On the welfare cost of consumption fluctuations in the presence of memorable goods : [version october 17, 2013]

We propose a new classification of consumption goods into nondurable goods, durable goods and a new class which we call “memorable” goods. A good is memorable if a consumer can draw current utility from its past consumption experience through memory. We construct a novel consumption-savings model in which a consumer has a well-defined preference ordering over both nondurable goods and memorable goods. Memorable goods consumption differs from nondurable goods consumption in that current memorable goods consumption may also impact future utility through the accumulation process of the stock of memory. In our model, households optimally choose a lumpy profile of memorable goods consumption even in a frictionless world. Using Consumer Expenditure Survey data, we then document levels and volatilities of different groups of consumption goods expenditures, as well as their expenditure patterns, and show that the expenditure patterns on memorable goods indeed differ significantly from those on nondurable and durable goods. Finally, we empirically evaluate our model’s predictions with respect to the welfare cost of consumption fluctuations and conduct an excess-sensitivity test of the consumption response to predictable income changes. We find that (i) the welfare cost of household-level consumption fluctuations may be overstated by 1.7 percentage points (11.9% points as opposed to 13.6% points of permanent consumption) if memorable goods are not appropriately accounted for; (ii) the finding of excess sensitivity of consumption documented in important papers of the literature might be entirely due to the presence of memorable goods

The functions of memorable consumption experiences – Case Leijona brand

Peer reviewe

Going back to its roots: can hospitableness provide hotels competitive advantage over the sharing economy?

While the customer experience is at the heart of the hospitality industry, experience-related research remains underrepresented. This gap is critical, particularly given the emerging threat of the sharing economy to the hotel industry along experiential factors. Using data from a survey of 630 customers who stayed at a hotel or an Airbnb, the authors use structural equation modeling to compare two models with alternative conceptualizations of the dynamics of experiential consumption in the accommodations industry. Building on the concept of the experiencescape from the branding and hospitality and tourism literatures, the model enhances Pine and Gilmore’s (1998) original experience economy construct by demonstrating the critical role of the dimension of hospitableness in facilitating favorable experiential and brand-related outcomes, particularly in the context of the hotel experience. The findings have important implications for the hotel industry’s strategic experience design initiatives and emphasize the need to use hospitableness in order to create a competitive advantage in a rapidly changing environment.Accepted manuscrip

The accommodation experiencescape: a comparative assessment of hotels and Airbnb

PURPOSE: Accommodations providers in the sharing economy are increasingly competing with the hotel industry vis-à-vis the guest experience. Additionally, experience-related research remains underrepresented in the hospitality and tourism literature. This paper aims to develop and test a model of experiential consumption to provide a better understanding of an emerging phenomenon in the hospitality industry. In so doing, the authors also expand Pine and Gilmore’s original experience economy construct. DESIGN/METHODOLOGY/APPROACH: Using data from a survey of 630 customers who stayed at a hotel or an Airbnb in the previous three months, the authors performed a multi-step analysis procedure centered on structural equation modeling to validate the model. Findings The authors demonstrate that the dimensions of serendipity, localness, communitas and personalization represent valuable additions to Pine and Gilmore’s original experience economy construct. Airbnb appears to outperform the hotel industry in the provision of all experience dimensions. The authors further define the pathways that underlie the creation of extraordinary, memorable experiences, which subsequently elicit favorable behavioral intentions. PRACTICAL IMPLICATIONS: The findings suggest the need for the hotel industry to adopt a content marketing paradigm that leverages various dimensions of the experience economy to provide customers with valuable and relevant experiences. The industry must also pay greater attention to its use of branding, signage and promotional messaging to encourage customers to interpret their experiences through the lens of these dimensions. ORIGINALITY/VALUE: The study expands a seminal construct from the field of services marketing in the context of the accommodations industry. The Accommodations Experiencescape is offered as a tool for strategic experience design. The study also offers a model of experiential consumption that explains customers’ experiences with accommodations providers

When do tourists really enjoy authentic and exotic food experiences? Product adaptation and tourists’ attitudes

Gastronomy is an essential component of the travel experience.The current paper analyses the extent to which the perceived authenticity in the local food, the degree of adaptation and the cultural contrast determine tourist memorable experiences. Moreover, it proposes the moderating effect of searching for authenticity and adaptation ability. Results from a sample of international tourists in Segovia who tasted a typical dish “cochinillo” (roasted suckling pig) support the positive effect of authenticity and cultural contrast in the perceived experience, whereas the product adaptation reduces the perception of authenticity and cultural contrast. Authenticity has a greater effect on the experience perception when the tourists search for it and individuals are less influenced by the cultural contrast when they are unable to adapt themselves to different cultures.La gastronomía es un componente esencial de la experiencia de los viajeros. El presente trabajo analiza el efecto de la autenticidad percibida y del contraste cultural en la experiencia gastronómica de los turistas. Además, se propone el efecto moderador de la búsqueda de autenticidad y la capacidad de adaptación del turista en dicha relación. Los resultados obtenidos con una muestra de turistas internacionales que han probado la gastronomía típica (cochinillo) de una ciudad con un claro posicionamiento gastronómico-cultural (Segovia) apoya el efecto positivo de la autenticidad y el contraste cultural sobre la experiencia percibida mientras que la adaptación del producto reduce la autenticidad y el contraste cultural. Además, se prueba que la autenticidad posee un efecto mayor sobre la experiencia percibida cuando los turistas realmente la buscan mientras que los individuos con mayor capacidad de adaptación son menos sensibles al contraste cultural de la experiencia

Using segmentation to compete in the age of the sharing economy: testing a core-periphery framework

Airbnb has emerged as a credible competitive threat to the hotel industry. Consequently, hotel brands are having to rethink the experiences they provide to customer in an increasingly competitive environment. Despite these trends in the industry, experience-related research that examines and informs these developments remains under-represented in the hospitality and tourism literature. The present study offers a systematic approach to examine the potential differences in experiential consumption in the accommodations industry. Using a multiple-group analysis approach, it examines the moderating effects of individual characteristics and situational factors on the nature and dynamics of experiential consumption in the accommodations industry. The findings of the study culminate in the core-periphery framework of the hospitality consumption experience that can provide a relevant theoretical lens for future research into the different sectors and types of experiences within the hospitality and tourism industry. The study also outlines important implications for the hotel industry’s strategic experience design initiatives, from the standpoint of product development, the segmentation, targeting and positioning (STP) process, and marketing communications.Accepted manuscrip

The Impact of the Self-esteem and Consumption Values on Consumers Attitude and Intention to Purchase Luxury Fashion Products

Luxury brands consumption has increased in the recent years (Hennigs, Klarmann, Behrens, & Wiedmann 2016), moving from production of exclusive products to creation of memorable retail experience and personalized symbolic attachment (Kapeferer & Valette- Florence, 2016). Thus, brand managers must strive to maintain quality without compromising exclusivity and uniqueness of these luxury fashion brands. As a result, there is a need to understand the intrinsic motivation of consumption that can capture feelings attached to luxury brands. Recent studies indicate that consumer perceived value influences luxury brand consumption, but little is known on the role of self-esteem in this relationship. Hence, this study will focus on the interaction between consumption values and self-esteem and their impact on the attitude and intention to purchase luxury fashion products