Why Do Consumers Like to Engage in Conspicuous Consumption? What Are the Marketing Implications?
Why do consumers like to engage in conspicuous consumption? What are the marketing implications?
In society, consumers do not only buy products to satisfy needs. Instead, they buy luxury products, which symbolise a lifestyle or image they would like to acquire. They aim to acquire this image by displaying that they can afford such luxury goods. This is called conspicuous consumption. This essay will determine why consumers engage in conspicuous consumption and what marketing implications this has in terms of the marketing mix.
In order to determine why consumers engage in conspicuous consumption, this term must first be defined. “Conspicuous consumption is the acquisition and visible display of luxury goods and services to demonstrate one’s ability to afford them” (Arnould et al., 2004 p.93). Research demonstrates that consumers buy branded products as solutions to practical problems. However, when engaging in conspicuous consumption, consumers buy branded products as symbols of their wealth (Piacentini & Mailer, 2004). They believe these products will give them a higher social standing and appearance; this is called status consumption (O’Cass & Frost, 2002). “The acquisition of material goods is one of the strongest measures of social success and achievement” (O’Cass & McEwen, 2004 p.27). Conspicuous consumers tend to be highly influenced by the perception the rest of society has on the product they are buying. Extended problem solving involves purchasing high-risk, expensive items, which are not bought very often such as houses or cars (Brassington & Pettitt, 2006). When purchasing such high-involvement products, conspicuous consumers are even more likely to consider the opinions of others and will purchase according to those opinions (Piacentini & Mailer, 2004). Another reason consumers engage in conspicuous consumption is to convey their personalities and identities through the products they buy (Piacentini & Mailer, 2004). Many consumers
In society, consumers do not only buy products to satisfy needs. Instead, they buy luxury products, which symbolise a lifestyle or image they would like to acquire. They aim to acquire this image by displaying that they can afford such luxury goods. This is called conspicuous consumption. This essay will determine why consumers engage in conspicuous consumption and what marketing implications this has in terms of the marketing mix.
In order to determine why consumers engage in conspicuous consumption, this term must first be defined. “Conspicuous consumption is the acquisition and visible display of luxury goods and services to demonstrate one’s ability to afford them” (Arnould et al., 2004 p.93). Research demonstrates that consumers buy branded products as solutions to practical problems. However, when engaging in conspicuous consumption, consumers buy branded products as symbols of their wealth (Piacentini & Mailer, 2004). They believe these products will give them a higher social standing and appearance; this is called status consumption (O’Cass & Frost, 2002). “The acquisition of material goods is one of the strongest measures of social success and achievement” (O’Cass & McEwen, 2004 p.27). Conspicuous consumers tend to be highly influenced by the perception the rest of society has on the product they are buying. Extended problem solving involves purchasing high-risk, expensive items, which are not bought very often such as houses or cars (Brassington & Pettitt, 2006). When purchasing such high-involvement products, conspicuous consumers are even more likely to consider the opinions of others and will purchase according to those opinions (Piacentini & Mailer, 2004). Another reason consumers engage in conspicuous consumption is to convey their personalities and identities through the products they buy (Piacentini & Mailer, 2004). Many consumers