How Self-Esteem and Sense of Belonging Drives Conspicuous Consumption

Abstract

In order to prevent overconsumption, it is crucial to understand the causes of conspicuous consumption. The purpose of this study is to determine how self-esteem (SE) and a sense of belonging (SOB) relate to conspicuous consumption (CC). With an average age of early 20s in the Jakarta and Java region, 127 representatives of Generation Z are surveyed to collect data. Results revealed that both Self-Esteem and Sense of Belonging were strongly correlated with Conspicuous Consumption, according to correlation and regression analysis. We suggest for young adults to not purchase goods or items impulsively to avoid conspicuous consumption rather than displaying one's wealth. Limitation and future research are discussed in context of the study's findings.

Full text

IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56 E-ISSN: 2808-1803
IDEAS: Journal of Management and Technology
Available at: http://e-journal.president.ac.id/presunivojs/index.php/IDEAS
HOW SELF-ESTEEM AND SENSE OF BELONGING DRIVES
CONSPICUOUS CONSUMPTION
Alicia Listiani Tenia1, Nabilah Putri Justine2, Christian Haposan Pangaribuan3
1Sampoerna University, alicia.tenia@my.sampoernauniversity.ac.id
2Sampoerna University, nabilah.justine@my.sampoernauniversity.ac.id
3Sampoerna University, christian.pangaribuan@sampoernauniversity.ac.id
ABSTRACT
In order to prevent overconsumption, it is crucial to understand the causes of conspicuous
consumption. The purpose of this study is to determine how self-esteem (SE) and a sense of
belonging (SOB) relate to conspicuous consumption (CC). With an average age of early 20s
in the Jakarta and Java region, 127 representatives of Generation Z are surveyed to collect
data. Results revealed that both Self-Esteem and Sense of Belonging were strongly correlated
with Conspicuous Consumption, according to correlation and regression analysis. We
suggest for young adults to not purchase goods or items impulsively to avoid conspicuous
consumption rather than displaying one’s wealth. Limitation and future research are
discussed in context of the study’s findings.
Keywords: Identity, Luxury Brand, Self-Esteem, Sense of Belonging, Conspicuous
Consumption
1. Introduction.
“I don’t do fashion, I am fashion.” One of the quotes from a well-known French fashion designer, Coco Chanel,
whose name is now associated with one of the most exclusive fashion labels, Chanel, demonstrates how fashion
is today created by individuals rather than being followed by the masses. Numerous studies have examined how
closely a person’s wardrobe reflects their identity. As each outfit tells a tale connected to a culture somewhere
that helps identify an origin and a society that one represents (Johnson and Koech), fashion has a deeper
significance that has cultural values in its application in addition to just serving as a depiction of identity. There
are many different things that affect how someone dresses, including culture, compared with the results from
society and family groups, the environment, the media, current fashion trends, and individual personalities
(Tajuddin, 2018). All aspects of fashion, encompassing clothes, accessories, shoes, and footwear, have quite a
volatile, transient quality to them, yet they can simultaneously serve as a cultural “identity” component (Pozzo,
2020). In his paper, Efremov et al., (2021) shows that clothing is a form of self-expression and personality that
is used to complement some of the shortcomings in a person to achieve spiritual or psychological balance. The
use of fashion as a means of self-expression, as a representation of a culture or of particular traits, or both, has
an impact on how a person fits into society.
Some studies have verified that fashion is a form of self-expression and represents the cultural identity of
people. According to Thao (2021), the way people dress shows who they are in society and allows them to

