Consumer confidence and conspicuous consumption: A conservation of resources perspective

As the global economy faces major contraction, speculation abounds that conspicuously branded products will be especially vulnerable. The purpose of this paper is to examine the relationship between consumer confidence and conspicuous consumption. Drawing on the conservation of resources theory, we develop a theoretical model, which we test with data from a sample of Brazilian consumers (n = 1,043), using structural equation modeling and moderated mediation analysis. Results reveal that financial insecurity, need for status and anticipated luxury guilt each positively mediate the consumer confidence-conspicuous consumption relationship. The effects of consumer confidence on conspicuous consumption via financial insecurity and anticipated luxury guilt are strongest for the highest socioeconomic status consumers.