𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Design for synergy with brand or price information

✍ Scribed by Ravindra Chitturi; Pallavi Chitturi; Damaraju Raghavarao


Book ID
102494226
Publisher
John Wiley and Sons
Year
2010
Tongue
English
Weight
145 KB
Volume
27
Category
Article
ISSN
0742-6046

No coin nor oath required. For personal study only.

✦ Synopsis


Abstract

Customers' preference for the hedonic benefits (e.g., aesthetics) and utilitarian benefits (e.g., functionality) offered by a product varies depending on the contextβ€”buying versus selling, and choice versus willingness‐to‐pay. However, a customer's preference formation could involve brand information or price information in addition to the benefits offered by the product. It is unclear how the consideration of brand or price information influences customers' relative preference for hedonic and utilitarian product benefits. Does this information alter preference in favor of a product that offers greater utilitarian or greater hedonic benefits, and why? The results show that (1) hedonic (utilitarian) attributes have a significantly stronger influence on consumer preference when accompanied by a strong (weak) versus a weak (strong) brand; and (2) in the presence of price information, hedonic attributes have a dominant influence on consumer preference compared to in the absence of price information. The article concludes with a discussion of the theoretical contributions and managerial implications of design for synergy with brand or price information. Β© 2010 Wiley Periodicals, Inc.


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