50 IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56
portray a message. Moreover, fashion and culture tend to be inseparable since the clothing that people wear is
influenced by the customs that exist in society (Tajuddin 2018). However, as fashion continues to evolve and
become more diverse as the times do, the clothing that people choose to wear is subject to societal and cultural
views (Stolovy, 2021) which means fashion is not a seeking, anticipated representation of a reinterpreted
traditional value that serves some purpose or aim. Instead, what makes people automatic is a vivid and
revitalizing idea deserving of being depicted for society’s approval (Anyanwu and Chiana, 2022). Ga-Eun Oh
(2021) argue through his research that consumers frequently purchase and use well-known brands to boost their
self-esteem and be perceived as belonging to a high social class. Since one can tell who in society is based on
their clothing, people of high social standing make sure that others are aware of their position by dressing in
luxury labels (Maketivilia, 2018) which are thought to be distinguished by a high price point justified by
excellent quality, workmanship, exclusivity, and a sense of rarity (Aycock, 2021).
Nowadays, clothing is used to display one’s wealth and social status. Individuals who wear well-known or
branded clothes are often perceived as belonging to a higher social class. Changes in the concept of fashion in
terms of meaning cause problems that arise involving the community. The urgency of people to appear and look
attractive by wearing branded clothes causes excessive consumption. It appears that conspicuous consumption is
a form of consumer’s desire to demonstrate social status and impress people with their possessions by acquiring
luxury items (Dantas & Abreu, 2020). This issue has detrimental effect on society, especially for Generation Z
who is currently considered as the biggest consumer group (Grigoreva et al., 2021). Spending money to buy
expensive clothes is probably done because of the desire to be accepted and respected in society through a
position that is usually characterized by wealth. In this study, consumption behavior in buying clothes is
affected by self-esteem and sense of belonging which leads to conspicuous consumption.
Many people are worried about how others will perceive them in addition to their own self-identity, which note
by Trang and Selassie (2020) that it makes the tendency to identify themselves based on how they want to be
perceived by others. Many studies explained the relationship between self-esteem and consumption, in which
Eastman et al. (2018) stated the identity that is created then shapes the social identity to get verification and
avoid the drop of self-esteem in society. They can achieve this, for example, by consuming or displaying things
that represent achievement in relation to the wounded portion of their sense of self. A study from Stuppy et al.
(2020) notes that in order to avoid a drop in self-esteem, consumers choose what they consume based on what
they anticipate about their perception of themselves. Eastman et al. (2018) in their research explain that through
consumption of products, consumers who may be conspicuous and who confer or symbolize status for
individuals and important people around them are motives for status consumption to increase social status. They
emphasized that in this case, rather than for the function, people purchase products for symbolic of wealth or
exclusivity. The majority of the time, consumers associate products and brands with prestige based on the
qualities of the objects themselves, hedonistic ideals, and interactions with other people (Sahin, 2021).
Moreover, previous literature suggests consumption is used to describe status among upper-class individuals
(Wang et al., 2020) and a striking relationship between self-esteem and consumption (Neave et al., 2020; Zheng
et al., 2018).
Self-Esteem
Self-esteem refers to how a person values and perceives themselves. According to (Topçu, 2018), the cognitive
elements of self-esteem refer to self-acceptance and confidence in one's capabilities and achievements. This will
help the individuals to evaluate positive or negative reaction to their self. Furthermore, as mentioned by Oztek
and Cengel (2020), an individual who valued himself/herself negatively will struggle with his/her negative
emotion and tends to be self-contradictory by venting to low-level activities that can be carried out immediately.
Belonging
A sense of belonging is considered an important factor in self-esteem. It is an emotion when someone feels
secure by being accepted into a group of people. Consumers who feel excluded will seek validation and
acceptance from others and it might change their consumption behavior to adjust to with his/her associative
group (Argan, et al., 2022). Liu and Huang (2018) mentioned that young people pay great attention to other
people's views in their social life, it is indicated by concrete actions to seek belonging and gain recognition from
others such as conspicuous consumption.

