Conspicuous Consumption: A Business Research Methods Report

This report delves into the concept of conspicuous consumption, examining its definition and various theoretical perspectives. It begins with an introduction outlining the purchase of luxury goods and services and the motivations behind such consumption, often driven by status and prestige rather than functional need. The report explores the seminal work of Thorstein Veblen, who introduced the theory of the leisure class and its connection to conspicuous consumption as a means of displaying wealth and social standing. It then contrasts Veblen's ideas with those of Duesenberry and Coleman, who offer alternative explanations. The report also explores the impact of conspicuous consumption on society, highlighting its potential to disrupt economic development. The research also identifies potential areas for future study, including the relationship between conspicuous consumption and crime, the trends in non-industrialized countries, and the differences between genders in consumption behavior. The conclusion emphasizes the importance of understanding conspicuous consumption and its influence on individual choices and societal outcomes.

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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.

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A clear picture of what conspicuous consumption is and the changes it has undergone can
be clearly identified from the combination of all the articles. The common theme is that
conspicuous consumption has changed from being an exclusive “individual’s behavior" to
something that is enjoyed by very many consumers (Strikwerda, 2018). From this we are also
able to know that the consumers desire to consume is a contributor to the conspicuous
consumption. Different authors agree with Veblen while other has a very different argument.
Galbraith agrees with the theme of Veblen that consumers consume conspicuous goods to attain
recognition of their social status.
For a fact, spending more on visible commodities can crowd the investments of the
country, example food, education and healthcare. The article gives evidence of how conspicuous
consumption can affect the likelihood of poverty in the country. This is especially because the
poor are the one who has more incentives to use large amounts of money on status consumption
and put less money on human capital (Abraham, & Reitman, 2018). From the above is clear that
conspicuous consumption disrupts the development processes of a country and therefore lowers
the economy.
In conclusion, conspicuous consumption is generally the consumption of expensive
goods and services by the consumers. Different people have addressed different themes on the
matter. The above four articles have given a different approach to what conspicuous
consumption. From the authors, conspicuous consumption shows the social status of the
consumer. The consumption contributes to the underdevelopment of a country. Therefore, people
should avoid the mode of consumption and invest in other important aspects.

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Future research
The above study spells that with time the basic motivation to consume conspicuous
commodities is to gain prestige and status. However, the fact that there are other factors that
affect this consumption behavior; there are three areas that are proposed for future research.
First, the research will examine the relationship that exists between conspicuous consumption
and crime in the highly industrialized countries (Huang, & Wang, 2018). This is by finding the
reasons why people are ready to do anything even the bad things to enhance their lifestyles.
Secondly, the research will examine the trends and conspicuous behavior in the non-
industrialized countries (Page, 1992). Finally, yet importantly, the research will focus on the
differences that exist between female and males in terms of conspicuous consumption. The
research will examine the type of conspicuous goods in relation to each class of gender. The
research, therefore, will put insights into effective means of promoting class items and targeting.

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References
Abraham, V., & Reitman, A. (2018). Conspicuous consumption in the context of consumer
animosity. International Marketing Review, 35(3), 412-428.
Dev, M., Podoshen, J. S., & Shahzad, M. (2018). An Exploratory Comparison of Materialism and
Conspicuous Consumption in Pakistan. Journal of International Consumer Marketing, 1-9.
Huang, Z., & Wang, C. L. (2018). Conspicuous consumption in emerging market: The case of
Chinese migrant workers. Journal of Business Research, 86, 366-373.
Page, C. (1992). A history of conspicuous consumption. ACR Special Volumes.
Strikwerda, C. J. (2018). Too Much of a Good Thing? Consumption, Consumerism, and Consumer
Cooperation in Modern History. International Review of Social History, 63(1), 127-142.