IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v19y2019i2d10.1007_s10660-018-9309-8.html
   My bibliography  Save this article

Digital transformation and possession attachment: examining the endowment effect for consumers’ relationships with hedonic and utilitarian digital service technologies

Author

Listed:
  • Martin P. Fritze

    (University of Cologne)

  • Andreas B. Eisingerich

    (Imperial College London)

  • Martin Benkenstein

    (University of Rostock)

Abstract

A significant body of research has examined the importance of material possession attachment and its influence on consumer behavior. Critical questions, however, remain with regard to the extent to which, and if at all, consumers form instantaneous possession attachment in electronic commerce. In this research, we conducted one quasi-experimental field study and one scenario-based online experiment to examine the endowment effect (EE) for digital services. The current findings demonstrate that consumers become instantaneously attached to and are reluctant to give up digital services once they have obtained them. Two main explanations of the EE in electronic commerce are investigated. Critically, the results show that the psychological processes underlying the effect differ between utilitarian and hedonic digital services. Proprietary feelings towards utilitarian digital services occur due to loss aversion, whereas proprietary feelings towards hedonic digital services reflect the consumer’s conscious self-relatedness to the digital service.

Suggested Citation

  • Martin P. Fritze & Andreas B. Eisingerich & Martin Benkenstein, 2019. "Digital transformation and possession attachment: examining the endowment effect for consumers’ relationships with hedonic and utilitarian digital service technologies," Electronic Commerce Research, Springer, vol. 19(2), pages 311-337, June.
    • Handle: RePEc:spr:elcore:v:19:y:2019:i:2:d:10.1007_s10660-018-9309-8
    DOI: 10.1007/s10660-018-9309-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-018-9309-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-018-9309-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Aric Rindfleisch & James E. Burroughs & Nancy Wong, 2009. "The Safety of Objects: Materialism, Existential Insecurity, and Brand Connection," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(1), pages 1-16, June.
    2. repec:cup:judgdm:v:2:y:2007:i::p:107-114 is not listed on IDEAS
    3. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 243-243, December.
    4. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    5. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    6. Martine Selm & Nicholas Jankowski, 2006. "Conducting Online Surveys," Quality & Quantity: International Journal of Methodology, Springer, vol. 40(3), pages 435-456, June.
    7. Davis, Brennan & Pechmann, Cornelia, 2013. "Introduction to the Special Issue on transformative consumer research: Developing theory to mobilize efforts that improve consumer and societal well-being," Journal of Business Research, Elsevier, vol. 66(8), pages 1168-1170.
    8. Chan, Eugene Y., 2015. "Endowment effect for hedonic but not utilitarian goods," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 439-441.
    9. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    10. Diana Walsh & James M. Parisi & Katia Passerini, 2017. "Privacy as a right or as a commodity in the online world: the limits of regulatory reform and self-regulation," Electronic Commerce Research, Springer, vol. 17(2), pages 185-203, June.
    11. Carolina Herrando & Julio Jiménez-Martínez & María José Martín-De Hoyos, 2017. "Passion at first sight: how to engage users in social commerce contexts," Electronic Commerce Research, Springer, vol. 17(4), pages 701-720, December.
    12. Bischoff, Ivo & Meckl, Jürgen, 2008. "Endowment effect theory, public goods and welfare," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1768-1774, October.
    13. Russell W. Belk, 2013. "Extended Self in a Digital World," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(3), pages 477-500.
    14. Belk, Russell W, 1988. "Possessions and the Extended Self," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 139-168, September.
    15. Lyle Brenner & Yuval Rottenstreich & Sanjay Sood & Baler Bilgin, 2007. "On the Psychology of Loss Aversion: Possession, Valence, and Reversals of the Endowment Effect," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(3), pages 369-376, May.
    16. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(2), pages 129-130, November.
    17. Sara Loughran Dommer & Vanitha Swaminathan, 2013. "Explaining the Endowment Effect through Ownership: The Role of Identity, Gender, and Self-Threat," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(5), pages 1034-1050.
    18. Richins, Marsha L & Dawson, Scott, 1992. "A Consumer Values Orientation for Materialism and Its Measurement: Scale Development and Validation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(3), pages 303-316, December.
    19. Brian P. Cozzarin & Stanko Dimitrov, 2016. "Mobile commerce and device specific perceived risk," Electronic Commerce Research, Springer, vol. 16(3), pages 335-354, September.
    20. Dittmar, Helga, 1994. "Material possessions as stereotypes: Material images of different socio-economic groups," Journal of Economic Psychology, Elsevier, vol. 15(4), pages 561-585, December.
    21. Yue Ma & Guoqing Chen & Qiang Wei, 2017. "Finding users preferences from large-scale online reviews for personalized recommendation," Electronic Commerce Research, Springer, vol. 17(1), pages 3-29, March.
    22. Richins, Marsha L, 1994. "Valuing Things: The Public and Private Meanings of Possessions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 504-521, December.
    23. Jian Mou & Dong-Hee Shin & Jason F. Cohen, 2017. "Trust and risk in consumer acceptance of e-services," Electronic Commerce Research, Springer, vol. 17(2), pages 255-288, June.
