Hubli Education Trust’s

HUBLI EDUCATION TRUST’S

INSTITUTE OF MANAGEMENT STUDIES

HUBLI

Project report
On
“Conspicuous Consumption”

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SUBMITED TO SUBMITED BY
ROHIT.C.KALASKAR SURESH BABU.P
DIRECTOR – ACADEMIC REG NO MBA/08/62

HUBLI EDUCATION TRUST’S

INSTITUE OF MANAGEMENT STUDIES

HUBLI

(APPROVED BY AABMA, NEW DELHI AFFILIATED TO IIBM UNIVERSITY, PUNE)

CERTIFICATE

This is to certify that Suresh Babu .P student of Master of Business Administration has prepared
the project title a survey to study “Conspicuous Consumption” has been prepared under the
support and guidance of Mr.Rohit Kalaskar. This project was given to me by Mr.Rohit Kalaskar
to make me aware of the steps of how to prepare a IV trimester project.

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Mr. Rohit. C. Kalaskar (Suresh Babu P)

Director academics

DECLARATION
I hereby declare that this project that report entitled a survey to study
“Conspicuous Consumption”

The project work has been prepared by me under the guidance of Mr. Rohit C Kalaskar
director.

Place: Hubli
Date:

(Suresh Babu P)

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ACKNOWLEDGEMENT

It is my great privilege to express my sincere thanks to Institute of Management Studies Hubli

for providing us with all facilities to do this project. The same is happening with me when I am
desperately searching for words to thank the almighty god for making me an instrument to write
and prepare this project. I am thankful to Mr.Rohit C Kalaskar for providing me support and
encourage making and presenting this project. Finally thanks to Mr.Rohit C Kalaskar Sir without
his moral support this could not have been a great success for me.

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ABSTRACT

The survey to study “Conspicuous Consumption” is prepared under the guidelines of Mr.Rohit
C Kalaskar (Director and Faculty).
This project report provides a gathering of knowledge about demand of different
brands in Hubli city, as well as it also provides detail knowledge about the consumer preference
towards different luxurious brands.
In seeking to expand the understanding of luxury consumption, this study attempts
to construct the luxury consumption model involving antecedents and outcomes. Since the
antecedents and outcomes of luxury consumption had not been researched in the past, the main
focus of this paper examines the theoretical and experimental relationship of self-monitoring,
susceptibility to interpersonal influence, luxury consumption and social value. The findings
indicate that luxury consumption is affected significantly by self-monitoring and susceptibility
to interpersonal influence, and furthermore social value is impacted positively by luxury

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consumption. The results imply that brands and products have status and conspicuousness will
engage individual who has a high degree of self-monitoring and susceptibility to interpersonal
influence to purchase, and the consumption behavior will contribute to enhance social value
perceived.
Our analysis is based on sample results. It was a difficult task to gather the
information from respondents by meeting them personally in order to get questionnaire filled.
There was a lot of time pressure and sometimes unwillingness of respondents to respond.

Mr.Rohit C Kalaskar
(DIRECTOR)

INDEX

CHAPTER.1
• Introduction & Design of the study
• Statement of the study
• Objectives of the study
• Need for the study
• Methodology
(a) Size of the sample
(b) Sampling design
(c) Sample technique

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• Data collection
• Hypothesis (Formula)
• Geographical area of study
• Data analysis
• Limitation
CHAPTER.2
• An over view of the study
CHAPTER.3
• Opinion of the study
CHAPTER.4
• Survey of findings suggestion and conclusion

Executive summery

The survey all about the understand Conspicuous Consumption.

Noticeable expenditure is a term used to describe the overflow spending on goods

and services acquired mainly for the purpose of displaying income or wealth. In the mind of a
conspicuous consumer, such display serves as a means of attaining or maintaining social status.

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Conspicuous consumption analysis of the build has been done in the perspective of
changing purchaser structure and dominating thoughtful idea, especially modernization. Effort
has been made to extend the original concept and propose necessary improvement and
integration of relevant concepts to enable a meaningful and modern kind of the thought make.
This paper examines different aspects of consumer behavior, helps to generate some important
directions for future research in the field, and also discusses these issues in the background of
the middle socio-economic background of India. The research titled “Conspicuous
Consumption” We all live in society and depend on each other for achieving most of our
personal goals.

