Conspicuous Consumption Research Articles

The Psychology Behind Irrational Luxury Consumption: Impact of Brand Marketing and Secondhand Solutions

Luxury goods consumption is often driven by irrational behaviors due to emotional, psychological, and social factors. This research explores the central question of how psychological influences shape irrational luxury consumption and examines the role of marketing strategies employed by luxury brands and secondhand markets. Previous studies have investigated concepts like conspicuous consumption, identity signaling, and emotional drivers as critical aspects of luxury consumer behavior. Addressing this topic is essential because it sheds light on unsustainable consumption patterns while offering solutions like secondhand markets to mitigate financial and environmental impacts. Using a combination of theoretical analysis and case studies, this research evaluates the psychological, sociological, and economic dimensions of luxury consumption. Findings reveal that irrational consumption stems from a convergence of social status desires, emotional needs, and scarcity tactics, while secondhand markets offer a sustainable alternative by extending product life cycles and expanding access to luxury goods. The insights emphasize the importance of cultivating responsible consumer practices and promoting the growth of secondhand markets to balance individual desires with economic and environmental sustainability.

The Impact of Digital Platforms on Online Impulse Buying of Luxury Goods: The Role of Emotional Triggers and Social Influences

The emergence of social media has significantly changed peoples behavior, especially when it comes to luxury goods. This paper explores the psychological and social drivers of online impulse buying of luxury goods, focusing on the role of shopping apps and social media platforms. Emotional factors such as happiness, satisfaction and fear of missing out (FOMO) caused by impulse buying are combined with social influences such as peer following trends and influencer promotion, which further encourage impulse buying. The online world plays an important role, many shopping apps use advanced computing, and social media perfectly combines business and entertainment. Luxury consumption and digital platforms have been widely discussed in recent studies. This behavior is mainly seen in young people and high-income groups, who are particularly sensitive to trends in luxury goods. The study finally emphasizes that as the availability of luxury goods online continues to increase, it will increase the cost of purchase. This study provides insights for marketers to optimize their strategies and can also provide solutions for consumers to make rational purchases.

The Paradox of Enjoyment in Luxury Consumption: Exploring Young Women's Expected and Actual Enjoyment of Luxury Goods

ABSTRACTDoes luxury consumption bring enjoyment, as various media messages, especially advertisements, suggest? This research investigates the anticipated and experienced enjoyment associated with the use of luxury goods. We propose that anticipated and actual use of luxury goods have different effects on enjoyment, which we refer to as the paradox of enjoyment in luxury consumption. In the first study, the majority of women (74.8%) believed that using a luxury handbag (vs. an ordinary handbag) would contribute to a higher level of enjoyment/happiness. Our second study showed that imagined use of a luxury handbag led to greater enjoyment than imagined use of an ordinary handbag. Conversely, the results of the third study showed that the actual use of a luxury handbag reduced enjoyment, driven by an increase in feelings of inauthenticity. The results of the fourth study confirmed this mechanism using a different luxury brand. Furthermore, we found that the actual use of a luxury handbag increased enjoyment, but only among individuals with high levels of brand engagement in self‐concept. Overall, the results show that young women's expected enjoyment of using a luxury product does not consistently match their actual emotional experience.

Navigating the Sustainability–Luxury Paradox: Bibliometric Insights and Research Directions

ABSTRACTSustainable luxury integrates environmentally conscious practices with high standards in luxury offerings, propelling the growth of this market. But how navigable is this paradoxical alliance between luxury and sustainability? Accordingly, research in this domain has also taken a fillip. The present study provides a comprehensive understanding of the field's current state and offers future directions through a bibliometric analysis. We employ bibliographic coupling, citation analysis, keyword analysis, and cluster analysis using Biblioshiny and VOSviewer to map the intellectual structure of sustainable luxury by analysing 301 articles (1986–2004). We present insights into sustainable luxury literature, including authors, highly cited papers, popular journals, regional publication trends, and keyword analysis. The cluster analysis reveals five key research clusters: sustainability in luxury and fashion, sustainable practices in luxury hospitality, the sharing economy, corporate social responsibility (CSR) and ethical considerations in the luxury sector, and luxury sustainability strategies and consumer roles in conspicuous luxury consumption. It highlights that consumer perceptions of durability, CSR, and cultural identities shape sustainable luxury consumption. It emphasises the need to reconsider traditional economic dynamics due to the rise of second‐hand luxury and the sharing economy. Based on our synthesis, we propose research questions for future exploration by employing the Theory, Context, Characteristics, and Methods framework and incorporating inputs from expert practitioners in the sustainable luxury domain.

