THE ‘EXPERIENCE ECONOMY’ Riding a rising tide
Experiences have become the new competitive battleground of retail – and it’s a billion-dollar industry. Learn why experiences are being valued over ‘things’, and how Millennials are driving this progression of economic value.
Research and insights: The power of experiences
The power of experiences is something that has been thoroughly researched and documented by academics and experts for a number of years. And with the emergence of what has been coined the 'experience economy', the impact and role of experiences and how they impact our day-to-day lives continues to gain momentum. Experiences connect us in a very real and human way - and sharing these moments creates a cultural currency that has greater influence over the way we experience life than any other type of spending.
Thomas Gilovich | Cornell University, 2014
Abstract: 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.
One of the enemies of happiness is adaptation... We buy things to make us happy, and we succeed. But only for a while. New things are exciting to us at first, but then we adapt to them. Our experiences are a bigger part of ourselves than our material goods. You can really like your material stuff. You can even think that part of your identity is connected to those things, but nonetheless they remain separate from you. In contrast, your experiences really are part of you. We are the sum total of our experiences.
The hidden cost of value-seeking: People do not accurately forecast the economic benefits of experiential purchases
Paulina Pchelin & Ryan Howell | Journal of Positive Psychology: Volume 9, 2014 – Issue 4
Abstract: In spite of the experiential advantage, people consume material items in the pursuit of happiness. We conducted three studies to determine if people commit forecasting errors when deciding between purchasing life experiences and material items. We suggest that prioritizing[sic] value may encourage people to prefer material items instead of life experiences.
Harris Poll | on behalf of Eventbrite, July 2014
Abstract: Millennials…this generation not only highly values experiences, but they are increasingly spending time and money on them: from concerts and social events to athletic pursuits, to cultural experiences and events of all kinds. For this group, happiness isn’t as focused on possessions or career status. Living a meaningful, happy life is about creating, sharing and capturing memories earned through experiences that span the spectrum of life’s opportunities. The combination of this generation’s interest in events, and their increasing ability to spend, is driving the growth of the experience economy
Christopher Peterson Ph.D. | February 2011
A bucket list enumerates things one wants to do before one dies (kicks the bucket). Yet it is not really about dying, but about living. It's about the things people want to do in order to highlight their lives: travel and see the wonders of the world; have an adventure; learn a foreign language; meet a celebrity; become rich; or accomplish something really demanding such as running a marathon. A bucket list is an attempt to make life memorable... bucket lists, if accomplished, set memories in place that structure life as remembered. So, I like the spirit of a bucket list if not the exact phrase. I like exhilarating memories but not to the exclusion of meaningful experiences.
Serena Gordon | HealthDay Reporter, 2009
Although everyone knows that money can't buy happiness, purchasing life experiences instead of material possessions may increase your well-being, new research suggests. In a study that asked more than 150 older college students to rate a recent purchase intended to make them happy, researchers found that people were more satisfied with purchases of life experiences, such as a trip to the beach or for a meal... Purchasing life experiences often brings someone closer to another person and satisfies a natural human need to be connected to others. Another reason is that experiences provide "memory capital" that you can draw on in less happy times.