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All content following this page was uploaded by Jay Sang Ryu on 19 August 2016.
Jay-Sang Ryu*
1)
Received: April 25, 2015.Revised: June 03, 2015.Accepted: June14, 2015.
class of individuals by incomes: lower, middle and upper class internal self - the personal perception of oneself, and the ex-
(Schiffman & Ksnuk, 2007), as well as the economic develop- ternal self - the public perception of oneself(Richins, 1994;
ment of societies, underdeveloped, developing and developed Wong, 1997). Societies which emphasize personal values and
societies (Mason, 1981), should be taken into consideration. emotions reflecan individualistic culture, while the external self is
This paper will present an overview of conspicuous influenced mostly by a collectivistic culture (Triandis, Bontempo,
consumption. Then, it will investigate economic development of Villareal, Asai, & Lucca, 1988). According to Wong (1997), con-
societies and its influences on conspicuous consumption. spicuous consumption is more common among individualistic
Moreover, it will reinterpret the concept of leisure class, once consumers because it values possession of materials, which
regarded out-dated, and its relationship with conspicuous represent an individual’s success and achievement, over the re-
consumption. Last, it will propose new patterns of conspicuous lationships with others. For the same reason, however, in-
consumption that may satisfy heterogeneous consumers in the dividualistic consumers may make purchase decisions based on
twenty first century. their own needs and satisfactions rather than what others think,
which is against the Veblen’s principal concept of conspicuous
consumption.
2. Literature review Both collectivism and conspicuous consumption share the
similarity in the relationship between the self and others influ-
ence the self. This concept also influences individuals’ con-
2.1. Motives of conspicuous consumption sumption behaviors. Ratner and Kahn (2002) discovered that in-
dividuals’ purchase decisions are largely based on public
Many researchers have made attempts to link conspicuous factors. In other words, an individual tends to choose products
consumption with their own theories. Mowen (2004) claims that which can positively impress others even though the products
individuals with high competitive personalities tend to purchase are less favorable to one. Therefore, in a collectivistic culture,
visible and innovative goods. The ownership of these goods of- which values others’ perceptions of self, the main driving force
ten translates possessor’s success and superiority to for conspicuous consumption is "recognition by others."
non-possessors. Therefore, individuals compete with others in
consumption for such goods which leads them to spend 2.3. Social class and conspicuous consumption
conspicuously. Another personality-related theory is that an in-
dividual’s insecurity drives one to a strong attachment to materi- Social class is a hierarchical rank of consumers in accord-
alism (Braun & Wicklund, 1989). Individuals often use expensive ance with their power and status in the society, and is often
goods to disclose their weaknesses, otherwise shown to the used to predict consumption behaviors(Grønhaug & Trapp, 1989;
public. They believe that the public will focus on luxury goods Schiffman & Kanuk, 2007). It also serves as an important in-
owned by individuals rather than shortcomings individuals have. dication of conspicuous consumption behaviors. As Maslow iden-
Insecurity, therefore, is a major motivation for conspicuous tified, human needs are different in each level and the needs of
consumption. Some researchers explained conspicuous con- lower level should be satisfied first to pursue the needs of the
sumption with image factors. Krahmer (2006) suggests that ad- next higher level(Schiffman & Kanuk, 2007) the motives of con-
vertisements create luxury brand images and lead consumers to spicuous consumption in social class follow the similar patterns
form a favorable opinion about the brand. Once the brand is as the Maslow’s hierarchy of needs (Table 1). Lower-class
recognized as a luxurious image, individuals consume con- members, for example, rarely consume conspicuously because
spicuously to relate themselves to the brand. The self-image is their main purpose of consumption is to satisfy basic needs
also associated with conspicuous consumption. Consumers who such as food, clothing and shelter. The middle class, on the
project their future positively purchase more luxury goods than other hand, is the most active participant in conspicuous
those who don’t (Mandel et al., 2006). consumption. This group places greater emphasis on a brand
image than product quality, and others’ perception about the
