Question

In: Finance

Consumers usually adapt two types of shopping values. First, hedonic value, which is associated with satisfaction...

Consumers usually adapt two types of shopping values. First, hedonic value, which is associated with satisfaction of the senses enhanced by experiences of pleasure, entertainment and fun. Second, utilitarian value are focused on functional aspects of the product like durability, price, physical performance and environmental protection among others. Based on scientific literature review, hedonic and utilitarian consumer behavior can be the source of the ethical consumption. The notion hedonism is traditionally associated with negative emotions and is linked with immediate gratification, individualism, materialism and excessive selfish behavior. The analysis of scientific literature suggests that hedonic consumption causes a sense of guilt. Broadly guilt can be understood as a negative emotion aroused when person’s behavior is at variance with person’s own standards. Guilt can occur during purchase, in usage situations and even while disposing off the products. People may experience the sense of guilt when choosing unethical alternative which make them eliminate their guilt by coping behavior like ethical purchasing. Vast majority of literature also reveals that consumer’s perceptions of the importance of the product category based on the consumer’s inherent needs, values, and interests act as a significant influencer. Generally customers display more hedonism when a particular product category is less central to their lives and as compared to the products which are more central. Utilitarian customers on the other hand perceive all purchases central to their lives.

1. Construct a theoretical framework with clear labelling of variables

2. Derive at least 5 directional hypotheses.

Solutions

Expert Solution

The theoritical frame work can be understood based on the dependent variable and independent variable.

Dependent variable are that changes along with the changes in independent variable. for example students obtaining better class grade depending upon the number of hours they spend on reading, writing and practicing. Here Class grade is dependent variable.

Indipendent variable that influence the dependent variable. As per above example Reading, writing and practicing are independent variables.

Theoritical frame asgiven below.

Dependent Variable Independent Variable
Shopping Value Hedonic Value
Utilitarian Value
Hedonic Value Experiences of Pleasure
Entertinement
Fun
Utilitarian Value Durability of Product
Price of the product
Physical performance
environmental protection
Hedonic Value Ethical consuption
Utilitarian Value
Hedonism negative emotions
immediate gratification
individualism
materialism
excessive selfish behavior
Consumer interst of product inherent needs
values
interests

The direction Hypothesis are tentive statement that may be true or false, but tells or shows some direction of variables studied.

Two types of hypothesis

H0 - Null hypothesis

H1 - Alternative hypothesis.

H1 - hedonic consumption causes a sense of guilt. H0 - hedonic consumption does not causes a sense of guilt.
H2 - People experience the sense of guilt when choosing unethical alternative. H0 - People not experience the sense of guilt when choosing unethical alternative
H3 - Consumer singificantly influence by inherent needs before buying product. H0 - Consumer does not singificantly influence by inherent needs before buying product
H4 - Consumer singificantly influence by values before buying product. H0 - Consumer does not singificantly influence by values before buying product.
H5 - Consumer singificantly influence by Interest before buying product. H0 - Consumer does not singificantly influence by Interest before buying product

H6 - Customers does not display more hedonism when a particular product category is less central to their lives.

H0 - Customers display more hedonism when a particular product category is less central to their lives

H7 - Utilitarian customers perceive all purchases central to their lives. H0 -Utilitarian customers does perceive all purchases central to their lives

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