Definition of psychic income

income in a form other than monetary. Psychic income gratifies psychological and emotional needs. Power, prestige, recognition, and fame are all forms of psychic income.

intangible benefits above and beyond the utilitarian value derived from a purchase. The greater the psychic income expected, the more a consumer is willing to spend on a purchase. For example, someone who would not spend more than $200 on an ordinary item of clothing may nevertheless spend as much as $1000 on a wedding dress because, in her mind, the importance of the occasion increases the benefit derived from looking her best. Similarly, people with very little discretionary income sometimes purchase expensive cars because the car enhances their feelings of self-worth.