholarship indicates experiences make consumers happier than material items, and that consumers will spend money for this utility. This suggests that a reduction in pollution may be obtainable without sacrifice by altering the extent to which the economy markets experiential goods in contrast to material items.

The Shopping Mall Of The Customer Experience Future

Shopping malls are experiencing a significant decline in both shoppers and transactions. The challenge is that there are better options now available through big box stores and on-line shopping. Some mall operators are experimenting with mall customer experience strategies to overcome these limitations. Shopping malls are adding non-retail experiences such as live concerts and even roller coasters. Newer innovations combine co-working spaces for startup companies with new ideas and complementary pop-up store space for them to try out their new products and services in an ecologically valid environment with real customers. This is most effective with experiential goods that include apps, apparel, and food products. This talk will present a variety of ideas and cases outlining the critical importance of customer experience for this model and for the future of shopping malls.

The Recipe for the Perfect Review?

Online product reviews, originally intended to reduce consumers’ pre-purchase search and evaluation costs, have become so numerous that they are now themselves a source for information overload. To help consumers find high-quality reviews faster, review rankings based on consumers’ evaluations of their helpfulness were introduced. But many reviews are never evaluated and never ranked. Moreover, current helpfulness-based systems provide little or no advice to reviewers on how to write more helpful reviews. Average review quality and consumer search costs could be much improved if these issues were solved. This requires identifying the determinants of review helpfulness, which we carry out based on an adaption of Wang and Strong’s well-known data quality framework. Our empirical analysis shows that review helpfulness is influenced not only by single-review features but also by contextual factors expressing review value relative to all available reviews. Reviews for experiential goods differ systematically from reviews for utilitarian goods. Our findings, based on 27,104 reviews from Amazon.com across six product categories, form the basis for estimating preliminary helpfulness scores for unrated reviews and for developing interactive, personalized review writing support tools.

A Review of the Relationship between Subjective Well-Being and Consumption

One of the determinants that most happiness economists concentrate on is income. There are not many of prior research studies on the linkages between consumption and subjective well-being (SWB). The objective of this paper is to review and to bridge a gap in the literature on the relationship between consumption and an individual’s SWB. It is commonly accepted that consumption increases an individual’s well-being. However, does consumption really increase an individual’s subjective well-being (SWB)? It focuses on papers that have been published in international journals since 1990 both in the area of economics and psychology. This paper also discusses the reasons why consumption is selected as a proxy, instead of income. Consumption in this paper specifically emphasizes on material goods and experiential goods. There are some interesting findings. Material goods deliver comfort which is temporary and fades with time. It only increases SWB in the short term. An individual adapts to the gain from material goods through time. On the other hand, experiential goods deliver pleasure. Experiential goods provide more SWB than material goods because of three reasons. The first reason is that experiences are less likely to disadvantageous comparisons, or social comparison. The second reason is that experiential goods are less possible to adapt through time. The final reason is that experiential goods are more likely to continually fascinate and provide satisfaction. As a result, it is suggested that an individual should spend money on experiential goods rather than material goods.

Brueckner and Fischer on the Evil of Death

A primary argument against the badness of death (known as the Symmetry Argument) appeals to an alleged symmetry between prenatal and posthumous nonexistence. The Symmetry Argument has posed a serious threat to those who hold that death is bad because it deprives us of life’s goods that would have been available had we died later. Anthony Brueckner and John Martin Fischer develop an influential strategy to cope with the Symmetry Argument. In their attempt to break the symmetry, they claim that due to our preference of future experiential goods over past ones, posthumous nonexistence is bad for us, whereas prenatal nonexistence is not. Granting their presumption about our preference, however, it is questionable that prenatal nonexistence is not bad. This consideration does not necessarily indicate their defeat against the Symmetry Argument. I present a better response to the Symmetry Argument: the symmetry is broken, not because posthumous nonexistence is bad while prenatal nonexistence is not, but because (regardless as to whether prenatal nonexistence is bad) posthumous nonexistence is even worse.

Experiential Goods and Customer Satisfaction: An Application to Films

The aim of this paper is to develop an instrument to measure customer satisfaction with reference to the entire consumption experience of an experiential product, with specific application to cinema films. Experience is defined as a new dimension of product offer: a combination of goods and services enriched by sensations. Experiential marketing has innovative features, with effects on all phases constituting a consumption experience. The research looked for important aspects in the consumption process related to satisfaction by means of a literature review and an exploratory survey. A list of items was tested on a sample population and the scale was evaluated for validity and reliability, with satisfactory results.

Experiential goods with network externalities effects: An empirical study of online rating system

This paper uses online users' reviews and sales information from May 2003 to March 2007 to study a new experiential product: online video game (or virtual world). The results suggest that, first of all, for a hedonic product such as an online video game, the availability of online review system could not fully transform experience attributes into search attributes. The empirical study confirms that negative word-of-mouth has more significant impact than positive reviews. The study empirically verifies that the existence of direct network externalities (i.e. a product's value increases when more consumers join the network) is crucial for a hedonic product. The size of the user base signals the quality of the game, and works like a search attribute for potential users. A large user base will reduce the negative impact from unfavorable reviews.

Complementing consumer magazine brands with internet extensions?

PurposeThe purpose of this paper is to increase understanding of the effects of web site extension on the parent‐magazine brand in the context of experiential goods, and to identify factors that are related to success.Design/methodology/approachThe paper focuses on the relationship between consumers' experiences on magazine web sites and their loyalty towards the print magazine.FindingsThere are different ways in which the web site can complement the print version. The first mechanism is related to engaging in more frequent communication with the magazine's readers, and the second is related to consumer‐initiated interaction between other readers. In both cases something is offered that cannot be obtained from the print magazine, but is assumed to complement it.Originality/valueThe paper increases understanding of brand extensions with regard to experiential goods, but more research is needed on the factors that are related to extension success.