Utility of Status Consumption in Marketing a Specific Brand or Product Type - Literature review Example

Utility of Status Consumption in Marketing a Specific Brand or Product Type Introduction Nearly all work applied in consumer demand literally assumes the mere presence of status consumption. The validity regarding this assumption is not supported in any available empirical inquiry that confirms the relevance of status motivations in marketing specific brand and relating to consumer behavior (Schiffman et al 2008). However, it is practicable to conduct tests that reveal how status consumption can be of use in advertising and differentiating particularly between consumers purchasing and status-motivated behavior. Is it possible for marketers to understand consumer demand chiefly as a relation ideally between goods and individuals and their statuses as determinants of consumption? This is the ideal way that this paper looks into and verifies the status consumption concept as applied in consumer demand. Researchers describe status consumption as the behavior of consumers to seek to purchase services and goods for the status they ideally confer to, regardless of consumer’s income or social class. Conversely, status consumption in the past normally involved high-end luxurious and expensive products and services. Schiffman et al (2008) describes goods and services described as acquired through status consumption as not consumed by many people regularly but just at the social events of relevance. Many consumers particularly use such products and services in satisfying material needs as well as the social needs ascribed to status. Bearden, Richard, & Teel (1989, p. 473-481) argue that, in simple words, status consumption as used by many consumers is generally, meant to impress the others who may be among the consumer’s superiors, a future spouse or social connections. Frank (1985) argues that status consumption increases the brand value of a given consumer as well as the product. While the relevance of status consumption is famous historically world-over, studies earlier on to the status consumption domain have looked at a single industry and nation context regarding to status consumption. For instance, earlier studies looked at status consumption ideally from the context of Australia clothing, US woman’s cosmetics, automobiles in the UK and the US (Angela and Juliet 1996). However, it is essential to note that status consumption does not ideally have such national boundaries but generally found to be prevailing across the globe (Schiffman et al 2008). This is the reason why advertisers considering status consumption should detail a structure of an advert to reach global points. Angela and Juliet (1996) in their works observed that British consumers ideally utilized status consumption in achieving social gains, ostentation behavior and indicating esteem. This is what marketers should be utilizing because it generally portrays as an advantage over winning many customers (Holt 1998, p. 1-25). In structuring advertisements, therefore, of particular brands in Britain, the advertisers need to appreciate the fact that these adverts should be classy in nature. The adverts are perpetually of the requirement to reveal classy products and services. The idea is to grant the consumer some level of satisfaction, which he or she yearns for from a particular product. The region is also of relevance in any case for advertisers when utilizing the concept of status consumption. There are statuses ascribed out of hailing in particular regions. Comparing to the case of the British market, the Indian context consumers reveal that the consumer engages in status consumption ideally with ostentation mostly in mind (Angela and Juliet 1996). This is a demonstration that there is a difference between Eastern and Western consumers and the ideal impact of culture as well as markets in respective consumption practices. The British consumers, belonging to individualistic culture, mainly focus on own actual self-concept, which includes how the consumer particularly views him/herself (Holt 1998, p. 1-25). However, comparing to the Indian consumers, it is generally from a collectivist culture, focusing on others self-concept, which involves how a consumer relatively thinks others ideally see him/her. Therefore, marketers need to appreciate this fact when dealing with brands in respective regions. It is the necessary tool to establish brands and introduce them differently across the two regions (Angela and Juliet 1996). On the same note, advertisers need to look into the target population when using the concept of status consumption (Angela and Juliet 1996). This is to allow them, reach the right population interested in purchasing the product or a given product because of status consumption (Bearden, Richard, & Teel 1989, p. 473-481). Regarding Brand past history, it is observed that both market controlled, and management controlled brand features have an beneficial impact on status consumption (Tracy 1994). In an evaluation, brand antecedents affect British consumers significantly more than the Indian consumers do (Angela and Juliet 