Personality traits influencing young adults' conspicuous consumption

Abstract

Consumption of luxury goods constitutes a growing industry in vari-ous developing economies such as China, India and South American countries such as Chile. The True-Luxury Global Consumer Insight 2018 study (BCG & Altagamma, 2018) forecasts an increase in the luxury market by 347 billion euros between 2017 and 2024 worldwide. In this category, the new-luxury subcategory stands out, which is defined as premium products that are affordable to middle-income consumers (Silverstein et al., 2008). The new-luxury is related to the massification of luxury generated by technological and management improvements, which involve reducing production costs on exclusive and high-priced goods. Brun and Castelli (2013) point out that the new-luxury is affordable for a large group of customers, as it is not limited to scarce and prohibitive products, such as jewellers, mansions or yachts. According to Kumar et al. (2020), the marketing of luxury brands targeted to middle-class to develop mass prestige, is a new phenomenon and represents a good opportunity. A group that has been the focus of prestigious and accessible brands are young adults because of their higher income and access to technology (UBS Group AG, 2018).The growth in luxury consumption has encouraged the development of research that seeks to explain why customers acquire them, especially, to understand the motivations that guide their purchase

Consumer confidence and conspicuous consumption: A conservation of resources perspective

“…Conspicuous consumption, defined as the publicly visible consumption of luxurious products and services in order to demonstrate wealth, image and uniqueness (Trigg, 2001), is of relevance across cultures (Lee et al, 2017) and product/service categories (Mende et al, 2018;Sundie et al, 2011). Barrera and Ponce (2020) identify competitiveness as a key antecedent of conspicuous consumption of clothing, perfume and smartphones. Because it satisfies the need for prestige and audience reaction (Podoshen et al, 2011;Wong, 1997), conspicuous consumption manifests in preferences for products with bigger and louder logos and brand names (Nunes et al, 2011).…”

Tax Policy in Limiting the Consumption of Luxury Goods

“…In particular in the newluxury sector, young consumers have a considerable impact on the rise of luxury spending globally. Based on 3M's Personality and Motivation Model, reveals that consumption of new luxury goods is influenced by competition and the need to understand personality traits (Barrera & Ponce, 2021).…”

Masstige strategies on social media: The influence on sentiments and attitude toward the brand

“…Luxury can be defined as a sumptuous lifestyle expressed through products or services of premium quality, represented through products’ superiority (Barrera & Ponce, 2020; Kapferer & Valette‐Florence, 2016). These products are marketed through strong communication efforts taking advantage of product features and emotional attributes, connecting pleasure, and the feeling of exclusiveness (Dhaliwal et al., 2020).…”