Behavioural science study reveals how Gen Z, millennials, and baby boomers differ with respect to 'feel-good' purchases
With no clear endpoint in sight for the ongoing COVID-19 pandemic, Canadians are turning to a variety of methods to cope – and that includes good old-fashioned shopping.
In a national behavioural science experiment commissioned by Interac, an online panel of almost 1,100 Canadian debit card users were taken through interactive simulated shopping experiences and diary exercises to test emotions associated with spending.
The results suggest that Canadians are increasingly making “feel-good purchases,” which Interac defined as non-essential spending that boosts a consumer’s mood.
Younger Canadians seem to be engaging in such behaviour more, with 66% of Gen Z adults and 58% of millennials surveyed saying that they’re more likely to make feel-good purchases today compared to before the pandemic. In comparison, just 35% of Baby Boomers and 22% of the Silent Generation, those older than 75 years old, said the same.
Canadians perceive themselves as more likely to make a feel-good purchase when they’re happy (65%) compared to when they are sad (26%) or stressed (24%). But based on the participants’ reported feelings and actual behaviour displayed during the experiment, they were nearly equally likely to want to make a feel-good purchase whether they were relatively happy, sad, or stressed.
As with any purchase, consumers also have to weight the prospects of happiness against the risks of buyer’s remorse and other negative emotions. Based on the experiment, people who spend more than $50 on a feel-good purchase for themselves were nearly three times more likely to be nervous about it, compared to those who spend a lower amount (74% vs. 26%).
The results also suggest people are more likely to be happy about giving an item away as a gift, as opposed to keeping it, if it costs them less than $50 (47% vs. 37%). But with a price tag over $50, survey participants were more likely to be happy about keeping an item than giving it as a gift (63% vs. 53%).
Gen Z adults appeared more likely to feel happy about purchasing a gift than the average population (75% vs. 67%). People who identified as introverts were also more likely than extroverts to report happiness over a gift purchase, and introverts were also more likely to over-index on purchases of clothing and beauty-related goods and services.
If the Interac research is any indication, the pent-up demand consumers are feeling will more likely result in happiness from feel-good experiences compared to material goods (68% vs. 58%). Notably, two thirds of participants expressed excitement to spend money on travel, concerts, sporting events, and other feel-good experiences once the threat of COVID subsides.
"The Interac findings come at an interesting inflection point as Canadians anticipate the feel-good experiences which have been off limits during the pandemic," said scientist and happiness researcher, Dr. Gillian Mandich. "It's important to remember that a happy life is a sum of small joys. Even something as simple as buying your morning coffee can add a burst of happiness to your day."
