An experimental study of the bandwagon effect in conspicuous consumption

Abstract

The phenomenon of conspicuous consumption is not new. Veblen (1899, 1994) described conspicuous consumption as expensive, luxury consumption, which provides evidence of wealth and status. In post-modern society the primary objects of consumption have become images and experience used by the middle class and the masses to demonstrate uniqueness or similarity with significant others. This paper focuses on the bandwagon effect in conspicuous consumption. In the study the bandwagon effect is treated as increased demand for luxury goods due to their popularity, especially among famous people. participants and procedure Three studies were carried out. The samples consisted of 60 teenagers, 76 female students and 73 students and postgraduate students. The concept of the aspirational group was induced through the advertisement of a luxury product with reference to famous people and by direct reference to the aspirational group. Three different methods to measure a propensity to conspicuous consumption were applied: the amount of money spent on the luxury product, the size of the luxury brand logo, and the doubling of the luxury brand logo. results The results show that the activation of the idea of the aspirational group enhances willingness to pay more for a luxury product, to double the luxury brand logo and the preference for a visible luxury brand logo at a tendency level. conclusions The results experimentally supported the bandwagon effect within luxury conspicuous consumption previously established in correlative studies.

A Study on Bandwagon Consumption Behavior Based on Fear of Missing Out and Product Characteristics

“…Due to product popularity, this bandwagon consumption behavior is (re)created when consumers observe the consumption behavior of others and purchase the same brands and products-"to be one of the boys" [15]. Another perspective of recent research on bandwagon consumption were related to personal characteristics; examples of relevant personal characteristics include personal traits, external stimuli, and group characteristics such as cultural forces [27]. Recently, much research has been conducted on why consumers are so enthusiastic about purchasing luxury products [7,19,28].…”

“…Balabanis and Kastanakis [15] significantly contribute to the bandwagon consumption argument by providing insights from the consumers' perspective. Empirical evidence suggests that consumers who are dependent on others (by having aninterdependent-self) show similarity to other consumers [15,27]. Furthermore, Parilti and Tunc [31] suggest that anxiety can also influence bandwagon consumption.…”

Relations between Conspicuous Consumption and Materialism

“…In line with handicap principle, only animals in superior fitness may afford to devour many resources to sent costly signals, which as features are for them only a burden. Miller (2000) extends the handicap principle to humanity and claims that signalizing process of superior fitness has primary importance to the most sexual reproduction species, inclusively human one.…”

Determinan yang Berpengaruh pada Minat Investasi di Pasar Modal

“…Fenomena bandwagon effect juga diduga mempengaruhi minat seseorang untuk berinvestasi di pasar modal. Bandwagon effect adalah fenomena dimana seseorang akan melakukan sesuatu hal karena melihat fakta bahwa orang lain juga melakukannya (Niesiobedzka, 2018) . Dalam dunia investasi, bandwagon effect dapat diartikan sebagai fenomena psikologis yang ditandai dengan investor yang mulai bergantung pada keputusan orang lain terlepas dari bukti yang mendasarinya (Zakirullah & Rahmawati, 2020).…”