Personal and Social Motivations of Second Hand Luxury Consumption Among Millennials

This research paper explores the relationship between Generation Y (Gen Y) conscientiousness and narcissism characters as well as social influence and electronic word of mouth (eWoM) on their intentions to engage in second-hand luxury consumption. With the rise of sustainability concerns and a growing interest in conscious consumerism, understanding the factors influencing the younger generation's choices in the vintage luxury market becomes paramount. A comprehensive review of existing literature provides the foundation for understanding the dynamics at play in the second-hand luxury market. Empirical evidence is drawn from a survey of Gen Y consumers, and the findings shed light on the relationships between consumer's conscientiousness, social influence and luxury second hand buying intentions. The paper concludes with practical implications and suggestions for marketers aiming to capitalize on the evolving landscape of sustainable luxury consumption.

Masstige Consumption: A Motivation-Desire-Outcome Framework with Implications for Luxury Brand Management

Mass prestige (masstige) is the strategic blend of prestige and mass market appeal, targeting the aspirational middle class. Integrating extant literature on masstige consumption with extensive qualitative insights from both managers and actual users of masstige brands, this article presents a motivation-desire-outcome (MDO) framework to conceptualize masstige consumption, where luxury meets accessibility. We argue that a comprehensive understanding of masstige consumption extends beyond extrinsic social status motivations to include intrinsic self-fulfillment drivers. Through this framework, we unveil the psychological process of masstige consumption, encompassing motivation, desire, and outcome. Our framework also delineates how these dynamics are further influenced by variations such as acculturation, brand promise, need for uniqueness, and susceptibility to interpersonal influence. Importantly, the framework not only enriches the extant discourse on masstige consumption but also sets a forward-looking agenda for research and practical strategies in the masstige market. Through this lens, we invite masstige marketers and scholars to explore novel avenues that bridge the gap between aspiration and accessibility, thereby reshaping our understanding of luxury consumption in a mass-market context.

A luxury consumption perspective on motivations for brand value co-creation in emerging markets

A luxury consumption perspective on motivations for brand value co-creation in emerging markets

Optimization Analysis of Chanel's Marketing Strategy in China

The background of this study is that Chinese consumers' luxury consumption concept is changing, and digital marketing is increasingly important. The research topic focuses on the marketing strategy of Chanel women's wear in the Chinese market, aiming to put forward targeted suggestions through in-depth analysis. The research method is a combination of literature review and case study. The results show that Chanel needs to focus on refined marketing of the characteristics of the Chinese market, consumer behavior analysis and strategy adjustment under the background of the epidemic, as well as digital transformation and marketing strategy innovation. The study concluded that Chanel should balance the development of online and offline channels, deeply explore the brand story, flexibly respond to market changes, and pay attention to the concept of sustainable development .The significance and impact of this study lie in not only assisting Chanel in achieving fresh breakthroughs and development within the Chinese market, but also in offering valuable insights for other luxury brands in terms of marketing strategy and brand establishment in China.

Conspicuous consumption at the Indian BOP: a boon or bane?

Purpose This study aims to investigate the impact of conspicuous consumption on the subjective well-being (SWB) of Indian bottom of the pyramid (BOP) consumers. Design/methodology/approach This study followed a qualitative phenomenological approach. Focus group discussions were conducted with 72 Indian BOP consumers. Thematic analysis resulted in 21 categories and 9 themes. Findings This study revealed three distinct categories of consequences related to the effects of conspicuous consumption on SWB at the BOP. Conspicuous consumption can either enhance or diminish the BOP consumers’ SWB and sometimes even simultaneously have constructive and adverse effects (a double-edged sword). This study presents a conceptual model examining the consequences of conspicuous consumption at the BOP through the lenses of social comparison and compensatory consumption theories. Originality/value The literature has classified the consequences of conspicuous consumption at the BOP as constructive or adverse effects. This study reveals that conspicuous consumption at the BOP can be a double-edged sword. This study indicates that social comparison drives compensatory consumption at the BOP, which impacts the SWB of BOP consumers. Such an amalgamation of the theories of conspicuous consumption, social comparison and compensatory consumption is the unique contribution of this research. The implications for practice and policy are discussed.

