conspicuous consumption


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Conspicuous Consumption

The purchase of items one does not need simply to show that one is able to afford them. For example, a person who buys an exotic automobile may be engaging in conspicuous consumption.

conspicuous consumption

the CONSUMPTION of goods and services not for the UTILITY derived from their use but for the utility derived from the ostentatious exhibition of such goods and services.

A person may buy and run a Rolls-Royce motor car not just as a vehicle for transportation but because it suggests to the outside world something about the owner. That person may wish to be seen as affluent or as a person of taste. This phenomenon (known as the VEBLEN EFFECT) can be viewed as an alternative to the more usual consumption theories where the quantity of a particular good varies inversely with its price (a downward-sloping DEMAND CURVE). A conspicuous consumption good may well have an UPWARD-SLOPING DEMAND CURVE so that the quantity demanded increases with its price.

References in periodicals archive ?
It is argued that the basic objective of participating in conspicuous consumption, status consumption, cool consumption or socially desirable consumption is to gain the right to communicate about it.
Similarly, at the top of the wage distribution, a cap on top salaries and redistribution via radically progressive income taxes is required: this not only provides funds for an NCS and social spending but also cuts conspicuous consumption and consumerism in a more equal society.
This is because we live in an era of conspicuous consumption where we are desperate to prove we are having more fun and spending more cash than the next person.
I think that it would be a good thing if the whole idea of conspicuous consumption was buried.
Situating their work among the growing body of literature on compensatory consumption, Sivanathan and Pettit propose a psychological lens to conspicuous consumption, which has important implications for policy decisions aimed at battling U.
Resorts could suffer as conspicuous consumption dies.
He has studied, for example, the importance of signaling in explaining the conspicuous consumption patterns across races, and the role that parents play in shaping their children's saving propensities.
It speaks--convincingly, given the state of the public finances and tax rises to come over and above this week's pre-Budget report--of the notion that, rather than a temporary blip in consumer confidence, our new-found frugality and fear of debt are here to stay, and the days of conspicuous consumption will not return for years to come, if ever.
This is against a backdrop of still rising unemployment, job insecurity and a new spirit in favour of austerity as against conspicuous consumption.
A recession invariably puts conspicuous consumption on hold.
Some of this activity is about family and friends, but there's a lot of conspicuous consumption taking place too.
In the past, travelling by air in Turkey was considered to be a conspicuous consumption.