Skip to main content
SpringerLink
Log in

Household Income, Satisfaction with Standard of Living, and Subjective Well-Being. The Moderating Role of Happiness Materialism

  • Research Paper
  • Published:
Journal of Happiness Studies Aims and scope Submit manuscript

Abstract

The goal of this paper is to report a study that tested the moderation effect of materialism on the relationship between household income and satisfaction with standard of living (SOL) and subjective well-being. Through a study among 5240 employed members of a representative survey panel in Germany, we found that household income has a positive influence on satisfaction with SOL (as hypothesized), which in turn has a positive impact on subjective well-being (as hypothesized). We also found that the positive income-SOL satisfaction relationship is negatively moderated by happiness materialism (as hypothesized) and that happiness materialism is positively associated with frequent SOL evaluations based on ideal expectations (also as hypothesized). Theoretical and managerial implications are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Andrews, F. W., & Withey, S. B. (1976). Social indicators of well-being: Americans perceptions of life quality. New York: Plenum.

    Google Scholar 

  • Atay, E. G., Sirgy, M. J., Cicic, M., & Husic, M. (2009). Extending the research in relation to materialism and life satisfaction. In A. L. McGill & S. Shavitt (Eds.), North America advances in consumer research (pp. 225–233). Duluth: Association for Consumer Research.

    Google Scholar 

  • Belk, R. W. (1984). Three scales to measure constructs related to materialism: Reliability, validity, and relationships to measures of happiness. In T. C. Kinnear (Ed.), North America advances in consumer research (pp. 291–297). Provo: Association for Consumer Research.

    Google Scholar 

  • Bollen, K. A. (1989). Structural equations with latent variables. New York: Wiley.

    Google Scholar 

  • Bosnjak, M., Dannwolf, T., Enderle, T., Schaurer, I., Struminskaya, B., Tanner, A., et al. (2018). Establishing an open probability-based mixed-mode panel of the general population in Germany: The GESIS Panel. Social Science Computer Review, 36(1), 103–115.

    Google Scholar 

  • Boyce, C. J., Brown, G. D., & Moore, S. C. (2010). Money and happiness: Rank of income, not income, affects life satisfaction. Psychological Science, 21(4), 471–475.

    Google Scholar 

  • Campbell, A., Converse, P. E., & Rodgers, W. L. (1976). The quality of American life: Perceptions, evaluations, and satisfactions. New York: Russell Sage Foundation.

    Google Scholar 

  • Carter, T. J., & Gilovich, T. (2010). The relative relativity of material and experiential purchases. Journal of Personality and Social Psychology, 98(1), 146–159.

    Google Scholar 

  • Chin, W. W. (1998). Issues and opinion on structural equation modeling. MIS Quarterly, 22(1), 7–16.

    Google Scholar 

  • Cote, J. A., & Buckley, M. R. (1987). Estimating trait, method, and error variance: Generalizing across 70 construct validation studies. Journal of Marketing Research, 24(3), 315–318.

    Google Scholar 

  • Diener, E., & Biswas-Diener, R. (2002). Will money increase subjective well-being? Social Indicators Research, 57(2), 119–169.

    Google Scholar 

  • Diener, E., Kahneman, D., Tov, W., & Arora, R. (2010). Income’s association with judgments of life versus feelings. In E. Diener, D. Kahneman, & J. F. Helliwell (Eds.), International differences in well-being (pp. 3–15). Oxford: Oxford University Press.

    Google Scholar 

  • Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective well-being: Three decades of progress. Psychological Bulletin, 125(2), 276–302.

    Google Scholar 

  • Diener, E., Tay, L., & Oishi, S. (2013). Rising income and the subjective well-being of nations. Journal of Personality and Social Psychology, 104(2), 267–276.

    Google Scholar 

  • Diener, E. D., Emmons, R. A., Larsen, R. J., & Griffin, S. (1985). The satisfaction with life scale. Journal of Personality Assessment, 49(1), 71–75.

    Google Scholar 

  • Dittmar, H., Bond, R., Hurst, M., & Kasser, T. (2014). The relationship between materialism and personal well-being: A meta-analysis. Journal of Personality and Social Psychology, 107(5), 879–924.

    Google Scholar 

  • Duesenberry, J. S. (1949). Income. Saving and the theory of consumer behavior. Cambridge: Harvard University Press.

    Google Scholar 

  • Easterlin, R. A. (1995). Will raising the incomes of all increase the happiness of all? Journal of Economic Behavior and Organization, 27(1), 35–47.

