Choosing an Experience Over a Product: Uncertainty, Holistic Processing, and Price Sensitivity

How do consumers choose between a product and an experience? We propose that consumers’ evaluation of experiences is uncertain and that this has important consequences in choice behavior. Specifically, participants who process analytically choose an experience over a product more often when its price increases. This is because they rely on price as a quality cue for experiences, but not for products. Also, we find that holistic processing is more compatible with experiences, compared to products. Finally, participants who access more attribute information do not feel more confident in their evaluation of an experience, while they do for a product.



Citation:

Inigo Gallo and Sanjay Sood (2012) ,"Choosing an Experience Over a Product: Uncertainty, Holistic Processing, and Price Sensitivity", in NA - Advances in Consumer Research Volume 40, eds. Zeynep Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 1073-1074.

Authors

Inigo Gallo, UCLA, USA
Sanjay Sood, UCLA, USA



Volume

NA - Advances in Consumer Research Volume 40 | 2012



Share Proceeding

Featured papers

See More

Featured

O11. Have Less, Compromise Less: How the perception of resource scarcity influences compromise decisions

Kate Kooi, University of Miami, USA
Caglar Irmak, University of Miami, USA

Read More

Featured

The psychological impact of annuities: Can pension payout choice influence health behavior?

Anja Schanbacher, London Business School, UK
David Faro, London Business School, UK
Simona Botti, London Business School, UK
Shlomo Benartzi, University of California Los Angeles, USA

Read More

Featured

If No One Saw It on Instagram, Was It Any Good? Examining Received Attention as a Social Benefit of Experiential Consumption

Matthew J Hall, University of Nebraska-Lincoln
Jamie D. Hyodo, University of Nebraska-Lincoln

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.