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

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  • 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
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    1. Haomiao Zhai & Fan Yang & Fuxia Gao & Stavros Sindakis & Gazal Showkat, 2024. "Digital Transformation and Over-Investment: Exploring the Role of Rational Decision-Making and Resource Surplus in the Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14103-14134, September.
    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.
    3. 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.

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