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European Journal of Marketing Emerald Article: Conspicuous Consumption: A Literature Review Roger Mason Article information: To cite this document: Roger Mason, 1984"Conspicuous Consumption: A Literature Review", European Journal of Marketing, Vol. 18 Iss: 3 pp. 26 - 39 Permanent link to this document: http://dx.doi.org/10.1108/EUM0000000004779 Downloaded on: 30-07-2012 Citations: This document has been cited by 1 other documents To copy this document: [email protected] This document has been downloaded 2181 times since 2005. * Users who downloaded this Article also downloaded: * Trevor Watkins, 1984"The Practice of Product Testing in the New Product Development Process: The Role of Model-Based Approaches", European Journal of Marketing, Vol. 18 Iss: 6 pp. 14 - 29 http://dx.doi.org/10.1108/EUM0000000004789 D. A. Yorke, 1984"The Definition of Market Segments for Leisure Centre Services: Theory and Practice", European Journal of Marketing, Vol. 18 Iss: 2 pp. 100 - 113 http://dx.doi.org/10.1108/EUM0000000004774 Robert G. Cooper, 1984"The Performance Impact of Product Innovation Strategies", European Journal of Marketing, Vol. 18 Iss: 5 pp. 5 - 54 http://dx.doi.org/10.1108/EUM0000000004787 Access to this document was granted through an Emerald subscription provided by NATIONAL UNIVERSITY OF SINGAPORE For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download.
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Page 1: Conspicuous Consumption-A Literature Review

European Journal of MarketingEmerald Article: Conspicuous Consumption: A Literature ReviewRoger Mason

Article information:

To cite this document: Roger Mason, 1984"Conspicuous Consumption: A Literature Review", European Journal of Marketing, Vol. 18 Iss: 3 pp. 26 - 39

Permanent link to this document: http://dx.doi.org/10.1108/EUM0000000004779

Downloaded on: 30-07-2012

Citations: This document has been cited by 1 other documents

To copy this document: [email protected]

This document has been downloaded 2181 times since 2005. *

Users who downloaded this Article also downloaded: *

Trevor Watkins, 1984"The Practice of Product Testing in the New Product Development Process: The Role of Model-Based Approaches", European Journal of Marketing, Vol. 18 Iss: 6 pp. 14 - 29http://dx.doi.org/10.1108/EUM0000000004789

D. A. Yorke, 1984"The Definition of Market Segments for Leisure Centre Services: Theory and Practice", European Journal of Marketing, Vol. 18 Iss: 2 pp. 100 - 113http://dx.doi.org/10.1108/EUM0000000004774

Robert G. Cooper, 1984"The Performance Impact of Product Innovation Strategies", European Journal of Marketing, Vol. 18 Iss: 5 pp. 5 - 54http://dx.doi.org/10.1108/EUM0000000004787

Access to this document was granted through an Emerald subscription provided by NATIONAL UNIVERSITY OF SINGAPORE For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.

About Emerald www.emeraldinsight.comWith over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

*Related content and download information correct at time of download.

Page 2: Conspicuous Consumption-A Literature Review

26

Conspicuous Consumption: A Literature Review by Roger Mason

Since publication of Veblen's Theory of the Leisure Class at the turn of the century[l], little attention has been given to the phenomenon of conspicuous consumption which he so graphically described. Yet even today status and prestige considerations con-tinue to play a significant part in shaping preferences for many products which may appear to be purchased for their direct utility but which in fact serve only as a means of displaying wealth and purchasing power. To the purely conspicuous consumer, the satisfaction derived from any particular purchase comes not from its value in use but from audience reaction to the wealth displayed by the purchaser in being able to secure the product for "consumption". Consequently the cost of purchase—i.e., product price—becomes the only factor of any significance to him or her.

As an exceptional form of consumer behaviour it is not realistic to expect any detailed explanation of conspicuous consumption to be offered by those behavioural models of consumer decision processes which attempt to develop a general theory of product brand choice and selection. But to what extent do we now understand the nature and mechanics of conspicuous economic display? How do the "classical" models seek to accommodate such behaviour within general theory and what other contributions have been made on the subject?

The first model of consumer decision processes to gain wide recognition was that proposed by Francesco Nicosia in 1966. The Nicosia model is essentially one which explores the process of product or brand choice and which identifies four "fields" of activity—consumer attitude formation, information search and evaluation, the act of purchase and finally post-consumption feedback [2].

Whilst the comprehensive scheme focuses necessarily on demand for "utility" pro-ducts, there is some recognition throughout the analysis of the possibility that certain acts of purchasing and consumption may be generated by status rather than by direct utility goals. The potential role and influence of reference groups and of individual levels of social aspiration are acknowledged in the first field of the scheme; these in-fluences in turn are taken to affect internal and external search processes in field two by directing attention towards more socially "visible" products; finally, for this socially-sensitive class of consumer, the need for store image and reputation to complement product status and visibility (field three) is recognised.

