Consumption of Luxury Hotel Experience in Contemporary China: Causality Model for Conspicuous Consumption

Abstract

China plays a preeminent role in luxury consumption in the global arena. However, the antecedents, attributes, and outcomes of conspicuous consumption among the Chinese, as well as how such a consumption preference can influence hospitality practices, are not yet fully understood. This study intends to address these issues. Through the discussions of five focus groups that consist of 38 hospitalityrelated Chinese practitioners, this study debunks the myth of conspicuous consumption among the Chinese in general and hospitality settings by identifying the characteristics of experiential conspicuous consumption in hotels as well as those in general settings. This study also theoretically conceptualizes conspicuous consumption by proposing a causality model on the basis of research findings. The characteristics of experiential conspicuous consumption in hotels are aligned with those of general settings for clear understanding of such a behavior in Chinese society. Strategies for constructing conspicuous consumption experience in hotels are derived accordingly.