To live in the developed world is to live in a consumerist society. Although the broader forces that created this society have led to unprecedented material abundance, scholars have maintained that these benefits have come at a significant psychological cost. An important question, then, is how these psychological costs can be minimized. With that in mind, we review research showing that people derive more satisfaction from experiential purchases than material purchases. We then summarize the findings of an extensive program of research on the psychological mechanisms that underlie this difference. This research indicates that experiential purchases provide greater satisfaction and happiness because: (1) Experiential purchases enhance social relations more readily and effectively than material goods; (2) Experiential purchases form a bigger part of a person's identity; and (3) Experiential purchases are evaluated more on their own terms and evoke fewer social comparisons than material purchases. We conclude by discussing how social policy might be altered to take advantage of the greater hedonic return offered by experiential investments, thus advancing societal well-being."Whoever said money can't buy happiness simply didn't know where to go shopping"-Bo Derek

Expressing gratitude improves well-being for both expressers and recipients, but we suggest that an egocentric bias may lead expressers to systematically undervalue its positive impact on recipients in a way that could keep people from expressing gratitude more often in everyday life. Participants in three experiments wrote gratitude letters and then predicted how surprised, happy, and awkward recipients would feel. Recipients then reported how receiving an expression of gratitude actually made them feel. Expressers significantly underestimated how surprised recipients would be about why expressers were grateful, overestimated how awkward recipients would feel, and underestimated how positive recipients would feel. Expected awkwardness and mood were both correlated with participants' willingness to express gratitude. Wise decisions are guided by an accurate assessment of the expected value of action. Underestimating the value of prosocial actions, such as expressing gratitude, may keep people from engaging in behavior that would maximize their own-and others'-well-being.

Psychological research has shown that experiential purchases (a hike in the woods, a trip to Rome) bring more happiness than material purchases (a designer shirt, a flat-screen television). The research presented in this article investigates one cause and consequence of this difference: People talk more about their experiences than their possessions and derive more value from doing so. A series of eight studies demonstrate that taking away the ability to talk about experiences (but not material goods) would diminish the enjoyment they bring; that people believe they derive more happiness from talking about experiential purchases; that when given a choice about which of their purchases to talk about, people are more likely to talk about experiential rather than material consumption; and that people report being more inclined to talk about their experiences than their material purchases and derive more hedonic benefits as a result--both in prospect and in retrospect.

Extending previous research on the hedonic benefits of spending money on doing rather than having, this paper investigates when people prefer to consume experiential and material purchases. We contend that the preferred timing of consumption tends to be more immediate for things (like clothing and gadgets) than for experiences (like vacations and meals out). First, we examine whether consumers exhibit a stronger preference to delay consumption of experiential purchases compared to material goods. When asked to make choices about their optimal consumption times, people exhibit a relative preference to have now and do later. In the next set of studies, we found that this difference in preferred consumption led participants to opt for a lesser material item now over a superior item later, but to wait for a superior experiential purchase rather than settle for a lesser experience now. This tendency is due to the fact that consumers derive more utility from waiting for experiences than from waiting for possessions. Finally, we provide evidence that these preferences affect people's real-world decisions about when to consume.

People may want deep and meaningful relationships with others, but may also be reluctant to engage in the deep and meaningful conversations with strangers that could create those relationships. We hypothesized that people systematically underestimate how caring and interested distant strangers are in one’s own intimate revelations and that these miscalibrated expectations create a psychological barrier to deeper conversations. As predicted, conversations between strangers felt less awkward, and created more connectedness and happiness, than the participants themselves expected (Experiments 1a–5). Participants were especially prone to overestimate how awkward deep conversations would be compared with shallow conversations (Experiments 2–5). Notably, they also felt more connected to deep conversation partners than shallow conversation partners after having both types of conversations (Experiments 6a–b). Systematic differences between expectations and experiences arose because participants expected others to care less about their disclosures in conversation than others actually did (Experiments 1a, 1b, 4a, 4b, 5, and 6a). As a result, participants more accurately predicted the outcomes of their conversations when speaking with close friends, family, or partners whose care and interest is more clearly known (Experiment 5). Miscalibrated expectations about others matter because they guide decisions about which topics to discuss in conversation, such that more calibrated expectations encourage deeper conversation (Experiments 7a–7b). Misunderstanding others can encourage overly shallow interactions.