Abstract
Analysis with reports from more than 56,000 consumers across 38 countries reveals that social comparison (upward/downward) moderates the relationship between consumption restriction and life satisfaction. Specifically, insufficient access to goods and services combined with the likelihood of making upward social comparisons lowers life satisfaction—this negative consequence also is exacerbated by poverty. Most studies focus on wealthier consumers given importance of material abundance to affluent lifestyles; this investigation suggests that materialism also influences lives of impoverished consumers. Challenging our conventional wisdom, these results reveal that social comparisons are significantly more powerful determinants of life satisfaction for people in much poorer, developing societies than for people in more affluent societies. Specifically, compared to their affluent counterparts, impoverished consumers experience greater decreases in life satisfaction when their access to goods and services is lower than others within their societies.
Similar content being viewed by others
References
Ahuvia, A., & Wong, N. (1995). Materialism: Origins and implications for personal well-being. In European advances in consumer research, vol. 2. eds. F. Hansen. Provo: Association for Consumer Research, 172–178.
Arndt, J., Solomon, S., Kasser, T., & Sheldon, K. M. (2004). The urge to splurge: a terror management account of materialism and consumer behavior. Journal of Consumer Psychology, 14, 198–212.
Berger-Gross, V. (1982). Difference score measures of social perceptions revisited: a comparison of alternatives. Organizational Behavior and Human Performance, 29, 279–285.
Blanchflower, D. G., & Oswald, A. J. (2004). Well-being over time in Britain and the USA. Journal of Public Economics, 88, 1359–1386.
Botti, S., Broniarczyk, S., Haubl, G., Hill, R. P., Huang, Y., Kahn, B., et al. (2008). Choice under restrictions. Marketing Letters, 19, 183–199.
Bublitz, M. G., Peracchio, L. A., & Block, L. G. (2010). Why did I eat that? Perspectives on food decision making and dietary restraint. Journal of Consumer Psychology, 20, 239–258.
Buunk, B. P., & Gibbons, F. X. (2000). Towards an enlightenment in social comparison theory: Moving beyond classic and renaissance approaches. In J. Suls & L. Wheeler (Eds.), Handbook of social comparison: Theory and research (pp. 484–499). New York: Plenum.
Buunk, B. P., Kuyper, H., & Van der Zee, Y. G. (2005). Affective responses to social comparison in the classroom. Basic and Applied Social Psychology, 27, 229–237.
Chakravarti, D. (2006). Voices unheard: the psychology of consumption in poverty and development. Journal of Consumer Psychology, 16, 363–376.
Chan, K. (2008). Social comparison of material possessions among adolescents. Qualitative Market Research: An International Journal, 11, 316–330.
Chaplin, L. N., & John, D. R. (2007). Growing up in a material world: aged differences in materialism in children and adolescents. Journal of Consumer Research, 34, 480–493.
Chaplin, L. N., & John, D. R. (2010). Interpersonal influences on adolescent materialism: a new look at the role of parents and peers. Journal of Consumer Psychology, 20, 176–184.
Clark, A. E., & Oswald, A. J. (1996). Satisfaction and comparison income. Journal of Public Economics, 61(3), 359–381.
Clark, A. E., Frijters, P., & Shields, M. A. (2008). Relative income, happiness, and utility: an explanation for the Easterlin paradox and other puzzle. Journal of Economic Literature, 46, 95–144.
Cohen, P., & Cohen, J. (1996). Life values and adolescent mental health. Mahwah: Earlbaum.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences. New York: Routledge.
Collins, R. L. (1996). For better or worse: the impact of upward social comparison on self-evaluations. Psychological Bulletin, 119, 51–69.
Collins, R. L. (2000). Among the better ones: Upward assimilation in social comparison. In J. Suls & L. Wheeler (Eds.), Handbook of social comparison (pp. 159–172). New York: Kluwer.
Dhobal, S. (2006). ABCD consumer comes of age. The Economic Times, Aug. 24.
Diener, E. (2000). Subjective well-being: the science of happiness, and a proposal for a national index. American Psychologist, 55, 34–43.
Diener, E., Lucas, R. E., & Oishi, S. (2002). Subjective well-being: The science of happiness and life satisfaction. In C. R. Snyder & S. J. Lopez (Eds.), The handbook of positive psychology (pp. 63–73). New York: Oxford University Press.
Durvasula, S., Andrews, J. C., Lysonski, S., & Netemeyer, R. G. (1993). Assessing the cross-national applicability of consumer behavior models: a model of attitude toward advertising in general. Journal of Consumer Research, 19, 626–636.
Easterlin, R. (2001). Income and happiness: towards a unified theory. The Economic Journal, 111, 465–484.
Festinger, L. (1954). A theory of social comparison processes. Human Relations, 7, 117–140.
Fishbach, A. (2009). The function of value in self-regulation. Journal of Consumer Psychology, 19, 129–133.
Guesalaga, R., & Marshall, P. (2008). Purchasing power at the bottom of the pyramid: differences across geographic regions and income tiers. Journal of Consumer Marketing, 25, 413–418.
Hill, R. P. (2001). Surviving in a material world: The lived experience of people in poverty. South Bend: University of Notre Dame Press.
Hill, R. P., & Gaines, J. (2007). The consumer culture of poverty: behavioral research findings and their implications in an ethnographic context. Journal of American Culture, 30, 81–95.
