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Digital Goods are Valued Less than Physical Goods

62 Pages Posted: 25 Sep 2017  

Ozgun Atasoy

University of Basel - Faculty of Business and Economics

Carey K Morewedge

Boston University, Questrom School of Business

Date Written: September 22, 2017

Abstract

Digital goods are, in many cases, substantive innovations relative to their physical counterparts. Yet, in five experiments, people ascribed less value to digital than to physical versions of the same good. Research participants paid more for, were willing to pay more for, and were more likely to purchase physical goods than equivalent digital goods, including souvenir photographs, books (fiction and nonfiction), and films. Participants valued physical goods more than digital goods whether their value was elicited in an incentive compatible pay-what-you-want paradigm, with willingness to pay, or purchase intention. Greater capacity for physical than digital goods to garner an association with the self (i.e., psychological ownership), underlies the greater value ascribed to physical goods. Differences in psychological ownership for physical and digital goods mediated the difference in their value. Experimentally manipulating antecedents and consequents of psychological ownership (i.e., expected ownership, identity-relevance, perceived control) bounded this effect, and moderated the mediating role of psychological ownership. The findings show how features of objects influence their capacity to garner psychological ownership before they are acquired, and provide theoretical and practical insights for the marketing, psychology, and economics of digital and physical goods.

Keywords: digital goods, value, psychological ownership, perceived control

JEL Classification: A, G, M, O

Suggested Citation

Atasoy, Ozgun and Morewedge, Carey K, Digital Goods are Valued Less than Physical Goods (September 22, 2017). Journal of Consumer Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3041331

Ozgun Atasoy

University of Basel - Faculty of Business and Economics ( email )

Petersplatz 1
Basel, 4001
Switzerland

Carey Morewedge (Contact Author)

Boston University, Questrom School of Business ( email )

595 Commonwealth Ave
614, Marketing Department
Boston, MA 02215
United States

HOME PAGE: http://careymorewedge.com

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