Conspicuous Consumption: Literature Review and Future Research

This literature review examines the theoretical concept of conspicuous consumption, analyzing its development and real-world management implications. It summarizes four academic articles, including the theory's origin and more recent studies employing quantitative, qualitative, and mixed-methods research designs. The review identifies common themes such as prestige and motivation, as well as differing findings related to economic perspectives and social stratification. Limitations of conspicuous consumption, including high prices and differing consumer preferences, are discussed. Future research directions, such as promoting products with high limitations and targeting wealth disparities, are suggested. The review concludes that conspicuous consumption aims to elevate the middle class and drive consumerism by appealing to status and societal perceptions.

Enterprise Resource Planning
Enterprise Resource Planning
Name
Institution
Professor
Course
Date

Enterprise Resource Planning
Introduction.
Conspicuous consumption involves people spending money in acquiring various
luxury products and services offered in order to display their overall economic power in the
public domain (Bellezza, Paharia,Keinan,2016 p.45).To the conspicuous customer, the habit
of displaying the discrete economic power indicates that they have properly attained or are
satisfied completely with their social class.
The development conspicuous consumption as pioneered by Thorstein Veblen’s shows that it
invoked the use of charitable money to promote social prestige of the person donating.
The following articles describes Conspicuous consumption.
i. Veblen, T., 2017. The theory of the leisure class. Routledge.
Describing the consumerism theory.
ii. Hinz, O., Spann, M. and Hann, I.H., 2015. Research Note—Can’t Buy Me Love… Or
Can I? Social Capital Attainment Through Conspicuous Consumption in Virtual
Environments. Information Systems Research, 26(4), pp.859-870.
Applies the quantitative research.
iii. Mason, R., 1984. Conspicuous consumption: A literature review. European Journal
of Marketing, 18(3), pp.26-39.
Outlines the qualitative research.
iv. White, C.L., Nielsen, A.E. and Valentini, C., 2017. CSR research in the apparel
industry: A quantitative and qualitative review of existing literature. Corporate Social
Responsibility and Environmental Management, 24(5), pp.382-394.
Argues for the mixed methods in consumerism.

Enterprise Resource Planning
1. Summary.
The proposed consumerism theory highlights psychological measures in communities
and concept of increasing number of products that individuals purchase in daily lives. This
applies in areas with developed economy. Each of the quality information, variant
interpretation is derived from the theory of leisure class. This key theory criticize
conspicuous consumption as a vital function of social class level produced from social
stratification of consumers and division of labour. Since first developed by Thorston Veblen
in the year 1899, the theory has tremendously developed. Over the years it has continued to
evolutionary develop social and economic institutions that immensely shape the entire society
for example, people earning their livelihood, how technology and industrial arts have
contributed as forces of high economic production (Friehe & Mechtel, 2014 p.32).
2. Themes/findings from the articles.
(a).Similar findings from the articles.
Theme of prestige. Mason (1984 p.90) indicates that status consumption is purely
based on conspicuous consumption. It denotes how customers consume goods based on their
level of income that is quite parallel with their prestigious demands.Thorston introduces the
concept of conspicuous consumption as an academic discipline who themes involve the
application of money and material wealth in order to create a high social status like use of
silverware and custom designed clothes.
It also entails pursuit of intellectual pleasure and prestigious goods and services such as fine
arts. In addition, from the conspicuous consumption of necessity, basic goods satisfied the
requirements of customer survival (Gierl & Huettl, 2010 p.72).However, there emerged

Enterprise Resource Planning
Veblen goods that give a thematic overview regarding massive canons of taste, preferences,
class and high quality consumer goods with high value in terms of price.
Theme of motivation. White, Nielsen, Valentini, (2017 p.45) argues that qualitative sales
volume researchers recognize the significance of a buyer’s behaviour in their social and
psychological surrounding.
In order to develop a comprehensive theory and theme some fundamental assumptions
should be enacted. Customers view product utility as a key consideration in the evaluation of
its importance (Lee & Shrum, 2012 p.11).
(b).Different findings from the articles.
The different themes from the four articles are;
Researchers partake the rationale economic perspective to influence buyer’s decision
to purchase a certain product (Lee & Shrum, 2012 p.18).The rationale economic findings
differ. It increase the customers’ ability of brand selection and purchase.
Findings based economic life of the current class is mainly focused on social stratification of
societies rather than just relying on merit.
Research indicate that a higher percentage of economic behaviours of a contemporary
environment acquire their social behaviours from the society.
Findings indicate that the leisure class typically retained their high social status through use
of direct coercion (Lee & Shrum, 2012 p.18).
In striving to supersede a great status, individuals purchase high quality goods of high status
that they cannot afford. This is because affordable goods that are readily available.

