The hidden signals of luxury : investigating inconspicuous consumption and the mediating role of social connectedness

Abstract

As luxury consumption continues to evolve, stealth wealth is exemplifying the shift toward subtle status signaling, where cultural capital plays a key role in distinguishing elite consumers. This shift is reflected in a growing preference for inconspicuous consumption, where individuals seek to communicate status through understated, highly selective symbols rather than overt displays of wealth as a strategy for maintaining exclusivity within selective social circles. This study investigates how key drivers of inconspicuous consumption—namely, privacy, elitism, connoisseurship, the need for uniqueness, and self-protection—affect the preference for inconspicuous consumption. A survey of 425 consumers whose annual luxury spending exceeds USD 20,000 revealed that social connectedness mediates the relationship between drivers of inconspicuous consumption and a preference for inconspicuous consumption, while self-protection does not have a mediating effect. This study contributes theoretically to the fields of luxury and consumer behavior by integrating multiple psychological drivers of inconspicuous consumption to illuminate the role of exclusive social networks in influencing luxury consumption beyond conspicuous displays of wealth. In addition, we provide managerial implications for luxury brands seeking to engage consumers who prioritize exclusivity and discretion.