Consumers’ Willingness to Pay a Price Premium for Integrated Products: A Moderated Mediation Model of Hedonic Value and Perceived Quality
DOI:
https://doi.org/10.33423/jmdc.v18i3.7153Keywords:
marketing, development, hedonic value, utilitarian benefit, self-image congruence, perceived quality, integrated product, integrated features, willingness to pay a price premium, moderated mediationAbstract
Consumers are increasingly attuned to integrated products, packed with myriad functionality for ‘work’ and ‘play.’ Consumers may evaluate these integrated offerings along the dimensions of hedonic versus utilitarian values, and these products’ communication messaging and positioning may emphasize either the hedonic or utilitarian features. The present research examines the role of perceived hedonic vs. utilitarian values of integrated products vis-à-vis self-image congruence and perceived quality on consumers’ willingness to pay a price premium for these integrated offerings. Using empirical data from two studies, the results show that self-image congruence and willingness to pay a price premium exhibit a positive relationship that is mediated by perceived quality, and the strength of the mediated link varies by the levels of perceived hedonic vs. utilitarian value an individual places on an integrated product. The findings contribute to understanding the antecedents of consumers’ willingness to pay premium prices for integrated offerings.
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