Management Review ›› 2021, Vol. 33 ›› Issue (8): 171-184.

• Marketing • Previous Articles     Next Articles

The Premium Effect of the Handmade Products: Based on a Model of Multiple Mediators

Liu Jianxin1,2, Fan Xiucheng2, Zhang Chenghu3   

  1. 1. College of Economics and Management, Southwest University, Chongqing 400715;
    2. School of Business, Fudan University, Shanghai 200433;
    3. College of Economics and Management, Communication University of China, Beijing 100024
  • Received:2018-05-04 Online:2021-08-28 Published:2021-09-04

Abstract: With the continuous innovation of production technology and the rapid development of production mode, the mechanized or intelligent production mode with higher efficiency, lower cost and stronger flexibility has held the dominant position, leaving the handmade mode on the edge of disuse. Both observations and researches show that consumers have different cognition and affect toward the products produced by the two production modes, and then have different feedback and purchase willingness. Unfortunately, existing researches hold that the more favor that the handmade products gain from consumers than the machine-made products derive from "love". Obviously this explanation falls short of justifiability and also involves cross-culture issue. In view of this, the research holds that, compared with machine-made products, handmade products are better able to arouse consumers' mental imagery, which evokes consumers' psychological ownership and psychological security and finally turn into the premium effect. Across 3 experiments, the findings indicate that (1) the handmade products generate more easily the premium effect than the machine-made products; (2) the premium effect of the handmade products derives from a mechanism of multiple mediators, for example, from mental imagery to psychological ownership and from mental imagery to psychological security. Meanwhile, traditional culture identity's alternative explanation is also eliminated effectively; (3) the cognitive resource will moderate the influence of the handmade products on mental imagery, which in turn influences psychological ownership and psychological security, and finally influences the premium effect of the handmade products. These conclusions have not only an important theoretical signification in deepening or improving such some important theories as the handmade effect, mental imagery, psychological ownership, psychological security and so on, but also an important managerial implication for manufacturees to change the production mode in order to promote sale of handmade products, and for consumers to rationally treat the handmade products.

Key words: the handmade products, mental imagery, psychological ownership, cognitive resource, the premium effect