Want to make me happy? Tell me about your experiences but not your objects

Abstract

Evidence indicates that experiences bring greater benefits to consumers than objects. Extending this research beyond the actual purchaser, this work examines individuals who experience the purchase only indirectly via a conversation-listeners. It explores how conversations about experiential versus material purchases affect listeners socially and emotionally. Results show that hearing about others' experiences (vs. objects) advances listeners' happiness more. This finding shows that the scope of experiential purchases' advantage is wider than previously known. Further, this work identifies a sequential mechanism: Conversations about experiences (vs. objects) are more substantive, allowing listeners to build stronger social connections with tellers and, in turn, gain more happiness from the interaction. Critically, this mechanism explains the effect above and beyond a previously-advanced mechanism via perceived motivation. Additionally, this work identifies a boundary of the model: purchase valence.

“The greedy I that gives”—The paradox of egocentrism and altruism: Terror management and system justification perspectives on the interrelationship between mortality salience and charitable donations amid the COVID‐19 pandemic

“…Relatedly, research shows that valuing time over money is associated with needs for social connection (Willans & Dunn, 2019). Also, investigation of the relationship between the recipients ' facilitated sense of social connection and advanced happiness (Bastos, 2020) resulting from the givers ' donation will be a meaningful addition to this line of research on the recipients' both financial well‐being and psychological well‐being fostered by both monetary donation (money) and experiential donation (time). Building upon the current data that confirms the higher perceived value of donated time (i.e., economic value of donated time) compared with the amount of donated money when mortality salience is made salient, this line of future research needs to examine the extent to which people value their time they spend with others, in relation to the social/physical distancing experience before, during, and after the pandemic.…”

Experiential purchases, as memorable moments in consumers’ lives, trigger nostalgia

“…In addition, two studies showed that experiential purchases generated higher levels of word of mouth (Gallo et al, 2019) and had a higher conversational value because they communicated positive attributes of the self (Bastos & Brucks, 2017). One additional study showed that experiential purchases were perceived as unique opportunities that consumers could not afford to pass on (Bastos, 2020). These empirical findings suggest that experiential purchases play a more prominent role in autobiographical memory given that they are more important to the self and represent more meaningful moments in consumers' lives.…”

How power increases preference for experiential purchases but not for material purchases

“…Although material possessions are usually consumed individually, experiences tend to involve more human interaction and are more enjoyable when involving more people (Caprariello & Reis, 2013). Moreover, even after the initial purchase and consumption, experiences tend to be conversationally shared (i.e., discussed with others) more than material purchases (Bastos, 2020; Bastos & Brucks, 2017). The social nature of experiences significantly contributes to meaningful feelings of relatedness and social belonging (Gilovich & Kumar, 2015; Howell & Hill, 2009), thus facilitating greater happiness (Gilovich & Gallo, 2020; Reis et al, 2000; Weingarten & Goodman, 2021).…”

“…As experiences tend to be more social in nature compared with material possessions, we believe that high (vs. low) power individuals will expect to derive greater happiness from experiences. Additionally, high‐power consumers will expect to obtain greater additional value and benefit from experiences by engaging in conversations with others and sharing the memories of these experiences with them (Bastos, 2020; Bastos & Brucks, 2017). Specifically, people who feel high power are less disinhibited and are more likely to express themselves with others (Keltner et al, 2003).…”

“…By demonstrating that consumers who feel higher power prefer experiential (vs. material) purchases, we contribute to both marketing literature and practice. First, building on prior research on the experiential advantage (Bastos, 2020; Bastos & Brucks, 2017; Carter & Gilovich, 2012; Weingarten & Goodman, 2021), we extend the literature on experiential purchases by identifying an unexplored antecedent factor—consumer power—that affects consumer preference for experiential purchases. We further add to the literature by showing that this effect is driven by the expected happiness from experiential purchases.…”