E-Commerce: The Influence of Hedonic and Utilitarian Motivations on Generations X, Y, and Z

E-Commerce: The Influence of Hedonic and Utilitarian Motivations on Generations X, Y, and Z

Ana Pinto de Lima, Nicolau Almeida Monteiro
DOI: 10.4018/978-1-7998-9179-6.ch007
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Abstract

The age of market globalisation and on-line presence allows companies to improve their relations with customers as well as to establish more direct communication. The different shopping acts may be related to a person's utilitarian and hedonic values. A study carried out by Hootsuite revealed that clothing and beauty products were the most on-line bought items in Portugal in 2017. The study aims at understanding the motivations behind choosing on-line channels for buying those types of products, with a special emphasis on the different generations of buyers. The authors use an exploratory methodology based on an on-line survey with 280 responses. There is a stronger association between the utilitarian value and the intention to repeat a purchase than between the hedonic value and that intention. Generation X is more associated to the repurchase intention to repeat a purchase based on utilitarian values and Generation Z shows a stronger association between hedonic values and being a repeat customer.
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Background

The Internet and Its Growth

Nowadays, the internet represents powerful information technology capable of creating new business opportunities for organizations, namely in the creation of positioning strategies, something that was not possible before because of the information technologies available then (Porter & Michael, 2001).

From a commercial point of view, Dijesh and Babu (2016) consider that the Internet brings benefits both to sellers (as it can help organizations reach a narrower market segment, which in turn may result in sales and then profit) and buyers, as it allows searching for products/services from different sellers.

The market is becoming increasingly attractive, not only for buyers who have a huge variety of products/services available, but also for sellers who have access to new customers, thus reducing the costs inherent to these transactions for everyone involved (Kaplan & Sawhney, 2000; Srinivasan, Anderson & Ponnavolu, 2002).

Gunasekaran, Marri, McGaughey and Nebhwani (2002) consider that nowadays people feel more comfortable using the Internet, and its worth is emphasized by the amount of information it makes available to users worldwide. Websites are just a click away and they have become a new kind of information technology (Liu & Arnett, 2000).

To determine the current importance of the internet at a global level, the North American consultant Hootsuite has published global digital data for the year 2017 when, as shown in Figure 1, around 4,021 billion people were Internet users. The world population is circa 7,593 billion.

Figure 1.

World population using the Internet regularly

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Source: Hootsuite - The Global State of digital in 2018

According to the same marketing consultant, the number of Internet users is around 7.73 million in Portugal, with 78% of those aged between 16 and 74 using the mobile/smartphone for access, while 73% use laptop computers (INE, 2016). This data is shown in Figure 2.

Figure 2.

Proportion of people between the ages of 16 and 74 that use the internet and the equipment used to access it, Portugal, 2016.

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Source: INE (Statistics Portugal) - Information and Knowledge Society. Survey on the Use of Information and Communication Technologies by families, 2016

Key Terms in this Chapter

Hedonic Motives: Attributes that deal with the experiences of sensory, appeals, which include emotion and gratification.

Perceived risk: Refers to the customer’s perception of the risks associated with any purchase.

Generations: Refers to a specific generation of people based on birth, preferences, attitudes, and upbringings that distinguish them from other groups.

Buying Motives: A motive is defined as a drive for which individuals can seek satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase of something.

Repurchase Intention: Is the process of an individual purchasing goods or services from the same brand.

E-Commerce: Refers to a business model that allows companies and individuals to buy and sell goods and services over the Internet.

Utilitarian Motives: Are directed toward achieving goals, and they relate to efficiency and rational decision-making.

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