Article | Journal of the Association for Consumer Research

The Functional Alibi

by Anat Keinan, Ran Kivetz and 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.

Keywords: Consumer Behavior; Product Marketing;

Format: Print Purchase

Citation:

Keinan, Anat, Ran Kivetz, and Oded Netzer. "The Functional Alibi." Special Issue on the Science of Hedonistic Consumption. Journal of the Association for Consumer Research 1, no. 4 (October 2016): 479–496. (Lead Article.)

Campus Map
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→ Map & Directions
Copyright © President & Fellows of Harvard College