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Showing Off Online:

The Influence of Social Media Use on Attitudes Towards Conspicuous Consumption Mediated by Self Esteem By Sam Janssen 10834893 Submitted on June 26th 2015 Thesis Supervisor mw. dr. E. de Waal

A thesis submitted to the faculty of University of Amsterdam In partial fulfillment of the requirements for the degree

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1 Showing Off Online

Abstract

In this survey, the relationships between use of social media, self-esteem and attitude towards conspicuous consumption of 133 participants (57% men) were examined. Heightened intensity of social media use was expected to have a positive effect on attitude towards conspicuous consumption, while this effect was to be mediated by self-esteem. Unfortunately, no direct effects were found and a possible mediation was excluded. However, variables that were initially controlled for showed some interesting effects. Materialism, conformity and quality assurance all significantly explained variance in attitude towards conspicuous consumption, with conformity being related positively with attitude towards conspicuous consumption and negatively related with self-esteem. An important managerial implication is that it is important to gain a deeper understanding of their customers in relation to conformity and eventually integrate conformity components in the advertising messages.

Keywords: social media, esteem, luxury brands, conspicuous consumption, Facebook, self-completion, conformity

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2 Introduction

It is safe to say that the way of sharing social events, life milestones and career successes to the outside world is shifting towards a digital one. Experiences of holidays, values and

interests, conversations with friends, and private photos are now shared on social media such as Facebook, Instagram, Twitter and Pinterest more than ever. According to ComScore (2012), the worldwide social media use per person is 5.2 hours per month on average. Dutch Facebook users spend almost an hour per day on the website and/or application (Multiscope, 2013). Also, in 2014 the Netherlands counted about 17 million inhabitants and thereof 9 million inhabitants used Facebook monthly, having one of the highest social media market penetrations in the world (CBS.nl, 2014; Marketingfacts.nl, 2014).

Together with the rise of social media over the last decade, luxury brand groups like Louis Vuitton Moët Hennessy (the world‟s largest) have earned consistently higher net profits (Bloomberg.com, 2014) and appear to be resistant to economic recessions (Nunes, Dreze & Han, 2011). Social media and luxury brands have witnessed growth and it is of interest to investigate these relationships further, especially because luxury brands are relatively new to social media. Luxury brands have been reluctant to engage in social media, because it has been unsure whether exclusivity of the brand could be maintained (Kim & Ko, 2012). Now that they do engage in social media, it has proven to be effective (Phan, Thomas & Heine, 2011). In the next paragraphs it will become clear that self- esteem is a possible explanation for the relationship between the use of social media and luxury good consumption.

Self-esteem might serve as an explaining factor because it has proven to be associated with both social media and luxury good consumption. Intensive social media use may lead to both high and low self-esteem (Steinfeld, Ellis & Lampe, 2008; Zywica & Danowski 2008;

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3 Valkenburg et. al. 2005).Higher intensity of use in social media is associated to low self- esteem. To overcome threats to the self-esteem, people are trying to increase their online social capital, that is adding more friends and creating a richer profile. (Barker, 2009). Higher intensity of social media use is also associated with high self-esteem. For example, social enhancement theory suggests that people high in self-esteem use social media to protect their already large social network (Valkenburg et. al., 2005).

Conspicuous consumption, (or luxury good consumption; similar yet distinctive constructs) in its turn may result from an attempt to increase self-esteem (Braun & Wicklund, 1989; Truong & McColl, 2011). While luxury good consumption is the mere consumption of goods that are priced higher for a symbolic value of a product rather than the utility value, conspicuous consumption happens when people deliberately display their luxury goods to the public to gain social status. Conspicuous consumption might not only have positive effects on the costumer‟s decision making processes, but also may give social advantages, such as more compliance and benefits in negotiations (Nelissen & Meijers, 2011). Relevant to this research is that people take part in conspicuous consumption in order to validate ones self-esteem or repair self-esteem threats (Mason, 2001; Braun & Wicklund, 1989).

Understanding the possible role of self-esteem as an explaining variable to the social media marketing effectiveness of luxury brands is important to luxury brand managers.

Marketing activities of luxury brands have already proven to be effective, fortifying consumer relationships and increasing purchase intentions (Ng,2014). However, if self-esteem explains the effect, this paper could guide managers to adapt their content in relation to self-esteem, with regards to types of users, thereby creating even more effective social media campaigns. Next to adding value to luxury brands, national well-being is another motive of assembling this paper.

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4 Next the positive effects of social media, such as helping coordinating social, education and work related activities and connecting individuals to social support and social resources, social media has also been related with distraction, decreased productivity and interruption of important life activities (LaRose, Connolly, Lee, Li & Hales, 2014). Next to productivity, the effects from social media on well- being are not always positive. Studies have shown that intensive social media use is negatively associated with well-being in general (Tazghini, Siedlecki,2013; Denti,2012).People who used social media intensively, felt less content with their lives. If the social media have a significant impact on self-esteem and well-being, it might be important to raise awareness about the influence of social media among consumers.

Social media can thus help luxury brands flourish (with self-esteem being a possible explaining factor), but social media is also negatively associated with well-being. The

Netherlands having one of the highest social media market penetrations in the world indicates the urgency of giving academical attention to the relations between social media use, self-esteem, and attitudes towards conspicuous consumption. To understand how these variables influence each other I have come to the following research question:

RQ: To what extent does intensity of social media-use influence attitude towards conspicuous consumption and does self-esteem act as a mediator?

