Finding the Apple of My Eye: Categorization and Satisfaction from Hedonic Consumption

25 Pages Posted: 14 Mar 2010

See all articles by Eugene Y. Chan

Eugene Y. Chan

University of Technology, Sydney

Date Written: March 13, 2010

Abstract

The categorization of choice sets often allows for the matching of preferences, thereby increasing outcome satisfaction, reducing satiation, boosting consumption level, and driving in-store traffic. I apply the understanding of categorization to hedonic goods, and examine its effects on consumers’ satisfaction from making hedonic versus utilitarian choices. I find that participants who hypothetically purchased a cup of coffee for a hedonic (vs. utilitarian) purpose indicated more reasons for their purchase, were willing to pay more money, and were more satisfied when they made their choice from a menu of 18 blends under six than no categories. These findings suggest that the structure of choice sets can influence satisfaction from hedonic but not utilitarian consumption, offering new perspectives on the benefits of categorization to particular consumer goods in today’s marketplace.

Keywords: Choice, Categorization, Satisfaction, Hedonism, Utilitarianism, Pricing

JEL Classification: Z00

Suggested Citation

Chan, Eugene Y., Finding the Apple of My Eye: Categorization and Satisfaction from Hedonic Consumption (March 13, 2010). Available at SSRN: https://ssrn.com/abstract=1570323 or http://dx.doi.org/10.2139/ssrn.1570323

Eugene Y. Chan (Contact Author)

University of Technology, Sydney ( email )

P. O. Box 123
Broadway, NSW 2007
Australia
+61 (2) 9514 3538 (Phone)
+61 (2) 9514 3535 (Fax)

HOME PAGE: http://www.ehchan.com

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