Factors influencing online conspicuous consumption behavior

Abstract

The purpose of this research is to find out what factors influence online conspicuous consumption behavior and how social media usage affects those factors. Applying a quantitative approach, an integrative model is proposed based on social comparison theory and a sample data size of 472 is collected from social media users. To perform data analysis, the author employed construct reliability test, convergent validity test and discriminant validity test, the data analysis process omits one item measuring envy and four items measuring xenocentrism due to their invalid outer loading values. Meanwhile, the measurement and structural model using partial least squares equation modelling (PLS-SEM) indicates a good model fit. The results show that social media usage, materialism, narcissism and envy strongly influence online conspicuous consumption, which is consistent with previous studies results. On the other hand, the present research’s results rejected the direct effect of materialism on online conspicuous consumption. The findings of this research provide new insights for other researchers regarding the online aspect of conspicuous consumption and the role of consumer xenocentrism. Besides, managers can benefit from profound understanding of the results and implications as it may serve to aid them in developing effective marketing strategies and tactics.