Want to get the most enjoyment out of your money? Spend on experiences such as travel rather than material goods!
A new study by researchers, including one of Indian-origin, shows that the enjoyment we derive from experiential purchases may begin even before we buy.
This research offers important information for individual consumers who are trying to "decide on the right mix of material and experiential consumption for maximising well-being," said psychology researcher and study author Thomas Gilovich of Cornell University.
Previously, Gilovich and colleagues had found that people get more retrospective enjoyment and satisfaction from their experiential purchases than from their material purchases.
And other research has shown that people often hold off on experiences so that they can savour the thought of eventually having them.
Gilovich and co-authors Amit Kumar of Cornell University and Matthew Killingsworth of University of California, San Francisco wanted to investigate whether the enjoyment we get from the anticipation of a purchase depends on what we're buying.
The researchers discovered that people thinking about impending experiential purchases, such as ski passes or concert tickets, have higher levels of happiness than those who anticipate spending money on things.
Researchers also found the act of actually waiting in line to make a purchase may be more pleasant for those intending to spend money on an experience.
An analysis of newspaper accounts of crowds of people waiting in line found that those waiting to purchase an experience were in better moods and were better behaved than those waiting to purchase material goods.
"You sometimes hear stories about people rioting, smashing windows, pepper-spraying one another, or otherwise treating others badly when they have to wait," said Kumar.
"Our work shows that this kind of behaviour is much more likely in instances where people are waiting to acquire a possession than when they're waiting for tickets to a performance or to taste the offerings at their city's newest food truck," Kumar said.
The researchers speculate that there may be several factors that could explain these findings. People may think about future experiences in more abstract ways that can make them seem more significant and more gratifying, for example.
It's also possible that waiting for an experience induces less competition than waiting for material goods. Finally, anticipating experiences may confer greater social benefits, making people feel more connected and happier overall.
The findings were published in the journal Psychological Science.