"These findings support an extension of basic need theory, where purchases that increase psychological need satisfaction will produce the greatest well-being," said Ryan Howell, assistant professor of psychology at San Francisco State University. The study was presented at the annual meeting of the Society for Personality and Social Psychology.
Participants in the study were asked to write reflections and answer questions about their recent purchases. They indicated that experiential purchases paid more dividends in terms of happiness for both themselves and others. The results also indicate that experiences produce more happiness regardless of the amount spent or the income of the consumer.
Experiences also lead to longer-term satisfaction. "Purchased experiences provide memory capital," Howell said. "We don't tend to get bored of happy memories like we do with a material object.
"People still believe that more money will make them happy, even though 35 years of research has suggested the opposite," Howell said. "Maybe this belief has held because money is making some people happy some of the time, at least when they spend it on life experiences."
