Business Research Methods: Conspicuous Consumption Analysis

This report delves into the analysis of conspicuous consumption, exploring the influence of self-esteem and social groups on consumer behavior. It examines various research papers and case studies to understand how individuals use luxury goods to reflect their social status and economic power. The report compares and contrasts different research findings, highlighting advantages and disadvantages of conspicuous consumption. It further discusses arguments supporting and opposing this behavior, providing relevant case studies like Rolls Royce and BMW. The conclusion emphasizes the importance of understanding consumer motivations and suggests future research directions, including the use of quantitative research methods for more accurate outcomes. The report references key articles and journals, including studies on the role of social media, testosterone, and consumer motivation in luxury consumption.

BUSINESS RESEARCH
METHODS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Overview..................................................................................................................................1
2. Discussion regarding conspicuous consumption.....................................................................2
3. Comparison and Differences in themes/findings.....................................................................3
Advantages..................................................................................................................................3
Disdavantages..............................................................................................................................4
4. Arguments................................................................................................................................4
5. Relevant case studies illustrating key points...........................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

TOPIC: “To analyse the impacts of self esteem v/s other focused group on
conspicuous consumption”
INTRODUCTION
Self esteem and focused group have influences in developing decision based on consuming
the luxurious products. Thus, for reflecting the economic power and status among individual.
Thus, people used to spend more of the luxurious commodities which have been publicized by
the producers as well as aby the market which creates the brand value. People get attracted
towards it and for reflecting their economic stability and wealth for such spending they go for
obtaining such expensive products.
The sociological concept and intuition behind conspicuous consumption of goods where
people used to display their social status by spending large amount of money on luxurious
commodities. Large expenses on the other hand articulates their wealth, social status, economic
power and efficiency to consume expensive goods which is prestigious to them. It can be seen
among the people who has willingness to show their social status by donating large amount of
money in charity (Veblen, 2017). In historical aspects this theory has been associated with
families, men and women belongs to higher class who were the greater wealth as well as publicly
manifesting their prestige and power of spending money.
1. Overview
The focus of Memushi in this research was relevant with the conspicuous consumptions
which is familiar to marketers, economists, psychologists and sociologists. Therefore, it has
become part of everyday language. Moreover, there have been study over forms of consumption,
extravagant, wasteful and luxurious product consumption (Conspicuous Consumption of Luxury
Goods: Literature Review of Theoretical and Empirical Evidences, 2018). However, secondary
analysis of this research has analyses the impacts of such lavish expenditures on the household
consumptions.
As per Henry’s “A hybrid focus group study of conspicuous luxury consumption in the social
media concept” Therefore, this concept is directly link to the current aspects and behaviours of
consumers in relation with spending money of lavish products (Kennedy and Bolat, 2017).
The centred issues of this research are based on analysing the outcomes from the 17
respondents that have been considered to make adequate analysis over 6 tests. They have used
qualitative techniques in determining the appropriate outcomes. Whereas, they have tested the
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Henry’s brand consumption process through Intrinsic and Extrinsic motivations, Self esteem
Conspicuous consumption, status Conspicuous Consumption, Narcissism and Decreased trust in
brand and bloggers.
Wu and et.al., have presented a new concept relevant with the conspicuous consumption as
“The role of social status and testosterone in human conspicuous consumption”. They have
presented, people purchase luxurious goods for indicating their social status among society not
for the functional value but for the sake of mitigating the competition (Wu and et.al., 2017).
The focus of this study where researcher have conducted the quantitative study on which they
have collected the data and from the randomly selected 166 participants on 60 experiments.
However, in relation with that there have been use of two tests such as average number of
winners which are 4080.20 while the standard deviation has reflected outcomes as 32337.10. On
the other side, in consideration with the number of losers in the sample where the mean value has
been derived such as 3891.85 and standard deviation as 2501.36. However, these variables did
not show any difference from each other. Along with this, the true point of scores have been
ascertain as T value is 160 which is 0.41 and P >0.25 therefore, indicates that there is difference
in the expended efforts or skill of two groups.
The focus of Wei Shao, was on deriving influence of buyers on attaining goal when
purchasing luxury goods. The study is focused on extrinsic and intrinsic aspect where research
aimed at examining needs of shopper for uniqueness and role of self-monitoring of expressive
behaviour of buyers. The article is based on mixed analysis where scholar conducted both style
of evaluation that is qualitative and quantitative. The sample of study was random secondary
articles which analysed with the help of thematic analysis. However, sample of quantitative
study was 200 respondents of Australia above 18 years of age. Thus, for quantitative analysis
scholar conducted survey panel of sampled participants.
2. Discussion regarding conspicuous consumption
In accordance with the conspicuous consumption of luxury goods which have impacts of the
household consumption have been based on analyzing its impacts on consumers over a period.
Researcher have examined Precapitalistic-feudal, modern capitalist and post modern with
reference to primary objectives, drivers of behaviours, consumer and principle behaviours
dimensions.
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Here, Kennendy and Bolat have presented Henry’s perception behind conspicuous products
is for representing economic power of an individual on the social media just for creating a
personal value.
Similarly, Wu has presented the individual motive of presenting the personal status as a
competition in society. Thus, spending more reflects the prestige, power and efficiency of a
person with relation to create an identity in the environment.
