Conspicuous consumption of terminology is a very popular trend around the world currently. This concept shows how people spend money on products that are not necessary but are only purchased to demonstrate and show off the economic power of accumulated income or wealth.
A recent study by researchers at Harvard University in the United States indicates that consumers plan to continue spending on welfare and goods in order to boast and demonstrate social status over the coming years. It also points out that more than 63% of study participants expect to double their spending on luxury products and services compared to previous years.
Although acquiring luxury goods and products may be good, a study by researchers at Boston Business School suggested that wasting on luxury things can be counterproductive and make those purchasing these goods and services to feel bad.
Concept of Conspicuous Consumption
Initially, the concept of conspicuous consumption can be described as the practice of buying goods or services to publicly display wealth rather than covering an individual’s basic needs.
Although most of us associate the concept of conspicuous consumption with the wealthy, this concept can also be seen in any other economic class. Perhaps the aim of this type of consumption is to improve the social standing and reputation of the consumer. For example someone may buy an expensive luxury car or a large amount of recreational equipment to arouse envy and admiration among their peers.
Exclusive luxury designs
Exclusive luxury designs are a vivid example of conspicuous consumption. For example: although there are many high-end smartphone manufacturers, some luxury brands, such as Lamborghini, Porsche, Bentley, and Ferrari, have created their own smartphones.
These luxury brands usually have the same software and hardware as other brands, such as Apple and Samsung, but what distinguishes them are external cover cases.
For example The luxury iPhone Black Diamond has a case of solid gold and is encrusted in white diamonds and a huge black diamond.
Besides, products that indicate conspicuous consumption include fashion designs, expensive jewelry, luxury cars and other high-end consumer goods.
Conspicuous Consumption Growth
The concept of conspicuous consumption has always been part of our society. In the past people had fewer ways to display their wealth but today there are many outlets to achieve this. Perhaps a major factor in the growth of this type of consumption is the emergence of social media platforms. Through these platforms, people can share their wealth and prosperity with others.
However, conspicuous consumption has positive and negative impacts on society. It boosts the demand for high-quality consumer goods, which can lead to economic growth and employment in luxury goods and services industries. On the other hand, it seeks to spread a culture of excess and wastage in society and may increase envy among those who cannot afford such spending.