Does Spending Make Us Happy? The Role of Consumption on Life Satisfaction


Dumludağ D., Gökdemir Dumludağ Ö. , Veenhoven R.

International Journal of Business and Applied Social Science, vol.7, no.10, pp.1-12, 2021 (Peer-Reviewed Journal)

  • Publication Type: Article / Article
  • Volume: 7 Issue: 10
  • Publication Date: 2021
  • Doi Number: 10.33642/ijbass.v7n10p5
  • Journal Name: International Journal of Business and Applied Social Science
  • Page Numbers: pp.1-12

Abstract

In economic theory ‘consumption’ is commonly seen as final ‘utility’, but the factual relationship between consumption and life satisfaction has hardly been considered. Empirical research on this matter can provide a basis for more informed consumer choice. We add to the emerging literature on this matter with a survey study among the general public in Turkey. For the degree of absolute consumption, we found a negative relationship with life satisfaction, savers being happier than spenders. For kinds of consumption, we found mostly negative correlations with life satisfaction, in particular with housing expenses. The only positive correlation with life satisfaction was expensed on eating out and vacations. These results illustrate that the relationship between consumption and life satisfaction is more complex and variable than is commonly assumed.