Conspicuous consumption
Conspicuous consumption is a theory that describes the practice of purchasing goods primarily to display wealth and social status to others. This phenomenon is particularly prevalent in capitalist societies, where class divisions exist based on income and ownership of production means. Coined by economist Thorstein Veblen in the late 19th century, the term originally referred to the extravagant purchases of the upper class, such as luxury items that were not essential for daily life. Common examples today include high-end sports cars and designer handbags, which serve as status symbols that convey wealth and importance.
While luxury goods are often of high quality, consumers may pay a premium mainly for the brand name, emphasizing their social standing rather than the practical value of the items. Over time, conspicuous consumption has evolved; for instance, the increasing affordability of luxury brands has blurred traditional class lines, allowing more individuals to participate in this practice. Additionally, modern forms of conspicuous consumption can include non-material purchases that signify cultural tastes or group membership, such as specific music genres or organic products. Interestingly, studies suggest that conspicuous consumption is more common among lower-income individuals, who may feel the need to signal their status within their communities, even when luxury goods are otherwise unattainable.
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Conspicuous consumption
Conspicuous consumption is an economic and psychological theory used to describe consumption intended to suggest the buyers' wealth to others. This type of consumption often involves the purchase of luxury goods, and it is meant to indicate one's social class and one's place within a group. Conspicuous consumption is most common in capitalist societies. The term conspicuous consumption was first coined in the 1800s during the Victorian era. Although conspicuous consumption mostly refers to the purchasing of luxury goods, modern conspicuous consumption can include the purchase of nonmaterial items or items that indicate a person's cultural tastes.
Background
Conspicuous consumption is a phenomenon that occurs in capitalist societies. In capitalist societies, individuals own the means of production and generate income. Since some people own the means of production and other people are employed by those owners, capitalist societies necessarily have class divisions. The owners are the people who make the most money. They are in the highest class in the capitalist society. Other people in the society make up the other classes. Since these societies have class systems, some people have more money to spend than other people do. Therefore, in capitalist societies, some people can afford the most expensive luxury goods, and others cannot. People can broadcast to others which class they belong to by purchasing and showing off particular goods.
The term conspicuous consumption was first coined in the 1899 book The Theory of the Leisure Class by Thorstein Veblen. Veblen noticed that people in the upper class had specific buying habits. They bought items, such as silver spoons and corsets, that were not necessary for everyday life. These items were meant to signal one's social class and one's place inside a group. The people who could afford the most expensive items often were seen as the most powerful people in society. Veblen believed this phenomenon was most likely caused by the growth of the middle class. People in the middle class were not wealthy, but they did have enough money to purchase extra goods that were not necessary. Their purchasing of these goods helped them show others that they were part of a higher social class. Veblen noted that conspicuous consumption showed a relationship among the economy, society, and culture.
Overview
The objects that people purchase to accomplish conspicuous consumption are often brand-name goods that are quite costly. These goods usually can be purchased much more cheaply when they are made by other manufacturers. Although luxury brands usually demonstrate high quality, people pay more money for the brand name than they do for the quality of the product. A common modern example of conspicuous consumption is the purchasing of particular sports cars. Most new vehicles will reliably transport a person from place to place. Sports cars, however, often are purchased because they imply something about the wealth and status of the people who own them. A person who buys a luxury sports car probably enjoys the vehicle's look and speed, but the person also may purchase the car to signify that he or she can afford the vehicle, indicating that he or she is wealthy and important. Another common example of conspicuous consumption is buying luxury handbags. Some handbag brands cost tens of thousands of dollars. These handbags are made of high-quality materials, but everyone who purchases a handbag for tens of thousands of dollars understands that the bag is a status symbol. They are not purchasing the high-priced bag for its durability or quality.
Although conspicuous consumption is still an important factor in most capitalist societies, it has changed over time. For example, in the United States, many people in both the middle class and the upper class can afford some of the same items. Sometimes luxury brands that people used to buy for conspicuous consumption become cheaper, which allows other people to purchase them. Because of these changes, researchers have argued that conspicuous consumption is changing. They still believe that conspicuous consumption can signal power and dominance, but other factors can do this now, too. For example, people who are very wealthy can invest more in education, health care, and retirement. Although spending money on these intangibles does not allow people to have a fancy car or handbag, it does allow them to live longer, more successful lives.
Other types of purchases have begun to signal one's membership in a certain group or status within that group as well. Spending money and time on particular types of culture (e.g., books, movies, music) has become an important way of signaling where one fits in society. For example, people who listen to particular types of music often see themselves as a group. They believe listening to that music gives them membership in that group. Sometimes the specific bands or songs one listens to can signal one's place within the group. Purchasing particular types of goods is another method people use to signal that they belong to a certain group or have certain beliefs. For example, people who buy free-range, organic eggs might see themselves as part of a group and might identify with other people who make similar purchases. Such purchases are a type of conspicuous consumption because the consumption is centered on signaling information about oneself and one's place in society.
Social scientists have learned that conspicuous consumption is more prevalent among poorer groups. People whose peer groups are rich often do not feel as much pressure to indicate their wealth via consumer goods. However, people who live in communities where luxury goods are unaffordable to many may see value in signaling their place in that community by purchasing luxury goods whenever possible. Although conspicuous consumption may be somewhat more prevalent in poorer communities, it is still practiced to some degree in most parts of society.
Bibliography
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