The Concept of Conspicuous Consumption - Essay Example

Running head:  consumer behavior; Conspicuous Consumption Insert         Insert Grade Insert 14 January Outline: Introduction Theoretical background Methodology Discussions and arguments Conclusion Conspicuous Consumption Introduction Conspicuous consumption involves spending on goods and services acquired with an aim of displaying one’s income or wealth, and as a result, maintaining a certain social status. Consumers buy a variety of expensive goods that are not necessary, their main aim being to show-off; this type of consumption involves luxurious expenditure, and it is common in the clothing industry. This continuous display of wealth with a purpose of maintaining a specific status is common in women especially in clothing; however, this consumption is mostly unproductive (Veblen 32). Needless to say, many authors have researched on why people conspicuously consume; Crowfoot, Pritchard & Stiniland (8) explains that London is one of the cities that leads in the display of clothing fashions. The theory of leisure class of 1899 explains conspicuous consumption as the act of purchasing goods and services with an aim of showing off an individual’s wealth and status (Association for consumer research, 1992). As a result, conspicuous consumption signifies the ability of an individual to waste through extravagant purchasing. This paper will discuss conspicuous consumption as a consumer behavior, its theoretical background, and scholarly arguments involved in it. Theoretical background; Conspicuous Consumption Several theories have been developed explaining conspicuous consumption; the theory of the leisure class of 1899 explains that conspicuous consumptions are associated with the strength of an individual’s reputation in relation to the amount of money he spends (Association for consumer research, 1992). As a result, an individual gains respect and honor depending on how much he earns, which assist him in retaining his name in the society. Therefore, purchasing expensive clothes or driving expensive cars symbolizes superiority according to this theory. Worn out clothes symbolize poverty, especially in a rich country. Veblen theory explains that the only way to prove the existence of wealth is through conspicuous consumptions; however, these objects possess no useful value (Charoenrook & Thakor 3). This theory regards the unproductive consumption of products as honorable and a preservation of human dignity. Bagwell & Bernheim (350) explains that the willingness to purchase expensive goods arises from the desire of advertising one’s wealth. The Demonstration effect theory was developed by Duesenberry in 1967, which states that one must “keep up with the Joneses” in order to maintain an individual self-esteem (Association for consumer research, 1992). The snob effect theory explains that consumers purchase goods that are rarely available in their region, and as a result, guaranteeing social prestige. The flow of fashion can be described by the trickle down theory that depends on social status and upward mobility. Here, a certain style is adopted by the wealthy and it is passed down to the lower class. Fashion in this case is metaphoric, hence described as a vehicle of conspicuous consumption. It is also an upward mobility which is adopted by the top and passed down to the lower class; once the latter adopts it, the former rejects that fashion and adopts another (Clothing & fashion, 2009). Trickle across theory indicates that fashion moves horizontally between similar groups; this is evident when different clothing have different price tags, as a result signifying the different social groups that exist. The trickle-up theory is adopted from the low social groups, who innovate a certain fashion that moves upwards to the high–income earners (Clothing & fashion, 2009). Nevertheless, fashion involves a random look that dies off with the innovation of a new one. Needless to say, the continuous change of fashion leads to conspicuous consumptive behavior with an aim of maintaining a certain social status. Methodology This research will base its investigation on scholarly findings. Here, researches on conspicuous consumptions by various sociology, economic and marketing authors, including scholars such as Veblen, will be utilized. These studies will be compared to give an understanding on conspicuous consumptions, especially in clothing and textile. Discussions and Arguments Conspicuous consumption has been literally discussed by Veblen as a form of costly and wasteful expense, whose aim is to maintain a certain social class. Needless to say, conspicuous consumption has been in existence in the past, exists today and will be evident in the future. The difference in social status is one of the reasons why people see the need of clarifying their status through wealth. Arrow & Dasgupta (6) explain that some scholars, such as Layard in 2005, emphasized that the wealthy are only concerned with relative consumption. However, the poor may be satisfied with the income they earn, but this does not contribute to happiness or satisfaction compared to the wealthy who have more than the necessities of life. Geoffrey Miller in his book Spent: Sex, Evolution and Consumer Behavior explains that sex influences how we purchase personal items; these acquisitions are motivated by pleasure or the will for procreation (Stephey, 2009). For instance, women will purchase make-up essentials to promote their beauty, whilst