How financial constraints influence the preference for material versus experiential purchases: A compensatory control mechanism

When individuals face financial constraints, do they tend to choose experiential or material purchases? Adopting a compensatory perspective, this study hypothesizes that financial constraints heighten individuals’ perception of losing control. To restore this sense of control, individuals are more likely to prefer material goods, which offer greater predictability and stability, over experiential purchases. Studies 1–3 in this paper consistently show that financial constraints increase the preference for material over experiential purchases. This effect is mediated by a sense of control over one's situation (Study 2). Furthermore, using the moderation-of-process method, Study 3 reveals that boosting the sense of control mitigates the effect of financial constraints on preference for material over experiential purchases. That effect is also found to be reversed by framing experiential purchases as enhancing one's sense of control, which reinforces the proposed underlying mechanism (Study 4). Overall, the findings suggest that financially constrained consumers prefer material over experiential purchases as a way to compensate for reduced sense of control. Our studies contribute to research on financial constraints, sense of control, and experiential versus material purchases, with implications for marketers.