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The Functional Alibi

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  • Anat Keinan
  • Ran Kivetz
  • Oded Netzer

Abstract

Spending money on hedonic luxuries often seems wasteful, irrational, and even immoral. We propose that adding a small utilitarian feature to a luxury product can serve as a functional alibi, justifying the indulgent purchase and reducing indulgence guilt. We demonstrate that consumers tend to inflate the value, and usage frequency, of utilitarian features when they are attached to hedonic luxuries. Using a mixed-method approach, combining archival data (an analysis of over 1,000 online reviews of handbags) with studies conducted in the field and laboratory, we establish the functional alibi effect and show that it is mediated by guilt and more likely to occur when the luxury purchase is perceived as frivolous and expensive, and when the purchase is for oneself rather than a gift. We explore the effect of adding a functional alibi in a variety of marketing contexts, and we examine various consumer populations representing diverse demographics.

Suggested Citation

  • Anat Keinan & Ran Kivetz & Oded Netzer, 2016. "The Functional Alibi," Journal of the Association for Consumer Research, University of Chicago Press, vol. 1(4), pages 479-496.
    • Handle: RePEc:ucp:jacres:doi:10.1086/688218
    DOI: 10.1086/688218
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    Cited by:

    1. Pengji Wang & Adrian T. H. Kuah & Qinye Lu & Caroline Wong & K. Thirumaran & Emmanuel Adegbite & Wesley Kendall, 2021. "The impact of value perceptions on purchase intention of sustainable luxury brands in China and the UK," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 325-346, May.
    2. Yaniv Shani & Gil Appel & Shai Danziger & Ron Shachar, 2020. "When and Why Consumers “Accidentally” Endanger Their Products," Management Science, INFORMS, vol. 66(12), pages 5757-5782, December.
    3. de Kerviler, Gwarlann & Rodriguez, Carlos M., 2019. "Luxury brand experiences and relationship quality for Millennials: The role of self-expansion," Journal of Business Research, Elsevier, vol. 102(C), pages 250-262.
    4. Desmichel, Perrine & Kocher, Bruno, 2020. "Luxury Single- versus Multi-Brand Stores: The Effect of Consumers’ Hedonic Goals on Brand Comparisons," Journal of Retailing, Elsevier, vol. 96(2), pages 203-219.
    5. Hoffmann, Stefan & Balderjahn, Ingo & Seegebarth, Barbara & Mai, Robert & Peyer, Mathias, 2018. "Under Which Conditions Are Consumers Ready to Boycott or Buycott? The Roles of Hedonism and Simplicity," Ecological Economics, Elsevier, vol. 147(C), pages 167-178.
    6. Gwarlann de Kerviler & Carlos Rodriguez, 2019. "Luxury brand experiences and relationship quality for Millennials: The role of self-expansion," Post-Print hal-02114441, HAL.
    7. Petersen, Francine Espinoza & Dretsch, Heather Johnson & Komarova Loureiro, Yuliya, 2018. "Who needs a reason to indulge? Happiness following reason-based indulgent consumption," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 170-184.

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