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Conspicuous Consumption 27

Throughout the analysis, non-economic or non-utilitarian demand is seen as a special case which arises when a (status-inspired) "future state of affairs" is the goal orienta-tion of the act of purchase. In such a case, the role of products and brands is that of a means toward an end. However, the model is predominantly concerned not with this atypical event but with consumer behaviour which is seen as largely purposive and for which goods and services are conceived as the buyer's specific and exclusive goals [3].

As a special form of status-directed behaviour, conspicuous consumption itself is not examined or accommodated in the Nicosia model. The limited treatment of the role of product price, for example, makes no reference to such perverse demand and sees price only as an inhibitor. At the same time, there are several references to the importance of the consumer's social psychological field and to the effect that this may have on buying preferences:

"Social attributes have also become relevant variables in establishing the rapport between consumer and product...Ultimately, what counts is the presence or absence of these perceptions in the decision process...Only in this sense can we under-stand, for example, the finding that people of lower socioeconomic status have a higher tendency to buy more 'conspicuous' items. This suggests that the attribute 'conspicuousness' is a relevant variable in the decision process of consumers of a lower socioeconomic class!'[4] Distinction is also made between "technical" and "social psychological" product

attributes and it is suggested that there may well be a trade-off between these objec-tive and subjective realities when the consumer is reaching a purchase decision[5]. Finally, there is necessary recognition of the fact that the very existence of a social psychological environment inevitably influences the working of any model of con-sumer behaviour and is capable of producing "random and unpredictable" outcomes at both the aggregate and individual level [6].

In 1968, Engel, Kollat and Blackwell developed their own decision-making process model of consumer behaviour which was once again concerned with brand choice and so offered a "general" theory of demand [7]. As with the Nicosia model, buying behaviour is seen to involve several inputs which result in actions (outputs) by the consumer. However, whilst Nicosia saw attitude, motivation and experience as the key elements, the Engel-Kollat-Blackwell model takes a broader view, and identifies the major input variables as perception, values and attributes, personality and past experience.

The model has been subject to two major revisions since the 1968 version was first presented and the latest model "bears only a scant resemblance to its forefather, reflec-ting the dramatic growth in knowledge since that time"[8]. However, on closer ex-amination, the changes brought about in the 1973 and 1978 revisions are concerned for the most part with offering more precise definitions, with greater formalisation of variables and their hypothesised linkages and with adapting the model to facilitate quantitative field tests. Consequently, the fundamentals of the 1968 model have re-mained intact.

It is no real criticism of Engel and his associates to find that conspicuous consump-tion receives little attention in the original and revised models of consumer behaviour.

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The models are primarily concerned with establishing a general theory and conspicuous economic display can legitimately be regarded as lying outside such a field of study. However, it is reasonable to expect that atypical forms of consumer demand need to be identified and described if only to establish them as exceptional processes which can be safely discounted.

The earliest (1968) analysis does, in fact, make reference to status-related consump-tion, in particular when dealing with social stratification and its effect on consumer behaviour. Conspicuous consumption is seen as a phenomenon which is stimulated entirely by social class differences and is described as a predominantly "lower-upper class" (i.e. nouveaux riches) activity. This class, it is argued,

"use products as symbols or badges of their wealth. They buy the largest homes in the best suburbs, the most expensive automobiles, swimming pools, yachts and other symbols that are perceived by others as obvious indicators of wealth!'[9]

Having "located" conspicuous consumption as a form of consumer behaviour which occurs only within a very limited social group, the phenomenon is implicitly established as lying outside the general theory which is subsequently developed. Other random references are made to status-related consumption, however. Social risk, for example, is recognised as a factor which encourages external search for information, with the intensity of search being determined by the level of social risk and the social "visibili-ty" of the products under consideration[10]. And the advertising of certain products is held to be more effective when showing the benefits obtained from social approval rather than by emphasising actual product characteristics[ll]. However, there is no reference to the potential attractiveness of high prices; it is recognised that price is often used as a surrogate indicator of quality[12] but elsewhere it is claimed that the role of price as an evaluative criterion "is frequently overrated"[13]. Overall, price is seen in its conventional role as a cost-dependent inhibitor.

"The zone of acceptable prices may be the result of the consumer's perception of prices asked or paid in the past, his attitude about what the fair price should be, and/or the price that will allow the seller to cover his costs and earn a reasonable profit."[14] The 1973 revision reinforces the earlier view that conspicuous consumption is a

limited social class phenomenon but is more specific in making this claim. Reference is made to a US study[15] which found consumption differences between high-status (traditional) buyers and high-status (modern) buyers, with this latter group seen as the "nouveaux riches" and the former as "old money" social elites.