Conspicuous Consumption and Visible Inequality

Conspicuous Consumption and Visible Inequality

Luxury Consumption among Seniors: Exploration of Emotions and Psychological Antecedents

Luxury Consumption among Seniors: Exploration of Emotions and Psychological Antecedents

The effect of conspicuous consumption on social identity formation in the branded clothing sector: The mediating effect of product symbolism

The effect of conspicuous consumption on social identity formation in the branded clothing sector: The mediating effect of product symbolism

Stimuli Behind Consumers’ Inclination Toward Luxury Brands: A Case Study of Youth Consumers in Colombo, Sri Lanka

This quantitative research explores the factors influencing the preference of Sri Lankan youth consumers for luxury brands, presenting a base conceptual model to analyse these influences on inclination towards luxury brands. The study focuses on 170 youth consumers from Colombo, Sri Lanka. Results indicate that self-esteem, social status, and conspicuous consumption impact young consumers' inclination towards luxury brands. The findings reveal the importance of understanding cultural and social dynamics in crafting effective marketing strategies for luxury goods in Sri Lanka.

Спрос, закон спроса, эффекты Гиффена и Веблена. Часть 2. Нефункциональный спрос и загадки спроса

The present work is a brief review of domestic educational and scientific literature upon the issues of non-functional (according to Leibenstein’s classification) demand. To take into account the influence of social factors, the concept of conspicuous consumption by T. Veblen is used. Attention is paid to inaccurate and controversial statements found in literature, as well as to cases of incorrect interpretation of some types of non-functional demand formed under the influence of social determinants. First of all, this refers to the practice of incorrectly interpreting the Veblen effect as an exception to the law of demand and conspicuous consumption as irrational behavior. A number of recent studies convincingly indicate that conspicuous consumption is capable of exerting a favorable psychological effect on the individual who exhibits it, thereby contributing to an increase in their level of well-being. Using the example of the dissertation services market, it is shown that buyers of custom dissertations who often experience amazing “psychological metamorphoses” subsequently receive the opportunity to successfully convert the acquired symbolic capital into certain privileges. The mathematical model of the Veblen effect proposed in the article allows asserting that the Veblen effect may as well manifest itself as a result of the rational choice of the consumer who may be an individual with any level of income, except for the lowest, completely excluding the possibility of any choice of consumed goods. It is shown that in some cases, to explain the dynamics of demand for a particular good, it is sufficient to take into account the “competition” of the Veblen, price, bandwagon, and snob effects without any reference to paradoxes or exceptions to the law of demand. Along with this, examples of consumer behavior and demand are given, for the interpretation of which Leibenstein’s classification is insufficient.

Hierarchical Cluster Approach to Identify High-End Chinese Tourist Behavior: A Case Study in Phuket, Thailand

This study investigates the service touch points most influential to high-end Chinese tourists staying at five-star hotels in Phuket, Thailand, by segmenting them into distinct clusters based on their behaviors and preferences. Utilizing a quantitative research approach, the study employs descriptive statistics and hierarchical cluster analysis as the primary method of data analysis, supported by a structured questionnaire. The research identifies three clusters—Emerging Affluents, Urbanized Elites, and Established Opulence—each with unique demographic profiles in average monthly income and city of residence, as well as behavior, namely, source of search information, lead-time, preferred cancellation policies, expectations regarding hotel facilities, and conspicuous consumption activities.

Revisiting consumer loyalty: luxury brand extension into restaurants and cafés

PurposeWith luxury brands extending into restaurants and cafés, the definition of luxury consumption no longer refers to tangible products alone but to intangible and authentic experiences as well. Drawing on the Stimulus–Organism–Response framework (SOR) and the costly signalling theory, this study explores the sequential mechanisms of experiences in luxury brands’ restaurants and cafés among Korean and US consumers.Design/methodology/approachThis study distributed online surveys in South Korea and the US and recruited 419 participants (South Korea = 210; US = 209). PLS-SEM and multigroup analysis were used to test the hypotheses.FindingsPerceived quality influenced perceived luxury values positively and led to consumers’ loyalty to both the parent brand (i.e. luxury fashion brand) and extended brand (i.e. luxury restaurants and cafés).Originality/valueLuxury brands seek to offer their consumers authentic and extraordinary experiences. By merging luxury fashion with gastronomy, these brands can foster synergistic long-term relationships with consumers and enhance their brand equity in the global luxury market. Our results also demonstrated that such expansion contributes to competitive advantages in luxury fashion retailing by increasing their intangible values in addition to their parent luxury fashion brands. Further, in the context of globalisation, this research provides insights into how luxury retailers’ novel approach to the F&B sector can enhance consumers’ loyalty across different cultures and strengthen their global luxury retail strategy.