    Google Scholar 

  • Easterlin, R. A. (2010). Happiness, growth and the life cycle. Europe Journal of Psychology, 7(2), 395–398.

    Google Scholar 

  • Ferrer-i-Carbonell, A. (2005). Income and well-being: An empirical analysis of the comparison income effect. Journal of Public Economics, 89(5–6), 997–1019.

    Google Scholar 

  • Fitzmaurice, J., & Comegys, C. (2006). Materialism and social consumption. Journal of Marketing Theory and Practice, 14(4), 287–299.

    Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Google Scholar 

  • Fredrickson, B. L. (2001). The role of positive emotions in positive psychology: The broaden-and-build theory of positive emotions. American Psychologist, 56(3), 218.

    Google Scholar 

  • Fredrickson, B. L., & Joiner, T. (2002). Positive emotions trigger upward spirals toward emotional well-being. Psychological Science, 13(2), 172–175.

    Google Scholar 

  • Garðarsdóttir, R. B., & Dittmar, H. (2012). The relationship of materialism to debt and financial well-being: The case of Iceland’s perceived prosperity. Journal of Economic Psychology, 33(3), 471–481.

    Google Scholar 

  • Graham, C., & Pettinato, S. (2002). Frustrated achievers: Winners, losers and subjective well-being in new market economies. Journal of Development Studies, 38(4), 100–140.

    Google Scholar 

  • Hagerty, M. R., & Veenhoven, R. (2003). Wealth and happiness revisited–growing national income does go with greater happiness. Social Indicators Research, 64(1), 1–27.

    Google Scholar 

  • Hayes, A. (2013). Introduction to mediation, moderation, and conditional process analysis. New York: Guilford Press.

    Google Scholar 

  • Hayo, B., & Seifert, W. (2003). Subjective economic well-being in Eastern Europe. Journal of Economic Psychology, 24(3), 329–348.

    Google Scholar 

  • Howell, R. T., & Howell, C. J. (2008). The relation of economic status to subjective well-being in developing countries: A meta-analysis. Psychological Bulletin, 134(4), 536–555.

    Google Scholar 

  • Inglehart, R., Foa, R., Peterson, C., & Welzel, C. (2008). Development, freedom, and rising happiness: A global perspective (1981–2007). Perspectives on Psychological Science, 3(4), 264–285.

    Google Scholar 

  • Kahneman, D., & Thaler, R. H. (2006). Anomalies: Utility maximization and experienced utility. Journal of Economic Perspectives, 20(1), 221–234.

    Google Scholar 

  • Kapteyn, A., Van Praag, B. M., & Van Herwaarden, F. G. (1978). Individual welfare functions and social reference spaces. Economics Letters, 1(2), 173–177.

    Google Scholar 

  • Kasser, T., & Ryan, R. M. (1993). A dark side of the American dream: Correlates of financial success as a central life aspiration. Journal of Personality and Social Psychology, 65(2), 410–422.

    Google Scholar 

  • Krishna, A. (2016). A clearer spotlight on spotlight: Understanding, conducting and reporting. Journal of Consumer Psychology, 26(3), 315–324.

    Google Scholar 

  • Larsen, V., Sirgy, M. J., & Wright, N. D. (1999). Materialism: The construct, measures, antecedents, and consequences. Academy of Marketing Studies Journal, 3(2), 75–107.

    Google Scholar 

  • Lucas, R. E., & Schimmack, U. (2009). Income and well-being: How big is the gap between the rich and the poor? Journal of Research in Personality, 43(1), 75–78.

    Google Scholar 

  • Mandel, N., Petrova, P., & Cialdini, R. B. (2006). Images of success and the preference for luxury products. Journal of Consumer Psychology, 16(1), 57–69.

    Google Scholar 

  • McBride, M. (2001). Relative-income effects on subjective well-being in the cross-section. Journal of Economic Behavior & Organization, 45(3), 251–278.

    Google Scholar 

  • Millar, M., & Thomas, R. (2009). Discretionary activity and happiness: The role of materialism. Journal of Research in Personality, 43(4), 699–702.

    Google Scholar 

  • Mogilner, C., & Norton, M. I. (2016). Time, money, and happiness. Current Opinion in Psychology, 10(August), 12–16.

    Google Scholar 

  • Newman, D. B., Tay, L., & Diener, E. (2014). Leisure and subjective well-being: A model of psychological mechanisms as mediating factors. Journal of Happiness Studies, 15(3), 555–578.

