Conspicuous Consumption

First published in 1899, The Theory of the Leisure Class, written by Norwegian American sociologist and economist Thorstein Bunde Veblen, introduced the concept of conspicuous consumption. Conspicuous consumption is the term that describes the tendency of individuals to purchase expensive products as an outward display of wealth and a means of enhancing their status in society. Veblen used the term to describe the phenomena of gaining and holding the esteem of others in society through the evidential display of wealth. In this way, an individual is attempting to prove that they have the financial means to afford a particular product. Conspicuous consumption is therefore closely linked to demonstrating status, success, and achievement.

It has long been considered that material possessions, capable of being observed in society, carry social meanings and are used as a communicator to signal a person's wealth, status, and identity. In Plato's The Republic, Book II, Adeimantus declares to Socrates: “[s]ince… appearance tyrannizes over truth and is lord of happiness, to appearance I must devote myself.” Through consumption behavior and product choices, consumers can send signals to society. Products and brands displayed conspicuously (overtly) have the ability to indicate to others in a particular society one's image identity, as well as wealth. Consuming conspicuously cannot be achieved without the presence of others and the visual display of that consumption. Therefore, those who consume conspicuously rely on [Page 68]other people's understanding the “signaling by consuming” and evaluating the person on the basis of their choices, known as the spectator's view. Aron O'Cass and Hmily McEwen defined “conspicuous consumption” as the tendency for individuals to enhance their image through overt consumption of possessions, which communicates status to others. It is through consumption decisions that an individual can benefit not only from the direct effects of their choice but also from the indirect and social effects emanating from society's observation of their choice. Private or fundamental utility is the theoretical framework that refers to the individual's evaluation of their own satisfaction from consuming certain goods. In this way, product styles and cost, rather than utility, determine how consumers are perceived by others.

Not all individuals desire conspicuous goods. The level of conspicuous consumption prevalent depends on one of a number of factors. First, the prevailing norms, values, customs, beliefs, and laws in a society may all be part of sociocultural context that underlies consumption patterns. In this case, conspicuous consumption occurs where the visibility of such behavior can be understood by those within the society. It is not only Western industrialized countries that can be characterized by conspicuous consumption. Russell Belk (1988) argues that even in Third World countries people are often attracted to and indulge in aspects of conspicuous consumption before they have adequate food, clothing, and shelter. Second, an individual's social network or reference group can influence their consumption patterns. Third, psychological variables, that is, the way in which an individual regulates their own behavior, otherwise referred to as “self-monitoring,” plays a role in conspicuous consumption. According to O'Cass and McEwen, high self-monitors tend to place more importance on the overt self and be concerned with maintaining their appearance and overall image as a means of compensating for a lack of security in their own identity. Ottmar Braun and Robert Wicklund argue that people who are committed to an identity and who evidence incompleteness with respect to that identity will be more prone to exaggerate the prestige value of whatever symbols they have at hand. Last, gender has been found to also increase susceptibility to conspicuous consumption. S. Auty and R. Elliot observe that females use clothing and apparel more than males to tell others who they are and how much status they have.

...