Professional Documents
Culture Documents
conspicuous consumption
Received in revised form.
Aron O’Cass
is Chair of Marketing at the Newcastle Graduate School of Business (NGSB), the
University of Newcastle, Australia. He holds a Bachelor of Commerce and Master of
Business, majoring in marketing, and a PhD in consumer behaviour. He has published
on brand perceptions, consumer behaviour, political marketing, voter behaviour,
export marketing, fashion and numerous other issues, appearing in journals such as
the European Journal of Marketing, Journal of Economic Psychology, Journal of Product &
Brand Management, Journal of Vacation Marketing, Journal of Advertising, Journal of
Consumer Behaviour and others.
Hmily McEwen
(previously Frost) currently works for Suncorp as an Analyst for the Group Customer
Value division. This role drives revenues synergies and cross sell initiatives. Prior to
Suncorp, Hmily worked for ENERGEX Retail as Business Sales Market Analyst
working closely with the Business Sales team in developing acquisition and retention
initiatives, identifying profitable market segments and assessing interstate
opportunities. Hmily also spent time working for a multinational research firm on
quantitative and qualitative projects, working for clients such as Telstra, Queensland
Rail, Griffith University and Brisbane Markets. Hmily achieved an Honours degree in
a Bachelor of Business, majoring in marketing, at Griffith University.
Abstract
In seeking to expand an understanding of consumption, this study assesses the relationship
between status consumption and conspicuous consumption. Theoretically, the relationship
between status consumption and conspicuous consumption is problematic and, therefore,
the main focus of this paper examines the theoretical and empirical separation of
consumers’ status consumption and conspicuous consumption. Data were gathered via a
survey of individuals aged between 18 and 25. The findings indicate that status
consumption and conspicuous consumption are distinct constructs. Differences in status
Keywords: consumption tendencies between males and females were not found; however, in relation to
Status conspicuous consumption gender differences were found. Status consumption was affected
consumption, by self-monitoring and interpersonal influences, but conspicuous consumption was
conspicuous affected only by interpersonal influences. The brands examined also clearly differed in
consumption terms of status and conspicuous consumption perceptions.
Professor Aron
INTRODUCTION for consumers. It is also evident that
O’Cass
Newcastle Graduate In the context of growing globalisation, certain brand dimensions and
School of Business, heightened competition and increasing associations lead to increased
University House,
The University of differentiation, there is a growing marketplace recognition and economic
Newcastle, emphasis on brands and their success as a result of the value
Callaghan NSW 2308,
Australia characteristics (Lim and O’Cass, 2001). consumers place on them. A company’s
Tel: 02 4921 7729 Increasingly, brands are seen as economic superiority is frequently
Fax: 02 4921 7398
e-mail: aron.ocass@
important in creating an identity, a implied by the strength of its brand
newcastle.edu.au sense of achievement and identification name, giving it the ability to differentiate
It has been argued that ownership of goods, thereby augmenting one’s level
specific products or brands, as well as of perceived status. Status consumption
their particular mode of consumption, tendencies will lead individuals to be
may denote status (McCraken, 1988; more conscious of displaying their
O’Shaughnessy, 1992; Packard, 1959; consumption of status and possessions.
Bell et al., 1991). The acquisition of It appears that status consumption is
material goods is one of the strongest more a matter of consumers’ desires to
measures of social success and gain prestige from the acquisition of
achievement. While the notion of status status-laden products and brands;
possessions resides in consumption, it is however, conspicuous consumption
not clear if such consumption must be focuses on the visual display or overt
conspicuous. It is argued here that this usage of products in the presence of
process is analogous to the acquisition others. For instance, a consumer may
of cultural capital which Bourdieu wear Calvin Klein underwear because
(1984) described as being inscribed as an they see the brand as symbolising
objective demand, in membership, and luxury and their own wealth in being
as such the taste of the consumer with able to afford expensive lingerie. This
high cultural capital is used to secure does not imply that they will flaunt their
positions of status. undergarments to people of high status
Despite the importance of the as a means of advancing their social
concept of conspicuous consumption, standing, which is in contrast to
empirical research and theoretical wearing a labelled Calvin Klein shirt or
models on the nature and influences of jeans. At this stage the difference seems
conspicuous consumption are scarce. It to lie in the view that status
is often said of conspicuous consumption tendencies emphasise the
consumption that it is pursued in order personal nature of owning status-laden
to enhance one’s prestige in society, possessions, which may or may not be
which can be achieved through public publicly demonstrated, whereas
demonstration signalling wealth and conspicuous consumption focuses more
communicating affluence to others. towards putting wealth or position in
Conspicuous consumption also evidence, whereby possessions are
includes expenditures made for the overtly displayed. The theoretical
purpose of inflating the ego (Veblen, importance of this difference, over and
1934) coupled with the ostentatious above the fact that different scales may
display of wealth (Mason, 1981). It has measure status consumption and
been argued that Veblen’s theory of conspicuous consumption, appears to
conspicuous consumption is based on be camouflaged by an array of cognate
the premise that those who put wealth definitions.
