A Study on the Phenomenon of Conspicuous Consumption in South Korea’s Luxury Market Under Economic Uncertainty

Authors

  • Dae-hyun Kim Gyeongsang National University, South Korea
  • Ji-won Park Gyeongsang National University, South Korea
  • So-ra Lee Dongguk University, South Korea

Keywords:

conspicuous consumption, luxury market, economic uncertainty, South Korea

Abstract

This paper investigates the phenomenon of conspicuous consumption in South Korea’s luxury market under conditions of economic uncertainty. While traditional economic theories suggest that luxury spending should decrease during periods of financial instability, the South Korean market demonstrates a contrasting trend, where luxury consumption not only persists but often intensifies. Through qualitative interviews with consumers, industry experts, and market analysts, this study explores the cultural, social, and psychological factors driving this behavior. The findings reveal that social status, identity, and emotional coping mechanisms play crucial roles in sustaining luxury consumption, even amidst economic downturns. Furthermore, the influence of K-Culture and social media amplifies the desire for luxury goods, especially among younger consumers. The study also highlights the complex interplay between economic variables, such as GDP growth, unemployment rates, and consumer confidence, and their impact on luxury spending patterns. This paper contributes to a deeper understanding of the unique dynamics at play in the South Korean luxury market and offers insights for luxury brands, marketers, and policymakers to develop effective strategies in this rapidly evolving environment.

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Published

2024-09-26

How to Cite

Dae-hyun Kim, Ji-won Park, & So-ra Lee. (2024). A Study on the Phenomenon of Conspicuous Consumption in South Korea’s Luxury Market Under Economic Uncertainty. aw and conomy, 3(9), 22–30. etrieved from https://www.paradigmpress.org/le/article/view/1314

Issue

Section

Articles