    24. Matthieu Mifsud & Anne-Sophie Cases & Gilles N'Goala, 2015. "Service appropriation: how do customers make the service their own?," Post-Print hal-02011212, HAL.
    25. Promothesh Chatterjee & Caglar Irmak & Randall L. Rose, 2013. "The Endowment Effect as Self-Enhancement in Response to Threat," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(3), pages 460-476.
    26. Sinclair, Gary & Tinson, Julie, 2017. "Psychological ownership and music streaming consumption," Journal of Business Research, Elsevier, vol. 71(C), pages 1-9.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eisingerich, Andreas B. & Marchand, André & Fritze, Martin P. & Dong, Lin, 2019. "Hook vs. hope: How to enhance customer engagement through gamification," International Journal of Research in Marketing, Elsevier, vol. 36(2), pages 200-215.
    2. Christian Montag & Bernd Lachmann & Marc Herrlich & Katharina Zweig, 2019. "Addictive Features of Social Media/Messenger Platforms and Freemium Games against the Background of Psychological and Economic Theories," IJERPH, MDPI, vol. 16(14), pages 1-16, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Villanova, 2019. "The extended self, product valuation, and the endowment effect," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 357-371, December.
    2. Thomas, Veronica L. & Yeh, Marie & Jewell, Robert D., 2015. "Enhancing valuation: the impact of self-congruence with a brand on the endowment effect," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 178-185.
    3. Nepomuceno, Marcelo Vinhal & Laroche, Michel, 2015. "The impact of materialism and anti-consumption lifestyles on personal debt and account balances," Journal of Business Research, Elsevier, vol. 68(3), pages 654-664.
    4. Liselot Hudders & Mario Pandelaere, 2012. "The Silver Lining of Materialism: The Impact of Luxury Consumption on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 13(3), pages 411-437, June.
    5. Marcelo Vinhal Nepomuceno & Michel Laroche, 2017. "When Materialists Intend to Resist Consumption: The Moderating Role of Self-Control and Long-Term Orientation," Journal of Business Ethics, Springer, vol. 143(3), pages 467-483, July.
    6. Alexopoulos, Theodore & Šimleša, Milija & Francis, Mélanie, 2015. "Good self, bad self: Initial success and failure moderate the endowment effect," Journal of Economic Psychology, Elsevier, vol. 50(C), pages 32-40.
    7. Fleura Bardhi & Giana M. Eckhardt, 2017. "Liquid Consumption," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(3), pages 582-597.
    8. Liu, Runqiu & Jiang, Jian & Yu, Chao & Rodenbiker, Jesse & Jiang, Yongmu, 2021. "The endowment effect accompanying villagers' withdrawal from rural homesteads: Field evidence from Chengdu, China," Land Use Policy, Elsevier, vol. 101(C).
    9. Fritze, Martin P. & Benkenstein, Martin & Belk, Russell & Peck, Joann & Wirtz, Jochen & Claus, and Bart, 2021. "Commentaries on the Sharing Economy: Advancing New Perspectives," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(1), pages 3-19.
    10. Samuel Guillemot, 2018. "Intergenerational transmission in consumer behaviour: An integrative conceptual framework and future research directions," Post-Print hal-02466675, HAL.
    11. Danckwerts, Sebastian & Meißner, Lasse & Krampe, Caspar, 2019. "Examining User Experience of Conversational Agents in Hedonic Digital Services – Antecedents and the Role of Psychological Ownership," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 3(3), pages 111-125.
    12. Ajitha, S. & Sivakumar, V.J., 2017. "Understanding the effect of personal and social value on attitude and usage behavior of luxury cosmetic brands," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 103-113.
    13. Matthew G. Nagler, 2023. "Thoughts matter: a theory of motivated preference," Theory and Decision, Springer, vol. 94(2), pages 211-247, February.
    14. Bélyácz, Iván & Kovács, Kármen, 2018. "A birtoklási hatás megnyilvánulásának háttere és következményei. A kilátáselmélet alkalmazása fogyasztási döntésekre [Background and consequences of the endowment effect. Applying prospect theory t," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 382-401.
    15. Jie Lou & Nianlong Han & Dong Wang & Xi Pei, 2022. "Effects of Mobile Identity on Smartphone Symbolic Use: An Attachment Theory Perspective," IJERPH, MDPI, vol. 19(21), pages 1-20, October.
    16. Nikolaus Franke & Martin Schreier & Ulrike Kaiser, 2010. "The "I Designed It Myself" Effect in Mass Customization," Management Science, INFORMS, vol. 56(1), pages 125-140, January.
    17. Afzaal Ali & Guo Xiaoling & Adnan Ali & Mehkar Sherwani & Farhan Muhammad Muneeb, 2019. "Customer motivations for sustainable consumption: Investigating the drivers of purchase behavior for a green‐luxury car," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 833-846, July.
    18. M. Joseph Sirgy & Eda Gurel-Atay & Dave Webb & Muris Cicic & Melika Husic-Mehmedovic & Ahmet Ekici & Andreas Herrmann & Ibrahim Hegazy & Dong-Jin Lee & J. Johar, 2013. "Is Materialism All That Bad? Effects on Satisfaction with Material Life, Life Satisfaction, and Economic Motivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(1), pages 349-366, January.
    19. Attié, Elodie & Meyer-Waarden, Lars, 2022. "The acceptance and usage of smart connected objects according to adoption stages: an enhanced technology acceptance model integrating the diffusion of innovation, uses and gratification and privacy ca," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    20. Ebo Botchway & Jan Verpooten & Ine van der Beken & Justina Baršytė & Siegfried Dewitte, 2023. "The Endowment Effect in the Circular Economy: Do Broken Products Face Less of a Trading Barrier Than Intact or Repaired Ones?," Sustainability, MDPI, vol. 15(15), pages 1-19, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elcore:v:19:y:2019:i:2:d:10.1007_s10660-018-9309-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.