The psychology of luxury consumption

Abstract

This review synthesizes the latest advances in the psychology behind consumption of luxury objects and experiences to which people typically feel strongly attached. We discuss novel drivers, forms, and consequences of luxury consumption from recent research. We propose that the psychology of luxury consumption is governed by a set of tensions between what luxury means to the self and the external forces that define luxury consumption. These tensions shape consumer behavior, from the level of desire for luxury products and services, to the types of signals viewed as luxury and acquired and displayed as such, and to post-consumption consequences of consuming luxury. We discuss how this tension-based framework offers future opportunities for the study of the drivers, forms, and consequences of luxury consumption.