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How does self-perceived wealth contribute to happiness? Increased preference for experiential purchase

Korean Journal of Social and Personality Psychology / Korean Journal of Social and Personality Psychology, (P)1229-0653;
2018, v.32 no.2, pp.47-66
https://doi.org/10.21193/kjspp.2018.32.2.003


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Abstract

How money is spent, aside from amount, affects well-being. In terms of happiness, spending money on intangible experiences (e.g., dining, travel), rather than material possessions (e.g., clothes, shoes) is known to be more beneficial. This study examined the possibility that the person's perceived wealth plays a role in this purchase decision. As expected, college students with high self-perceived socioeconomic status (SES) preferred to spend more on experiential than material goods (Study 1). This pattern was replicated in an adult US sample, more diversified in terms of economic standing, ethnicity, and age (Study 2). Study 3 experimentally manipulated perceived financial standing to examine whether wealth shapes the preference for purchase type. Those primed with high (versus low) financial status showed a decreased sense of threat in life, which led to a greater preference for experiential over material purchase. Overall, the current data suggest that perceived wealth partly increases happiness by directing the person to allocate her resources more towards experiences than goods. This study suggests that affluence encourages the person to purchase something that is saturated with more happiness in life-experience, rather than material good.

keywords
Financial status, material purchase, experiential purchase, happiness, life satisfaction, 경제 수준, 물질 구매, 경험 구매, 행복, 삶의 만족도

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Korean Journal of Social and Personality Psychology