When and Why Consumers (Erroneously) Believe Income Impacts the Enjoyment of Consumption Experiences.

This article investigates how observers anticipate happiness derived from psychological consumption experiences (such as learning a language or attending events) differently based on consumers' income levels. It finds that observers hold a lay theory that human needs must be fulfilled sequentially—from physical to psychological—leading them to expect lower happiness from psychological experiences for low-income consumers and higher happiness for high-income consumers. However, empirical data from diverse sources reveal that actual happiness does not follow this pattern; income either has no effect or is inversely related to happiness from such experiences, with lower-income individuals sometimes reporting greater satisfaction. These findings highlight a bias in income-based perceptions of need prioritization and anticipated happiness, with implications for consumer behavior, gift-giving, and policy decisions affecting resource allocation across socioeconomic groups.