Proceedings of Annual Paris Business and Social Science Research Conference 7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3 Hedonic Behavior in Middle Income Society in Indonesia Permata Wulandari1, Iin Mayasari2, Muthia Pramesti3 and Niken Iwani Surya Putri4 * Hedonic behavior is individual’s intensity to get his/her own happiness by purchasing goods, not being utilized as the functional purpose (Dhar & Wertenbroch, 2000). Chitturi (2003) argued that individual has choice to purchase on functional as well as hedonic purpose. In general, functional product will be purchased earlier than hedonic product due to its necessity, compared to secondary and luxurious goods. When consumer purchases goods with hedonic purpose, they will ignore functional purpose, and more rely on emotional involvement. In another word, hedonic products have a positive emotional attributes. Consumers tend to follow social community among the materialistic society. The successful symbol was practically measured by their belonging. Promotion, such as: big discount, are often campaigned by retailers to increase its market demand. Most of them are consumer goods. Consumption pattern is becoming a part of consumer lifestyle. Active promotion, offering by various goods, might increase their desire to consume as symbolic status. In consequence, consumers tend to be a high consumerism on their lifestyle. Most of their spending is much on secondary and luxurious goods. The problem formulation of this paper is to analyze hedonic behavior in the following aspects: 1) Does optimum stimulation aspect influence to the hedonic behavior? 2) Does materialism aspect influence to the hedonic behavior? 3) Does the need of uniqueness aspect influence to the hedonic behavior? 4) Does the seeking of experience aspect influence to the hedonic behavior 5) Does brand credibility aspect influence to the hedonic behavior 6) Does sales promotion aspect influence to the hedonic behavior 7) Does religiosity aspect influence to the hedonic behavior Research model includes several constectual aspects. The picture of several constectual aspects that involved in this research : ________________________________________________________ 1 Department of Management, University of Indonesia, Jakarta, Email: permata.w@gmail.com Department of Management, University of Paramadina, Jakarta, Email: muthia.pramesti@gmail.com 3 Department of Management, University of Indonesia, Jakarta, Email: iin.mayasari@paramadina.ac.id 4 Department of Management, University of Indonesia, Jakarta, Email: nikenputrinix@gmail.com 2 Proceedings of Annual Paris Business and Social Science Research Conference 7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3 Optimum Stimulation Materialism Sales Promotion Hedonic Behaviour Brand Credibility Gaining Experience Point Distinguish yourself Religiosity The number of respondents in this study was 303 respondents around Jakarta, Bogor, Depok, Tanggerang and Bekasi area (Indonesia). To begin the research, data collection is conducted by distributing questionnaires toward workers as respondents. Method used for gathering sample is purposive sampling, while it aims to gain better understanding of consumer in a regular pattern. To do this nonprobability sampling, respondent must meet several criteria, such as: (1) has frequently buying some secondary or luxurious goods at least once in 6 months (2) Age is above 17 years old; (3) an individual with open and like to be different among others. Sampling scale is between 1-4. S1 (Strongly Disagree); 2 (Disagree); 3 (Agree) and 4 (Strongly Agree). If respondent choose mostly on 3 and 4, so they will categorized as individual who are opened to new things. It is aligned with consumer’s tendency to act as hedonic behavior. Table regression analysis shows that not all variables have significant influences on hedonic behavior. Based on the regression analysis, only optimum stimulation level, materialism, sales promotion and experience, have significance with α 0.1. It means that the promotion has the important determinant for hedonic behavior. This analysis shows that hedonic behavior is mostly influenced by optimum stimulation level, materialism, sales promotion and experience. Proceedings of Annual Paris Business and Social Science Research Conference 7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3 No 1 Table Regression Analysis Variable Beta Coefficient t Optimum Stimulation Level 0.084 1.928 2 Materialism 0.260 5.580 3 Sales promotion 0.253 5.143 4 Brand credibility 0.070 1.062 5 Experience 0.326 4.068 6 Need for uniqueness 0.105 1.594 7 Religiousity -0.031 -0.500 Significance Hipothesis Hypothesis 1 0.055 is supported Hypothesis 2 0.000 is supported Hypothesis 3 0.000 is supported 0.289 Hypothesis 4 is not supported Hypothesis 5 0.000 is supported 0.112 Hypothesis 6 is not supported 0.617 Hypothesis 7 is not supported Hedonic behavior attaches with a person who is more subjective in purchasing than its utilitarian counterparts and results more from fun and playfulness than from task completion (Holbrook and Hirschman, 1982; Hirschman & Holbrook, 1982 ). Thus, hedonic value reflects on shopping activities as an entertainment and emotional worth (Bellenger, Steinberg and Stanton, 1976). The increased stimulation, involvement, perceived freedom, fantasy and escapism all may indicate a hedonically valuable shopping experience (Bloch and Bruce 1984). Hedonic behavior scale is expressed by enjoyment, excitement, captivation, escapism and spontaneity as the important aspects. (Babin, Darden and Griffin, 1994) Thus, optimum stimulation is the individual’s perspective of being reluctant to utilize old products, and tend to choose the newest one. The second element of psychological perspective is consumer’s need for uniqueness. It tends to form consumption behavior to be more hedonic due to the establishment of personal status (Mc.Alister, 1982). It belongs to interpersonal aspect that improves individual’s personal unique image and attractiveness. The need for uniqueness is the need of an individual to express his/her uniqueness from other individuals to be “different”. The third element of psychological perspective is consumer’s materialistic value. Individuals with materialistic value enjoy possessing stuff and continuously collect bulk of their personal asset (Richins & Dawson, 1992). This action considered to be a symbol of gaining success. Marketing strategy also influences hedonic behavior. It is explained by sales promotion. Based on The American Marketing Association (AMA), sales promotion is defined as a marketing pressure created through non-media and media activities to augment consumer demand for limited and pre-determined time period. Different techniques of sales promotion are viewed in literature as: cash rebates, cash reimbursement or refund. Most of the time, it is seen that consumers get fascinated by the sales promotion and buy product although they do not want to buy (Mubbsher, 2011). Experiential perspective focuses on individual’s enjoyment to select various choices of product. Experiential perspective explains non-rationality aspect along Proceedings of Annual Paris Business and Social Science Research Conference 7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3 with hedonic behavior (Ryan & Deci, 2001). Non-rationality aspects are being gathered when individual’s primary need has been fulfilled. Inconsequence, secondary and luxurious necessity will continue to arise while it becomes individual’s life style. Consumer considers that necessity to be an enjoying activity for relaxation. Consumer is motivated to buy based on the delighted experience while it is pushed them be hedonic on their purchasing behavior. Related to brand credibility, this variable does not influence hedonic behavior. Consumers tend to choose any brand and they do not choose famous brands. All brands are perceived equal. 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