Conspicuously consuming our lives
Have you ever made a purchase because of its social value rather than its functionality? If yes, then continue reading this article. Because you’re going to learn why you did it.
What is conspicuous consumption?
Conspicuous consumption is an economic term describing the practice of consuming higher quality or higher price goods or services than needed. The term is first used by American economist and sociologist Thorstein Veblen in his book, The Theory of the Leisure Class. The history of conspicuous consumption is linked to the emergence of consumerism.
The habit of conspicuous consumption is not a new thing. Back then, major social figures were used to brag about their possessions, victories. For centuries, it’s used as a status-enhancement technique between and within social groups. Although, the figures have changed the awards are still the same, social status, power, prestige.
The driving force during the buying process is not associated with the quality of the product, but the price of the product itself. Example? Logomania on clothing, noise voices of supercars in the streets of busy cities, luxury cruise tours, etc.
Although conspicuous consumption emerged among the high class of society, it’s now transferring among the middle class, as well. With the hike of social media channels, conspicuous consumption is becoming more prevalent in today’s world. Social media gave certain influencers a path to display their lavish lifestyles, luxury cars. Conspicuous consumers are getting millions of views without spending any effort or worthy content. The modern way of satisfying ego.
What drives people to conspicuously consume?
As a reflection of cultural, social, economic, and psychological factors, people spend on things that serve their innate materialistic needs. According to Veblen, consumers make luxury purchases due to two distinct reasons. The first is rooted in the serviceability aspect, meaning people buy goods that serve their purpose. The second reason is originated from the honorific aspect. People feel honored when they’re admired because of their luxury purchases. Veblen described this sort of purchase as waste, indicating that the production of luxury goods requires more technical resources than the production of needed goods.
The reason for making expensive purchases can be argued with the statement of the high quality of goods, the distinct design, and customized features that make users feel special. While luxury brand advocates claim that these products offer a distinct level of quality in comparison to their affordable producers, far less the less expensive ones do the same job. It may not be about the functionality of the luxury product, but the satisfaction that it derives from the consumption of such goods.
There is a dual characteristic of conspicuous consumption in that consumers are the source of production of such goods. The main factors for such decisions are displaying wealth, their uniqueness, being admired, pursuing fashion, grabbing attention. People want to be characterized by the prestige of their lifestyles.
A study found that the major psychological motivations of online conspicuous consumption are materialism, envy, narcissism, and social comparison. The social media act as a great medium to show off people’s possessions, attention, and self-love.
Advertising plays a crucial role in presenting luxury products to consumers. In 2019, the luxury ad spent was accounted for 5.5 billion dollars in the US, one of the main global luxury ad spending. Understanding consumer behavior helps brands with communicating and delivering their messages. We can say that marketers are successful in deploying the consumption principles such as the self-centeredness of individuals in promoting their brands.
To buy or not to buy?
The modern economy is built on profit-making businesses. The aim of all the innovations is to offer a utility that even we as consumers aren’t aware of our demand for it. At the end of the day, it’s in your hands to be played in the luxury game or not.