men will buy expensive cars to symbolize their power in the society. As a result, an individual’s purchases indicate his/her personalities; Miller shares the six personality dimensions, which identify an individual’s character. They include intelligence, openness, conscientiousness, extraversion, agreeableness, and stability. The above traits are evident in the preference of product, its brand, and in the choice of lifestyle; as a result, the choices made are aimed at impressing the society (Walters, 2010). Fashion, especially in clothing, is a silent language that symbolizes an individual’s status and defines it. The wealthy will dress in the way the society expects them to wear, as they are keen on what they put on; as a result, they send a message to the society on how the wealthy are supposed to dress. As a result, this creates a gap between the rich and the poor, whereby, the poor believe they only need to dress to cover their bodies, and keep them warm, whereas the wealthy dress for the sake of maintaining their social status. As a result, the latter spend a lot of money maintaining neatness and on dry cleaning services. In addition, dressing for status expresses wealth. The wealthy do not engage in manual labor and, as a result, the public views them differently. According to Veblen (1965, p.107), the standard of reputability indicates that a dress should signify how much money is spent, showing wasteful expenditure. Conspicuous consumption in clothing is commonly influenced by fashion, which changes from time to time. As a result, the wealthy compete in keeping in trend with the incoming fashion and abandoning the previous style. The shifting fashions are evident in the continuous change of attires. Fashions change from time to time, and as a result, contributing to conspicuous consumption. According to Noel (75), a consumer’s needs and interests are likely to change with age; the younger customers prefer certain fashion as compared to the older ones. They wear specific types of clothes while the older consumers appear to be keen on what they choose to wear and concerned with the value of a good. Steele (2010, p.706) explains that the dressing of men of the leisure class is emphasized on leather shoes, lustrous hats, and stainless linen among other attire. Conspicuous consumption is evident with the continuous change in fashion. This garment indicates no form of manual labor, a symbol of the difference between the rich and the poor. Fashion in the clothing industry is associated with change, whereby, people respond to certain times; consumers are more concerned with change compared to overall satisfaction. According to Lee and Myung (125), the continuous change in the social environment yields to conspicuous consumption, especially in clothing. For instance, in Korea, conspicuous consumption of clothing has existed since the 80s; this is because of the rapid industrialization in the 90s, when the country experienced social competition. As a result, the attempt to alienate the low-income class is evident, with the majority engaging in conspicuous consumption with an attempt to reduce the level of complexity existing in the wealthy group. In addition, the rapid industrialization that existed in the 90s led to the increase in income, and as a result, the Koreans values towards consumption changed, increasing conspicuous consumption, especially in clothing (Lee and Myung 126). It is rather evident that increase in income and change in social status can influence conspicuous consumption in clothing. Singleton (65) explains that conspicuous consumption as a consumer behavior is motivated by several factors; the people, who ascend to the wealthy ladder, probably choose expensive clothes, which distinguish themselves with less successful individuals, and as a result, they associate themselves with the successful individuals. In addition, youths may compete in displaying certain foreign labels on their clothes; as a result, conspicuous consumption increases with competition. In the clothing industry, the higher the price, the more exclusive and fashionable, hence, appealing to the public it becomes. The developing countries rely mostly on foreign fashions; the wealthy spend conspicuously to differentiate themselves from others. Today, Chinese textile and clothing is ranked as the most competitive industry globally, and individuals are likely to extravagantly spend on Chinese clothing with an aim of show-off. Conclusion Clothing is a social necessity, and everybody must be clothed to appear in public, however, in order to symbolize a certain social class, one is judged by how they dress. As a result, certain clothes signify the superiority of an individual over others. Therefore, clothing is not only for protecting ones body, but also used as a key to identify an individual’s social class. Veblen’s arguments on dressing are realistic, as he insists that the main purpose of a dress within the leisure class is to display wealth, therefore, conspicuous consumption can appear in form of quantity and quality of attire; in addition, scarcity of an item can contribute to the repute of the owner within the leisure class. Miller also argues that sex influences our purchase, and he discusses six personality traits that determine the choice of a product and lifestyle. Nevertheless, age, rise in income, and change in social class are some of the determinants of conspicuous consumption of clothing. 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