Question

What is meant by conspicuous consumption in 100 words​

Answer 1

Definition

Definition of 'Conspicuous Consumption'

Definition: Conspicuous consumption is the practice of purchasing goods or services to publicly display wealth rather than to cover basic needs.

Description: The word 'Conspicuous' here means lavish or wasteful spending. This kind of spending is generally made by people who have considerable amount of disposable income to spend on goods and services which are not necessary, but are more luxurious in nature.

The concept is not new and has been part of society for long. This particular type of consumption is typically associated with the rich and wealthy and has only grown with time.

The term 'Conspicuous consumption' was first coined by American economist Thorstein Veblen in his 1889 book, "The Theory of the Leisure Class." The theory is dynamic and has only evolved over the period of time with people searching for new ways of creating and displaying wealth.

If we have to look at our society, there are many examples of conspicuous consumption. Designer clothes, expensive jewellery, luxury cars, etc. are some of examples which comes under forms of conspicuous consumption.

If we look at above examples we will find that conspicuous consumers often buy those goods & services which are too expensive for other classes of society (social status). They buy these expensive items to show that they are a class above or to show their spending power.

Advertising plays a major role in placing the product as a luxury item in the mind of consumers. The product has to be elegant, exclusive (branded bag, jewellery etc.), or tailor made for the consumer.

Answer 2

Conspicuous consumption can be defined as the procuring of extravagance assets and spending of wealth on assistance to openly demonstrate the commercial potential of the income or representation of the accumulated capital.

Thorstein Veblen's sociology reveals the development of conspicuous consumption generated the term invidious consumption, which symbolizes remarkable empathy, the intended utilization of generous contributions of capital in order to intensify the cultural influence of the patron, with a demonstration of the excellent socio-economic situation.