"(The nouveaux riches)... have a strong need to validate their newly found status yet have not been accepted socially by the traditional upper classes. They turn to conspicuous consumption but with 'taste' if it is to validate their claim to high status in respects other than mere money!'[16]

It is further argued that this need for "taste" in consumption is today easy to obtain because there exists a class of professional tastemakers (e.g., architects, fashion designers) and also taste-setting media which can communicate socially acceptable products and innovations to potential buyers.

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Conspicuous Consumption 29

Reference to this US research results in some implied modification of the Engel-Kollat-Blackwell view of lower-upper class conspicuous behaviour. Whilst continu-ing to locate conspicuous consumption clearly within this one social group it is now suggested that such behaviour is "controlled" by the need to display taste and that this need is met by suppliers (tastemakers) and advertisers (media) who can effective-ly "manage" such consumption. In essence, the 1973 definition of status-inspired con-sumption moves away from "pure" conspicuous consumption (in which the display of wealth is the sole criterion used to judge consumption) and towards first-order modification of such behaviour in which the display of wealth alone is not enough and has to be complemented by an acceptable display of taste.

Whilst this modified view of conspicuous consumption is discernible between first and second models, the latest (1978) Engel-Kollat-Blackwell analysis of consumer deci-sion processes moves no further in exploring the subject. Conspicuous economic display continues to be seen as lower-upper class behaviour which serves the needs and in-terests of the newly-rich who wish to make vertical status gains into the American upper-upper class. In recognising social influences (class, family, reference groups, etc.) as prime determinants of much consumer behaviour, the latest model—as with the 1968 and 1973 versions—acknowledges that status considerations can heavily in-fluence purchase decisions. The model can therefore theoretically accommodate con-spicuous consumption but there is no specific attempt to do so, given that the phenomenon is briefly described and clearly discounted as a perverse form of con-sumer behaviour observed within one small socio-economic grouping.

One year after the first Engel-Kollat-Blackwell model of consumer behaviour ap-peared in 1968, an alternative interpretation was put forward by Howard and Sheth[17]. This Howard-Sheth theory of buyer behaviour continues to be regarded by many as producing perhaps the most satisfactory explanation of consumer decision processes yet available.

Briefly, the model comprises four major elements—namely, input (stimulus) variables, output (or response) variables, hypothetical constructs (concerned with perception and learning) and a set of exogenous variables (importance of purchase, personality traits, financial status, time pressure, social and organisational setting, social class and structure). Hypothetical constructs, as intervening variables, connect the input and output variables within the model.

As a general brand choice model, the Howard-Sheth theory offers no detailed ex-planation of conspicuous consumption and is clearly not required to do so. However, it could again be expected that some reference to this exceptional form of consumer behaviour would be included in the analysis in recognition of the fact that some part of buyer behaviour is entirely status-motivated and directed towards prestige goals.

In the event, references to such perverse forms of purchase preference formation are minimal. In dealing with mass media and word-of-mouth influences on brand choice decisions it is pointed out that in "certain situations" the attractiveness of the communication source may create consumer identification:

"For example, identification is common in most conspicuous consumption when Symbolic Communication comes from a number of buyers' reference groups"[18]

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and later: "...conspicuous consumption (expressive behaviour) seems to have enabled com-panies to differentiate brands and inject them with actual or perceived quality dif-ferences so that there are a number of brands that have become status symbols or stereotypes with which to identify and which service the expressive function" [19].

In focusing on brand differentiation and on corporate communications policies geared to encouraging the conspicuous consumer, the Howard-Sheth analysis implicitly recognises conspicuous consumption as a "manufactured" form of buyer behaviour and ignores the "pure" form of ostentatious display characterised by demand for highly-priced goods and services and the much reduced importance to the consumer of finan-cial cost considerations. This is further demonstrated by references to various "excep-tional" price and income attitudes none of which relates to the phenomenon of con-spicuous consumption.

Throughout the analysis, price is seen as an inhibitor. Two special cases are acknowledged in which this may not be true but neither case relates to "pure" con-spicuous consumption. Firstly, for several product classes it is recognised that a price/quality relationship may exist and that:

"... if such a price/quality association is empirically verified it may be advantageous to bring this association to the buyer's attention by emphasising price. The effect then will be not to create inhibitions but rather a more favourable attitude!'[20]

However, references made in the text[21] make it quite clear that "quality" in this case is taken to be "utility in use" and is not measured in terms of perceived status gains. Secondly, it is argued that:

"...brands may have certain characteristics that entail additional cost and make the product more expensive. Under such circumstances high price may be emphasised to explain why it is high!'[22]

Again, this exception to the general rule is linked to the direct utility rather than to the perceived social superiority of products.

