Rise of Consumerism in a "Modern" World [Part 2: Desire for Prestige]

Consumption is so closely intertwined with conforming to what one believes are the expectations of society that acquisition of goods is no more for simply utilitarian purposes but more for symbolic purposes. Consumers want the newest, latest and the best in order to ‘fit in’ and ‘outshine’ other consumers. A consumer can have the instant gratification of purchasing an expensive item to improve social status. 

Conspicuous Consumption

This factor can be better explained by the economic term Conspicuous Consumption, a phenomenon proposed by economist and sociologist Thorstein Veblen in 1899. It refers to people spending their money on items which would showcase their wealth and social class. A lot of goods are thus purchased merely for an individual to provide evidence that they can afford them, and for the deliberate purpose of inspiring envy in others. A flashy consumer uses such behaviour to maintain or gain higher social status.  The psychological process which underlies the importance of these Veblen goods refers to the fact that the satisfaction one derives from owning something depends upon one’s perception of what other people own. 

A vivid example—consider being given the choice of two possible worlds—World A in which you will live in a 4000 ft2 house while others will live in 6000 ft2  houses, and World B in which you will live in a 3000 ft2 house while others in 2000 ft2 houses. If the only factor people cared about were their absolute level of consumption, everyone would choose World A, but this is simply not the case. Most people would choose World B to avoid envying others in A and to feel superior to everyone else in B. 

The consumption habits of the upper classes who consume ‘flashily’ or conspicuously, influence the other classes who may seek to emulate their behaviour. The result, according to Veblen, is a society characterised by wasted time and money. Conspicuous consumption gives rise to conspicuous waste. Much of modern marketing and advertising is premised on the ‘got to have’ ideology that is the basis for the materialistic and consumerist society we live in.   

[This post is a part of a series of posts on the same topic. Check out the first post in this series if you haven't already: https://steemit.com/psychology/@sequeira/rise-of-consumerism-in-a-modern-world-part-1-role-of-the-industrial-revolution

And the third: https://steemit.com/psychology/@sequeira/rise-of-consumerism-in-a-modern-world-part-3-personal-insecurities]