At the most recent Research Seminar Series, Professor Joseph Goodman delivered a talk addressing the question: “Do Experiential Purchases Remedy Materialism? Decoupling Purchase Type and Purchase Goal.” He began by reflecting on prior research suggesting that purchasing experiences tends to be associated with greater happiness than buying luxurious goods. The latter appears to reduce happiness, whereas experiential purchases tend to enhance it. However, a further relevant factor should be considered to better understand materialism and its consequences for consumers.

As Professor Goodman proposes, focusing on the underlying goals behind purchases enables improved prediction of subjective well-being. Instrumental goals serve intermediate objectives such as signaling success, popularity, or status. Terminal goals, by contrast, aim at experiencing enjoyment for its own sake. His findings indicate that it is not the materialistic purchase itself, but the intention to project a particular image through the purchase, that is associated with lower consumer well-being. Buying things to enjoy them for their own sake is associated with increased happiness - regardless of whether an experience or an item have been acquired.

The topic resonated with me particularly because it highlights the meaning of enjoying the moment. What is truly valuable for the consumer is the enjoyment of the purchase itself, rather than the thought of how one appears to others. This theory also reveals a deeper truth about happiness in general: it does not make us happy to pursue an advantageous image in the eyes of others. Rather, happiness comes from experiencing and savoring meaningful moments for ourselves.