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CHAPTER.1

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Introduction

Thorstein Veblen, an American sociologist wrote an 1899 book the theory of the Leisure Class
in which he developed and defined the term conspicuous consumption. Veblen was referring to
the nouveau riche, who went out of their way to make large expenditures in order to purchase
their way into a social position that would be respected by upper class families.

This type of conspicuous consumption was surely not a new device in 1899. In fact throughout
the industrial revolution and slightly prior to it, families who had made money often attempted
to jump to a higher class standing by making excessive and unnecessary purchases. Dickens in
Our Mutual Friend develops the thin covering, a family of unknown origin with everything.

Recently, as the emerging market (ex: Brazil, Russia, China and India) formed, the new affluent
increased. Moreover, buying power in the developed economies as well as in the emerging
economies has been on the rise and people‘s consuming psychology of the luxury goods has
been changed. Besides, there are more “upwards purchases” now. In sum, the industry of the
luxury goods has already become a crucial share of the global economy and people’s consumer
behaviors of the luxurious brand products should be considered a key issue of studying.

There are few studies discussing luxury consumption, and researches addressing the antecedents
and outcomes of luxury consumption are extremely deficient. Even though little research had
addressed luxury consumption, some literature had described that people buy luxurious brands
products in order to feel superior and privileged, signal status and command acknowledgement,
demonstrate refinement and connoisseurship and feel special and apart from the crowed.
Therefore, we consider that luxury consumption includes the definitions of status consumption
(by acquiring and consuming products that provide status to the individuals) and conspicuous
consumption (individuals to enhance their image through overt consumption of possessions
which communicates status to others). For theses reasons, we combine status consumption with

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conspicuous consumption and define them as luxury consumption and attempt to structure a
model involving the antecedents and outcomes of luxury consumption.

Design of the study

The design of the study determines the steps to be followed to conduct the study and the
important topics, which are to be covered in the study.

This research is carried out as per the steps of market research process. To meet the objectives
primary research is undertaken.

A detailed design of the study is considered to be necessary in order to compare the actual
theory with that observed in picture.

The basic study on attempt has been made to separate the various respondents on basis of their
age, income, education, profession and external factors.

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Statement of the problem

A survey study towards conspicuous consumption and its effect in Hubli City

It is to know the opinion of the consumer about the conspicuous consumption.

Objectives

1. To know the details of conspicuous consumption in the society

2. Reasons for conspicuous consumption.
3. To know which age group people are interested in conspicuous consumption
4. To know the which factors involved in conspicuous consumption

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Need for the Study

In those days, the luxury goods market is the one of the best opportunity for the segment
luxurious sector in the India. It is wider and less competitive market for the luxurious goods. As
the income level of the consumers increasing, the demand of luxurious goods is increasing
continuously. The various need of the study is given as follows:-

To determine the raising demand of the luxurious goods in Hubli city

To analyze the features which are expecting by the customer in a luxurious goods?

Research methodology

SAMPLE DESIGN

SAMPLE UNIT: - All working people are included both the genders i.e. males and females
irrespective of their education level.

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SAMPLE SIZE: - 300

SAMPLE REGION: - Hubli city

SAMPLING PROCEDURE: - Random Sampling

Data collection method

PRIMARY DATA

Primary data was collected through a self administrated questionnaire using face-to-face
interview method. This questionnaire aims to gather information related to various Branded
goods.

SECONDARY DATA

Secondary data was collected through magazines, research papers, internet etc.

Data collection
Questionnaire design

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Data was collected by face-to-face questionnaire to the individuals who had bought luxurious
brand products. The list of luxurious brand was compiled by visiting the floor featured
luxurious brand in several shopping malls and department stores, As the questionnaire is self
administrated one, the survey is kept simple and user friendly. Words used in questionnaire are
readily understandable to all respondent. Also technical jargons are avoided to ensure that there
is no confusion for respondents.

Definition of the Problem

The study of opportunity for luxurious product companies in the market is a sum total of
different analytical survey of different luxurious product companies in the Hubli area. In one
sense, we can say that it is determination of how much market captured by different luxurious
brand companies

Changing lifestyles

Rising per capital income, increased literacy and fast urbanization have caused fast growth and
change in demand patterns. The rising aspiration levels, increase in spending power has led to a
change in the consumption pattern.

