Keywords
social status, status goods, consumer utility, status-seeking behaviour, status consumption
Abstract
The purpose of this paper is to present a model that expresses the dynamics of the consumption of status goods from the perspective of consumer utility. The core of the model is how the level and the change of the prestige value of status goods affect the consumer’s utility level over time. The model takes into consideration that individuals are often impatient to achieve a higher social position and that the prestige value of status goods changes during their diffusion. The model can be applied to forecast or monitor a proposed or an already realised purchase of status goods.
Recommended Citation
Kovács, K. (2019). A Dynamic Model for Investigating Consumer Utility Derived from Status Goods. Economic and Business Review, 21(1). https://doi.org/10.15458/85451.79