in evidence are rewarded with Contrary to the fact that research
preferential treatment by social initially focusing on status consumption
contacts, and that such effects depend can and has used terms indicative of
upon a comparison of the desirability conspicuous consumption and vice-
of signalling through price, quantity or versa, the authors argue that they are
quality (Bagwell and Bernheim, 1996). conceptually and empirically separate
Furthermore, it has been argued that constructs. Given the theoretical belief
status consumption implies or leads to that status and conspicuous
conspicuousness of such consumption. consumption are separate but related
The argument presented by Eastman et constructs, the authors hypothesise that
al. (1999) implies conspicuousness there will be significant differences
when they say that heightened status- between the constructs of status
seeking behaviour will lead to an consumption and conspicuous
increase in the consumption of status consumption and that:
consumption. Table 1 presents the factor confirmatory factor loadings range from
analysis of status consumption and 0.67 to 0.82, explaining 73 per cent of the
conspicuous consumption at the trait variance. The fit indices achieved from
level, showing all items loaded onto the confirmatory factor analysis indicate
their respective constructs and that the model of conspicuous
reliabilities. consumption also had an acceptable fit
on the key indices with ÷ 2 ¼ 10.31,
p ¼ 0.326, a GFI of 0.986 and an RMSEA
Confirmatory test of H1a
of 0.022.
Status consumption construct: The status
consumption scale contains items that
represent the degree to which the Single and two factor models of
consumer is predisposed to consume for status and conspicuous consumption
status (see Table 1). The exploratory A model of status and conspicuous
factor analysis results indicate that the consumption as a single factor was then
confirmatory factor loadings range from tested. The results indicate that the
0.53 to 0.77, explaining 66 per cent of the confirmatory factor loadings range from
variance. The fit indices achieved from 0.56 to 0.86, significant at , 0.05,
the confirmatory factor analysis indicate explaining 73 per cent of the variance.
that the model of status consumption The fit indices achieved from the
had an acceptable fit on the key indices confirmatory factor analysis indicate
with ÷ 2 ¼ 11.6, p ¼ 0.071, a GFI of 0.978 that the single-factor model of status
and an RMSEA of 0.055. and conspicuous consumption had a
Conspicuous consumption construct: The poor fit on the key indices with
conspicuous consumption scale contains ÷ 2 ¼ 251.10, p ¼ 0.001, a GFI of 0.823 and
items that represent the degree to which an RMSEA of 0.108. While the factor
the consumer is predisposed to loadings and reliability are acceptable,
consume conspicuously (see Table 1). the fit indices indicate that the single-
The results indicate that the factor model does not fit the data well.
Conspicuous consumption
Noticed by others 3.12 1.30 0.82
Presence of others 3.38 1.22 0.80
Gain respect 2.80 1.15 0.76
Popularity 2.70 1.14 0.75
Show who I am 3.40 1.29 0.72
Seen using it 3.31 1.30 0.67
Variance explained: 33.2%
Reliability: 0.87
Status consumption
Symbol of success 4.97 0.94 0.77
Symbol of prestige 5.16 0.81 0.71
Indicate wealth 4.56 1.01 0.73
Indicate achievement 4.12 1.18 0.72
Interested in status 4.22 1.16 0.66
Status is important to me 3.85 1.22 0.62
Status enhances my image 3.92 1.28 0.53
Variance explained: 26.2%
Reliability: 0.85
The results of the two-factor model to explain the data, congruence with
indicate that the confirmatory factor hypotheses and precision. A systematic
loadings range from 0.43 to 0.90, examination of fit of the indices,
significant at , 0.05 (t . 1.96), including R2 , average variance
explaining 72 per cent of the variance in accounted (AVA), regression weights
status and conspicuous consumption and loadings was undertaken (O’Cass,
tendencies. The fit indices achieved 2001).
from the confirmatory factor analysis The results of the inner model are
indicate that the single-factor model of shown in Table 2, and indicate that all
status and conspicuous consumption the paths exceed this criterion and the
had a poor fit on the key indices with bootstrap critical ratios are of the
÷ 2 ¼ 107.3, p ¼ 0.001, a GFI of 0.924 and appropriate size (. 1.96), except for
an RMSEA of 0.068. gender–status consumption and self–
While the factor loadings and monitoring-conspicuous consumption.
reliability are acceptable, the fit indices The results support H1b , H2b , H3a , H3b
indicate that the single-factor model and H4a , but not H2a and H4b . This data,
does not fit the data as well as the two therefore, suggest that the status
factor model. The confirmatory factor consumption tendencies of individuals
analysis, along with the exploratory are associated with the extent to which
analysis, indicate that status and they are influenced by their reference
conspicuous consumption are separate group(s) and are self-monitors,
constructs. Largely, the results support conspicuous consumption tendencies
H1a in that the two-factor model fits the are influenced also by reference
data better than the single-factor model. group(s), gender and status
consumption tendencies.