Finally, with regard to financial status, Howard and Sheth again see this as affec-ting "intention to buy" as an inhibiting factor—lack of income building up frustra-tion which in turn intensifies motivation. However, here again, they do see a special case:

"If motivation becomes too great, the buyer will supposedly close off information and tend to ignore the economic consequences of his purchasing, which would ap-proach the type of stereotyped behaviour that is sometimes labelled as 'irrational? [23]

This special case clearly relates to conspicuous consumption when such behaviour occurs among individuals who are significantly income-constrained. However, it is also seen by Howard and Sheth as an exceptional case which lies well outside their frame of reference and which therefore merits no further detailed examination.

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Conspicuous Consumption 31

As with the Engel-Kollat-BIackwell model already discussed, the original Howard-Sheth model has been subject to some modification since it first appeared in 1969. Two major revisions were made in 1974 and in 1977[24]. However, these revisions were once again concerned with recognising insights gained through the testing process and through the empirical contributions of others. Changes, therefore, focused exclusive-ly on the general theory and not on broadening the model more easily to accommodate "exceptional" behaviour. Overall, and notwithstanding these revisions and modifica-tions, the Howard-Sheth model makes little reference, either implicitly or explicitly, to status-motivated purchases in general or to conspicuous consumption in particular.

There is no doubt that the classical general theories of consumer decision processes do not happily accommodate conspicuous consumption—a fact which cannot be con-sidered surprising in view of the exceptional atypical nature of such behaviour. Whilst there is considerable recognition of the importance of the consumer's social psychological environment, status-directed consumption has been neglected primari-ly because of the necessity to accept two fundamental assumptions when developing a general theory—firstly, that while both rational (economic) and "irrational" (social) elements will both often influence particular purchase decisions, the rational element must be considered dominant; secondly, that product utility in use will be the con-sumer's prime consideration in product evaluation and purchase.

These are necessary assumptions for a general theory of brand selection and pur-chase. The problem, however, is that the resultant theoretical models will tend to understate or even ignore so-called irrational consumer behaviour. And as conspicuous consumption is predominantly "social" in its motivation and expression it has conse-quently received little attention within general theory.

The inability of general utility-based consumer decision theory to describe and ex-plain adequately phenomena such as conspicuous consumption must not, however, disguise the fact that the existence and importance of many "irrational" consumer motives and preferences has been widely recognised for many years. Interest in the social psychology of exceptional consumer behaviour pre-dates the development of the Nicosia, Engel-Kollat-BIackwell and Howard-Sheth general theories. The new motivation research theories put forward after 1955 borrowed heavily from the behavioural sciences in arguing that consumer behaviour which might appear irra-tional to others could be entirely rational to the individual consumer whose behaviour was being observed. The importance of social group influences on many purchasing decisions was well established by 1960[25]. Bayton and others drew attention to the importance of "ego-bolstering" needs which serve to enhance the personality, to gain prestige and recognition and to satisfy the ego through domination of others[26]. The role of products as symbols was recognised in that the things people buy have per-sonal and social meanings in addition to their functions and most consumer goods "say something" about the social world of the people who consume them[27].

In a paper published in 1960, Woods attempted to draw together the growing evidence of the importance of social and psychological influences on consumer decision-making[28]. A distinction was drawn between consumer dimensions and product dimensions in buying behaviour. In addition to the cognitive (i.e., rational) dimen-sions of buying decisions, Woods argued, many purchases are made on the basis of

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other non-cognitive forces. Two such types were identified—behaviour in response to affective appeal and behaviour in response to symbolic appeal, both often grouped together as "irrational" [29].

Response to affective appeals is described as "impulsive" behaviour in which con-sumers react to physical product qualities such as colour, design, etc. Response to sym-bolic appeals is seen as "emotional" behaviour generated by

"...thinking about the meaning of a product purchase rather than the function of the purchase. Thus the perceived prestige of ownership comes to be more im-portant in bringing about a purchase than is the function which the product would service." [30]

Woods concluded, therefore, that the market for consumer products can be broken down into two basic buyer groups—one rational, the other seemingly irrational. As rational buyers he identified:

— a habit-determined group of brand loyal consumers; — a cognitive (rational) group, sensitive to rational claims and only conditional-

ly brand loyal; — a price-cognitive (rational) group, deciding purchases on the basis of price or

economy comparisons; and as irrational buyers:

— an impulse group, insensitive to brand name; and — a group of "emotional" reactors, responsive to what products symbolise and

heavily swayed by "images". Clearly, this last group, highly sensitive to symbolism, can accommodate conspicuous consumers although no direct reference to such individuals is made in the analysis.