    Google Scholar 

  • Nickerson, C., Schwarz, N., Diener, E., & Kahneman, D. (2003). Zeroing in on the dark side of the American dream: A closer look at the negative consequences of the goal for financial success. Psychological Science, 14(6), 531–536.

    Google Scholar 

  • Nicolao, L., Irwin, J. R., & Goodman, J. K. (2009). Happiness for sale: do experiential purchases make consumers happier than material purchases? Journal of Consumer Research, 36(2), 188–198.

    Google Scholar 

  • OECD. (2013). OECD guidelines on measuring subjective well-being. Paris: OECD Publishing.

    Google Scholar 

  • Ogden, H., & Venkat, R. (2001). Social comparison and possessions: Japan versus Canada. Asia Pacific Journal of Marketing and Logistics, 13(2), 72–84.

    Google Scholar 

  • Oshio, T., Umeda, M., & Fujii, M. (2013). The association of life satisfaction and self-rated health with income dynamics among male employees in Japan. Japan and the World Economy, 28(December), 143–150.

    Google Scholar 

  • Pandelaere, M. (2016). Materialism and well-being: The role of consumption. Current Opinion in Psychology, 10(August), 33–38.

    Google Scholar 

  • Richins, M. L. (1994). Special possessions and the expression of material values. Journal of Consumer Research, 21(3), 522–533.

    Google Scholar 

  • Richins, M. L. (2004). The material values scale: Measurement properties and development of a short form. Journal of Consumer Research, 31(1), 209–219.

    Google Scholar 

  • Richins, M. L. (2011). Materialism, transformation expectations, and spending: Implications for credit use. Journal of Public Policy and Marketing, 30(2), 141–156.

    Google Scholar 

  • Richins, M. L., & Dawson, S. (1992). A consumer values orientation for materialism and its measurement: Scale development and validation. Journal of Consumer Research, 19(3), 303–316.

    Google Scholar 

  • Richins, M. L., & Rudmin, F. W. (1994). Materialism and economic psychology. Journal of Economic Psychology, 15(2), 217–231.

    Google Scholar 

  • Roberts, J. A., & Clement, A. (2007). Materialism and satisfaction with over-all quality of life and eight life domains. Social Indicators Research, 82(1), 79–92.

    Google Scholar 

  • Ryan, L., & Dziurawiec, S. (2001). Materialism and its relationship to life satisfaction. Social Indicators Research, 55(2), 185–197.

    Google Scholar 

  • Sharpe, J. P., & Ramanaiah, N. V. (1999). Materialism and the five-factor model of personality. Psychological Reports, 85(1), 327–330.

    Google Scholar 

  • Sirgy, M. J. (1998). Materialism and quality of life. Social Indicators Research, 43(3), 227–260.

    Google Scholar 

  • Sirgy, M. J. (2012). The psychology of quality of life: Hedonic well-being, life satisfaction, and eudaimonia. Dordrecht: Springer.

    Google Scholar 

  • Sirgy, M. J., Gurel-Atay, E., Webb, D., Cicic, M., Husic-Mehmedovic, M., Ekici, A., et al. (2013). Is materialism all that bad? Effects on satisfaction with material life, life satisfaction, and economic motivation. Social Indicators Research, 110(1), 349–367.

    Google Scholar 

  • Spiller, S. A., Fitzsimons, G. J., Lynch, J. G., Jr., & McClelland, G. H. (2013). Spotlights, floodlights, and the magic number zero: Simple effects tests in moderated regression. Journal of Marketing Research, 50(2), 277–288.

    Google Scholar 

  • Van Boven, L. (2005). Experientialism, materialism, and the pursuit of happiness. Review of General Psychology, 9(2), 132–142.

    Google Scholar 

  • Van Boven, L., & Gilovich, T. (2003). To do or to have? That is the question. Journal of Personality and Social Psychology, 85(6), 1193.

    Google Scholar 

  • Veenhoven, R. (1991). Is happiness relative? Social Indicators Research, 24(1), 1–34.

    Google Scholar 

  • Veenhoven, R., & Hagerty, M. (2006). Rising happiness in nations 1946–2004: A reply to Easterlin. Social Indicators Research, 79(3), 421–436.

    Google Scholar 

  • Watson, J. J. (2003). The relationship of materialism to spending tendencies, saving, and debt. Journal of Economic Psychology, 24(6), 723–739.

    Google Scholar 

  • Zhang, J. W., Howell, R. T., & Caprariello, P. A. (2013). Buying life experiences for the “right” reasons: A validation of the motivations for Experiential Buying Scale. Journal of Happiness Studies, 14(3), 817–842.

