Lesson: Conspicuous consumption (part1)
Conspicuous Consumption is the public display of wealth to impress others.
Examples: Higher status, social class, and public recognition.
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Social class in higher rank = power/status in society
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Lower class = focus on basic needs such as food, clothing, and shelter
Needs: Expensive and visible goods
Action: Conspicuous Consumption
Achievement: Social Status / Conformity
What Is Conspicuous Consumption?
Conspicuous consumption is the purchase of goods or services for the specific purpose of displaying one's wealth. Conspicuous consumption is a means to show one's social status, especially when publicly displayed goods and services are too expensive for other members of a person's class. This type of consumption is typically associated with the wealthy but can also apply to any economic class.
Key Takeaways
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Conspicuous consumption is a term coined by American economist and sociologist Thorstein Veblen.
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It often involves luxury goods that are easily recognizable as high-end and expensive.
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Common examples: technology, cars, clothing.
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It is done to show a specific social status or class.
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While often linked to the wealthy, anyone can be a conspicuous consumer.
Understanding Conspicuous Consumption
The term was coined by Thorstein Veblen in his 1889 book The Theory of the Leisure Class. It was seen as a product of the developing middle class during the 19th and 20th centuries. This group had more disposable income to spend on goods and services that were generally not considered necessary.
The concept of consumerism stems from conspicuous consumption.
Examples of Conspicuous Consumption and Product Choice
Conspicuous consumption is exemplified by purchasing goods exclusively designed to serve as symbols of wealth, like luxury-brand labels on clothing, high-tech tools and toys, and vehicles.
Smartphones and Other Tech
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Many smartphones offer the same basic features, but luxury versions are made by brands like Bentley or Lamborghini.
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These phones often have luxury casings (leather, titanium, granite) rather than better functionality.
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Example: the Black Diamond iPhone (gold-plated, gem-encrusted, with a black diamond) sold for $15 million
Supercars
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High-performance supercars (Bugatti, McLaren) cost over $1 million and are built more for status and speed than practical use.
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Their full capabilities (like top speed) can’t be safely or legally used on normal roads.
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Ownership itself becomes an expression of conspicuous consumption.
The Chiron Pur Sport is Bugatti's 'slowest' hyper car ever - Esquire Middle East
Special Considerations
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These luxury products assure the owner they have the “best available” item.
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But far cheaper versions serve the same purpose.
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The main point is to be seen owning them and to spark conversation about wealth and status.
SUMMARY
Conspicuous consumption means buying things mainly to show off wealth and social status.
People who practice conspicuous consumption often purchase goods or services that are very expensive, sometimes more than what they really need or can afford. They may do this to:
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Show others they belong to a higher social class, or
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Hide financial struggles by appearing richer than they are.
In short: these items are bought to be seen and noticed, not because they are necessary.