Hypothesis

I am also a citizen of rural area. I use my experiences and perceptions as hypothesis towards to
made this project. Hypotheses Self-monitoring, Status consumption and Conspicuous
consumption Product and brand choice may reflect differences in concerns for prestige and
appearance among high and low self-monitors affects consumer behavior because it is

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associated with interest in maintaining a front through the use of props that convey an image of
the self to other people. High self-monitors, more than self-monitors, appear to be concerned
with physical appearance and body image so we suggest that self-monitors will have status
consumptions for acquiring or maintaining their social status.

In addition, conspicuousness is essential if consumers want to gain recognition, approval, or

acceptance from their reference groups. The conspicuousness of a product allows reference
group members to see the product or brand and provide the approval or disapproval. According
to the literature, some researchers indicated that high self-monitors may place more emphasis on
consuming status brands conspicuously to fit into social situations, as they are acutely aware of
their appearance and status, and understand that products can communicate

Geographical area of study

This geographical area is concerned to the where I conducted serve to analyze about
conspicuous consumption in the Hubli city.

I conducted serve in the serve in Hubli City areas like Gokul road, CBT, Aruna colony,
Navanagar, Maruti Nagar, Sirur park circle, Desh pandye nagar etc.

Limitations

From this study, we structure a luxury consumption model containing the antecedents and
outcomes and the implications must be tempered by its limitations. First, since the study used a
face-to-face questionnaire to survey, we couldn’t control the sample distribution. Generalization
of the specific results of this study is neither intended nor implied, beyond those fitting the
sample’s profile. Therefore, it is important that future research attempts to replicate the findings

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in other sample profile. Research is also needed to test the results in different sampling manner
to enhance the generalization. Another limitation was that we use brands product categories to
judge whether a brand product is luxurious. It is recognized that our sample size is too small to
analyze the consumption behavior of different brands products and should be considered for
future research in this area. Furthermore, it’s suggested that further research examining the
luxury consumption should attempt to find out the distinction across different countries, social
classes or groups to develop a complete theoretical model of luxury consumption. Hopefully
additional research into the consumption behavior topics will lead to a better understanding of
luxury consumption.

While surveying I encounter with some problems like some people were not willing to respond
and few of them who responded were in hurry hence the active participation was lacking. Due to
which we faced difficulties in collecting information regarding our questionnaire.

Another problem which we face was that people were hesitating to give information about their
opinion. Except it, the sample size we have taken for survey was small and it’s a difficult task to
draw accurate conclusion or reach to an exact result on the basis of limited sample size.
Moreover, our investment was limited and time was also less to go in depth. Threats to us are
that- as people were hesitating to give their opinion and details so there is chance of error
regarding opinion.

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CHAPTER.2

An over view of the study

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Self-monitoring
Self-monitoring has attracted growing attention from social psychologists and limited attention
from consumer-behavior researchers since being argue that self-monitoring is important in
understanding marketplace behavior as it related to interpersonal influence, which is itself an
important consumer-behavior issue.
Self-monitoring is argued to reflect the degree to which a person observes and controls their
expressive behavior and self-presentation in accord with social indication and we adopt the self-
Monitoring Scale modifies to measure self-monitoring. The measurement of self-monitoring
includes two dimensions: self-monitoring ability which reflects an individual’s ability to modify
self-presentation and self-monitoring sensitivity which reflects an individual’s sensitivity to the
express behavior of others.

Status in different societies

Status refers to the relative rank that an individual holds; this includes attendant rights, duties,
and lifestyle, in a social hierarchy based upon honor or prestige. Status has two different types
that come along with it: achieved, and ascribed. The word status refers to social stratification on
a vertical scale. In modern societies, occupation is usually thought of as the main determinant of
status, but other memberships or affiliations (such as ethnic group, religion, gender, voluntary
associations, fandom, and hobby) can have an influence. The importance of social status can be
seen in the peer status hierarchy of geeks, athlete, cheerleaders, nerds, and weirdo’s in American
high schools. Achieved status is when people are placed in the stratification structure based on
their individual merits or achievements. This status can be achieved through education,
occupation, and marital status. Their place within the stratification structure is determined by
society's bar which often judges them on success, success being financial, academic, and
political and so on. People who achieve a high hierarchical social status often display the
following qualities: confidence, generosity, intelligence, mental and emotional stability, and
happiness. America most commonly uses this form of status with jobs. The higher up you are in
rank the better off you are and the more control you have over your co-workers.

