Adding fun or function: Considering new product formulations for market expansion with a focus on hangover solutions

Abstract

This article aims to investigate the relationship between product formulations and consumers' willingness to buy (WTB), with the moderating role of the consumption situation. A 2 (utilitarian formulation vs. hedonic formulation) Â 2 (unjustifiable situation vs. justifiable situation) between-subjects design was constructed, and two specific formulations (pills and ice cream) were selected to represent a utilitarian formulation and hedonic formulation, respectively. Then, the hangover solution-consumption-situation was manipulated by varying drinking occasions. The results show that to strengthen the consumers' WTB a utilitarian product with such hedonic characteristics, consumers' justification process associated with hedonic consumption must be facilitated. This study is one of the first to address the notion that formulation differentiation can be a viable strategy in adding new features to a product.