Effects of Peer Consumption on Hedonic Purchase Decisions

Abstract

We investigated how peer consumption of goods influences consumers' decision making. Focusing on hedonic products with emotional, experiential, but functional benefits, we conducted an empirical study with 200 Korean women aged in their 20s. Utilizing self-construal as the moderator, results indicated that when participants viewed their peers' consumption, interdependent people displayed greater purchase intention, whereas independent people exhibited nonsignificant changes in purchasing behavior. Avoidance of similarity tendency further explained why peer consumption enhanced the purchase intention of interdependents who placed a low value on avoidance of similarity, whereas the absence of peer consumption enhanced the purchase intention of independents who placed a high value on avoiding similarity. The results supported our hypothesis that, in a hedonic consumption situation, the presence of peer consumption influences consumers' purchase decisions.