3.2 Finding
In this study, two consumption values will be addressed, i.e., functional and emotional values. The
multidimensional approach to the consumption value takes two basic dimensions into account:
functional (utilitarian or cognitive value) and emotional (hedonic or affective value) (Lee et al.
2019). They were emphasized by Lin et al. (2020), and the results indicated that both functional
and emotional value has an important impact on buying intention. Table 1 does not document
all research related to consumption value/customer value yet. However, from Table 1, it can be
concluded that functional or utilitarian value and emotional or hedonic value have been used
mostly in prior studies which are 29 and 24 number of studies, respectively.
Functional value refers to the product or service design or functions; which is cognitive because
it is connected with utility and usability whereas the emotional value is more effective because it
is linked to pleasure, entertainment, and interest-based on personal identification of consumers to
the brands (Tian et al. 2018; Lim & Kim 2020). For food product packaging, the functional value
can indicate values of the product either perishable or non-perishable products, besides a reflection
on the price and quality of the product. Throughout this paper, the term “functional value” refers
to utilitarian or cognitive value, while “emotional value” refers to the hedonic or affective value.
This study helps to identify the difference between perceived functional and emotional values
and how it influences customers decisions. When launching a new product, designers should pay
attention to customers’ functional needs and emotional desires (Poushneh and Vasquez-Parraga
2019). A study by Ramayah et al. (2018) indicates that, along with functional value, emotional
value plays an instrumental role in online purchase intention. Functional value (especially price
and service quality) has the best positive relation to customers’ intention to use the internet as a
retail platform. Emotional value influences consumers’ willingness to buy products online. The
subdimensions of consumption values used in past studies in research contexts are slightly different
(Jung et al. 2020).
Several previous studies address Consumption Value Theory are mostly on luxury products.
Therefore, this study wants to fill in the gap by providing knowledge in functional and personal
value of color in food product labeling in the SME context. In addition, the need to strengthen
the competitiveness of SMEs in Indonesia is crucial in the global competition era as the ASEAN
economic community, as they have a great contribution to national economic growth and lead to
improving the Gross Domestic Products (Darwanto et al. 2018).
4 CONCLUSION
This study is designed to address a research question and framework on employing the theory of
consumption value to explain the role of color in product labeling. Selected studies concerning
the theory of consumption value are summarized in Table 1. It may be noted that the consumption
value literature from 1990–2020 highlights the functional and emotional value as the key factor in
a consumer’s decision and the key indicator for a consumer’s brand loyalty. As customers perceive
functional value, strong emotional links with brands are generated for products (Poushneh and
Vasquez-Parraga 2019).
Previous studies address Consumption Value Theory mostly on luxury products. This study
clearly highlights the need for further research in the role of color in product labeling in the SME
context. The findings described above enhance our understanding and serve as the basis for a
research question in color as value creation. This study would benefit from the further emphasis
placed on the complexity of contextual usability and answering such research questions as follows.
RQ1. Why is the use of colors important within branding and value creation in SME products
in Bandung?
RQ2. What is the effect of colors in the creation of functional and personal value for branding?
The elaborate scope of the research framework outlined above highlights the importance and
potential of consumption value in color research. This research-in-progress pioneers analyzing
consumers’ value published to-date.
165
In this study, two consumption values will be addressed, i.e., functional and emotional values. The
multidimensional approach to the consumption value takes two basic dimensions into account:
functional (utilitarian or cognitive value) and emotional (hedonic or affective value) (Lee et al.
2019). They were emphasized by Lin et al. (2020), and the results indicated that both functional
and emotional value has an important impact on buying intention. Table 1 does not document
all research related to consumption value/customer value yet. However, from Table 1, it can be
concluded that functional or utilitarian value and emotional or hedonic value have been used
mostly in prior studies which are 29 and 24 number of studies, respectively.
Functional value refers to the product or service design or functions; which is cognitive because
it is connected with utility and usability whereas the emotional value is more effective because it
is linked to pleasure, entertainment, and interest-based on personal identification of consumers to
the brands (Tian et al. 2018; Lim & Kim 2020). For food product packaging, the functional value
can indicate values of the product either perishable or non-perishable products, besides a reflection
on the price and quality of the product. Throughout this paper, the term “functional value” refers
to utilitarian or cognitive value, while “emotional value” refers to the hedonic or affective value.
This study helps to identify the difference between perceived functional and emotional values
and how it influences customers decisions. When launching a new product, designers should pay
attention to customers’ functional needs and emotional desires (Poushneh and Vasquez-Parraga
2019). A study by Ramayah et al. (2018) indicates that, along with functional value, emotional
value plays an instrumental role in online purchase intention. Functional value (especially price
and service quality) has the best positive relation to customers’ intention to use the internet as a
retail platform. Emotional value influences consumers’ willingness to buy products online. The
subdimensions of consumption values used in past studies in research contexts are slightly different
(Jung et al. 2020).
Several previous studies address Consumption Value Theory are mostly on luxury products.
Therefore, this study wants to fill in the gap by providing knowledge in functional and personal
value of color in food product labeling in the SME context. In addition, the need to strengthen
the competitiveness of SMEs in Indonesia is crucial in the global competition era as the ASEAN
economic community, as they have a great contribution to national economic growth and lead to
improving the Gross Domestic Products (Darwanto et al. 2018).
4 CONCLUSION
This study is designed to address a research question and framework on employing the theory of
consumption value to explain the role of color in product labeling. Selected studies concerning
the theory of consumption value are summarized in Table 1. It may be noted that the consumption
value literature from 1990–2020 highlights the functional and emotional value as the key factor in
a consumer’s decision and the key indicator for a consumer’s brand loyalty. As customers perceive
functional value, strong emotional links with brands are generated for products (Poushneh and
Vasquez-Parraga 2019).
Previous studies address Consumption Value Theory mostly on luxury products. This study
clearly highlights the need for further research in the role of color in product labeling in the SME
context. The findings described above enhance our understanding and serve as the basis for a
research question in color as value creation. This study would benefit from the further emphasis
placed on the complexity of contextual usability and answering such research questions as follows.
RQ1. Why is the use of colors important within branding and value creation in SME products
in Bandung?
RQ2. What is the effect of colors in the creation of functional and personal value for branding?
The elaborate scope of the research framework outlined above highlights the importance and
potential of consumption value in color research. This research-in-progress pioneers analyzing
consumers’ value published to-date.
165