The Great Indian Budget: Does Migration Influence Household’s Consumption Proportions?

This study employs the two waves (2004–2005 and 2011–2012) of the nationally representative India Human Development Survey (IHDS) to estimate the expenditure gaps (namely, expenditure gaps in food consumption, conspicuous consumption and productive investment) between migrant and non-migrant households. Using propensity score matching and inverse probability weighted regression average, the results indicate that migrant households allocate a lower proportion of their annual household expenditure to food consumption (vis-à-vis the non-migrant households), while allocating higher shares to conspicuous consumption and productive investment. These results vary by whether a loan was sanctioned, the amount sanctioned, the purpose of the loan (productive or otherwise) and the source of the loan (formal or informal channels). The findings propose policy considerations, emphasizing the importance of reassessing loan priorities by extending credit towards productive investment opportunities. This study also explores the consumption spillover effects on non-migrant households, indicating that they emulate the consumption patterns of migrant households by allocating a higher share of expenditure towards conspicuous consumption, with no discernible effect on productive investment.

Conspicuous consumption motives and ambivalence toward dining at vegan restaurants: a perspective from social comparison theory

Conspicuous consumption motives and ambivalence toward dining at vegan restaurants: a perspective from social comparison theory

Cashless Commerce: A Study on the Interplay between Digital Payments and Luxury Consumption among Private Enterprises’ Employees

Purpose: To explore how digital payment (independent variable) systems influenced purchasing behaviors (dependent variable) among employees in private enterprises, finding that factors such as convenience, speed, and flexibility drive luxury spending by simplifying high-value transactions. Although security risks and impulsive spending threaten the cashless situation, the urgency of such risks requires improved safeguards and better financial literacy. Methodology: Stratified random sampling was applied by dividing the number of employees into distinct strata based on industry. A sample size was proportionally allocated to each stratum, ensuring equal representation from each category. This research was conducted in Iba, Zambales, Philippines. Iba is one of the 13 towns that make up the Zambales province. A total of 509 responses were gathered, based on the sampling size of at least 385, which was determined using Raosoft’s sample size calculator. Google Forms served as the principal instrumentation and data-gathering procedure, but paper questionnaires were also provided for those without Internet access. Findings: This study found that digital payments significantly enhanced the convenience and ease of luxury consumption, particularly among employees in private enterprises. They appreciated the speed and simplicity of cashless transactions, eliminating the need to carry cash. Furthermore, these payment processes offered flexibility through options such as installment plans. For many, the seamless approach to making significant purchases hassle-free made digital payments appealing in today's fast-paced and technology-driven world. Contribution to Theory, Policy, and Practice: It was important to strengthen security, enhance consumer education, and promote access to a safer, more responsible, cashless economy. The study recommended reinforcing security measures, enhancing consumer education, and ensuring broader access to foster a safer, more accountable, cashless economy.

Understanding moderated mediating effects and framework towards Chinese element fashion consumption from a cultural perspective

This article aims to explore the effect of fashion products perception with Chinese elements (FPP) on consumers’ purchasing intention (PI). It also intends to verify the mediating effects of cultural awareness (CA), cultural identity (CI), and conspicuous consumption (CC), as well as the moderating effects of face consciousness (FC). Following the empirical research methodology, a survey questionnaire with seven variables was constructed. A total of 390 participants were randomly selected using the simple random sampling method for hypothesis testing. The results indicate that CA and CI play a fully mediating role, while CC plays a partially mediating role. In addition, FC demonstrates a significant moderating effect in the model. The originality of this article lies in exploring the psychological mechanism of purchase intention of fashion products with Chinese elements from two perspectives: positive enhancement and negative weakening, resulting in the chain mediating variables of cultural identity and cultural vigilance.