Time preference and savoring – how to exploit the Loewenstein contradiction

The goal of this paper is to demonstrate and analyze the contradiction between the model of time preference and the concept of savoring and thereupon outline product categories that particularly apply to each one of the preceding models. Both concepts are discussed and exemplified in order to depict the contradiction. Subsequently, the terms utilitarian and hedonic goods are introduced in order to outline useful patterns for the correct assignment of goods to each model. The definition of utilitarian goods is applied to Maslow’s hierarchy of needs to show that they do particularly react to the model of time preference. Afterwards, existing knowledge about the concept of savoring is used in order to show the correlation between hedonic goods and the concept of savoring. Finally, the paper shows that companies can benefit from this categorization by either reacting to given distribution structures in terms of marketing or by identifying to which extent a certain product is perceived as utilitarian or hedonic good and correspondingly postpone or speed-up delivery.