Conspicuous Consumption: Theory, Themes, and Future Research

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CONSPICUOUS CONSUMPTION
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CONSPICUOUS CONSUMPTION
Introduction
In this world, people buy goods and services for different purposes. Therefore, different
goods and services serve the different purpose of the consumer. Conspicuous consumption is
generally the purchase of luxury goods and services. These expensive goods are not to serve the
basic needs of the consumer but for other purposes. When critically evaluated the goods and
services functional advantage if there exists any, does not deserve the amount of money that is
spent on them. It is very difficult to give a clear explanation of the demand for this goods and
services. However, there has been an increase in the demand for the same goods in the past years
estimated to be over $60 billion. For such goods to attain the objected sales, they are supported
by many producer advertisements. This helps to promote their status symbol for the rich people.
The following is research on the topic based on different articles.
A brief description of the conspicuous consumption theory
Different authors have explained the concept of conspicuous consumption in a different
way and approach. Different themes have been highlighted in an effort to justify conspicuous
consumption. Veblen formulated the earliest of the theory in the book "the theory of leisure
class". The theory argues that the magnitude of a person’s relationship is very essential and
determines their consumption. A person reputation is directly connected to the amount that he is
in possession of and the amount he displays. Therefore, the basic things used to maintain the
name and fame of a person are conspicuous consumption and leisure. The theory shows that
conspicuous consumption does not only confer individual distinction but also prestige, honor and
esteem within the society. According to Veblen, conspicuous consumption is something that

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indicates superfluous lifestyle and richness. He finalizes by saying that conspicuous consumption
is a subject to wastefulness or is valueless. People only consume in that way to reflect their
reputation credibility. The behavioral trait is based on that of fashion, culture, references
groups, family structures and other aspects affecting the social status of the people.
Duesenberry has made a modification of the above Veblen theory in 1967 that he came
up with his own theory. He reveals a different theme that tries to justify conspicuous
consumption. The consumption is an attempt by the consumers to "keep up with the Joneses" so
that they are able to preserve their self-esteem (Page, 1992). The reverse of the bandwagon
effect that also expresses the state of modern consumer behavior is the “snob effect”. The theory
says that those people who are more concerned with their social status often reject goods because
they perceive them as possessed by the poor or the common people. Therefore, this people would
tend to purchaser unfavorable good. This type of consumption shows that the consumption is
based on social prestige and not human needs.
On the other hand, Coleman gives a different sociological elaboration of conspicuous
consumption. He suggests that the conspicuous goods are consumed to display their wealth and
impress others. The author says that age affects conspicuous consumption. Another argument is
that conspicuous consumption does not only depend on the exact level of spending but also
expenditure compared with others (Dev, Podoshen, & Shahzad, 2018). Different references
groups affect the consumption of a conspicuous commodity. In addition, different scholars argue
that conspicuous consumption does is not affected by the social status of a person. Instead, they
argue that the innate human nature and personality is the one that leads to such consumption. A
perfect example is Marshall says that the desire to consume conspicuous commodities is
something that inborn and follows them to the grave.