Millennials' preference of hedonic value over utilitarian value: Evidence from a developing country

Abstract

The philosophy of a free‐market economy has encouraged enormous consumption, which has redefined the customers' perception of value (hedonic and utilitarian) and loyalty even in a developing country. To maximize their consumption level, customers, in many instances, prefer hedonic value to utilitarian value and demonstrate limited loyalty to any brand. This study investigated the Millennials customers' preference between hedonic value and utilitarian value and its impact on loyalty, in the context of a developing country which adopts a combination of capitalist and control economy. Data were collected from customers from the retail industry and were analyzed with PLS‐SEM technique. The findings suggest that, in the developing economy, Millennials prefer hedonic consumption value, which is related to their loyalty and corporate image of the store.

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“…That is why they suggested using the attitudinal approach because it can represent consumers' psychology and emotional commitment well (Mohd Thas Thaker et al, 2019). Through an attitudinal approach, researchers can determine the resilience of consumers in choosing a product where the consumer does not change his choice even though other products have more competitive quality (Alam et al, 2020). This study agreed on the integration of the two approaches in observing consumer loyalty.…”

Would Travel Experiences or Possessions Make People Happier?

“…Overall, the three studies suggest that tourism experiences are generally the preferred consumption to possession, given its potential to boost eudaimonic happiness even in the absence of an explicit eudaimonic motive. Tourism thus presents a greater likelihood of generating more happiness than possessions when more consumptions in the modern times are driven by hedonic rather than eudaimonic reasons (Alam et al 2020; Ali, Li, and Hussain 2020; Subawa et al 2020). The potentially greater effectiveness of explicit eudaimonic motives in boosting overall happiness (H1, H3-4), further implies that consumption including tourism experiences may generate greater eudaimonia and overall happiness if driven by explicit eudaimonic motives.…”

“…Also, this study enriches the general consumption research (e.g., Bhattacharjee and Mogilner 2014; Guevarra and Howell 2015; Van Boven, Campbell, and Gilovich 2010) by shedding light on an important mechanism that helps identify types of experiences that can generate greater overall happiness. Its potential benefit for the public is salient, given its promises of identifying a broader scope of consumption with eudaimonic orientation amid the prevalence of hedonic consumption in modern society (Alam et al 2020; Ali, Li, and Hussain 2020; Subawa et al 2020).…”

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