51 IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56
Conspicuous Consumption
Conspicuous consumption is often referred to as consumers practice by purchasing products with the purpose of
showing a person’s wealth (Sahin & Nasir, 2021). It is associated with a theory of the Veblen Effect, which
implies the tendency of consumers to purchase luxury goods to achieve social status or a situation when a
demand of a product increases as the price increases. Adolescents tend to indulge in conspicuous consumption
to have a sense of belonging in social group, shape their self-confidence, and gain prestige (Kolańska-Stronka &
Gorbaniuk, 2022). Moreover, Assimos, et al., (2019) also stated that conspicuous consumption is a way for an
individual to increase social prestige and impress others by acquiring possessions that display a certain social
status.
Conceptual Framework
Based on our observations and findings, much of the research indicates the relationship between self-esteem and
conspicuous consumption. Little is known about this hypothesis among Generation Z. Therefore, in this
research, the researchers developed a hypothetical model (Fig.1). The purpose of this model is to shows a link
between self-esteem and its effect on conspicuous consumption among generation Z, determine how self-esteem
exerts a direct impact on sense of belongingness, on the other hand, also leads to conspicuous consumption. The
conceptual model and hypotheses are presented.
Figure 1: Hypothetical Model
Based on the review of some literature, the following hypotheses can be derived:
H1: Self-esteem positively relates to a person’s sense of belongingness
Previous study has mentioned that a person’s self-esteem depends on the degree to which she judges that she is
worthy of being accepted and respected by others (Perry & Lavins-Merillat, 2018). It shows that if a person
feels worthy and accepted by others, she will experience an enhancement in self-esteem, whereas if she feels
rejected by society, it will decrease her self-esteem. Thus, we hypothesized the relationship between sense of
belonging and conspicuous consumption:
H2: A person’s sense of belonging positively influences conspicuous consumption
Next, As argued by Oh (2021) in his article, lack of acceptance and respect among individuals can trigger a need
or desire for status and acceptance through conspicuous consumption. Moreover, consumers seek validation
from others by buying luxury goods in a conspicuous manner. They believe that acquiring goods that other
people desire creates a sense of belonging (Olsson, 2020). Therefore, if a person seeks a sense of belonging and
gain recognition from others, they might feel a need to purchase goods in a conspicuous manner. Hence, our
third hypothesis is as follows:
H3: A person’s level of self-esteem has an influence on the emergence of a person’s conspicuous consumption
Furthermore, previous studies showed that to avoid the drop of self-esteem, people tend to spend more in buying
products (Stuppy et al., 2018). If a person is at a low self-esteem level, he consumes more in buying high-priced
Self-Esteem
Conspicuous Consumption
Sense of Belonging
H1
H2
H3

52 IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56
goods to increase his self-esteem which will make conspicuous consumption appear. In the present study, we
adopt this view to be tested.
2. Method
Sample
We choose to gather individuals with a wide range of attributes, including age, gender, and educational level, to
be responders on a survey about conspicuous consumerism and its associations with self-esteem and belonging.
A person's self-esteem and sense of belonging have been found to influence the appearance of conspicuous
consumption, and when a person's self-esteem is low, they will behave more consumptively to hide their
imperfections in order to thrive in the environment (Vindiani, 2019; Ramadhan, 2014). We collected samples
using online questionnaires that were disseminated via Twitter, Instagram, and WhatsApp. There were 127
responses to the poll, 81 of whom were female (64.3%), 44 of whom were male (34.9%), and one respondent
(0.8%) preferred not to mention. The majority of respondents (80.2%) were between the ages of 17 and 20;
17.5% were older than 20; and the remaining 2.4% were under 20. With a percentage of 89.7%, university
students make up almost 90% of the respondents. Workers compose the next largest group, at 7.1%, with
students making up the remaining respondents.
In this study, the respondents’ responses to a questionnaire with five possible answers are represented using a
Likert scale. The survey method consists of 15 questions in total.
Table 1. Likert Scale
Criteria
Score
Strongly agree
5
Agree
4
Nearly agree
3
Disagree
2
Strongly disagree
1
Procedure
For collecting the data required, we initially conduct a survey on the subject of our research in order to get the
essential data. We applied for permission from the academic lecturer standing as the research supervisor when
the questionnaire was finished. Following permission, we began seeking out respondents to share survey forms
using online platforms, such as sharing in WhatsApp groups or direct messaging with each person. In addition,
the researcher makes the form available for free to anyone interested to participate in a survey via Instagram
stories. We give the respondents a brief explanation of conspicuous consumption and other components in the
survey they must complete.
In the first section, the participants’ answered basic personal information, including age, gender, and
status/occupation. The questions that follow are divided up into three categories: self-esteem, sense of
belonging, and conspicuous consumption. Respondents were already required to complete each question
honestly, including their thoughts and emotions. Approximately 5 minutes are needed to complete the survey.
Researchers pledge that they will only utilize the anonymous, confidential information and data they collect for
their own research.
Measurement
The survey measures the participant’s reaction to questions that are divided into three components, which are
self-esteem, sense of belonging, and conspicuous consumption, in order to determine how much of an impact
self-esteem and belonging have on conspicuous consumption in a person. There are only five possible responses
to each question: strongly agree, agree, nearly agree, disagree, and strongly disagree, denoted by the numbers 1
to 5.
Data Analysis

