Abstract

AbstractBased on social exchange theory and social identity theory, this article examined how displays of luxury—manipulated through the presence of luxury brand on clothes—affects consumers' perceptions. Through two experiments, we found that consumers with a high level of consumer brand engagement (CBE) assessed an individual with a visible logo of the brand, in which they were engaged, as higher in status, more intelligent and attractive. Moreover, we found a mechanism that explains this phenomenon. Identification with the brand user mediates these relationships, such that displays of luxury in individuals with high levels of CBE leads to identification with the brand user, which in turn enhances the perception of status, intelligence and attractiveness. These results indicate that luxury display may increase more positive person's perception among individuals who engage with the luxury brand. Summing up, our paper reveals that the phenomenon of luxury displays is not universal and should be treated not only in terms of an evolutionary adaptive strategy.

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