1996). This is, therefore, a critical factor for marketers. They need to establish the issues pertaining brand antecedents before introducing the brands to the individual market (Holt 1998, p. 1-25). This would be relevant in either working towards improving on the brand reputation or maintaining the same to a given population. Status consumption also ascribes affiliations to products and services because of the market status of respective regions (Roy 2006, p. 56-78). This is what marketers should think about and structure their approaches of advertising and introduction of products and services differently in the respective regions. The affiliations are, attributed generally to the nature of the competition and market. The UK for instance is a mature luxury and highly developed market wherein majority of the masses are exposed to the brands or status (luxury) goods for longer comparing to a country like India that opened its economy precisely in the late 1980s. This long exposure, as well as higher availability to brands across the globe and the higher competition, ideally makes the ideal consumer in the UK more aware of brands including their symbolic association (Angela and Juliet 1996). The overall influences of the respective contextual factors make the consumers in Britain use strong brand cues particularly in building social presence (Holt 1998, p. 1-25). Therefore, marketers need to conduct a thorough research and evaluate the status of a particular region before they engage in introducing particular brands of products and services in a given region (Bearden, Richard, & Teel 1989, p. 473-481). This is to ascertain that it is appropriate and would thrive well in such a market hailing in profits, and sustaining for long. There are other outstanding research findings suggesting that status consumption especially among consumers in the Indian market is dependent highly on occasions. This means that there are times when a particular brand is high in sales because of an occasion (Bearden, Richard, & Teel 1989, p. 473-481). Under this context, it means that marketers need to establish these occasions and make satisfactory use of the times in marketing particular brands to a given region. This is essential because it is the peak hour for such a brand and the best time to introduce the same in a particular market (Holt 1998, p. 1-25). Prior research highlighted that in many regions, spending money particularly on status consumption happens during occasions and festivities of relevance to the individual consumer (Shukla 2009, p. 23-56). Angela and Juliet (1996) research indicated that, this brings many intangible and tangible rewards in the Indian market of which marketers should make satisfactory use of the same to find a market and increase sales of that particular product. Angela and Juliet (1996) indicate that, however, no such advantages of occasions are existent in the British marketplace meaning that this should not be a subject of consideration for the British marketer. Where consumption is ideally for gaining status or gaining a relative position, at least two particular preconditions must hold. First, there should be some higher degree of commonality in rankings particularly among individuals, which concerns the relative desirability or individual status of brands of products and services (Bearden, Richard, & Teel 1989, p. 473-481). Second, the consumption of this kind must be socially visible. This is what explains the terms "demonstration effects" and "conspicuous consumption." Social visibility, therefore, remains as critical because of the prevailing moral hazard problem that associates with socially non-visible goods (Frank 1985). For this reasons, it is noteworthy that marketers consider the element of social visibility in marketing particular brands of products and services in any given market. This is because it is an indispensable status consumption dimension. Casual inspection of individual consumption patterns illustrates as much, and explains why particular households spend more money in furnishing public rooms (dining and living rooms) than furnishing private rooms (bedrooms) (Frank 1985). This is, therefore, a point for marketers to ponder and think about because it dictates what they produce and introduce in the market. If marketers need to succeed and increase sales, definitely, they have to comply with such demands from respective customers and casual inspection dictates the customer preference (Holt 1998, p. 1-25). On the same concept of casual inspection and its relations to status consumption, it leaves marketers with no option that to be through in presenting particular brands (Bearden, Richard, & Teel 1989, p. 473-481). This explains why expensive and high power "under-the-hood" options for automotive for instance anti-lock brakes and four-wheel drive are advertised outside of cars or even why the designer fashion use logos mostly in advertisements (Frank 1985). Angela and Juliet (1996) argues that the status consumption literature contains several hypotheses regarding the factors that influence the "demand for status," particularly the effect of