Complementing these various categories of buyers, several product groups are then identified which cater to their specific needs—in particular, "prestige" products which are essentially symbols and whose function is to extend or identify the ego of the con-sumer in a direction consistent with his own self-image—and "status" products which serve the function of imputing class membership to their users.

Whilst prestige products connote leadership, Woods argued, status products con-note membership and both types of social need will lead the individual to prefer and consume products with status connotations. It follows, therefore, that the emotional reactors identified as a major buying group will tend to identify, purchase and con-sume both prestige and status products for their symbolic and social value.

The significance of Woods' paper lies with his suggestion that not only may irra-tional motives dictate consumer attitudes but that certain products are put on the market to cater specifically to the needs of these "irrational" buyers. In this context, products become symbols rather than bundles of utility and bear little if any resemblance (in the consumer's eyes) to the products demanded for rational, cognitive reasons.

The role of products as symbols was explored further by others who were concern-ed to explain (in more detail than Woods) why in fact such symbols can come to play

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Conspicuous Consumption 33

an important part in determining certain consumer behaviour[32]. It was then argued that the demand for "symbols" stems primarily from a need in individuals to develop and project life-styles which seem most appropriate to their own particular cultural, social and economic background. And as Woods had attempted to develop a theoretical explanation of product symbolism, Grubb and Grathwohl subsequently proposed a partial theory of consumer behaviour which formalised the relationships between this symbolism and the consumer's life-style or "self-concept"—i.e., they linked the psychological construct of an individual's self-concept with the symbolic value of goods purchased in the marketplace[33].

Grubb and Grathwohl suggested that the purchase and consumption of goods could be self-enhancing in two ways:

"First, the self-concept of an individual will be sustained and buoyed if he believes the good he has purchased is recognised publicly and classified in a manner that supports and matches his self-concept. While self-enhancement results from a per-sonal, internal, intra-action process, the effect on the individual is ultimately depen-dent upon the product's being a publicly-recognised symbol. Because of their recognised meaning, public symbols elicit a reaction from the individual that sup-ports his original self-feelings. Self-enhancement can occur as well in the interac-tion process. Goods as symbols serve the individual, becoming means to cause desired reactions from other individuals!'[34]

Having developed a systematic relationship between self-concept and the use of goods as symbols, a partial, qualitative theory of consumer behaviour is then proposed:

— that an individual does have a self-concept himself; — that the self-concept is of value to him; — that because this self-concept is of value to him, an individual's behaviour will

be directed toward the furtherance and enhancement of his self-concept; — that an individual's self-concept is formed through the interaction process with

"significant others"; — that goods serve as social symbols and, therefore, are communication devices

for the individual; — that the use of these good-symbols communicates meaning to the individual

himself and to others, causing an impact on the intra-action and/or the in-teraction processes and, therefore, on the individual's self-concept;

— that the consuming behaviour of an individual will be directed toward the fur-thering and enhancing of his self-concept through the consumption of goods as symbols[35].

The Grubb-Grathwohl model was primarily concerned with developing a theory of consumer behaviour which could link individual self-concept with product sym-bolism and with subsequent market behaviour. However, it also provides, by accident if not by design, a theoretical framework which could be made to accommodate con-spicuous consumption. In seeking to develop a modified version which serves as a partial explanation of conspicuous consumption, however, certain qualifications are necessary.

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Firstly, the model, in allowing for both intrinsic and extrinsic product values, most effectively explains the behaviour of those consumers who are partly motivated by "external" status gains but also by a desire to obtain personal "inner satisfactions" from the symbolism of the products they purchase. The model, therefore, is able to accommodate those conspicuous consumers who are interested in establishing cer-tain external status gains but who may be equally preoccupied with their "internal" self-concepts and so purchase products to communicate with themselves as much as with other people. (Many middle and lower-middle class conspicuous consumers fall into this category; in effect, they are seeking to establish "identities" not only with social groups but with themselves.) However, as far as the "pure" conspicuous con-sumer is concerned, purchase satisfactions come entirely from external sources: i.e., all status gains derive from being seen to purchase and consume products which are approved and admired—exclusively on the basis of their high price—by the target au-dience. The product or "symbol" must therefore be both expensive and visible, con-ditions which may not necessarily hold for the more egocentric consumer who is predominantly concerned with resolving his own identity problem.

Secondly, Grubb and Grathwohl define the "audience" in their model very broad-ly, to include "parents, teachers, peers or significant others"[36]. For the conspicuous consumer, this audience will be more clearly and more narrowly defined, it will be that social group to which the individual aspires or of which he is a member. And product "value" to this consumer will be decided not by his own interpretation of the good's symbolic meaning but by that of the significant reference groups with which he seeks to communicate.

