Status Consumption and Price Sensitivity

Abstract

This paper describes a study of status consumption and price sensitivity. The pervasive desire for social prestige motivates consumers to pay higher prices for goods that confer status. We suggest that three constructs—involvement, innovativeness, and brand loyalty—mediate this relationship. We test a model using data from 409 U.S. college students. Status consumption does influence price sensitivity; and this influence is largely, but not totally, mediated by involvement, innovativeness, and brand loyalty. The results are consistent with previous studies and theories regarding these variables and attest to the importance of status consumption in consumer behavior. Understanding how such psychological constructs interact to produce their effects improves consumer theory and marketing practice.