Enterprise Resource Planning
3. Limitations of the conspicuous consumption.
According to four articles conspicuous consumption is the attempt that focuses on
buying goods for prestige (Ordabayeva & Chandon, 2010 p.45).This means that all relevant
goods and services that target to satisfy customers can be easily purchased so long as
consumers are rich. The motive of purchase on these goods is based on the level of
satisfaction and richness from each customer in market. From the articles the limitations are
based on the goods and other related features that are anticipated in the conspicuous
consumption. Some of the limitations are;
 Some of the goods have large prices (Ordabayeva & Chandon, 2010 p.77).This means
that consumers cannot participate in purchasing them especially customers with low
income.
 Highly quality goods are sold at high prices therefore subjecting customers to look for
other alternatives.
 On the aspect of quantity the perception is that consumption is based on the
consumer’s wealth and utiliy.This is to mean that some goods in economy can be only
affordable to a sub section in the market.
 Differing preferences and tastes found in consumers. This raises the issue of reference
consumer whereby there those customers neither use nor buy a certain products in the
market. This is a limitation to the economy and therefore conspicuous consumption
concept need to identify strategies to target the non-users in the economy.
Generally the qualitative perception is that the conspicuous consumption majorly is expressed
based on the product price (Rao & Schaefer,2013 p.82).The qualitative concept in
conspicuous consumption revolves on the aspect of the product choice in the economy.

Enterprise Resource Planning
4. Future research directions from the articles.
From the four article conspicuous consumption in the economy can be recommended
in the following ways;
Producers in market should promote those products or goods that have high limitations in the
part of the display unit so as to increase the consumption rate and also high incomes (Truong,
2010 p.67).
Also the articles argues that those goods with large utility of consumption in economy based
on the cross sections accepted by the consumers in market they should have high prices as
compared to those products in the economy which have low volatilities compared with the
available mean utilities in economy.
In those areas whereby economy is made up of large wealth disparities, the conspicuous
consumptions should be of high level.
Producers should target to earn huge profits in competitive economy (Wang & Griskevicius,
2013 p.39).This is evident from the four articles. They describe that when there are rational
consumers in market and consumers of high utility maximization then producers of goods
should target all mechanisms appropriate for securing huge profits.
Conclusion.
Conspicuous consumption was majorly developed to promote the middle class in
society to higher levels (Wang & Griskevicius, 2013 p.89).Its motive is to target society part
to buy more. This facilitates one to show his or her status in society thus leading to aspect of
consumerism which has resulted from our topic discussed. Conspicuous consumption is
associated with wealth people but in some situations the concept can apply to any class in the
economy.

Enterprise Resource Planning
References.
Bellezza, S., Paharia, N. and Keinan, A., 2016. Conspicuous consumption of time: When
busyness and lack of leisure time become a status symbol. Journal of Consumer
Research, 44(1), pp.118-138.
Friehe, T. and Mechtel, M., 2014. Conspicuous consumption and political regimes: Evidence
from East and West Germany. European Economic Review, 67, pp.62-81.
Gierl, H. and Huettl, V., 2010. Are scarce products always more attractive? The interaction of
different types of scarcity signals with products' suitability for conspicuous
consumption. International Journal of Research in Marketing, 27(3), pp.225-235.
Lee, J. and Shrum, L.J., 2012. Conspicuous consumption versus charitable behavior in
response to social exclusion: A differential needs explanation. Journal of Consumer
Research, 39(3), pp.530-544.
Ordabayeva, N. and Chandon, P., 2010. Getting ahead of the Joneses: When equality
increases conspicuous consumption among bottom-tier consumers. Journal of Consumer
Research, 38(1), pp.27-41.
Rao, R.S. and Schaefer, R., 2013. Conspicuous consumption and dynamic pricing. Marketing
Science, 32(5), pp.786-804.
Truong, Y., 2010. Personal aspirations and the consumption of luxury goods. International
Journal of Market Research, 52(5), pp.655-673.
Wang, Y. and Griskevicius, V., 2013. Conspicuous consumption, relationships, and rivals:
Women's luxury products as signals to other women. Journal of Consumer Research, 40(5),
pp.834-854.