Conspicuous and inconspicuous consumption of luxury goods in a digital world: insights, implications, and future research directions

Abstract

Luxury brands are conduits of attractiveness, desirability, and status and their demand has not been impacted by economic recessions or calamities like the pandemic. Over the years, consumers have purchased luxury brands to engage in conspicuous consumption in order to demonstrate elite status and wealth. Recent research on luxury brands has also generated alternate forms of luxury consumption, notably inconspicuous consumption and inconspicuous minimalism. The digital era poses significant challenges and opportunities to luxury retailers. This article explores the various types of luxury consumption and the trends that exist in digital marketing which luxury advertisers can effectively leverage such as counterfeit brands, virtual reality, augmented reality, phygital, and luxury democratization. These strategies can help luxury advertisers prepare better for engaging customers, involving them throughout different stages of the purchase decision, and bolstering sales and revenues.