Compensatory consumption Status

a b s t r a c t Individuals conspicuously consume to signal their wealth. As a variant to this economic explanation, four studies explored individual’s psychological need for self-integrity as a potential motivating force for these consumption decisions. Relying on both field and experimental studies, and employing multiple instan-tiations of high-status goods and self-threat, we demonstrate that individuals consume status-infused products for their reparative effects on the ego. Individuals under self-threat sought ownership of high-status goods to nurse their psychological wounds (Study 1), and when afforded an alternate route to repair their self-integrity, sought these products less (Study 2). Furthermore, among a representative sample of US consumers, low-income individuals ’ lowered self-esteem drove their willingness to spend on high-status goods (Study 3). Finally, these high-status goods serve the purpose of shielding an individ-ual’s ego from future self-threats (Study 4). The compensatory role of high-status goods has important implications for consumer decision-making and public policies aimed at reducing consumer debt. Ó 2010 Elsevier Inc. All rights reserved