This kind of spending is generally made by people who have considerable amount of disposable income to spend on goods and services which are not necessary, but are more luxurious in nature.
In his examination of the leisure class, he looks at non-economic features of their social life.
Authors Purpose Thorstein Veblen initiated a new approach to economic theory that took account of evolving social and institutional contexts and considered their human implications.
Brandwire Newsletters Alerts E-Paper E-Learning ET Alexa Skills ET intelligence Zigwheels Mobile ET Android App ET i Phone App ET i Pad App ET Wealth for i Pad ET Blackberry App ET Nokia App ET Markets Android App ET Markets i Phone App Definition: Conspicuous consumption is the practice of purchasing goods or services to publicly display wealth rather than to cover basic needs.
Description: The word 'Conspicuous' here means lavish or wasteful spending.
If we have to look at our society, there are many examples of conspicuous consumption.
Designer clothes, expensive jewellery, luxury cars, etc.(Veblen: 105) The wider the distance between the classes and the slower the degree of class mobility, the slower the process of change.The standards are determined by conspicuous waste and workmanship.They buy these expensive items to show that they are a class above or to show their spending power.Advertising plays a major role in placing the product as a luxury item in the mind of consumers.The product has to be elegant, exclusive (branded bag, jewellery etc.), or tailor made for the consumer. Americans spend less money on china and porcelain than they did 20 years ago—both in absolute terms and as a share of their incomes—across every social class, from the bottom quintile to the One Percent.Conspicuous Consumption Veblen notes that the common element of conspicuous leisure and conspicuous consumption is waste.Conspicuous leisure represents a waste of time and effort, whereas conspicuous consumption represents a waste of goods.In using terms such as conspicuous consumption, The standards are determined by conspicuous waste and workmanship.These and the predatory animus shape the standard of life.