Got a tricky question? Receive an answer from students like you! Try us!

Why do consumers like to engage in conspicuous consumption What are the marketing implications - Essay Example

Only on StudentShare
Author : dwightblock

Summary

Customers currently are shopping for quality and luxuries so that they can enhance their quality of life. Many companies have thus taken up to offer high premium products to consumers who value quality and value than price…

Extract of sample
Why do consumers like to engage in conspicuous consumption What are the marketing implications

These products are normally supported by high and extensive market promotion and advertising by manufactures of the products, creating a "status symbol" for wealthy individuals.
This research paper examines why consumers buy some goods for conspicuous consumption at prices which are normally higher. The papers will examine the concepts that try to explain this behaviour, and examine other factors. The paper will also explain the goods which qualify to be termed as conspicuous consumption. Market implication of in accordance to the 7Ps in relation to this phenomenon will also be analysed and a conclusion drawn after the analysis.
Veblen (1899) provided an explanation of conspicuous consumption behaviour in his prominent concept of "the leisure class". He notes that in order for people to show their wealth or power their have to put it into evidence, since self esteem can only be rewarded through evidence. Thus, one way of an individual showing off his wealth is through conspicuous consumption. Using Veblen, conspicuous good can be defined as a product whose consumption can be viewed by all in the market economy. In this context "Veblen effect" will refer to conspicuous consumption, which is seen as an action of consciously displaying and consuming a product that is bought at a higher price that its marginal cost. ...
Download paper

Related Essays

Marketing and Consumers Priorities
I can get the information regarding new courses as well as happenings and I can contact my overseas friends through e-mail. I can use the computer for chatting with my friends. I know the information and news through websites. I use the computer and it's accessories to see the news papers and news portals and scan as well as download the required images and content. Using a printer I can take printouts of the content I need for my job. I can keep myself and my company connected to different news agencies so that they keep us update with the latest news. I can design a greeting card of my own…
4 pages (1004 words)
Marketing to consumers in saudi arabiawhich facets of their multiple identities do they use when
Despite the fact that cross border trade of various entities like people, products, ideas, etc. have resulted in cultures getting mixed up and losing their core identity, yet the foreign element in the home culture has not fully revamped the local culture anywhere in the world; the glimpse of the home culture remains there no matter how much the foreign culture influences it. However, this phenomenon does lead to the outcome that culture is no more a static variable but is dynamic and continues to grow as embedding of culture takes place. This dynamicity and the cross border trade has actually…
6 pages (1506 words)
Consumption
If 50% of the group said they liked it and the other 50% were undecided the company if anything would just make the fish flavored soda a special one time a year specialty.…
2 pages (502 words)
Branding
The idea that you are what you buy - that possessions confer status - has long existed and guided some purchasing, as most notably observed by Thorstein Veblen (1899). However, as status became associated with specific brands, the next step historically became the marketing of brand imitations.The act of branding can be traced back to the early 1800's when cowboys would brand their cattle before driving them across the central plains of the United States (Rozin 2002). In order to identify which cattle belonged to each ranch a unique symbol was permanently burned onto the cow. These symbols, in…
23 pages (5773 words)
Conspicuous Consumption in America
As the report declares Marx’s theories of the fetishism of the commodity informs Veblen’s ideas of possessions having the capability of conferring an abstract noun upon its owner and by the middle of the twentieth century the advertising world had perfected the ability to translate this capability to consumers; at the same time the US economy began depending ever more heavily upon consumption of non-essential goods. Veblen’s “honor” eventually transformed into something else as the economic divide between rich and poor shrank alongside the growth of the American middle class. That…
6 pages (1506 words)
Why do consumers like to engage in conspicuous consumption? What are the marketing implications?
This research paper examines why consumers buy some goods for conspicuous consumption at prices which are normally higher. The papers will examine the concepts that try to explain this behaviour, and examine other factors. The paper will also explain the goods which qualify to be termed as conspicuous consumption. Market implication of in accordance to the 7Ps in relation to this phenomenon will also be analysed and a conclusion drawn after the analysis.…
10 pages (2510 words)
How do consumers engage with fashion, as a routine aspect of everyday life?
oduction and display of new and emerging fashion styles, innovative and engaging consumers and their selections, and the urge to express the spirit of the times (Pink, 2001). Core in defining fashion is the interaction of fashion products, their distribution and the manner in which they are consumed. Several theories have been postulated to explain fashion, its momentum and influences on everyday life. Most of these theories envisage the expanse and distribution of fashion as a movement or trickle from one level or aspect of life in society to another (Felski, 2000). This trickle is viewed as…