Millennials' preference of hedonic value over utilitarian value: Evidence from a developing country

Mirza M Didarul Alam, Mujahid Mohiuddin Babu, Nor Azila M Noor, Syed A Rahman, Mohammad Zahedul Alam

Research output: Contribution to journalArticlepeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)649-663
Number of pages15
JournalStrategic Change
Volume29
Issue number6
DOIs
Publication statusPublished - 15 Nov 2020

Keywords

  • capitalist economic system
  • customer loyalty
  • hedonic value
  • millennials
  • utilitarian value

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Finance

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