income, race, education, and urban location. This, therefore, poses as a challenge for marketers to establish and note these factors putting them into considerations when doing their marketing of particular brands (Holt & Craig 2004, p. 425-440). Following Angela and Juliet (1996), it is possible to predict that highly educated people have a higher likelihood of engaging in status buying. Therefore, it is open and clear to marketers that, this should be the target for such brands related to status buying (Holt 1998, p. 1-25). This may be viewed as counter-intuitive on the idea that highly educated people are educated consumers, and, therefore, more attuned to fundamental product attributes and avoid impulse buying (Ronald 2005, p. 83-98). However, the later perspective neglects the real social benefits particularly achieved by status of which this is what affects these consumers. Therefore, the behavior of these consumers is subject to status more that reasonable spending (Tracy 1994). It is no doubt that for particular products and services in the market, only educated consumers will compete for them (Schiffman et al 2008). This helps marketers in establishing their target markets and developing their reach for more. Bearden, Richard, & Teel (1989, p. 473-481) also take an almost similar view of the relationships between status consumption and income. It is arguable that the more an individual earns, the more he climbs up the ladder in spending (Ronald 2005, p. 83-98). This, therefore, remains a critical point that marketers should bear and think about to decipher benefits and succeed in reaching the target market with the right product of their preference (Frank 1985). Angela and Juliet (1996) argue that more generally, there is a positive association between education /income and status-consumption supported by respective models of researchers. The models are immense and of value, highlighting both an "amplification" effect meaning higher status consumption from others increases the average, marginal return to extra status consumption for a given individual and thus encourages status consumption (Bearden, Richard, & Teel 1989, p. 473-481). The other effect is the "discouragement" effect where people drop out of the ideal game because of the additional status seeking activities from the others. Generally, the best hypothesis in this case is that people with lower income or lower levels of education display discouragement effects, and are, therefore, on average, having a lesser likelihood of engaging in status consumption (Frank 1985). This instills some sense in markers; it should be of use when they choose what to market to a given population and especially, of what value. Conclusion It is practicable to conduct tests that reveal how status consumption can be of use in advertising and differentiating particularly between consumers purchasing and status-motivated behavior. This paper is a substantial contribution providing strong support for the status concerns in consumer purchases as well as how marketers in marketing their products and services across the globe could utilize this concept. Contrast to consumer theory, there is a substantial relationship between status consumption and the things consumers go for in their purchases. In fact, status consumption is seen to dictate what consumers buy, therefore, a significant influence on their preferences. This ideally leaves marketers with no option than to look into detail some of the applications of the status consumptions across the globe when they plan and execute their marketing of particular services or product brands across borders. References Angela, C & Juliet, B 1996, Empirical Tests of Status Consumption: Evidence from Women's Cosmetics, WORC Paper 96.01.007/2 Bearden, W, Richard, G, & Teel, J 1989, Measurement of consumer susceptibility to interpersonal influence. Journal of Consumer Research, 15: 473-481 Frank, R 1985, choosing the right pond: Human behavior and the quest for status, New York, Oxford University Press Holt, D 1998, Does Cultural Capital Structure American Consumption? Journal of Consumer Research, 25 (1): 1-25 Holt, D & Craig, T 2004, Man-of-Action Heroes: The Pursuit of Heroic Masculinity in Everyday Consumption, Journal of Consumer Research, 31(September), 425-440 Ronald, E 2005, Status Consumption among Malaysian Consumers: Exploring Its Relationships with Materialism and Attention-to-Social-Comparison-Information, Journal of International Consumer Marketing, Volume 17, Issue 4 August 2005, pages 83-98 Roy, C 2006, Of Diamonds and Desires: Understanding Conspicuous Consumption from a Contemporary Marketing Perspective, Academy of Marketing Science Review, 10 (8) 56-78 Schiffman, L, Bednall, D, O’Cass, A, Paladino, A, Ward, S & Kanuk, L 2008, Consumer Behavior, 4th Edition, 2008, Pearson Education Australian, Prentice Hall Shukla, P 2009, “Status Consumption in Cross-national Context: Socio-psychological, Brand and Situational Antecedents”, International Marketing Review, 27 (1), 23-56 Tracy, T 1994, Children of abundance: Exploring the consumption patterns of teenage girls, Undergraduate Thesis, Harvard University Read More