Stratification

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Stratification
In modern times, understanding consumer behavior has become a critical factor for the business and corporations. For this reason, many manufacturing companies have invested heavily in both identifying and influencing consumer behavior of increased profit margins. There are several theoretical concepts explaining consumer behaviors, especially regarding luxury goods and perhaps due to their profitability. In this study, theoretical concepts by three theorists are used to understand the factors behind the consumption of luxury goods.
According to George Simmel, everything interacts with everything. This working assumption brings the ideas of conformity and deviation in a group or community settings. In this case, the prevalent traits of a group or the popular ideas it advocates for can determine members’ consumption behaviors since people take social roles that can play off the choices and actions of others.
Thorsten Veblen argued that people associate luxury goods with high social classes about wealth. For this reason, many people tend to buy expensive goods to achieve and maintain high social status instead of fulfilling their basic needs. Veblen called this behavior as conspicuous consumption. Such people have great influence to those who seek to emulate them, thus becomes agents or advocates of certain consumer behavior. The ultimate of this is a society that is characterized by wastage of both money…