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Peer influence on consumer behaviour theory
Influences on consumer behavior
Influences on consumer behavior
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Spending and being able to afford luxury items has easily become part of a human’s everyday life and can even be considered human nature at this point in time. Humans for the most part purchase materials that they might consider essential to their life such as food, water, clothes, etc; however; it has become common within the societal norms to feel the need to flaunt the things that are purchased with our own money. The need to show off/flaunt to others about the things that one does have occurs because humans do not like to feel less than anyone else and so by buying things that are not really essential takes place in order to impress those around oneself and let them know that they too can afford luxury items/items that are too expensive. This is especially common within teenagers due to the fact that teenagers care for about what people think about them because they want to fit in and seem lavish and so they go out of their way to attain all the items in which they desire. In addition, impoverished within the current society seems to be a form …show more content…
For example, every year a new IPhone becomes released to the public and people decide to purchase it not because they need it or because something is wrong with their phone but because they want to keep track of the newest trends and they want to be part of the trend and show off to others that they can afford these items every year because they are not indigent. Galbraith even believes that people buy things in order to make those want what they have and this is evident when he states “one man’s consumption becomes his neighbors wish”. Galbraith is able to point out that humans show off what they have and they do this to make sure the item is seen and therefore provoke jealousy within those that surround them and make others wish they had the items that they already hold in their
The article “Luxury Shame,” written by Johnnie Roberts describes how and why the rich are scaling back on their extravagant expenditures. Initially, I was annoyed and shocked at how the very rich were assimilating their unfamiliar experiences of “recessionary times,” with those that experienced the emotions of poverty. Roberts explains the ostentatious life of multimillionaire Michael Hirtenstein, who would routinely and openly show off his profitable real estate collection. After the economy took a turbulent downfall, Hirstenstein and other wealthy Americans began to feel the shame or embarrassment of flaunting their wealth. Despite the “halt” to the economy, Hirstenstein became frugal with his money, even though he could have easily bought whatever he wanted.
Have you ever felt like you are spending too much money at a time, on pointless items? Statistics show that American’s consumption rate of goods has increased by forty-five percent in the last twenty years (Statistics-Consumption/quality of life pg. 194). Americans are experiencing a thing that is many times known as “Affluenza”, this is when someone buys more items, such as clothes, cars, houses, or any unnecessary items. Many people talk about this so-called “Affluenza”, like it is a medical term. The word Affluenza is pretty much saying that people make money and work hard for their money and they like to buy nice things, because they can and they have the money to. They are fortunate enough to be able to have these nice things for themselves because they work so hard for it. Many Americans are not satisfied with their positions because of false ads, selfishness, and jealousy. Some celebrities, some of the wealthiest people on the planet have committed suicide because they are not happy with what they have and they feel like they need more items, when really they have everything they need to be happy, but they suffer from Affluenza and make these bad decisions.
Another reason people become poor is that they spend their earnings on their "wants" and not on the necessities. That then leads to the realization that they cannot pay rent/mortgage and are evicted. But for the reason to spend their money the way they want was influenced towards bragging rights and/or the "want" to feel a part of the wealthier. Cottom observed that, "Errol Louis and his belief is held by many people, including African Americans, poor people, and formerly poor people that spending money excessively is not logical." Furthermore, it could be an addiction problem for some
Belk, Russell W. "Collecting as Luxury Consumption: Effects on Individuals and Households." Journal of Economic Psychology 16.3 (1995): 477-90. ProQuest. 26 Apr. 2014 .
The Millionaire Next Door written by William Danko and Thomas J. Stanley illustrates the misconception of high luxury spenders in wealthy neighborhoods are considered wealthy. This clarifies that American’s who drive expensive cars, and live in lavish homes are not millionaires and financially independent. The authors show the typical millionaire are one that is frugal, and disciplined. Their cars are used, and their suits were purchased at a discount. As we read the book from cover to cover are misconceptions start to fade. The typical millionaire is very frugal in all endeavors and finds the best discounts possible. A budget is implemented daily, monthly, and annually for a typical millionaire. They live by the budget and are goal oriented. Living well below their means is crucial for a millionaire, and discovering ways to allocate time and money more efficiently. The typical millionaire next door is different than the majority of America presumes. Let’s first off mention what it is not. The typical millionaire is surprisingly not the individual with the lavish house worth a million dollars, owning multiple expensive cars, a boat, expensive clothes, and ultimately living lavishly. The individual is frugal and often looks for discounts for consumable goods. The book illustrates the typical millionaire in one simple word: frugal. It is shocking to believe that this is true, but it does make sense. To achieve financial independence is inherently more satisfying and important than accumulating wealth. According to the book the majority of these millionaires portray characteristics of being sacrificial, disciplined, persistent and frugal. In the book it states, “Being frugal is the cornerstone of wealth-building. Yet far too often th...
