Sales and Self: The Noneconomic Value of Selling the Fruits of One's Labor

Author(s)
Benedikt Schnurr, Christoph Fuchs, Elisa Maira, Stefano Puntoni, Martin Schreier, Stijn M. J. van Osselaer
Abstract

A core assumption across many disciplines is that producers enter market exchange relationships for economic reasons. This research examines an overlooked factor; namely, the socioemotional benefits of selling the fruits of one's labor. Specifically, the authors find that individuals selling their products interpret sales as a signal from the market that serves as a source of self-validation, thus increasing their happiness above and beyond any monetary rewards from those sales. This effect highlights an information asymmetry that is opposite to what is found in traditional signaling theory. That is, the authors find that customers have information about product quality that they signal to the producer, validating the producer's skill level. Furthermore, the sales-as-signal effect is moderated by characteristics of the purchase transaction that determine the signal strength of sales: The effect is attenuated when product choice does not reflect a deliberate decision and is amplified when buyers incur higher monetary costs. In addition, sales have a stronger effect on happiness than alternative, nonmonetary forms of market signals such as likes. Finally, the sales-as-signal effect is more pronounced when individuals sell their self-made (vs. other-made) products and affects individuals' happiness beyond the happiness gained from producing.

Organisation(s)
Department of Marketing and International Business
External organisation(s)
Technische Universität München, Erasmus University Rotterdam, Wirtschaftsuniversität Wien (WU), Cornell University
Journal
Journal of Marketing
Volume
86
Pages
40-58
No. of pages
19
ISSN
0022-2429
DOI
https://doi.org/10.1177/00222429211064263
Publication date
11-2021
Peer reviewed
Yes
Austrian Fields of Science 2012
502019 Marketing
Keywords
ASJC Scopus subject areas
Marketing, Business and International Management
Portal url
https://ucrisportal.univie.ac.at/en/publications/sales-and-self-the-noneconomic-value-of-selling-the-fruits-of-ones-labor(76662eeb-177e-4e02-a668-944587f983bb).html