The Grubb-Grathwohl model, therefore, whilst not intended to meet the special case of conspicuous consumption, did represent a step forward in that it moved away from the necessarily "rational" assumptions of general theories of consumer behaviour and offered an alternative social-psychological explanation of much consumer decision-making. Unfortunately, whilst many researchers have since tested and confirmed the importance of self-concept and product symbolism in empirical studies, little if any additional work has been done at a theoretical level since the paper first appeared in 1967. In particular, no attempt has been made to extend the model (which focuses on needs and motivations) and to develop a complementary theory of consumer deci-sion processes as they relate to the status-directed consumer of "symbols".

Whilst the importance of status-motivated consumer behaviour has been empirically confirmed and is now widely accepted, the preceding sections have shown that theoretical analyses of such exceptional buyer behaviour have been disappointingly few. The tendency has been to "take-note" of status-related behaviour as and when it has been observed in empirical studies but to do little in the way of offering an explanation of such atypical decision processes. As a result, whilst the literature does not lack for specific examples of conspicuous consumption, there is little complemen-tary theoretical treatment of the subject.

The difficulties of accommodating conspicuous consumption within general models of consumer behaviour have already been noted—in particular, general theories have to make (necessary) assumptions which can effectively exclude serious consideration of atypical behaviour. Under conditions of scarcity (in particular, scarcity of income and of other financial resources) the "rational" consumer is compelled to make the

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great majority of his purchases on utilitarian grounds and will assess his levels of in-difference between competing products in rational economic terms. It is, therefore, unreasonable to expect general models of brand choice and preference to have the theoretical "breadth" to embrace a form of purchasing and consumption which is seen as an "irrational" minority activity having little or no relevance to aggregate (market) demand formation. However, once we move beyond general theories of con-sumer behaviour, this necessary concentration on economic rationality can be relaxed—and should be relaxed in order to be able to seek an explanation of much seemingly irrational behaviour which lies outside the competence of general theory.

There can be little doubt that treatment of exceptional consumer behaviour remains neglected primarily because of this failure to move away from theoretical structures which are based on assumptions of rational behaviour. The difficulties raised by such inflexibility were foreseen as early as 1953 by Katona who demonstrated the irrelevance of traditional analysis to predominantly "psychological" buying[37]. In particular, the assumption that consumers have a single motive to maximise personal utility in their purchase decisions was recognised as a major barrier to a better understanding of seemingly irrational purchases—especially when any observed behaviour which does not "fit" the theorem derived from utility theory "can always be attributed to a change of tastes (a catch-all 'free variable' in the economic theories of consumer demand) rather than to an error in the postulates or logic of the theory"[38].

Accepting Katona's reservations about the classical explanation of that part of con-sumer demand which lies outside general utility theory—and recognising the need to move away from this restrictive base in order to develop a more relevant model of "exceptional" or "psychological" demand—it then becomes necessary to find an ac-ceptable alternative to the set of assumptions which underpin traditional economic demand theory.

Classical theory, derived from the marginal utility theories of value formulated in the late nineteenth century, produced the Marshallian economic model which con-tinues to form the cornerstone of modern microeconomic demand analysis and is im-plicitly used in the formulation of many general theories of consumer behaviour. However, whilst Marshall still "dominates", alternative non-economic models for analysing buyers and buyer behaviour are available.

In 1965, Kotler[39], for example, identified three buyer behaviour models which do not derive in any respect from marginal utility theories of demand:

— the Pavlovian Model (a partial theory) which is based on four central concepts—drive, cue, response and reinforcement—and which argues that a significant part of buyer behaviour is a learnt, associative process which "con-ditions" consumers to react in a predictable way;

— the Freudian Psychoanalytic Model, which argues that buyers can be, and are, motivated by product attributes which are sexually symbolic and which can subconsciously shape and direct consumer purchases;

— and the Veblenian Social Psychological Model in which man is seen as primarily "a social animal conforming to the general forms and norms of his larger culture and to the more specific standards of the subcultures and face-to-face groupings to which his life is bound. His wants and behaviour are largely mould-ed by his present group memberships and his aspired group memberships."

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Whilst these three non-economic models are all able to accommodate and explain various forms of consumer behaviour which may be considered "irrational", the social psychological model is clearly most appropriate in providing the philosophical base for theory construction in so far as conspicuous consumption is concerned. This can hardly be considered surprising as Veblen himself coined the phrase "conspicuous con-sumption" and was at pains to describe such exceptional behaviour in his book[40]. However, Kotler overstates the case when he claims that Veblen's views of man as a "social" consumer constitute a model of such behaviour. In fact, the "model" iden-tified by Kotler is general in the extreme and goes no further than arguing the cause-effect of social relationships without analysing this process in any real detail. Having accepted the need to locate conspicuous consumption theory within a broadly-defined social psychological framework, therefore, the problem of model type and specifica-tion still remains.

