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There’s an old saying: “Find a job you love, and you will never have to work a day in your life.” And while that saying is especially meaningful for entrepreneurs, it can also be good for your business.
A new study suggests that, to some extent, loving your work can also influence a customer’s purchase decision. Researchers at Tilburg, Kellogg, and Lehigh Universities explored how the concept of product enjoyment — how much a seller enjoys making a product or providing a service — influences both product pricing and a customer’s willingness to pay. The study has surprising implications for small business owners who may be undervaluing goods or services they enjoy making.
What is production enjoyment?
Production enjoyment is defined as the perception of positive feelings attributed to the process of producing a good or service. Simply put: Did the seller enjoy creating the product or service?
Customers use production enjoyment as a heuristic or signal for quality. As study author Danny Zane explained, “[High] production enjoyment might signal to a buyer that the seller was in a ‘flow state’ or ‘in the zone’ when they were making the item, which is actually sort of a technical term meaning that they maxed out their ability to really meet the demands of that task.”
High production enjoyment tends to translate to buyers as high-quality, and customers are willing to pay a premium for quality. Production enjoyment not only increases buyers’ willingness to pay, but it can also help with customer acquisition.
While production enjoyment has positive implications for the customer purchase journey, sellers experience the opposite effect.
“On the seller side, that same high production enjoyment…leads them to charge less for the products or services they enjoy producing,” said Zane. “Basically, they feel like they need less financial compensation because they've already gathered inherent value from the enjoyable production process itself.”
Sellers who experience high production enjoyment may be underpricing their product or service, literally selling themselves short and leaving money on the table.
I'd say in short, if you enjoy the work you do, make sure you let that be known. [Put] it in the product description. Put it in the bio on your website or the profile of your Etsy page.
Danny Zane, Associate Professor of Marketing at Lehigh University
The value of production enjoyment
Enjoying the work you do has significant implications for your business’s long-term growth prospects. Production enjoyment doesn’t just impact a buyer’s willingness to pay; it can also translate to higher profitability.
Dozens of studies have found a correlation between greater happiness and higher profits. A meta-analysis of 225 academic studies found strong evidence of directional causality between life satisfaction and successful business results.
Likewise, research has validated the link between passion and success. “If enthusiasm and passion are present, people tend to be more resilient when encountering obstacles,” wrote Investopedia. “People who are passionate about what they do, rather than just working for the money alone tend to have more positive outlooks that can help them overcome difficulty through problem-solving.”
How to utilize production enjoyment in your marketing strategy
Production enjoyment should convince many sellers to pursue business ventures based on a passion or creative interest. And, those who are already in business should look for ways to highlight their joy in the production process.
“I'd say in short, if you enjoy the work you do, make sure you let that be known. [Put] it in the product description. Put it in the bio on your website or the profile of your Etsy page. And again, prospective buyers should think you do better work, should be willing to pay more for it,” said Zane.
Production enjoyment should also inform your pricing strategy. Since buyers are willing to pay more for goods or services with high production enjoyment, consider whether you can charge higher prices. Likewise, be aware that you may be unconsciously undercharging because of the intrinsic satisfaction you get from your work.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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