Question

Hope is desperate for the new designer purse that she saw while window shopping at her local mall. She knew every girl in school would covet her bag and wish to be like her. When she walked in, she whipped out her credit card, and purchased the $5,000 bag. This kind of purchasing is called: Group of answer choices a) Credit card consumerism b) Popular consumerism c) Designer consumerism d) Conspicuous consumption.

Answer 1

Answer:

D.

Explanation:

Conspicuous consumption is when a person pays an extremely high price for a product for its prestige value leading to a much higher demand than a simple price/demand relationship would justify.

Characteristics:

-Buying expensive items to display wealth and income rather than to cover the real needs of the consumer.

-Gain higher social status.

-Behavior not only limited to the rich/upper class but among the poorer social classes and emerging economies.

-Clear positioning.

-Time relation is the present.

-Able to take risks.

-Try new products.

-Love symbols of status.

-Wants status appreciation.