    Google Scholar 

  • Zhang, J. W., Howell, R. T., Caprariello, P. A., & Guevarra, D. A. (2014). Damned if they do, damned if they don’t: Material buyers are not happier from material or experiential consumption. Journal of Research in Personality, 50(June), 71–83.

    Google Scholar 

Download references

Acknowledgements

The authors identified on this page conducted the research reported in this paper independently and without financial support from any source. Similarly, publication of the paper will not accrue any financial benefit to any of the authors either separately or together.

Author information

Authors and Affiliations

  1. Duksung Women’s University, Seoul, South Korea

    Grace B. Yu

  2. Yonsei University, Seoul, South Korea

    Dong-Jin Lee

  3. Virginia Polytechnic Institute & State University, Blacksburg, USA

    M. Joseph Sirgy

  4. University of Trier and ZPID-Leibniz Institute for Psychology Information, Trier, Germany

    Michael Bosnjak

Authors
  1. Grace B. Yu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dong-Jin Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. M. Joseph Sirgy
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Michael Bosnjak
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Grace B. Yu.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix: Constructs and Measurement Items

Appendix: Constructs and Measurement Items

Materialism [5-point Likert scale: strongly disagree (1)–strongly agree (5)]

1.1 Happiness

  1. 1.

    I believe that my life would be better if I owned certain things I do not have

  2. 2.

    I believe that I would be happier if I could afford to buy more things.

  3. 3.

    It sometimes bothers me quite a bit that I cannot afford to buy all the things I would like.

  4. 4.

    I have all the things I really need to enjoy life. ®

  5. 5.

    I would be happier if I owned nicer things.

1.2 Success

  1. 1.

    I admire people who own expensive homes, cars, and clothes.

  2. 2.

    I believe that the things I own say a lot about how well I am doing in life.

  3. 3.

    I like to own things that impress people.

  4. 4.

    I believe that some of the most important achievements in life include acquiring material possessions

  5. 5.

    I do not place much emphasis on the amount of material objects people own as a sign of success. ®

1.3 Centrality

  1. 1.

    I try to keep things simple as far as possessions are concerned. ®

  2. 2.

    Buying things gives me a lot of pleasure

  3. 3.

    I like a lot of luxury in my life

Satisfaction with Standard of Living (SOL) [5-point semantic differential scales]

How do you feel about your standard of living? Please think of the material things you own, your financial situation, the household income, and your consumption lifestyle.

  1. 1.

    Unhappy/Happy

  2. 2.

    Bad/Good

  3. 3.

    Miserable/Enthusiastic

  4. 4.

    Frustrated/Satisfied

  5. 5.

    Disappointed/Realized

  6. 6.

    Disappointed/Satisfied

  7. 7.

    Very poor/Wealthy

Frequency of Standard-of-Living (SOL) Evaluations Based on Ideal Expectations [5-point scale: Very rarely (1), Rarely (2), Sometimes (3), Often (4), Very often (5)]

  1. 1.

    How often do you make judgments about your standard of living based on the belief that people who are lucky strike it rich?

  2. 2.

    How often do you evaluate your material wealth based on very high, possibly unachievable material goals?

  3. 3.

    How often do you compare your financial status with people that you know who are affluent and wealthy?

  4. 4.

    How often do you find yourself evaluating your economic situation based on some notion of ideal wealth you wish to have?

Satisfaction with Other Life Domains [11-point Likert scale: extremely dissatisfied (0)–extremely satisfied (10), transformed into 5-point scales]

  1. 1.

    How satisfied are you with your health?

  2. 2.

    How satisfied are you with your leisure time?

  3. 3.

    How satisfied are you with your work?

  4. 4.

    How satisfied are you with your household activities?

Subjective Well-Being (SWB) [11-point Likert scale: extremely dissatisfied (0)–extremely satisfied (10), transformed into 5-point scales]

  • How satisfied are you at the moment overall with your life?

[11-point Likert scale: extremely unhappy (0)–extremely happy (10), transformed into 5-point scales]

  • All things considered, how happy would you say you are at the moment?

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Yu, G.B., Lee, DJ., Sirgy, M.J. et al. Household Income, Satisfaction with Standard of Living, and Subjective Well-Being. The Moderating Role of Happiness Materialism. J Happiness Stud 21, 2851–2872 (2020). https://doi.org/10.1007/s10902-019-00202-x

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10902-019-00202-x

Keywords

Search

Navigation