53 IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56
The study adopted a Green’s (1991) procedures to estimate the relationship hypothesized in the current model.
Based on the number of variables, the Green’s approach gives answers about the number of respondents
required for a research. The sample size for the coefficient of determination is N 50 + 8m, where m is the
number of predictors in the model (R2). In this study, there are 3 variables, so we need to at least have 74
respondents for the data analysis. The objective of this research is to determine whether low self-esteem
influences someone to behave consumptively or vice versa, and how it relates to conspicuous consumption
behavior. This research also focuses on the study to determine whether a person's sense of belonging to their
environment will have an effect on conspicuous spending and purchases.
3. Results and Discussion
Measurement Validation
In this research, we use SmartPLS 3 (Ringle, et al., 2015) as our tools to measure both the validation and
structural modelling. First, we conduct reliability and validity test. SOB1 was deleted after first running the PLS
Algorithms because the indicator loading was far below 0.70. Then, we use Cronbach’s Alpha to evaluate the
reliability. Cronbach’s Alpha for each instrument are Conspicuous Consumption = 0.782; Self-Esteem = 0.776;
and Sense of Belonging = 0.834. Alpha ≥0.70 are considered as acceptable and at satisfactory level of reliability
(Taber, 2017). Moreover, the results of the test also showed that composite reliability were above 0.70,
indicating that the variables used in this analysis are valid and reliable (Table 2). Next, average variance
extracted (AVE) values for all variables were above 0.5 and squared root of AVE was greater than the
correlation between latent variables (Table 3). It shows that the convergent and discriminant validities of each
construct are adequate. In addition, we use VIF (Variance Inflation Factor) in multicollinearity tests (Table 4) to
determine the correlation between the independent variables in the regression model. Our multicollinearity
results indicated that there is no collinearity among the variables, or the variables are uncorrelated with one
another (VIF< 5).
Table 2. Reliability and Validity Test
Variables
Items
Outer
Loadings
Cronbach’s
Alpha
rho_A
Composite
Reliability
AVE
Conspicuous
Consumption
CC1
0.593
0.782
0.824
0.851
0.540
CC2
0.819
CC3
0.780
CC4
0.579
CC5
0.855
Self-Esteem
SE1
0.758
0.776
0.785
0.848
0.529
SE2
0.695
SE3
0.618
SE4
0.810
SE5
0.742
Sense of Belonging
SOB2
0.784
0.834
0.845
0.889
0.667
SOB3
0.841
SOB4
0.811
SOB5
0.829
Table 3. Discriminant Validity
Conspicuous Consumption
Self-Esteem
Sense of Belonging
Conspicuous Consumption
0.735
Self-Esteem
0.732
0.727
Sense of Belonging
0.720
0.553
0.816

