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The Concept of Hedonic Consumption and Utilitarian Consumption
Companies sell their products, and consumers purchase those products. There is a lot of thinking and emotions involved in this simple process, and it could not be more complicated than ever. The reason why we are saying this is because, though we assume consumers to be rational beings, we also see a lot of unhealthy products being sold in large quantities. If consumers were rational and thought about their well-being, would not all the cold drink shops (selling us excess sugar), fast food restaurants (selling us health problems and bad cholesterol), cigarette shops (harming our hearts and lungs), and others have shut down by now? Well, to be honest, they are flourishing more than ever, and we have new variants and brands coming up every day.
Hence, in this article, we will be diving deep into the concept of why a consumer would purchase the product (for hedonic benefits or utilitarian benefits) and how companies can manipulate those to sell better.
The concept of hedonic consumption
When our purchase decisions are mainly driven by emotions, it is known as hedonic consumption. In this sense, if we are hungry and we need food, a bowl of rice and some vegetables cooked at home will satisfy our hunger, as will the same food at an expensive restaurant that is charging us three times the cost of the food. To make it more clear, hedonic consumption gives consumers pleasure, happiness, ecstasy, and joy. These goods are purchased not because the consumer is rational but because the consumer is emotional.
Every time we go to a store and buy expensive clothes, there is this voice in our head asking us if we need those expensive clothes, and then there is us arguing by saying "we deserve it". Emotions drive hedonistic consumption. Flowers, designer bags, luxury watches, vacations, sports cars, music, chocolates, and others are some goods that are considered to be hedonistic consumption. Hedonic consumption satisfies our emotional needs. Some examples of hedonistic consumption by various renowned brands are −
Schmitten Chocolates − The tagline of the advertisement out here is "nothing wraps you in luxury like Schmitten Chocolates". The company here is not focusing on the usefulness of the product or the ingredients of the product. It is just talking about an experience that you might have when you consume chocolate. In subtle ways, the company assures you that you will be delighted, just as Bollywood actress Priyanka Chopra was when she tried the chocolate. The focus here is on the happiness a consumer will get or the release of dopamine when they consume the chocolate.
Armani Watches − The basic purpose of a watch is to help us keep track of time. Now, what is the point of buying a watch and spending lakhs of rupees on it when the same features and durability are offered to you at one-fourth of the price? It is the social status and the feel-good factor of the watch. All the focus in the ads for the Armani watch is on how you are perceived by the world when you wear that watch and what your ranking will be when you purchase that watch. This consumption is also hedonic consumption.
The concept of utilitarian consumption
Whenever the purchase is made to satisfy the needs of the consumer and the money is invested directly proportional to the features being offered, then the purchase is known as utilitarian consumption. In a simple sense, it means that here the focus of the company is on the features of the product and the product offerings rather than how good the consumer will feel when they are the owners of the offering. The consumer out there makes a rational decision, uninterrupted by emotions. For example, having food, buying clothes to wear, or buying a vehicle for office transportation purposes Other examples could be a company buying the latest AI technology to ensure that the cost and time of production come down. Generally, we include the need for food, clothes, shelter, and medical help in utilitarian consumption, but with growing time, this is also expanding. Consumers are now adding mobile phones, refrigerators, and the internet to their bucket of utilitarian goods because for them these have become necessities of life. You might have seen many advertisements where the company focuses on the benefit of the product or the product's features. Some classic examples to make the concept clearer are −
Crocin Pain Relief Tablets − The pharmacy company decided to advertise this product and showed in the ad what the benefits of its consumption could be. To elaborate further, if an individual consumes a Crocin fast relief tablet, they will get relief from headache, stomachache, backache, and toothache, and will also lower their body temperature. All these were mentioned in the ad so the consumer could educate themselves and make the purchase whenever needed.
L'Oreal Shampoos − The brand advertises its product as a solution to five hair problems. The focus here is to tell the consumer what relief they will be getting if they invest in the product, and that through a trusted and known celebrity like Aishwarya Rai Bachan (a Bollywood actress).
Hedonic consumption vs. utilitarian consumption: which is better for your company’s marketing strategy?
The difference between hedonistic and utilitarian consumption depends more on the perception of an individual than the product itself. To elaborate further, a motorcycle provided by the company or purchased for office transportation might seem like a utilitarian consumption, but the same motorcycle purchased for recreational purposes might seem like a hedonistic consumption. There is a thin line between these, and the companies have to focus on which side they are on. Also, there is an amalgamation of both in the marketing campaigns, and we see it often.
Companies should go for hedonistic ways of marketing when they are advertising a luxury product or when the real value addition that an individual has from acquiring the product is less. And a company should go for utilitarian marketing campaigns when they know they are helping the consumer or solving an issue. Both methods are effective and have the potential to bring sales to the company. To understand the concept better, let’s dive deep into different marketing campaigns by renowned companies −
Nicotine patches and the government’s initiative to reduce cigarette consumption − The ultimate aim of both these ads was to reduce the consumption of cigarettes. When the government wanted to reduce its consumption, they focused on the hedonic features, for example, a sad family and how they are suffering because of this habit of yours, while a nicotine patch focused on the benefits of the product and how they will be able to help you remove this ugly habit of yours with the product's consumption. Both ads were effective, have changed many lives, and have brought in sales for the company as well.
Organic beetroot chips and Lays − Lays will focus on the taste and experience that an individual will have when they consume the product, while organic chips, which will cost the consumer a lot, will focus on how healthy the product is and its nutrients. Lay's is focusing on emotions, while Organic Chips is focusing on the benefits of the product and its features.
Companies have to understand their consumers and what has prompted them to make a purchase decision. Gone are the days when they could only focus on producing quality work or quality products. Now is the time to market themselves. Consumers are spoiled with choices and information, and your brand will only capture the consumer’s mind when you create a marketing campaign that targets the right nerve.
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