2.2. Cultural influences on conspicuous consumption product’s price is more important than the actual price (Mason,
1983). Middle-class member scare more about socially visible
Looking back to Veblen’s (1931) description of conspicuous products, which interpret their qualifications of belonging to the
consumption, that consumers purchase expensive goods to dis- upper class, than products for private use such as underwear
play their wealth publicly in order to be recognized by others and insurance (Smith, 2007). In other words, "achieving higher
and achieve the higher social status, two purposes emerge. social status" is a major motivation for them to engage in con-
The concepts of recognition by others and achieving higher so- spicuous consumption. Upper-class members are the most capa-
cial status need to be addressed as they are closely related to ble conspicuous consumers. They buy expensive brand goods,
culture of societies and social class of consumers. not because they want to show off their wealth, but because
Previous research identifies the tendency of consumers to at- they can afford to do so. In other words, their consumption is
tribute the meaning of material possession to the self. In the to maintain the status and differentiate themselves from others
context of conspicuous consumption, the self is defined as the (Trigg, 2001). The upper class considers brand image as well
Jay-Sang Ryu / Journal of Distribution Science 13-6 (2015) 5-10 7
as quality of products, and opts to purchase scarce things and personal levels, conspicuous consumption will not be exercised
experience luxury leisure activities. It constantly pursues new because no status gain or recognition follows. Second, ostenta-
ways to consume conspicuously. tious exhibit of materials may be socially unacceptable, since
the country is in the stage of unhealthy economy. Conspicuous
2.4. Conspicuous consumption and the economic consumption, however, can take place in undeveloped countries
development of countries by means of the numbers of wives and children(Chaudhuri &
Majumdar, 2006).
As motives and behaviors of conspicuous consumption vary
in each social class, the meanings of conspicuous consumption
are different based on the economic development of countries: <Table 2> Conspicuous consumption by economic development of
undeveloped, developing and developed (Table 2). In other countries
words, the economic environments of each country have a large Undeveloped Developing Developed
impact on individual’s conspicuous consumption. Countries Countries Countries
Leisure upper class
Upper Class
Upper Class
(Main participants) Share similar Middle Class
consumption patterns. (Main participants)
Purchase socially visible
expensive goods to
Middle Class showoff wealth. Lower Class
Lower Class
<Figure 1> Cycle of conspicuous consumption in developing countries
4. The emergence of new conspicuous consumption as fashion items as they have transformed from solely func-
tion-focused to balancing between function and design (Mallette,
2015). Now, smartwatches are functional, unique, and fashion-
4.1. Leisure upper class and luxury experience
able items that exemplify the owner’s conspicuous consumption,
and distinguish them from the middle and lower classes, most
As customer quests for memorable and sensational experi-
of whom now possess smartphones.
ences are increasing, companies are trying to integrate experi-
ences with their products and services in today’s marketplace
(Pine & Gilmore, 1998). Aligning this newly emerged experience
economy and the leisure upper class, luxury experience stands
5. Conclusion and implications
out as the future of conspicuous consumption.
Luxury experience is expressed in two different ways. First, it Conspicuous consumption is an economic activity as well as
exists within the products and services. Today’s consumers want a psychological activity. An individual’s economic condition is a
to incorporate luxury experience in the products and services prerequisite to conspicuous consumption. Psychological factors,
they purchase (Danziger, 2007). The ownership of luxury prod- however, are major driving forces for individuals showing this
ucts is not a major concern for consumers any more. Instead, behavior. The previous research identified that individuals’ com-
they desire to enhance the quality of their life when they shop petitiveness, insecurity, and brand- and self-images are factors
for and use products. Therefore the utility of a product is as im- for individuals’ ostentatious behavior. Collectivism, which influen-
portant as its image because products should be able to convey ces individuals’ perception about self and others, is another im-
exceptional feeling to the consumers (Danziger, 2007). Second, portant factor that causes conspicuous consumption.
