The effects of promotions on hedonic versus utilitarian purchases

Abstract Because it is harder to justify hedonic purchases than utilitarian purchases, it is proposed that promotions will have a stronger positive effect on the purchase likelihood of hedonic than utilitarian products. This and related propositions are tested in multiple studies using a variety of product categories and promotions. The results demonstrate that promotions are more effective in driving purchase decisions when: (a) the product is hedonic rather than utilitarian; (b) the product is framed as more hedonic; and (c) the consumer has a hedonic rather than utilitarian consumption goal. Consistent with our conceptualization, the enhanced impact of promotions on hedonic purchases is attenuated when: (a) the hedonic product is intended as a gift for others; (b) consumers can construct justifications for their purchase ahead of time; (c) consumers are not accountable for their decisions; and (d) the promotion is contingent on purchasing additional product units (i.e., a quantity discount like “Buy 10, get 50% off”). Importantly, the present research reconciles and explains the seemingly inconsistent prior findings regarding the effects of price versus quantity promotions.