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In pre-modern societies, status differentiation is widely varied. In some cases it can be quite
rigid and class based, such as with the Indian caste system. In other cases, status exists without
class and/or informally, as is true with some Hunter-Gatherer societies such as the Selected, and
some Indigenous Australian societies. In these cases, status is limited to specific personal
relationships. For example, a selected man is expected to take his wife's mother quite seriously
(a non-joking relationship), although the mother-in-law has no special "status" over anyone
except her son-in-law—and only then in specific contexts. All societies have a form of social
status.

Status is an important idea in social stratification. Max Weber distinguishes status from social
class, though some contemporary empirical sociologists add the two ideas to create
socioeconomic status or SES, usually prepared as a simple index of income, education and
occupational prestige.

Income and status

Statuses based on natural characteristics, such as gender, are called official statuses, while
statuses that individuals gained through their own efforts are called achieved statuses. Specific
behaviors are associated with social stigmas which can affect status.

Standard Status is when one's position is inherited through family. Command is a generally-
recognized use of this method, to keep the rulers in one family. This usually occurs at birth
without any reference as to how that person may turn out to be a good or bad leader.

Social mobility and social status

Status can be changed through a process of Social Mobility. Social mobility is change of
position within the stratification system. A move in status can be upward or downward Social
mobility allows a person to move to another social status other than the one he or she was born

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in. Social mobility is more frequent in societies where achievement rather than ascription is the
primary basis for social status.

Weakness to interpersonal influence

An important determinant of an individual’s behavior is others’ influence, for example, the use
of attractive representative endorsing products is evidence of this belief, so many models used to
explain consumer behavior frequently include interpersonal indicated that many research on
manifest susceptibility to interpersonal influence had suggested that it is a multidimensional
construct and attempted to integrate their arguments. Finally, defined consumer susceptibility to
interpersonal influence as the need to identify or enhance one’s image with significant others
through the acquisition and use of products and brands, the willingness to conform to the
expectations of others regarding purchase decisions, and/or the tendency to learn about products
and services by observing others and/or seeking information from others. In this paper, we adopt
the scale that was developed to assess consumer susceptibility to interpersonal influence
accurately. The scale of susceptibility to interpersonal influence contains two dimensions:
normative and informational dimensions of interpersonal influence. Defined the former as the
tendency to conform to the expectation of others; the latter was defined as the tendency to accept
information from others as evidence about reality.

Luxury consumption
Some literature have described that people buy luxury brands in order to feel superior and
privileged, signal status and command acknowledgement, demonstrate refinement and
connoisseurship and feel special and apart from the crowed. Otherwise, according to some
authors’ perspective, the definition of status consumption is the behavioral tendency to value
status and acquire and consume products that provide status to the individual and the definition
of conspicuous consumption is the tendency for individuals to enhance their image, through
overt consumption of possessions, which communicates status to others. Therefore, we consider

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that luxury consumption contains the definitions of status consumption and conspicuous
consumption at the same time. For theses reasons, we combine status consumption with
conspicuous consumption and define them as luxury consumption. Regarding the measurement,
we cite the scale of status consumption developed and the scale of conspicuous consumption
developed respectively to estimate luxury consumption.

Social stratification
Social stratification describes the way in which people are placed with society. It is associated
with the ability of individuals to live up to some set of ideals or principles regarded as important
by the society or some social group within it. The members of a social group interact mainly
within their own group and to a lesser degree with those of higher or lower status.

Social value
The outcome variable social value was including the following five types of value influencing
consumer behavior individually or in combination in terms of purchasing or not purchasing:
well-designed, social, emotional, epistemic and competent value. After reviewing the definition
of these kinds of value, we consider the connection is significant between social value and
luxury consumption. Although the consumption value was considered a factor of influencing
purchasing decisions, value was regarded as the key outcome variable in a general model of
consumption experiences. Therefore, we define social value as the outcome of consumption
based on social image, norms, or group associations and is usually connected with the purchase
of very visibly consumed products. Regarding the measurement, we modify the scale presented
to fit our research appropriately.

