How hedonic strategies bring about customer engagement and value for e-retailers—A blended PLS-ANN analysis of the mediating effect of experiential value-in-use

Abstract Despite the increasing efforts of e-retailers to develop hedonic shopping atmospheres, a general understanding of the potential effects of specific hedonic strategies on customer value-in-use, leading to customer engagement value for the business, remains elusive. This paper addresses this central question by drawing on the theoretical underpinnings of value-in-use experience and building a model where value is an outcome of three hedonic strategies, aimed at raising recreation, escapism, and local presence. We gathered survey data from 625 online customers and analysed the data using a method that combines partial least squares (PLS) with artificial neural networks (ANNs) in both the measurement model and the analysis of the structural model. This technique is used to test non-linear measurement configurations and causal relationships contributing to customer engagement value. As anticipated, the findings show that the three hedonic strategies considered offer customers avenues to experience value-in-use and lead to customer engagement—which ultimately drives enhanced value for the e-retailer. This study contributes to the literature on hedonic shopping environments and experiential value-in-use and will assist e-retailers in designing effective hedonic strategies throughout the customer journey.