Results for the fitted model: H1b to H4 The test of the structural model
Given the formulation of the proposed included estimating the path
relationships and the sample size, it was coefficients, which are interpreted as
decided to use partial least squares standardised beta weights in a
(PLS) to analyse the data (Fornell and regression analysis, and R2 , which is
Cha, 1994; Wold, 1981). PLS analysis is a used to assess the proportion of variance
general technique for estimating path in the endogenous constructs accounted
models involving latent constructs for by the exogenous constructs. The
indirectly observed by multiple path coefficient of an exogenous
indicators such as those used in this construct represents the direct effect of
study. Evaluation of the model was that variable on the endogenous
made on the basis of indices assessing variable, an indirect effect represents the
criteria such as their quality, sufficiency effect of a particular variable on the
Model
Variance Critical
Predicted variables Predictor variables Hyp. Path due to path R2 ratio
Status consumption trait Reference group influence H3a 0.406 0.18 8.15
Self-monitoring H4a 0.179 0.05 3.26
Gender H2a 0.013 0.00 0.222 ns
second variable through its effects on a results of these tests are presented in
third mediating variable. It is the Table 4, which include the means, t
product of the path coefficients along an values and p values for H5 . As was
indirect route from cause to effect via predicted, respondents saw a clear
tracing arrows in the headed direction distinction between brand names that
only. When more than one indirect path were a priori perceived to be of high
exists, the total indirect effect is their status and those that were considered
sum. Table 3 provides direct and indirect low status.
effects for proposed relationships as The results indicate significant
depicted in the hypotheses (H1b to H4b ). differences ( p , 0.01) between the high-
and low-status brands. Consequently,
Results for differences between H5 has been supported as respondents
brands: H5 identified that Calvin Klein was a high-
H5 focused on perceptions of brands, status brand in the clothing category,
status and conspicuousness by while Oakley was considered also to be
examining if individuals identify a high- of high status for the sunglasses
status brand and a low-status brand for category. Similarly, Target and Polaroid
both the clothing brands and the brands were perceived to be of low
sunglasses brand categories. Brands status and were unlikely to be
were a priori classified as either high or consumed conspicuously.
low status via the focus groups. The two
high-status brands identified were DISCUSSION
Calvin Klein clothing and Oakley The findings indicate initially that status
sunglasses and the lower-status brands consumption and conspicuous
were Polaroid sunglasses and Target consumption are indeed related but
clothing. The tests of differences separate constructs related to
between a high- and low-status brand dimensions of consumers’ motivational
for the clothing apparel and sunglasses behaviour towards products. The
brands were conducted via t-tests. The findings also indicate good
Table 4 Differences between status consumption and conspicuous consumption for high- and low-
status brands
psychometric properties of the two the position. As such, status implies not
scales. The results indicate that status just a high or low binary but a
consumption and conspicuous continuum (and that it may stand out or
consumption are empirically separate fit).
yet related. This means that each As was discussed in the literature
construct is unique, yet somewhat review, many products, particularly
related in the context that both ascribe fashion clothing and apparel, are
similar characteristics and tendencies to oriented towards individuals displaying
the consumer, yet one who desires their image to others, where in effect
status is distinctive to the person they are a code to communicate one’s
seeking conspicuous consumption. The personal status. The results indicate that
extant literature has treated them as the influence of significant others is
though they can be used important in the process. In the context
interchangeably. The value of treating of antecedents of status consumption
status consumption and conspicuous and conspicuous consumption, the
consumption as separate yet related results indicate that reference group
constructs lies in the fact that each influence, self-monitoring and gender
descriptor carries a unique set of did influence status consumption and
consumer behaviour and consumption conspicuous consumption tendencies.
motives. Should each construct continue The results also indicate that status
to be used interchangeably, without consumption did affect conspicuous
recognising that each is different, then consumption. Intuitively, it is known
results may be fundamentally flawed, that consumers do not always buy
carrying the potential for products and brands, particularly
misinterpretation. The authors propose fashion apparel, to consume for its
to add clarity to the body of literature functional benefits. Similarly, when
and demarcate each construct by consumers wear sunglasses, many do
defining status consumption as: not wear them just to protect their eyes,
but to fit in, or display an image. In the
The behavioural tendency to value status
context of fashion apparel, sunglasses
and acquire and consume products that
and other product categories, the
provide status to the individual.
conspicuousness of products and
In the same vein, conspicuous brands is affected by their degree of
consumption can be defined as: status. Status consumption influences
the desire to consume conspicuously,
The tendency for individuals to enhance
therefore the more status a brand
their image, through overt consumption of
carries, the more likely it will be used in
possessions, which communicates status to
a conspicuous manner.
others.
Susceptibility to reference group
These (similar) definitions are an influence (normative) directly relates to
attempt to articulate what previously an individual’s status consumption
was an under-researched yet promising and conspicuous consumption
area of enquiry for consumer behaviour, tendencies. Conceptually this means
but, combined with these results, they that certain status products and brands
attest to the value of pursuing this are used for image portrayal to
avenue of research. It should be noted, provide entry into certain groups. It
however, that status is not only seen as would appear that the need to identify
high status, it is used here to imply or with, or enhance, one’s image in the
signify a sought-after social position. opinion of significant others operates
Such a sought-after position implies that closely with both status consumption
varying degrees of privilege or esteem and conspicuous consumption. This
are attached to the individual through finding is important as both status and
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