As per Wei Shao, the theoretical framework of buyers’ motivation and luxury consumption
was based on implication of self-determination of theory. Further, themes of study are
consumption of shoppers on the basis of inconspicuous and conspicuous. In addition, the
qualitative analysis of study was also based on needs of uniqueness and intrinsic and extrinsic
motivation of buyers. The quantitative analysis of study is done on the basis of demographics
that is employment, education, gender and income.
3. Comparison and Differences in themes/findings
The most common factor which is based on encouraging people to obtain the conspicuous
consumption is mainly to reflect their social status as well as fetching attention of society
towards them. People believes that spending more on a popular product will create a social
image in market. Just to reflect their prestige and efficiency they made efforts with regards to
show their social class. Moreover, self esteem and focused group has the main role in
encouraging people for buying such luxurious products.
Advantages
As per Memushi, there have been differences in the personal motives which encourages an
individual with reference to spend more on a commodity are Sexual signaling, Social signaling
and Auto signaling.
However, in relation with the study presented by Kennendy and Bolat as well as Wu and
et.al. where they have represented that, people spend as per reflecting their social value among
the society as well as creating the competition in the society.
Wei Shao, Research outlined secondary information on conspicuous consumption from
where it is identified that purchase of luxury good by shoppers is for social identification and
maintaining a status in society. Apparently, from quantitative analysis of article it is determined
that buyer motivation of conspicuous consumption is based on uniqueness, creative choices and
for avoiding similarity.
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Disdavantages
In relation with identifying the concept and making the adequate ascertainment of the data
base which have presented that, there have been use of qualitative, quantitative and mixed
research methods with references to analyse the actual concept behind Conspicuous
consumption. However, these concepts have been effective in making appropriate ascertainment
of the database.
Memushi’s, research consist of limitations that there have been lack of information as well as
analysis over the Conspicuous consumption in micro and macroeconomic level as per conceptual
framework. Along with this, there is lack of appropriate information as the improper market
survey.
As per analysing the theory of Kennendy and Bolat based on Henry’s concept for using the
social media value for social prestige and image on which there have been implication of
qualitative research methods which in turn will be adequate for making survey over mass media.
On the other side, in relation with analysing the theory of Wu and et.al. where researchers have
implicated quantitative techniques for gathering information and analysing the valid solution.
Wei Shao, Limitation of research was experimental survey which increase the risk of error
which impact validity of results and findings which are completely based on attributes and
feelings of respondents towards survey question.
4. Arguments
Memushi’s, research have been suggested that they must make survey over more than 3600
households which will bring them adequate outcomes and ascertainment of the data base. There
must be expansion of study criteria as per studying the micro and macroeconomic factors.
Wei Shao, Hence, in accordance with over overall analysis it can be said that future study
can be based on differences in conspicuous consumption on demographic variables.
5. Relevant case studies illustrating key points
There have been various studies and cases which has been faced by businesses or
individual which reflects tendency of people in terms of conspicuous consumption. However,
influences and impacts of the surrounding as well as self-motive of an individua encourage them
to spend more on the branded as well as on luxurious products.
Rolls Royce, BMW, Audi, Lamborghini etc. are the car manufacturing businesses which
have created their brand value in the market. Thus, prices offered by these producers are
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comparatively luxurious and the clients they have, has a good status symbol in society. Recently
posting of social media as well as presenting the royalty which encourages people to obtain such
costly vehicles.
CONCLUSION
On the basis of above report there has been analysis based on people behaviour and
intentions for obtaining the luxurious products. Thus, factors which influences and encourages
people to spend more and creating identity in the environment. People consumes the products
which are comparatively lavish as well as represented their social image among the society have
become the social privilege and pride for them. Further, for the future research must be use of
quantitative research method for all the theories that have been effective with regards to
represent the accurate outcomes. Influences of the statistical tools and techniques will be helpful
with reference to analyse actual consumer behaviour relevant with obtaining lavish commodities.
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REFERENCES
Books and Journals
Kennedy, G. and Bolat, E., 2017. Meet the HENRYs: A hybrid focus group study of conspicuous
luxury consumption in the social media context. In: Academy of Marketing 2017, 3-6
July 2017, Hull, United Kingdom
Wu, Y. and et.al., 2017. The role of social status and testosterone in human conspicuous
consumption. Scientific reports. 7(1). p.11803.
Veblen, T., 2017. The theory of the leisure class. Routledge.
Online
Conspicuous Consumption of Luxury Goods: Literature Review of Theoretical and Empirical
Evidences. 2018. [Online]. Available through :<
https://www.ijser.org/researchpaper/Conspicuous-Consumption-of-Luxury-Goods-
Literature-Review.pdf >.
Consumer motivation and luxury consumption: Testing moderating effects. 2018. [Online].
Available trough :<
https://www.sciencedirect.com/science/article/pii/S0969698918303175>.
Provide reference for each academic article (formatted using the Harvard
Referencing Style)
Conceptual article
(proposed theory)
Conspicuous Consumption of Luxury Goods: Literature Review of
Theoretical and Empirical Evidences. 2018. [Online]. Available
through :< https://www.ijser.org/researchpaper/Conspicuous-
Consumption-of-Luxury-Goods-Literature-Review.pdf >.
Quantitative article
[published from
2012 onwards]
Wu, Y. and et.al., 2017. The role of social status and testosterone in
human conspicuous consumption. Scientific reports. 7(1).
p.11803.
Qualitative article
[published from
2012 onwards]
Kennedy, G. and Bolat, E., 2017. Meet the HENRYs: A hybrid focus
group study of conspicuous luxury consumption in the social
media context. In: Academy of Marketing 2017, 3-6 July 2017,
Hull, United Kingdom
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Mixed method
article
[published from
2012 onwards]
Consumer motivation and luxury consumption: Testing moderating
effects. 2018. [Online]. Available trough :<
https://www.sciencedirect.com/science/article/pii/S09696989183
03175>.
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