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CHAPTER.3

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Opinion of study

After a good deal of consumer survey and marketing research, I have collected a good collection
of data. The analyses of those data’s are given as follows:-

In the initial years, the Hubli city consumers preferred branded product etc. but from the last
period of five years, the preference of Hubli city consumers towards branded products has been
changed.

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CHAPTER.4

Findings

✔ The findings of this study demonstrate that both self-monitoring and susceptibility to
interpersonal influence impact status and conspicuous consumption significantly.
✔ The results also indicate that status consumption has a significant positive effect on
conspicuous consumption.
✔ The most critical consequences of this research appear that both status and conspicuous
consumption contribute to increase individuals’ social value.
✔ The consumers who have high degree of self-monitoring and susceptibility to
interpersonal influence will tend to have status and conspicuous consumption tendencies.
✔ Although these individuals will tend to consume luxurious brand products, but their
purposes of consumption are distinct.

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✔ Luxury consumption is utilized by self-monitors to fit into different situations, requiring
the user to display prestige, success, conspicuousness and status to maintain a front.
✔ Individuals of susceptibility to interpersonal influence try to satisfy the needs to identify
or enhance their image with significant others through luxury consumption.
✔ The conspicuous consumption is affected by status consumption.

Suggestion
✔ The luxury providers should attempt to look for these people by developing some
measurement manner or attract them through develop representative and reference
groups who interested in consuming luxurious brands publicly in advertising and
promotional operations.
✔ It means individuals acquired and consumed products that provide status will try to
enhance their image through overt consumption of luxury further. Therefore, the
marketers should provide the products or brands which focus on symbolic
characteristics, standards of excellence in their field, luxurious features, limited items,
exclusivity or high priced to motivate status consumers’ conspicuous desire.
✔ The results also appear that individual’s social value is improved by status and
conspicuous consumption.

Conclusion

The conclusion to be sure proves that consumer’s luxury consumption will effectively contribute
to increase individual’s social class, symbolic value and fit into her/his interpersonal groups
confidentially.

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HUBLI EDUCATION TRUST

INSTITUTE OF MANAGEMENT STUDIES HUBLI

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This survey is a “Conspicuous Consumption” to know the common man reaction
towards the highly consumable goods. This survey is for academic purpose only
and the data collected will be kept confidential.
SECTION -1
Name: ____________________ Date: - /12/2009
Address: ________________________________
________________________________

Age: 20-30 30-40 40-50 50-60

Gender: Male Female

Education qualification: Under graduation Graduation

Post graduation

Profession: Business man Govt Employee Pvt Employee

Student
Contact no: _______________________

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SECTION -2
1. Would you like to buy luxurious brand items?

a) Yes b) No

2. Which brand cloths you prefer to buy?

a) Siyaram b) Vimal c) Raymond d) Mayor

3. Which brand mobile you would like to prefer?

a) Sony Ericsson b) Black berry c) I phone d) Nokia

4. Which brand leather items you prefer to buy?

a) My foot b) Bata c) Woodland

5. Which brand car products you prefer to buy?

a) Toyota b) Skoda c) Ford d) Honda

6. Which brand Laptop would you like to buy?

a) Dell b) Toshiba c) Apple Mac book c) Sony waio

7. Which brand shoes you prefer to buy?

a) My foot b) Reebok c) Woodland d) Adidas

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8. Would you like to minimize the costs in basic needs?

a) Yes b) No

9. Do you want to spend more amounts on luxurious rather than the common needs?

a) Yes b) No
10. Do you like to save the money rather than spending on luxurious goods?

a) Yes b) No

11. Do you want to show the prestige by purchasing luxurious products?

a) Yes b) No

12. Can you control yourself when you see the luxurious products when they have the
offers?

a) Yes b) No

13. Average available income per month?

a) 5000-7500 b) 7500-1000 c) 10000-15000 d)15000& above

14. Price level of luxurious brand products?

a) 5000-7500 b) 7500-10000 c) 10000-15000 d)15000& above

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15. Do want carry the same costs in the recession time also?

a) Yes b) No

16. Do you like to spend money for luxurious products?

a) Yes b) No

17. Who do you refer while spending on the product?

a) Friends b) Advertise c) Existing users

18. Would you be prepared to recommend to others?

a) Yes b) No

BIBLIOGRAPHY

To conduct the study the information is been collected from following

sources

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➢ Philip kotler-- marketing management
➢ Magazines
➢ Newspaper
➢ Internet

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