For instance, buying and wearing diamonds may make the consumer feel more respected and admired by peers and others.Ĭonspicuity can also have its costs to the person. In addition to the benefit from the good itself, the conspicuity, fame, and other positives that accrue to the consumer add to the consumer's private benefits.
Thus, conspicuous consumption tends to favor those goods and services that can be displayed easily, and it is done in forms that can easily be displayed.Ĭosts and benefits of conspicuous consumptionĬonspicuous consumption entails costs and benefits over and above the usual costs and benefits associated with consumption.īenefit and cost of conspicuity to the consumer Similarly, named endowments are more conspicuous than anonymous unmarked contributions. Similarly, buying a large house is useless unless other people know about it. For instance, buying high-priced diamonds is not enough - they also need to be worn or showcased. In addition, charity goods may also be highly valued by society (for instance, named endowments to charitable and other non-profit institutions).įor conspicuous consumption to be effective, it is also necessary that the fact that the consumption/spending occurred gets known to others. This may include precious metals, large houses, swanky cars, or collector's items. Since the goal of conspicuous consumption is to display wealth or income, conspicuous consumption is seen most for goods whose high value, or high cost, is generally recognized by society. The theory of conspicuous consumption was first put forward by Thorstein Veblen.Ĭonspicuous consumption refers to consumption/spending on good and services that is done, not primarily for the intrinsic value of these goods and services, but rather, primarily as a way of displaying income and wealth.Ĭonditions for conspicuous consumption The goods are generally highly valued by society 5 Related types of goods and similar effects.4.1 Benefit and cost of conspicuity to the consumer.4 Costs and benefits of conspicuous consumption.3.1 The goods are generally highly valued by society.3 Conditions for conspicuous consumption.
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