Library:
Paris Champerret
Madrid
London
Paris Montparnasse
Turin
Berlin
- Item type
- Study and report
- Dissertation
- Language
- English
- Publication year
- 2025
- Contributors
- VOYER, Benjamin
- Subjects
- MARKETING
This study explores the evolving status-signalling function of luxury consumption by
comparing the perceived symbolic value of luxury goods with that of luxury experiences. It
responds to the rise of the mass-prestige phenomenon, which has blurred traditional boundaries
of exclusivity and reshaped how status is communicated in contemporary luxury markets.
While prior research has predominantly focused on material luxury and collectivist cultures,
this investigation centres on status signalling within Western societies, specifically cities such
as London, Milan, Paris, and New York, where consumers described deeply hierarchical a
heightened sense of social scrutiny.
Grounded in qualitative inquiry, the study included fifteen semi-structured interviews, featuring
insights from five industry professionals. Interviews were initially guided by four a priori codes
derived from the existing literature. Subsequent thematic analysis led to the identification of
four additional in vivo codes: luxury shame, identity fragility, privacy consciousness, and
disenchantment. These emergent themes extended beyond established frameworks such as the
bandwagon and snob effects (Leibenstein, 1950; Kastanakis and Balabanis, 2014) and the
costly signalling theory (Bliege Bird and Smith, 2005; Miller, 2009), illustrating that luxury’s
signalling potential is not fixed but highly contingent on social context. Participants were shown
to adjust their displayed visibility based on situational factors. In particular, those with lower
self-awareness or self-worth tended to prioritise the observability of luxury goods, using them
as a compensatory mechanism for social validation.
Conversely, participants with greater luxury familiarity and more affluent lifestyles expressed
a clear preference for the subtle nature of experiential luxury, favouring privacy and uniqueness
over conspicuous display. These findings challenge assumptions in previous studies that luxury
experiences are increasingly shared online to generate social capital, revealing instead that
value is often heightened through discretion, especially when experiences are deeply personal.
Ultimately, the study concludes that luxury signalling is no longer dictated solely by visibility,
but by a combination of emotional motivation, self-enhancement, and perceived social risk. The
research offers key managerial implications for luxury brands, including the need for adaptive
product mix strategies, personalisation, and purpose-driven branding. By uncovering the
psychological and cultural dimensions that influence how status is communicated through
luxury, this research contributes to a more nuanced understanding of modern luxury perception.
