Marriage Market Matching and Conspicuous Consumption in China

Grier, Kevin; Hicks, Daniel L.; Yuan, Weici

doi:10.2139/ssrn.2603266

Cited by 2 publications

(3 citation statements)

References 18 publications

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“…Education and age (of household head) are found to have a negative and significant correlation with visible spending. The negative relationship between visible spending and age is consistent with other studies that have found that visible spending tends to be higher among younger unmarried consumers in China who are seeking marriage partners (Grier, Hicks, and Yuan 2015).…”

Section: Figuresupporting

confidence: 90%

“…As people become more affluent, they tend to spend more on visible goods, such as clothing, jewelry, and automobiles (Charles, Hurst, and Roussanov 2009;Grier, Hicks, and Yuan 2015;Heffetz 2011). A question of perennial interest is to what extent this behavior is driven by individual preferences alone or is fostered by intensifying status competition among increasingly affluent households (Arrow and Dasgupta 2009;Becker, Murphy, and Werning 2005;Frank 1985;Frijters and Leigh 2008).…”

Section: Introductionmentioning

confidence: 99%

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Conspicuous Spending and the Income Distribution of Social Groups

2019

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Using South African household expenditure data, we analyze how the spending of a household on visible goods, such as jewelry and clothes, depends on the distribution of income within its social group. We find that this spending is positively correlated with the share of peers who possess a similar income level to the household, what we dub the “local income share.” Moreover, we find that the spending of a household on visible goods is positively correlated with the average income of peers that are poorer than this household. We interpret this as evidence for cascade effects through which income changes among the poorest in the social group can trigger adjustments in the visible spending patterns of the wealthy. In line with previous research (Charles et al. 2009), we also find that visible spending of a household is negatively correlated with the average income of its social group. We present a simple model of status competition based on Hopkins and Kornienko (2004) that synthesizes these effects and can account for our results. (JEL D12, D31, O12)

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Section: Figuresupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

Conspicuous Spending and the Income Distribution of Social Groups

2019

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“…Accordingly, much extant research focuses on conspicuous consumption of well-known Western luxury brands in China (e.g. Grier et al, 2016;Podoshen et al, 2011). For example, Podoshen et al studied Chinese consumers consuming Western-style luxury goods to publicly show prestige and social status, more typically reflective of conspicuous consumption in China (2011).…”

Section: Introductionmentioning

confidence: 99%

Forms of inconspicuous consumption

Luo

Schroeder

et al. 2017

Marketing Theory

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Inconspicuous consumption – whereby brand signals are subtle, or not easily visible, to most consumers and the overt display of social status is sidestepped – is on the rise, even in China, which has typically favoured conspicuous brand signalling. Research on luxury brands tends to focus on conspicuous consumption, and few studies have explored the ways in which Chinese consumers use Chinese luxury brands in inconspicuous ways. This study examines how Chinese luxury consumers are redefining their identity projects, as well as their conceptions of luxury, in relation to inconspicuous consumption. We suggest that inconspicuous consumption encompasses consuming luxury products without overtly displaying wealth and social status. Thus, certain luxury brands enable inconspicuous consumption. Turning to a group of Chinese luxury brands offers insights into how luxury brands may fill this role for newly emerging forms of inconspicuous consumption. We distinguish four forms of inconspicuous consumption, illustrated by consumers (1) with wished-for identities or fantasy lifestyles, (2) who appreciate aesthetics and function, (3) who are wealthy and prefer not to provoke envy and/or anger in times of economic austerity and (4) who desire to differentiate themselves and employ subtle signals that are only observable to people with the requisite knowledge to decode their meaning. These forms of inconspicuous consumption facilitate the construction and display of one’s reflective identities, including privately fantasized identity, privately held identity and partially public reflective identities. Thus, we contribute to identity construction theory by explicating aspects of reflective identity and linking them to forms of inconspicuous consumption. Finally, we expand upon recent research on inconspicuous consumption by demonstrating how inconspicuous consumption is manifested in China – the largest luxury market. The results help redefine constructs in the paradoxical situation of inconspicuous consumption of luxury brands, adding a layer of complexity to the inconspicuous consumption concept.

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Marriage Market Matching and Conspicuous Consumption in China

Cited by 2 publications

References 18 publications

Conspicuous Spending and the Income Distribution of Social Groups

Conspicuous Spending and the Income Distribution of Social Groups

Forms of inconspicuous consumption

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