Key points about this research on mementos and psychological ownership:

• Mementos are an underappreciated area of consumer psychology. The results carry a number of direct implications for both marketers and consumers: 

• Many industries, such as second-hand clothes, used cars, and charities, rely on people parting with their items. These results suggest that including a memento in the transaction will increase the likelihood of people parting with their items, and may also reduce the price at which they’re willing to do so

• As more and more physical goods and converted to digital ones (e.g. CDs to music streaming services), mementos may provide the means by which consumers can still retain a sense of psychological ownership. And thus, may encourage reluctant consumers to accept digital substitutes for physical goods and experiences

In 2020, humans reached a disturbing milestone: the total mass of things we’ve created – from skyscrapers to shoes, to hairpins – is now greater than the entire planet’s biomass, humans included.

There’s a lot to say about this from an environmental standpoint. But one thing is clear: we LOVE STUFF! 

In fact, we love stuff so much that it’s psychologically painful to part ways with the objects we have, a phenomenon known as the endowment effect. That is, we value objects more due to simple fact that we already own them. 

But what if this pain could be numbed? Would we be less attached to them, and feel less of a sense of psychological ownership? Would we be better able to say goodbye?

Recent research by Charlene Chu of Chapman University and Suzanne B. Shu or Cornell University recently explored this idea. Their findings suggest a powerful analgesic for this psychological pain: mementos. 

Their research asks two crucial questions for consumer psychology: If consumers are allowed to keep a symbol of the product as a keepsake, would this help lessen the emotional aversion to losing it? That is, if you’re selling off your beloved car, would keeping the original license plate dull the emotional pain? 

Let’s Dive in

Methodology: How Serendipity Impacts Consumer Behavior

The Psychology of Mementos (Study 1)

Study 1 was the first foray into the psychology of mementos. They recruited a group of 250 participants who were randomly assigned to either the “memento” or “no memento” condition. They were both asked to think of their favorite piece of clothing, and then were asked for the lowest price they’d accept if someone wanted to buy it from them. In the memento group, they were also told that, if they were to sell the clothing item, they’d be allowed to take many pictures of it to keep as a memento. 

Participants were also presented with a different scenario in which they lost the item and had the option of buying it back. Similarly, those in the memento group were offered to take pictures of it to keep.  

Consistent with the endowment effect, selling prices were significantly higher than buying prices in both the no memento and memento conditions. Crucially, the difference between buying and selling prices were significantly smaller in the memento condition compared to the no memento condition suggesting that the presence of a memento directly impacted the endowment effect and reduced psychological ownership.

Mementos and Psychological Ownership (Study 2)

Study 2 predicted that those with a memento would be more willing to trade an object they own, compared to those without a memento. They examined this by exploring this in the context of physical music. 950 participants were recruited online, and were asked to imagine that they owned a boxed CD set of their favorite band. The subjects were asked about their willingness to part with the boxed CD set in exchange for a DVD set of that same band. 

Similarly to Study 1, participants were randomly assigned to either a memento or “no memento” condition. Here, however, the memento was either framed as something retained from the CD set, or as a segregated item. 

The results suggest that mementos - either as a segregated item, or as a retained portion of the endowment, made sellers more willing to trade their endowed option. Overall, the findings indicate that mementos take the sting out of the endowment effect and make people more likely to part with their items. 

Testing The Power of Mementos on an Actual Transaction (Study 3)

Study 3 extended these findings by exploring how mementos would impact an actual transaction. 121 undergraduate students were recruited to participate and were presented with a water bottle with a university decal on it. They were instructed to imagine owning it, and then asked how much they would sell it for. 

Similar to study 2, they were randomly assigned to either receive no memento, to keep the university decal from the water bottle as a memento IF they sold the water bottle, or were told that they could have the university decal as a memento whether or not they sold it. 

The results suggest that, even when factoring in the perceived cost of the decal itself, the mementos in both conditions significantly reduced the selling price of the item, suggesting that participants were more willing to part with it when they’d get to keep a memento. 

In addition, the greater the sense of psychological ownership, the less negatively participants felt at the idea of losing the water bottle.

Results: The Power of Mementos on The Endowment Effect

This research suggests that mementos can significantly modulate the endowment effect, and make individuals more likely to part with their endowed objects. Further, it indicates that this takes place through engendering a small sense of psychological ownership with the product which numbs the pain of losing it.

Overall, the research suggests that, above all, mementos can serve as powerful symbols, and can stand in for the specific items we own. While brands can benefit from these insights by appreciating mementos in calculating a consumer’s willingness to pay (WTP), the insights are also beneficial to consumers.

As we’ve seen, many consumers own an overabundance of household items they can never hope to ever use. The research has important implications for second-hand clothing, charities, and in particular, for the digitization of physical goods. When a consumer can keep a photo of that unused item, they’ll feel less pained at losing it and, therefore, more likely to donate it.

As we’ve seen, the world has no shortage of stuff.

Original research:

Chu, C. K., & Shu, S. B. (2023). Mementos and the endowment effect. Journal of Behavioral Decision Making, 36(1), e2295.

Photo by Jakob Owens via UnSplash

References for The Power of Serendipity In Consumer Behavior

Chu, C. K., & Shu, S. B. (2023). Mementos and the endowment effect. Journal of Behavioral Decision Making, 36(1), e2295.