Conspicuous consumption Free Essay Example, 3750 words

Because they are mollycoddled, many luxurious companies target them. As they are pampered, they look for the best luxury goods which are strong social symbols in china. 25 – 30 year old Chinese consumer luxury products therefore labeled as the primary consumers by the International association for luxury goods (Frith, 2010). Psychological factors have a bearing on luxury consumption in China. Chinese consumers stereotype countries by their specialty for instance they stereotype Germany for production of poor quality cars. Chinese recognize France for its luxury goods. For instance, being a French company, Ricard company imports whisky in China, which is more, preferred despite China’s production of its own brand. Over the past few years, whisky sale has gone up by 30% annually to US Dollar 115 million in 2006, putting China among the top ten countries with the highest whisky sales. This serves to highlight the dynamic nature of Chinese luxury brands market (Dorothea, 2 011). In order to establishing the existing level of consumerism in China, this study seeks to fulfill the following objectives. Research Objectives The amount of consumption in an economy is important because it informs the amount of economic output in terms of production. We will write a custom essay sample on Conspicuous consumption or any topic specifically for you Only $17.96 $11.86/pageorder now Conspicuous consumption in China has been increasing proportionately with China’s economic growth. This has given rise to the number of millionaires in the country who value living posh lifestyles whose core characteristic is consumption of luxury goods. This study aims at establishing factors that drive conspicuous consumption in China. Specifically, the study seeks to achieve the following objectives. To: 1) Determine the relationship between conspicuous consumption and disposable in China. 2) Establish how tastes and preferences influence conspicuous consumption in China. 3) Investigate the impact of prestige on conspicuous consumption. 4) Establish the impact of conspicuous consumption on China’s economic growth Research Questions In order to achieve the above objectives, the study shall endeavor to answer the following questions: 1) Is China’s conspicuous consumption linked to the individual’s disposable income? 2) What is the connection between conspicuous consumption in China and the people’s prestige, tastes and preferences? 3) What is the impact of China’s conspicuous consumption on the country’s economic growth? Literature Review Conspicuous consumption was used (although narrowly) to describe the upper social class that used their wealth as a way of showing off their social status and prestige during the second industrial revolution.