Hill, R. P., Felice, W., & Ainscough, T. (2007). International human rights and consumer quality of life: an ethical perspective. Journal of Macromarketing, 27, 370–379.
Hofmann, D. A. (1997). An overview of the logic and rationale of hierarchical linear models. Journal of Management, 23, 723–744.
Hokoda, A. J., Fincham, F. D., & Diener, C. I. (1989). The effect of social comparison information on learned helpless and mastery-oriented children in achievement settings. European Journal of Social Psychology, 19, 527–542.
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, 536–560.
Inman, J. J., Peter, A. C., & Raghubir, P. (1997). Framing the deal: the role of restrictions in accentuating deal value. Journal of Consumer Research, 24, 68–79.
Kasser, T. (2002). The high price of materialism. Cambridge: MIT.
Kasser, T. (2005). Personal aspirations, the “good life,” and the law. Deakin Law Review, 10, 33–47.
Kasser, T., Ryan, R. M., Couchman, C. E., & Sheldon, K. M. (2004). Materialistic values: Their causes and consequences. In T. Kasser & A. D. Kanner (Eds.), Psychology and consumer culture (pp. 11–28). Washington, D.C.: American Psychological Association.
Martin, K. D., & Hill, R. P. (2012). Life satisfaction, self-determination, and consumption adequacy at the bottom of the pyramid. Journal of Consumer Research, 38, 1155–1168.
Martin, K. D., Cullen, J. B., Johnson, J. L., & Parboteeah, K. P. (2007). Deciding to bribe: a cross-level analysis of firm and home country influences on bribery activity. Academy of Management Journal, 50, 1401–1422.
Ozanne, J., Hill, R. P., & Wright, N. (1998). Juvenile delinquents’ use of consumption as cultural resistance: implications for juvenile reform programs and public policy. Journal of Public Policy & Marketing, 17, 185–196.
Prahalad, C. K. (2006). The fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River: Wharton School Publishing.
Rao, U. S., & Sangeet C. S. (2007). Strategies for succeeding at the Bottom of Pyramid (BOP) market in telecom services sector. Conference on global competition & competitiveness of Indian corporate. Indian Institute of Management, Kozhikode, May 18–19.
Raudenbush, S. W., & Bryk, A. S. (2001). Hierarchical linear models: Applications and data analysis methods (2nd ed.). Newbury Park: Sage.
Richins, M. (1995). Social comparison, advertising, and consumer discontent. American Behavioral Scientist, 38, 593–607.
Richins, M., & Dawson, S. (1992). A consumer values orientation for materialism and its measurement: scale development and validation. Journal of Consumer Research, 19, 303–316.
Rindfleisch, A., Burroughs, J. E., & Wong, N. (2009). The safety of objects: materialism, existential insecurity, and brand connection. Journal of Consumer Research, 36, 1–16.
Roberts, J. K., Monaco, J. P., Stovall, H., & Foster, V. (2010). Explained variance in multilevel models. In J. J. Hox & J. K. Roberts (Eds.), The handbook of advanced multilevel analysis (pp. 219–230). New York: Routledge.
Rucker, D. D., & Galinsky, A. D. (2008). Desire to acquire: powerlessness and compensatory consumption. Journal of Consumer Research, 35, 257–267.
Schimmack, U., Radhakrishnan, P., Oishi, S., & Dzokoto, V. (2002). Culture, personality, and subjective well-being: integrating process models of life satisfaction. Journal of Personality and Social Psychology, 82, 582–593.
Schor, J. B. (2004). Born to buy. New York: Scribner.
Steenkamp, J. B. E. M., & Baumgartner, H. (1998). Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research, 25, 78–90.
Steward, Q. T. (2006). Reinvigorating relative deprivation: a new measure for a classic concept. Social Science Research, 35, 779–802.
Subrahmanyan, S., & Gomez-Arias, J. T. (2008). Integrated approach to understanding consumer behavior at bottom of pyramid. Journal of Consumer Marketing, 25(7), 402–412.
Suls, J., & Wheeler, L. (2000). A selective history of classic social comparison theory and neo social comparison theory. In J. Suls & L. Wheeler (Eds.), Handbook of social comparison: Theory and research (pp. 3–22). New York: Kluwer.
Suls, J., Martin, R., & Wheeler, L. (2002). Social comparison: why, with whom, and with what effect? Current Directions in Psychological Science, 11, 159–163.
United Nations. (2007). Human development report: Fighting climate change. United Nations human development programme. New York: Palgrave Macmillan.
van de Vijver, F., & Leung, K. (1997). Methods and data analysis of comparative research. In J. W. Berry, Y. H. Poortinga, & J. Pandey (Eds.), Handbook of cross-cultural psychology, vol. 1: Theory and method (Vol. 1, pp. 257–300). Needham Heights: Allyn and Bacon.
Wood, J. V. (1989). Theory and research concerning social comparisons of personal attributes. Personality Bulletin, 106, 231–248.
Zagorski, K., Kelley, J., & Evans, M. D. R. (2007). Economic development and happiness: Evidence from 32 nations. Section on economic sociology roundtable, annual meeting of the American Sociological Association, New York.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Hill, R.P., Martin, K.D. & Chaplin, L.N. A tale of two marketplaces: Consumption restriction, social comparison, and life satisfaction. Mark Lett 23, 731–744 (2012). https://doi.org/10.1007/s11002-012-9175-4
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11002-012-9175-4