54 IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56
Table 4. Multicollinearity test - Collinearity Statistics (VIF)
CC1
CC2
CC3
CC4
CC5
SE1
SE2
1.603
2.005
2.020
1.232
2.207
1.655
1.330
SE3
SE4
SE5
SOB2
SOB3
SOB4
SOB5
1.282
1.849
1.680
1.679
2.025
2.011
1.834
PLS Path Modeling and Hypotheses Testing
In SmartPLS, we performed PLS-SEM algorithm and bootstrapping analysis by using 95% as the significant
level to find the standard error and p value for each variable. The first hypothesis was Self-esteem positively
relates to a person’s sense of belongingness. The result of bootstrapping analysis (Table 5) displayed that (β =
0.553, SE = 0.070, t = 7.862, P < 0.05). It indicates that self-esteem positively affected a person’s sense of
belonging. Our second hypothesis was A person’s sense of belonging positively influences conspicuous
consumption. The result showed that sense of belonging (β = 0.454, SE = 0.061, t = 7.461, P < 0.05) is
significantly affected conspicuous consumption. The third hypothesis was person’s level of self-esteem has an
influence on the emergence of a person’s conspicuous consumption. The results implied that self-esteem (β =
0.481, SE = 0.068, t = 7.098, P < 0.05) positively influences the emergence of a person’s conspicuous
consumption. Since all the P-values < 0.05, it can be said that all hypotheses are significant. These hypotheses
testing was also supported by the R square value of .679 (R2 = 0.679, adjusted R2 = 0.672) and .31 (R2 = 0.306,
adjusted R2 = 0.299). It explained 68% of variance in conspicuous consumption and 31% in sense of belonging.
Table 5. Hypotheses Testing
Hypothesis
Original
Sample (O)
Sample
Mean (M)
Standard
Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P
Values
H1
Self-Esteem → Sense
of Belonging
0.553
0.565
0.070
7.862
0.000
H2
Sense of Belonging →
Conspicuous
Consumption
0.454
0.455
0.061
7.461
0.000
H3
Self-Esteem →
Conspicuous
Consumption
0.481
0.481
0.068
7.098
0.000
Discussion
The purpose of this research is to find the factors that affect a person’s conspicuous consumption. In this
research, we use three variables which are self-esteem, sense of belonging, and conspicuous consumption. The
proposed model hypothesized and examined how one’s sense of self-worth and belonging affected their
spending habits, which resulted in conspicuous consumption. This study discovered that people’s sense of self-
esteem and belonging has a positive impact on how much they spend on goods to preserve their existence in
society. Self-esteem positively relates to a person’s sense of belonging. It means that a person who has high self-
esteem, most likely will be more confident in their social life and feel accepted by others. The result supported
by Afroz and Tiwari (2021), they mentioned that an increase in level of self-esteem occurred when a person
feels supported by his or her group. Our findings add to the literature on a person’s sense of belonging had a
positive influence on conspicuous consumption. This result showed that the more a person feel the need to be
accepted in his group, he will try to seek recognition from others through conspicuous consumption or spending
money to buy luxury goods. This conspicuous consumption behavior usually occurs among adolescence because
at that age, they tend to have a high desire to make themselves as attractive as possible to be accepted in their
social group (Luckyta, 2019). Moreover, a study by Zhang et al., (2022) also highlighted that students with
conspicuous identities will try to gain prestige to differentiate themselves from other social groups that indicated
by their high levels of consumption. One major finding concerns regarding the consumption that a person spent.
Luckyta (2019) in his study explained that adolescents engage in the majority of consumer activity, according to

55 IDEAS: Journal of Management and Technology, 2(2) 2022, 49-56
reality, because they want to appear young and fashionable. In addition, formal institutions, such as schools,
place a premium on appearance. This adds to the literature on a person’s level of self-esteem had relation on
their spending habit and can lead to conspicuous consumption. Our research demonstrates that the lower a
person’s self-esteem, the more he will try to boost his self-esteem by increasing consumption in luxury goods.
4. Conclusion and Implications
Implications
From the theoretical perspective, one of the most important contributions of this study is its finding on the
relationship between self-esteem, sense of belonging, and conspicuous consumption. All variables are
significant and influence each other's, which shows that young adults compensate for their low self-esteem and
retain a sense of belonging by engaging in conspicuous consumption. By focusing on the factors that cause
generation Z to engage in conspicuous consumption, we also found that young adults view their consumption as
an indicator to determine a person’s social position. They increase their consumption of luxury items to be
recognized by their peers and to achieve a higher social status in society. They also compete for ownership of
such goods, which leads to overconsumption. Moreover, young adults tend to consume goods that do not hold
any practical value. Therefore, it is recommended for young adults to not purchase goods or items impulsively,
avoid conspicuous consumption, and only purchasing goods that they truly need rather than displaying one’s
wealth. On the other hand, since the demand of luxury consumption increases, it will benefit the luxury goods
industry and leads to higher income.
Limitation and Future Research
This study has several limitations. First, most of the respondents of the survey are female (>50%) and may lead
to gender bias. The result of the study with the limited number of male respondents may lead to the notion that
female tends to engage in conspicuous consumption rather than male. So, further research is needed to provide
evidence that gender could be an important mediator variable in analyzing conspicuous consumption. Second,
the sample used in the study is small and may not represent the entire generation Z population. Most of our
respondents are students that reside in Jakarta and Tangerang. In order to have more in-depth research regarding
the factors that drives conspicuous consumption in generation Z, future researcher could add other variables
such as advertising and social media since both plays a huge role in influencing consumer decision making and
increasing desire to engage in conspicuous consumption. Furthermore, future researchers could also add more
samples to provide data that can represent the population by reaching generation Z in others region.
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