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11 - The Psychology of Consumer Social Hierarchy and Rank Signaling

from 2 - Consumer Psychology of Groups and Society

Published online by Cambridge University Press:  30 March 2023

By
Derek D. Rucker  and
Adam D. Galinsky
Edited by
Cait Lamberton ,
Derek D. Rucker  and
Stephen A. Spiller
Cait Lamberton
Affiliation:
Wharton School, University of Pennsylvania
Derek D. Rucker
Affiliation:
Kellogg School, Northwestern University, Illinois
Stephen A. Spiller
Affiliation:
Anderson School, University of California, Los Angeles
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Summary

This chapter discusses and delineates how consumption can act as a rank-signaling system. Specifically, we offer three propositions regarding the mechanics of rank-signaling systems as they relate to consumption. Our first proposition is that people use consumption – the purchase and display of goods and services – as a means to encode (i.e., signal) their social rank. Our second proposition is that consumers use others’ consumption as a means of decoding their social rank. Our third proposition is that people can learn, adjust, and update the signals they use – that is, recoding how they signal their social rank. We both review evidence in support of these propositions and introduce results from two recent studies that examine people’s awareness and use of these rank-signaling mechanics. Finally, we close with a discussion of directions we see as fruitful for future research at the intersection of consumption and rank signaling.

Keywords

social hierarchyrank signalingrank encodingrank decodingrank recoding conspicuous consumption
Type
Chapter
Information
The Cambridge Handbook of Consumer Psychology , pp. 309 - 330
Publisher: Cambridge University Press
Print publication year: 2023

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