Some theorists claim that it is due to the competitive nature of individuals. The ownership of luxurious goods expresses the superiority of the possessors over the non-possessors. Therefore, people compete with each other for ownership of such goods, which causes conspicuous consumption.

What led to conspicuous consumption?

According to Veblen, the main cause of conspicuous consumption is mainly the desire for peer recognition and higher social status. Whilst the desire for peer recognition and higher social status are drivers of conspicuous consumption, other factors include social media, consumerism, and economic advancement.

When did conspicuous consumption start?

Understanding Conspicuous Consumption

The term was coined by American economist and sociologist Thorstein Veblen in his 1889 book, The Theory of the Leisure Class. This type of consumption was considered a product of the developing middle class during the 19th and 20th centuries.