The Psychological Cost of Luxury

High-end shopping may boost your mood or come with a heightened sense of stature. But for many consumers, luxury purchases can also spur a reaction that researchers have dubbed “impostor syndrome.”“Luxury can be a double-edged sword,” according to a recent study in the Journal of Consumer Research coauthored by Nailya Ordabayeva, an associate professor of marketing at the Carroll School of Management. “While luxury consumption holds the promise of elevated status, it can backfire and make consumers feel inauthentic.”

Ordabayeva, along with Harvard Business School doctoral student Dafna Goor, Boston University professor Anat Keinan, and Hult International Business School professor Sandrine Crener, drew their conclusions from nine studies, encompassing surveys and observations of patrons of the Metropolitan Opera, shoppers at Louis Vuitton in Manhattan, vacationers on Martha’s Vineyard, and other high-end consumers.

In contrast to previous studies, the researchers found that many consumers perceive luxury goods as “a privilege which is undue and undeserved.” As a result, consumers feel inauthentic while wearing or using these products, and actually act less confidently than they would with non-luxury items. (This effect is mitigated among consumers who have an inherently high sense of entitlement, or who are marking occasions that make them feel special, such as a birthday.)

So how can a savvy marketer allay consumers’ uneasiness with big-ticket purchases? “Boosting consumers’ feelings of ‘deservingness’ through sales tactics and marketing messages can help,” Ordabayeva said. Ultimately, she added, in an age that prioritizes authenticity, creating experiences and narratives that boost people’s personal connection with products and possessions can yield lasting benefits for consumers and retailers alike. ◽