Conspicuous Consumption and its Impact on Consumer Behavior: A Review of Four Articles

This article reviews four research papers on conspicuous consumption and its impact on consumer behavior. It discusses common and different themes, study limitations, and future directions.

Running head: BUSINESS RESEARCH METHODS
Business research methods
Name of the student
Name of the university
Author note

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List of reviewed articles
Theory and
progression
Kapeller, J. and Schütz, B., 2015. Conspicuous consumption, inequality
and debt: the nature of consumption‐driven profit‐led
regimes. Metroeconomica, 66(1), pp.51-70.
Qualitative Vohra, A.V., 2016. Materialism, impulse buying and conspicuous
consumption: A qualitative research. Global Business Review, 17(1),
pp.51-67.
Quantitative Amatulli, C., De Angelis, M., Korschun, D. and Romani, S., 2018.
Consumers' perceptions of luxury brands’ CSR initiatives: An
investigation of the role of status and conspicuous
consumption. Journal of Cleaner Production, 194, pp.277-287.
Mixed method Correia, A., Kozak, M. and Reis, H., 2016. Conspicuous consumption
of the elite: Social and self-congruity in tourism choices. Journal of
Travel Research, 55(6), pp.738-750.

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Table of contents
Brief summary.................................................................................................................................4
Common themes..............................................................................................................................4
Different themes..............................................................................................................................5
Study limitations..............................................................................................................................6
Future directions..............................................................................................................................7
Reference list...................................................................................................................................8

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Brief summary
The term conspicuous consumption indicates the money spending process in which the
luxury services and goods are being publicly displayed. In this process, the accumulated wealth
of the buyers is being highlighted. In case of conspicuous consumers, the discretionary economic
power helps to influence the maintenance of the social status. In the year 1899, the concept of the
conspicuous consumption was introduced by the sociologist and economist Torstein Veblen. The
theory shows that for showing the economic power, the consumers purchase the luxury products
rather than fulfilling their needs. Therefore the social status is being influenced by the
conspicuous consumption theory. After the introduction of the second industrial revolution,
highlighting the upper-class people, the author highlighted the concept. It has been identified that
after the 20th century, the living standard of people has changed. Due to the improving social
standard, the consumption behavior of middle-class people has also changed. In the 20th
century, the theorist Paul Nystrom introduced the theory based on the changing lifestyle of
people after the industrial revolution. According to the author, in between the 20th and 21st
century, the conspicuous consumption expansion has influenced the behavioral changes of the
customers. The immediate desire of the customers for gratification and raising hedonistic
expectations are the impact of improving lifestyle.
Common themes
In the first article, it has been identified that conspicuous consumption is being influenced
by the social and economic status of a person. It has been identified in this article that the
depending on the environmental preservation, the social sustainability is being maintained
(Kapeller and Schütz 2015). In the case of the second article, the consumer behavior has been

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considered as the major influential factor in consumption rate. In the article, the impulse buying,
materialism and conspicuous characteristics have been correlated with each other. In the third
article, different situations have been highlighted in which the needs of customers get changed.
In the fourth article, the important influences of the conspicuous consumption behavior in the
different social level have been mentioned. Correia, Kozak and Reis (2016) have focused on the
preferences of the Portuguese travelers. Through the article, the social and self-representations
have been done in a proper manner. Therefore, in the above four articles, it has been identified
that the social status and financial situation have a higher level of impact on the behavioral
characteristics of consumption gets influenced. In the articles, it has been identified that the
increasing willingness of the customers towards the luxury products and higher status are
simultaneously increased.
Different themes
It is true that all the four articles have established the correlation with social standard and
conspicuous consumption; however, there are various dissimilarities. In the first article, the
theoretical concepts regarding the profit-led demand and wage-led demand have been
introduced. Depending on the customer satisfaction, in this article Correia, Kozak and Reis
(2016) used the traditional concept of Veblenian and Bhaduri-Marglin model in case of assuming
the consumption concern among the working class. Here the regression between two variables
such as working class and profit share has been highlighted.
On the other hand, the theme of the second article is totally different as it has focused on
in behavioral traits of the consumers has been highlighted. In such cases depending on the
consumers’ behavior, the development of marketing strategies has been done. According to

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Vohra (2016), the important three components of consumption such as evaluative, emotional and
imaginative components have been mentioned. In the third theme, the correlation between CSR
and luxury has been pointed out. According to Amatulli et al. (2018), in most of the cases, the
consumers ignore the CSR initiatives rather than the other influences. By highlighting the
external and internal initiatives of luxury brands, it has been identified that external initiatives
are more effective than the internal initiatives. Depending on the collected information from the
respondents, the author has highlighted the CSR dimensions. In the fourth paper, it has been
mentioned about the important travel pattern of Portuguese travelers. It is different from other
articles because in this case the individuals’ perspectives, as well as the important travel
experiences, have been highlighted.
Study limitations
Comparing all the articles, it can be said that in these articles the theoretical perspectives,
behavioral traits, CSR influences and travel pattern have been mentioned. In the first article, the
author has not mentioned about any survey. In this case, maintaining the authenticity of the
research project, it will be difficult. On the other hand, in the case of the second article, the
research has been done depending on the interviews. In such cases high chances for getting the
inappropriate answer increases. In the third article, CSR initiatives have been highlighted.
However, there are many other influential factors. In the case of this article, the author has
mentioned the luxury companies and their CSR initiatives. If the other organizations had been
mentioned in this research, it would have been better for the study. In the fourth article, both the
qualitative and quantitative methods have been used. However, it has discussed a specific
industry. In the case of global industry, the application will not be applied.

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Future directions
After analyzing all the articles, it can be said that in terms of developing effective profit-
led demand and wage-led demand models, the first article will help the organizations. In the
second article, the important behavioral traits of the customers have been mentioned. These will
help the organizations to understand the needs and demands of them. Importance initiatives
regarding the effective CSR practices have been mentioned in the third article. This article will
help in the case of adapting effective CSR initiatives in an organization. In the fourth article, the
tourism industry has been highlighted. In order to understand the behavioral perspective of the
tourists, this article will be beneficial. Therefore, it can be said that if the organizations are able
to implement the business strategies in an effective manner, the articles will help in terms of
developing the business.

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Reference list
Amatulli, C., De Angelis, M., Korschun, D. and Romani, S., 2018. Consumers' perceptions of
luxury brands’ CSR initiatives: An investigation of the role of status and conspicuous
consumption. Journal of Cleaner Production, 194, pp.277-287.
Correia, A., Kozak, M. and Reis, H., 2016. Conspicuous consumption of the elite: Social and
self-congruity in tourism choices. Journal of Travel Research, 55(6), pp.738-750.
Kapeller, J. and Schütz, B., 2015. Conspicuous consumption, inequality and debt: the nature of
consumption‐driven profit‐led regimes. Metroeconomica, 66(1), pp.51-70.
Vohra, A.V., 2016. Materialism, impulse buying and conspicuous consumption: A qualitative
research. Global Business Review, 17(1), pp.51-67.