Consumer confidence and conspicuous consumption: A conservation of resources perspective

Daniel Peter Hampson, Shuang Ma, Yonggui Wang*, Myat Su Han

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)1392-1409
Number of pages18
JournalInternational Journal of Consumer Studies
Volume45
Issue number6
DOIs
Publication statusPublished - Nov 2021
Externally publishedYes

Keywords

  • conservation of resources theory
  • conspicuous consumption
  • consumer confidence
  • socioeconomic status

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