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Article summary: Social benefits of luxury brands as costly signals of wealth and status - Nelissen, R. M. A., & Meijers, M. H. C. (2011).€2,99
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This is a summary of the article Social benefits of luxury brands as costly signals of wealth and status - Nelissen, R. M. A., & Meijers, M. H. C. (2011). It is part of the literature of the course Lifestyles and Consumption (CHL20806) at Wageningen university.
For references see the original article. For the descriptions of methods, participants and procedures, see the original article.
Nelissen, R. M. A., & Meijers, M. H. C. (2011). Social benefits of luxury brands as costly signals of wealth and status. Evolution and
Human Behavior, 32, 343-355. https://doi.org/10.1016/j.evolhumbehav.2010.12.002
Social benefits of luxury brands as costly signals of wealth and status
Contemporary consumer culture can be characterized by its primacy on material expenditure as
a means of establishing and defining social relationships. People appear to be keen on wearing
and owning luxury branded product, because they gain social status through it. Status is defined
as a higher position compared to others on some dimension that is deemed important by
society. Expenditures with no functional benefits, still have a subjective utility, namely as signals
of social status. Consuming expensive goods (against cheap goods) is called conspicuous
consumption. This desire for status and thus luxury goods is an important factor driving the
market. Proof is still needed for the statement that mental adaptations for displaying status
traits instigate luxury expenditures, but also that the receiver needs to recognize it, in order for
it to be beneficial. Also important is that both parties share the same beliefs about conspicuous
consumption.
The question is whether there actually is a connection between evolved status through signaling
and the affordances of modern life, which causes conspicuous consumption.
The authors will show that people are more compliant and generous to people who display
luxury and are even willing to pay a cost to affiliate with them. They will also reveal that these
effects of luxury-branded clothing are driven by increased status perception. Conspicuous
consumption increases the signalers’ social capital.
Conspicuous consumption as a costly signal of status
Costly signal theory explains that wasteful behavior may function as a reliable signal of
desirable individual qualities, in which the costs involved are a guarantee of its reliability.
Displays of luxury can serve as costly signals that indicate, for example, wealth. Wealth is a
desirable characteristic for two reasons. First, it implies possession of abundant resources.
Second, it demonstrates the ability and skill required to acquire those resources.
Luxury labels can be used as costly signals to enhance status. To qualify as costly signal four
criteria must be met.
- The signal must be observable. Usually this is the case, because brand labels are
designed to be visible and recognizable. In this study, the researchers checked the
difference in impact between the labels and non-label.
- The signal must be hard to fake, because of the costs involved in producing the signals.
This happens in a graded manner. So, it is not important whether more intense levels of
signaling are possible. As long as there is a contrast between oneself and another.
- The signal must be associated with some unobservable but desired trait. This criterion
implies that the signal is perceived as a status-enhancing quality, because socially values
traits by definition increase one’s status.
- The signal must be beneficial.
In this study, the researchers will investigate whether perceivers treat a person more favorable
when they wear luxury-labeled clothing.
Present studies and relation with previous research
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