Introduction
Why do people constantly pursue the concept of absolute happiness? Satisfaction and contentment becomes underrated when everybody wants a piece of everything. Everyone wants something better even if they already have the best comparatively and relatively to other people. I remember a popular saying that “you can’t have it all,” this holds true in every aspect of life’s decision. In an article by Tsai and Hsee, they describe these thoughts as ‘hedonic adaptation’ where the initial feeling of positivism and negativism fizzles down through the course of time. The reasons of this phenomenon were summarize into three main categories: 1) Psychophysical adaptation; 2) Dilution of attention; 3) ‘Ordinization’ (Tsai and Hsee 46-47). To summarize these categories, imagine buying something you really want but do not need. At first the excitement bubbles up but eventually dies down and realization strikes that you could have gotten a better one or maybe have used that money to really buy what you really need. Hedonomics is the study of ‘maximizing happiness with limited wealth’ which focuses on the aspects of happiness, satisfaction, and decision-making where they are evaluated based on personal levels of biases and prediction (Tsai and Hsee 47). In relation to consumerism, Tsai and Hsee cited that in order to improve the happiness of consumers, there must be an increase in income and properties as well as the ability to reach the optimal hedonomics approach (44). The authors discussed hindrances of capitalizing on happiness arose from consumption biases and multiple choices, which results in dissatisfaction and loss of opportunities (Tsai and Hsee 47-48). Consumption utility is closely linked to cognitive utility in a sense that happiness experienced brings forth feelings of hearing the news, anticipation, and memories (Tsai and Hsee 48).The authors cited ‘hedonic editing’ as a strategy to maximizing happiness where a consumer experiences events together or separately, either way can invoke gain or loss of it (Tsai and Hsee 46).
Online companies using Hedonic adaptation
Shifting now into technology, virtual consumerism is becoming a trend. Most of the apps in Google PlayStore, Facebook, Apple store etc. use a hedonic adaptation as a part of their business model. Initially, we get addicted to a game and our level goes up but as it goes on. You will reach a certain level where boosts, power ups, and anything to improve your score or level up faster is needed. eBay is another one where a product can be hyped more than its intrinsic value. The initial excitement of being the top bidder will die down once the cost hits in. Many ‘groupon’ and couponing websites like RetailMeNot and Zulily also use this business model to encourage consumers to buy something they don’t need but because the price is cheap relative to the original price.
These companies use this hedonic adaptation to their advantage. It’s a very effective approach to those trendsetters, gamers, shopaholics and whatnot because the product is marketed and advertised well to the public that it becomes an instant sensation. It’s a bonus if the product can provide the consumer long-lasting happiness for it will create a tremendous rapport, and these consumers can put a good word for other prospective buyers. There aren’t many articles on sustainability of online companies but most sustainable companies have good reputation, market presence, and constant innovation. It would be good if they established a monopoly in the industry where if they say a particular product, that brand comes to mind just like toothpaste is to Colgate.In my opinion, virtual companies face more tough competition especially if their products are homogeneous but if it has edge, it will sell well. They have to keep innovating in order for the hedonic adaptation to work because if not, they have to adapt a different business model altogether.
Action Plan
The points of action for companies are written in the previous paragraph. Now, I’m taking into perspective the concept of hedonomics for consumers; two suggestions in mind for the hedonistic shoppers: Make sure to draft a proper budget and control plan and own up to the consequences of your purchases. Careful evaluation and scenario analysis are safety nets because by doing so, the optimal relationship in the hedonomics approach can be achieved and long-term gratification can be reached.
References:
Hsee, Christopher, Hastie, Reid, and Chen, Jingqiu (2008).Hedonomics: Bridging Decision Research with Happiness. Association for Psychological Science.
Tsai, Claire and Hsee Christopher (2008).Hedonomics in consumer behavior. Excerpt in the Handbook of Consumer Psychology (Routledge, 2008).
