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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.
Keywords: hedonic value, utilitarian benefit, self-image congruence, perceived quality, integrated product, integrated features, willingness to pay a price premium, moderated mediation
INTRODUCTION
Our contemporary marketplace is characterized by products that not only offer functional values but also emphasize experiential and emotional appeals to create more meaningful experiences with and for consumers (Ebrahim et al., 2016; Pina & Dias, 2021). For example, electronic products (e.g., smartphones) often offer the hybridity of both functional and emotional appeals. The hybridity of integrated capabilities includes productivity functionality (e.g., organization tools such as calendar, contacts, file, and folder system), connectivity functionality (e.g., chat, messaging applications, navigation applications), and entertainment functionality (e.g., games, drawing applications). Furthermore, with the advancement of artificial intelligence (AI) and Web3, integrated and multi-faceted functionality is further enhanced in smartphones, including mobile payment, voice assistant, translation, and facial recognition. These integrated multi-functional products-products possessing features that cut across more than one product category (Rajagopal & Burnkrant, 2009)-mean that consumers do not need to own, and carry, multiple devices to accomplish a myriad of activities.
Yet, integrated products are marketed with varied levels of hybridity and are positioned differently at varied degrees of 'work' versus 'play' orientation. Manufacturers and brands may emphasize and deliberately communicate different levels of utilitarian and hedonic benefits to customers. For consumers, the multitude of attributes and functions included in an integrated product often leads to...