Social rank: implications for consumers as actors and observers

Area of Science:

• Consumer Behavior
• Social Psychology
• Sociology

Background:

• Social rank is a fundamental aspect of social organization.
• Consumer behavior is influenced by social and psychological factors.
• Previous research has explored social influence on consumption, but a comprehensive review linking social rank to consumer actions as both actors and observers is needed.

Purpose of the Study:

• To review and synthesize existing research on the relationship between consumers' social rank and their behavior.
• To examine how social rank influences consumer actions (e.g., luxury consumption, gift-giving) when individuals are actors.
• To explore how individuals respond to the social rank signals of others when acting as observers.

Main Methods:

• This study is a review of existing literature.
• It synthesizes findings from empirical studies and theoretical frameworks.
• The review categorizes research based on whether individuals act as consumers or observers of social rank.

Main Results:

• As actors, individuals' perceived social rank (actual or imagined) affects consumer behaviors like luxury consumption and gift-giving.
• As observers, individuals display varied responses, both positive and negative, to others' indicators of social rank.
• The review highlights the complexity of social rank perception and its behavioral consequences.

Conclusions:

• Social rank is a critical determinant of consumer behavior, affecting both individual choices and social perceptions.
• Future research should investigate power versus status hierarchies, observer categorization of luxury goods, and accuracy in assessing others' social rank.
• This review serves as a foundational resource for understanding the multifaceted role of social rank in consumer behavior.