A Study on the Influence of Demographic and Psycho-social Factors on the Demand for Veblen Goods

Abstract

This research explores how demographic and psycho-social factors affect consumer demand for Veblen goods—luxury items whose appeal grows as their price rises. Employing a survey-based approach with 201 consumers from urban and suburban areas, the study investigates how factors like age, gender, education, income, and occupation interact with psychological and cultural influences, including status motivation, prestige, cross-cultural exposure, and views on innovation and quality. Regression analysis indicated that although demographic factors together demonstrated a weak yet significant effect, personal characteristics did not independently forecast luxury consumption. Conversely, psycho-social and cultural elements surfaced as more powerful influencers, with the desire to invest in social standing, intercultural impact, and perceived product advancement and excellence considerably moulding demand. These results support Veblen’s concept of conspicuous consumption, emphasising that luxury buying is driven more by identity, symbolic significance, and social signalling than by demographic factors. The research adds to behavioural economics and provides strategic guidance for luxury marketers seeking to comprehend and connect with modern consumers.