Conspicuous consumption is the purchase of goods or services for the specific purpose of displaying one's wealth. Conspicuous consumption is a means to show one's social status, especially when publicly displayed goods and services are too expensive for other members of a person's class.

What is an example of conspicuous consumption?

Definition: Conspicuous consumption is the practice of purchasing goods or services to publicly display wealth rather than to cover basic needs. ... If we have to look at our society, there are many examples of conspicuous consumption. Designer clothes, expensive jewellery, luxury cars, etc.

Why is there conspicuous consumption?

According to Veblen's theory, people consume conspicuously for two main reasons – to be recognized by their peers and to achieve a higher social status in society. Both factors are a reflection of the culture and social or economic class that the consumers reside in.