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Millennials' preference of hedonic value over utilitarian value: Evidence from a developing country
Author(s) -
Alam Mirza Mohammad Didarul,
Babu Mujahid Mohiuddin,
Noor Nor Azila Mohd,
Rahman Syed Abidur,
Alam Mohammad Zahedul
Publication year - 2020
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2380
Subject(s) - value (mathematics) , loyalty , consumption (sociology) , context (archaeology) , marketing , preference , economics , perception , developing country , willingness to pay , business , advertising , microeconomics , sociology , psychology , economic growth , paleontology , social science , machine learning , neuroscience , computer science , biology
The philosophy of a free‐market economy has encouraged enormous consumption, which has redefined the customers' perception of value (hedonic and utilitarian) and loyalty even in a developing country. To maximize their consumption level, customers, in many instances, prefer hedonic value to utilitarian value and demonstrate limited loyalty to any brand. This study investigated the Millennials customers' preference between hedonic value and utilitarian value and its impact on loyalty, in the context of a developing country which adopts a combination of capitalist and control economy. Data were collected from customers from the retail industry and were analyzed with PLS‐SEM technique. The findings suggest that, in the developing economy, Millennials prefer hedonic consumption value, which is related to their loyalty and corporate image of the store.