Power Up People Before Selling Experiences

Why is it that people get greater happiness from experiences they purchase, such as a cruise or a concert, than from material acquisitions, such as a camera or a chair? Researchers at Sungkyunkwan University, University of Akron, and University of Technology Sydney cite prior studies to attribute the difference to considerations of socializing, distinctiveness, and self-identity.
     Experiences are often consumed with others, and past experiences are discussed with others. Friends show greater interest in hearing about our recent cruise than about our new camera. Happiness derives from distinctiveness, and experiences differ among themselves in content and context. A series of concerts reflects a broader range of characteristics than does a collection of chairs. And experiences shape our identity, while we shape experiences to fit our identity. It’s weaker with merchandise. We strengthen the self-identity by remembering our many experiences with the material goods.
     After citing the prior studies, the researchers hypothesize that consumers perceiving more personal power will enjoy experiences relative to material items to a greater extent. Socializing allows people to show and shape their power. Powerful people prefer purchases which differentiate them from others. And they’re highly interested in expressing themselves through their consumption.
     A set of experiments supports the hypotheses. The researchers conclude by recommending that marketers of experiential offerings target people already in powerful positions and cultivate feelings of power in potential customers.
     As to the targeting, wealth can bring a sense of power. Researchers at New York University, University of Southern California, and UCLA found that the experience economy does best when consumers feel financially confident. If the consumers instead feel highly financially constrained, their preferences shift to buying material goods that will last for a while. This is true even if the material items to be purchased are frivolous and indulgent. Emphasizing to prospects that fun experiences give enduring memories was not sufficient to overcome the effect.
     As to the cultivating feelings of power, use advertisements and store signage which emphasize the power possessed by the shopper (“At our business, you’re the boss”) rather than messages which deemphasize the power (“At our business, we take care of you”). Treating the shopper with deference instead of authority reinforces this impression. Studies at Stanford University and Tilburg University raised participants’ sense of personal power by having them sit on a tall chair and lowered it by having them sit on an ottoman.

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