In 1973, Schewe[41], developing Kotler's earlier work, identified four models which can all be described as social psychological in the Veblenian sense:

(1) A model developed from achievement motivation theory[42] which deals with one important but limited type of behaviour, namely achievement-orientated activity. Such activity is seen to be affected by the conflict between the tenden-cy to achieve success and the tendency to avoid failure and the implications for consumer behaviour centre on the resolution of these two opposing tendencies.

(2) A model developed from role theory[43] which sees persons as actors "playing a role" in society. Here the focus is on overt social conduct and products become vehicles for image projections as well as symbolic representations of status. According to this theory, therefore, buyers purchase goods in accordance with the expectations of their "audience" and not because of any intrinsic product attributes.

(3) A model derived from the family of concepts called cognition consistency theories—i.e., balance theory, congruity theory and more particularly the theory of cognitive dissonance[44]. In this model, people are assumed to be trying to maintain a state of balance in their relationships with other people and strive to eliminate all cognitive stress from their lives by purchasing products which establish such balances.

(4) A model centred on "social character" which is itself shaped by the type of society (tradition-directed, inner-directed or other-directed) in which the in-dividual is operating[45]. Society is therefore seen to be capable of "directing" consumer behaviour in a predictable way.

All four of these models are relevant to theory construction in so far as conspicuous consumption is concerned. Moreover, by bringing Kotler and Schewe together it becomes possible to develop a composite which provides an internally and externally consistent model base.

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Conspicuous Consumption 37

At the first stage, a range of consumer behaviour extending from irrational (i.e., social psychological) to rational (i.e., economic) is given. Whilst the latter is seen to inspire utilitarian models of consumer decision processes, the social psychological group produces three basic model types, namely Pavlovian, Freudian and Veblenian. As far as conspicuous consumption is concerned, the Veblenian model is clearly most appropriate for use. Finally, a composite model form can be derived which is then able to draw on any or all of Schewe's model types (achievement motivation, role play-ing, dissonance reduction and social character formation) to identify and explain various forms of conspicuous economic display.

Whilst the proposed model base seems consistent with what is known of conspicuous consumption, one significant shortcoming must be noted: the composite omits ran-dom or innate personality variables and the influence such personal characteristics (often unique to the individual) may have on propensities to consume conspicuously and on associated buying decisions. However, we already know that innate personali-ty differences may modify but certainly do not explain conspicuous consumption behaviour and can consequently be considered a second-order rather than first-order model characteristic. It would also not be difficult to introduce such secondary, ran-dom elements into a test model derived from the above base as and when necessary.

Whilst the above model base may subsequently be shown to need further refine-ment, there would seem to be no reason why a theoretical explanation of the social psychology of demand for status goods should not be achieved. Clearly, any broader, operational model would need to introduce other key elements into the equation— most obviously, perhaps, a far more detailed consideration of the economics of con-spicuous consumption. Here again, serious study of the subject over the past fifty years has been noticeable only by its absence and economists have contributed very little to our better understanding of such perverse demand. Once the economics and the social psychology of such consumer behaviour can be drawn together, however, we shall have made substantial progress towards a comprehensive model of demand for status goods and services.

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38 European Journal of Marketing 18,3

References 1. Veblen, X, The Theory of the Leisure Class, New York, Macmillan, 1899. 2. Nicosia, F.M., Consumer Decision Processes: Marketing and Advertising Implications, Englewood

Cliffs, NJ, Prentice-Hall, 1966. The Nicosia model stands apart in focusing on four quite specific "fields" of activity and in then seeking to link them. Other models tend to retain the "flow" of activities and do not segment their analysis in this way.

3. Ibid., p. 84. 4. Ibid., pp. 138-39, referring to the work of Martineau ("Social Classes and Spending Behaviour",

Journal of Marketing, October 1958, pp. 121-130). Note that "conspicuous" in this context means "visible" rather than "visible and expensive".

5. Ibid., p. 138. As an example (138n) Nicosia considers automobiles where the consumer is seeking firstly objective (technical) benefits such as petrol consumption, comfort, reliability, etc., and secondly subjective (social-ps>chological) benefits such as social status, and self-image. Inevitably he then has to "trade" one against the other, given any constraint on income.

6. Ibid., pp. 140-141. 7. Engel, J.F., Kollat, D.T. and Blackwell, R.D., Consumer Behaviour, New York, Holt, Rinehart,

Winston, 1968. 8. Engel, J.F., Kollat, D.T. and Blackwell, R.D., Consumer Behaviour, third edition, Hinsdale Illinois,

Dryden Press, 1980, preface p. xiii. 9. Engel, J.F., Kollat, D.T. and Blackwell, R.D., Consumer Behaviour, op. cit., 1968, p. 290.

