Importance of Categorization in Consumer Behavior

ABSTRACT

We often make comparisons in everyday judgments and thought activity. In making such comparisons, it is assumed that both subjects of comparison belong to the same category. In this sense, how an object or thing is categorized (in other words, categorization) is important. Similarly, it is important how products or services are categorized when it comes to the purchase of such products. Differences in consumers’ willingness to pay with different product categorizations were confirmed with an experiment from a questionnaire survey. The results are as follows. 1. With products such as smartphones in mind, comparing the categorization as simplified editions of PCs on one hand and developed editions of mobile phones on the other shows that consumers are willing to pay a significantly higher price for the former. 2. It was confirmed that the willingness to pay a different price for a different categorization is irrelevant of differences in basic attributes among consumers.