How power distance belief,self-construal,and relationship norms impact conspicuous consumption |
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Institution: | 1. Sogang Business School, Sogang University, 35, Baekbeom-ro, Mapo-gu, Seoul, 04107, South Korea;2. C+R Research, Chicago, Illinois, United States;1. (Human Resource and Organizational Behavior), MDI, Murshidabad, West Bengal, India;2. (Organizational Behavior), School of Business, Hanyang University, Seoul, South Korea;1. Vivekananda School of Business Studies, Vivekananda Institute of Professional Studies – TC, New Delhi, India;2. Jindal Global Business School, O P Jindal Global University, Sonepat, Haryana, India;3. DCU Business School, Dublin City University, Glasnevin Campus, Dublin, Ireland;1. Indian Institute of Management Raipur, Chhattisgarh, India;2. Indian Institute of Management Kozhikode, Kerala, India |
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Abstract: | Building on the idea that luxury products can signal the owner's status to others, this research elucidates how fundamental and pervasive social factors—power distance belief (PDB), self-construal, and relationship norms—dynamically impact consumers' preferences for conspicuous consumption. Through three experiments, we found that (1) high-PDB consumers are more likely to prefer conspicuous consumption compared to low-PDB consumers, and this effect is mediated by their need for status; (2) the relationship between PDB and conspicuous consumption is enhanced under interdependent self-construal, attenuated under independent self-construal, and mediated by consumers' need for status; (3) these effects are moderated by relationship norms, such that the positive effect of PDB on conspicuous consumption under interdependent self-construal is attenuated when communal relationships (vs. exchange relationships) are salient. Our conceptualization and findings contribute to the literature on the dynamics of individuals' status-related behavior in social psychology and related fields, and provide important practical applications for luxury businesses. |
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Keywords: | Conspicuous consumption Need for status Power distance belief Self-construal Relationship norms Luxury product |
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