To Hold Me Is to Love Me: the Role of Touch in the Endowment Effect

Suzanne Shu, SMU Cox School of Business, USA
Joann Peck, University of Wisconsin-Madison School of Business, USA
We investigate the role of physical touch in the endowment effect – namely, whether physical characteristics of a product (i.e., whether it is fun-to-touch), along with individual differences in preference for touch, moderate the effect’s size. Sellers who are able to touch endowed items assign a higher selling price than those who don’t, suggesting that physical touch does play an important role in endowment. Analysis of both item characteristics and participants’ responses to the Need for Touch (NFT) scale suggest that it is the sensory experience associated with fun-to-touch items that supports this increase in valuation.
[ to cite ]:
Suzanne Shu and Joann Peck (2007) ,"To Hold Me Is to Love Me: the Role of Touch in the Endowment Effect", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 513-514.