10. Ibid., p. 384. 11. Ibid., p. 247. 12. Ibid., p. 433. 13. Ibid., p. 429. 14. Ibid., p. 429. 15. Laumann, E.O. and House, J.S., "Living Room Styles and Social Attributes: The Patterning of Material

Artifacts in a Modern Urban Community", Sociology and Social Research, Vol. 54, April 1970, pp. 321-342.

16. Ibid., p. 336. 17. Howard, J.A. and Sheth, J.N., The Theory of Buyer Behaviour, New York, John Wiley and Sons, 1969. 18. Ibid., p. 343. The claim is supported by reference to the work of Bourne, F.S., "Different Kinds

of Decisions and Reference Group Influence", in Bliss, P. (ed.), Marketing and the Behavioural Sciences, Allyn and Bacon, 1963, pp. 247-255; Katz, E. and Lazarsfeld, P.F., Personal Influence, Free Press of Glencoe, 1955; and Katz, E., "The Two-Step Flow of Communication: An Up-to-Date Report on an Hypothesis", Public Opinion Quarterly, Vol. 21, Spring 1957, pp. 70-82.

19. Ibid., p. 343. 20. Ibid., p. 381. 21. References to the work of Leavitt, H.J., "A Note on Some Experimental Findings about the Mean-

ing of Price", Journal of Business, Vol. 27, July 1954, pp. 205-210; and to Tull, D.S., Boring, R.A. and Gonsior, M.H., "A Note on the Relationship of Price and Imputed Quality", Journal of Business, Vol. 37, April 1964, pp. 186-191.

22. Howard, J.A. and Sheth, J.N., op. cit., p. 381. 23. Ibid., p. 80. 24. See Farley, J.U., Howard, J.A. and Ring, L.W., Consumer Behaviour Theory and Application, Boston,

Allyn and Bacon, 1974; and Farley, J.J. and Lehman, D.R., "An Overview of Empirical Applica-tions of Buyer Behaviour System Models", in Perrault, W.D. (ed.), Advances in Consumer Research, Atlanta, Association for Consumer Research, 1977.

25. See Bourne, F.S., op. cit., Katz, E. and Lazarsfeld, P.F., op. cit., and Katz, E., op. cit. 26. Bayton, J.A., "Motivation, Cognition, Learning—Basic Factors in Consumer Behaviour", Journal

of Marketing, Vol. 22, January 1958, pp. 282-289.

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Conspicuous Consumption 39

27. See Levy, S.J., "Symbols by Which We Buy", in Stockman, L.H. (ed.), Advanced Marketing Effi-ciency, Chicago, American Marketing Association, 1959, pp. 409-416.

28. Woods, W.A., "Psychological Dimensions of Consumer Decisions", Journal of Marketing, Vol. 24, January 1960, pp. 15-19.

29. Ibid., p. 16. 30. Ibid., p. 17. 31. Ibid., p. 18. 32. As examples, Lazer, W., "Life-Style Concepts and Marketing", and Sommers, M.S., "Product Sym-

bolism and the Perception of Social Strata", both in Greyser, S.A. (ed.), Toward Scientific Marketing, Chicago, American Marketing Association, 1964, pp. 130-139 and 200-216 respectively.

33. Grubb, E.L. and Grathwohl, H.L., "Consumer Self-Concept, Symbolism and Market Behaviour: A Theoretical Approach", Journal of Marketing, Vol. 31, October 1967, pp. 22-27.

34. Ibid., p. 25. 35. Ibid., pp. 25-26. 36. Ibid., p. 25. 37. Katona, G., "Rational Behaviour and Economic Behaviour", Psychological Review, September 1953,

pp. 307-318. 38. Ibid., quoting Stigler, G.J., Review of P.A. Samuelson's Foundations of Economic Analysis, Jour-

nal of the American Statistical Association, 1948, p. 603. 39. Kotler, P., "Behavioural Models for Analysing Buyers", Journal of Marketing, Vol. 29 No. 4, Oc-

tober 1965, pp. 37-45. 40. Veblen, T, op. cit. 41. Schewe, CD., "Selected Social Psychological Models for Analysing Buyers", Journal of Marketing,

Vol. 37, July 1973, pp. 31-39. 42. McClelland, D.C., The Achieving Society, Princeton, Van Nostrand, 1961. 43. See Goffman, E., The Presentation of Self in Everyday Life, Garden City, Doubleday Anchor Books,

1959. 44. See Festinger, L., A Theory of Cognitive Dissonance, Evanston, Illinois, Row, Peterson and Co., 1957. 45. Riesman, D., et al., The Lonely Crowd, Yale University Press, 1950.


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