luxury experience amplifies consumers’ status as the leisure up- The psychological motivations are, however, mediated by in-
per class. In this context, the time factor is critical because it dividuals’ social class. The main purpose of middle class’s con-
can distinguish the leisure upper class from the rest, the work- spicuous consumption is to be perceived as the upper class,
ing upper class. In other words, months of luxurious vacation while that of upper class’s conspicuous consumption is toretain
can signify the leisure upper class which requires nowork. their status. These two distinct purposes of consumption are
Combining this with exceptionally expensive travel options, such demonstrated through each group’s unique consumption
as space tourism and commercial submarines for under-the-sea behaviors. The former selects socially visible brand goods
adventures, defines the needs of the leisure upper class. whereas the latter opts for quality and variety. Furthermore, the
economic development of societies to which individuals belong
4.2. Variety-seeking behavior and hybrid products contributes to their conspicuous consumption behavior.
Conspicuous consumption patterns in developing countries are
As the marketplace becomes more competitive and consumer very similar to that of the middle class who consumes to show
needs become more heterogeneous, luxury brands develop off. Conversely, in developed countries, conspicuous consumption
product crossovers (Chadha & Husband, 2006), and this effort is expressed through various patterns: ostentatious consumption,
creates new demands for conspicuous consumers. Luxury status consumption, and variety-seeking. Furthermore, the de-
brands own the names and images everyone admires, and they mands for new conspicuous consumption arise.
now try to extend their values beyond clothes, bags and shoes. This study contributes to the current body of literature on
While luxury brands look outside of their comfort zone, highly conspicuous consumption by sub-classifying the upper class into
technology-oriented products like mobile phones and smart the leisure upper class and the working upper class. Luxury
watches gain fast popularity as must-have items and even be- brand marketers should recognize each upper class has differ-
come fashion items (Chadha & Husband, 2006; Mallette, 2015). ent purposes for consuming conspicuous goods and develop
The marriage between technology and fashion is good news for product mix and promotional strategies for each segment. For
consumers constantly demanding unique and exceptional items. example, the working upper class may be satisfied with the fact
Consumers are willing to pay premium prices for not only brand that they own a brand that conveys a premium image. However,
names and images, but also exclusiveness and innovation. the leisure upper class may seek "premium experience" of own-
Fashion brands and electronic companies recognize this evolving ing the luxury brand. In this latter case, retailers need to en-
new consumer behavior and have begun to collaborate to pro- hance a brand value and desire through distinctive marketing
duce crossover products. LG and Prada, for example, became such as art marketing via storytelling (Cho, Hwang, & Lee,
partners to produce new mobile phones, so-called "Prada 2011).
phones. "Giorgio Armani inspired Samsung to manufacture Consumer behaviors toward luxury brands can vary depend-
Armani phones and Armani TVs (Morris, 2008). ing on the level of maturity of the luxury brands market (Sun &
Smart watches have become a "next big" product category Na, 2013). This study provides valuable lessons to luxury
for conspicuous consumers. Once signifiers of the owner’s finan- brands when entering new and immature luxury markets. First,
cial status, smartphones are now considered a necessity. luxury brand marketers should comprehend the economic devel-
Conspicuous consumers need to display their capability and opment stage of the target market because it determines who
uniqueness through new hybrid items. Smartwatches are reborn the potential customers are, what they want to buy, and why
10 Jay-Sang Ryu / Journal of Distribution Science 13-6 (2015) 5-10
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could be the basis for developing effective marketing strategies. Press.
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Future research could empirically investigate this study’s prop- economy: Policy and prescription since 1970. Managerial
ositions of new conspicuous consumption patterns. Data col- and Decision Economics, 21, 123-132.
lected from leisure upper-, upper-and middle-class consumers, Morris, I. (2008). More money than brain cells? Here’s the Samsung
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conspicuously. While cultural influences on consumers’ con- ey-than-brain-cells-heres-the-samsung-armani-tv/
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