And also because of this, rich people want to take part in high levels because they can get more chance to get more relationship with high level people, and hold something together. Conspicuous consumption, it raises the quality of consumers’ life, pushes on the economy, increases the productivity, and it also can increase the duty of the country, shorten the distance of income. Related Posts of "Conspicuous Consumption Definition | Investopedia" But on the other hand, conspicuous consumption causes people’s sense of worth warping, when a person takes a fancy to their status, they will try their best to compare to the higher, and put their life target on complaining with each other. And this makes the waste of resources and finance, and then it causes the social boon to reduce, this appearance has the good influence and bad influence, and this cannot be rooted out and destroyed.
In 1899 Thorstein Veblen wrote The Theory of the Leisure Class: An Economic Study of Institutions. In this work, Veblen presented critical thinking that pertains to people’s habits and their related social norms. He explores the way certain people disregard the divisions that exist within the social system, while subsequently emulating certain aspects of the leisure class in an effort to present an image of higher social status. He also presented the theory of conspicuous consumption, which refers to an instance when a person can fulfill their needs by purchasing a product at a lower cost that is equal in quality and function to its more expensive counterpart; however, said person chooses to buy the more expensive product, by doing so, they are attempting to present an image of a higher social status. The almost 110 year cycle between 1899 and 2010 reveals few differences in buying behaviors, other than the differing selection of luxury goods to indulge, or over-indulge in.
These poor neighborhood conditions may also cause adolescents to be envious of those who are wealthier, discontentment and desires for luxury materials, which may result in committing crimes to satisfy their material needs (Bridge, 1927).
In today's society, people have become materialistic in the obsession of having women, money,and fame that they forget
Materialism leads people to be financially irresponsible. People are more likely to buy certain products because
A luxury good is something that, as ones income increases; the demand for an item or service also increases at a higher than proportional level, in contrast to necessity goods, in which demand increases proportionally with a decrease in income (Varian, 1992). Generally, luxury goods are seen as those at the highest end of the market, in terms of price and quality. Haute Couture clothing, accessories and luggage are considered to be classic luxury goods, although many markets have a luxury sector, for example Automobile, Bottled Water, Coffee, Foods, Jewellery, Sound Systems (HiFi), Tea, Watches, Wine and Yacht.
In conclusion, poor people have a right to try to buy their way into status. Spending money on the status symbols like nice cars and clothes can be tickets to better jobs, or so-called upward mobility to deprived individuals. Persons are more likely to not judge them by appearance because they may dress in expensive suits, drive luxurious cars, and it also increase their self-esteem. When you are under a spell, you will spend a substantial amount of money to attempt to buy your self-esteem. Persons should keep reminding their selves that money or a lack of it doesn't define who they are. Their worth as a person has nothing to do with how much money they may have. We should all view other persons spending choices with sympathy and understanding.
In many high schools, if you don’t have an iPod or any other cool device, a replacement automotive or lots of cash, then the cool crowd typically doesn’t even notice a person. In nearly every organization, cash and things are the entire foundation, thus it is sensible that Americans would be thus materialistic. Of every last one of ideas inside economic concerns, supply and interest is maybe the most well-known by the overall population. Individuals' assets are constrained, yet everyone's needs and needs are boundless. “We shop to assert our superiority to the material objects that spread themselves before us,” (Rose 482).
Money is being spent on unnecessary things. There are important things in life that needs to be solve and use money wisely. “Gucci or Nike brand are expensive, these brand make people go crazy”. A lot of people like to follow the same steps of others. An example is if someone were to see somebody else have like a Gucci bag or something that other person is going to want it to. Some people try so hard to try to find a way to get more money to own at least one brand. Believe it or not people do go through things to get what they want. “Spending your money on something useless is wrong and people should give reasons on how this can affect you”. In fact it is not worth buying, you don’t need a brand to be popular. They are people in the word who don’t have what they want. They grew up un wealthy and they feel a shame because they can’t get what we
...wo influences: “scarcity and socialization hypotheses”. The scarcity theory explains how "an individual's priorities reflect one's socioeconomic environment: one places the greatest subjective value on those things that are in relatively short supply" (1990, p.68). Thus, people who are less economically advanced focus a greater importance on material acquisition then the more affluent people. The socialization hypothesis explains that "one's basic values reflect the conditions that prevailed during one's pre adult years" (1990, p.68), and these values are persistently stable over a long period of time. Consequently, the people whom experienced a lack of possessions in previous years are more likely to develop an obsessive desire for material goods, while people who originated from wealthy families may focus on personal fulfillment at the expense of higher incomes.