The effects of benefit-based (vs. attribute-based) product categorizations on mental imagery and purchase behavior

Abstract

Retailers encounter consequential choices when categorizing products on a (virtual) shelf display. This research disentangles the impact of two of these categorization schemes, namely attribute-based and benefit-based product categorizations. In an attribute-based categorization, products are grouped based on similar product features; whereas in a benefit-based categorization, products are grouped based on their ability to solve various consumer problems. Across eight studies (two of which were conducted in field settings; N_total = 3418), we show that a benefit-based (vs. attribute-based) product categorization enhances mental imagery of product use, which in turn increases the anticipated consumption value, and ultimately the number of products that consumers choose to buy. Our findings also demonstrate that the effect of a benefit-based (vs. attribute-based) categorization is attenuated when consumers are already encouraged to engage in mental imagination (i.e., in the presence of imagery appeals in the store), or when they have high imagery abilities. Finally, we show that the effect of benefit (vs. attribute)-based categorization is stronger (weaker) for narrower (broader) categorizations. While this work contributes to a novel and extended view of research on product categorization and mental imagery, it also presents substantial managerial implications for retailers.