Theoretical Framework Social Media Use and Conspicuous Consumption

According to Shrum, Lowrey and Liu (2009), the nature of advertising has changed through internet media. In comparison to traditional media, interactive media (online media)

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5 permits the consumers to engage in the advertising process by selectively choosing the preferred information and interacting in two-way communications with advertisers. Stewart and Pavlou (2002) mention that interactivity is not the characteristic of the medium, but yet the characteristic of the consumer. What it means is that interactivity is a desirable factor in all media, but internet has distinctive technological advantages in order to engage in an interactive way with

advertisers. Research shows that brands like Hugo Boss have increased their brand value in order to appeal to young, tech-savvy consumers through this new form of interactivity. In contrary to magazines and TV-spots, consumers could interact with the campaigns immediately (Ng, 2014). Since the march of social media, people not only interact with advertisers, they also share experiences, evaluate products, and upload „how-to‟ videos on social media. Although

advertising effectiveness is decreasing due to advertising clutter, user-generated content in social media has become a mass phenomenon.

For luxury brands, social media is a relatively new phenomenon. Luxury brands were reluctant to even go online, because it was assumed that this would hurt their exclusive image (Okonkwo, 2009). However, after realizing the wealthier segments of the population used the Internet not only for shopping, but also for meeting others, sharing information and influencing others, luxurious brands had no choice but to also engage online. Wealthy costumer interaction on social media namely has too big of an influence. Online discussions on websites like A Small World and Luxe-Mag.com, validate or reject luxury brands, influencing thousands of potential clients.

In recent research done by Kim & Ko (2012) shows that social media activities of luxury brands are effective. Social media activities such as tweeting, blogging and networking,

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6 magazines, social media platforms improve customer relationships and thereby creating higher purchase intent for luxury brands (Kim & Ko, 2011). Another study by Phan, Thomas & Heine (2011) confirm these findings for luxury brands: they find that present-day brand images cannot rely on solely one-way communication, but require engagement in social media (Power & Hauge, 2008). The interactions add value for the costumers and facilitate long-term relationships with existing and potential customers. (Hanna, Rohm & Crittenden, 2011). Social media use by luxury brands can thus strengthen long-term relationships, let people engage and interact with the brand and create higher purchase intention of the brand.

More specifically, in a research done by Annie Jin (2012) luxury brand attitudes were measured before and after visiting a luxury brand Facebook page. The satisfaction of the content of the luxury brand‟s Facebook page was a positive predictor of the eventual luxury brand attitude. For the eliciting the ideal brand attitude, the authors suggested that luxury brand managers needed to gain a deeper understanding of why people buy their goods (luxury versus necessity) and thereby should create a social media interface that met up with those needs. Also, an interactive social media environment was emphasized.

With the right strategy, use social media use has proven to be effective in determining the luxury brand attitude. In this research, the emphasis is more on conspicuous consumption,

meaning displaying luxury goods to the public, as this is more appropriate with social media (such as Facebook and Instagram), because people tend to present positive information about themselves. In a research done by Thoumrungroje (2014), there existed a direct relationship between intensity of social media use of consumers and conspicuous consumption. The reliance of electronic word of mouth (EWOM) on social media for conspicuous consumption was thereby

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7 significant. People used recommendations of strong ties through social media in participating in conspicuous consumption.

That forms enough motives to come up with H1. For an overview of all hypotheses in the conceptual model, see figure 1.

H1: Social media use is positively associated with attitudes towards conspicuous consumption

Self- Esteem and Social Media Use

Previous research suggests two main points-of-view towards the association between social media use is and the self-esteem of its users. From the social media perspective, research suggests the social comparison theory and from the self-esteem perspective the social

compensation vs. social enhancement hypotheses. Social comparison theory

Human beings have a fundamental drive to compare themselves with others in order to, fulfill affective needs (Schachter, 1959), making decisions (Camerer & Lovallo, 1999)

evaluating the self, and regulating emotions and well-being (Taylor & Brown, 1988) so this attribute is fundamental and universal. By comparing oneself to others, people derive how well off they are: self-esteem is an outcome of social comparison. Self-esteem refers to a person‟s positive or negative evaluation of the self; that is, the extent to which an individual views the self as worthwhile and competent (Coopersmith, 1967). Evaluating the self when people engage in social comparison is an important factor using social media. Upward social comparison takes place when comparing oneself to superior others, and downward social comparison takes place when comparing oneself to inferior others.

According to research, use of social media (versus no use) is associated with an increase in self-esteem (Gonzales & Hancock, 2011). During engagement in social media, people tend to

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8 present positive information about themselves and their peers, because they control what

information to disclose. The positive information elicits positive feedback from the network which enhances one‟s self-esteem and well-being (Steinfeld, Ellis & Lampe, 2008). Thereby, through downward social comparison mostly leads to higher self-esteem and affect because people are seeing others that are worse off than themselves (Wills,1981)

On the other hand, social media use (e.g. Facebook) tends to lean in an upward social comparison, as most users create profiles in a way that represents their ideal self-views

(Rosenberg & Egbert, 2011). The research of Vogel (2014) et. al. suggests that use of Facebook is associated with a lower self –esteem. The effect was mediated by greater social (upward) comparison. Another suggestion is that frequent Facebook among teenagers is even associated with depression (O‟Keeffe & Pearson, 2011), although some studies point out that this is not the case (Jelenchick, Eickhoff & Moreno, 2012; Selfhout, Branje, Delsing, ter Bogt & Meeus, 2009).

Social comparison during social media use may have opposite effects on self-esteem. People can have either higher esteem through downward social comparison or lower self-esteem through upward social comparison. This leads to H2ab. For an overview of all hypotheses in the conceptual model, see figure 1.

H2a: High intensity of social media use leads to a higher self-esteem H2b: High intensity of social media use leads to a lower self-esteem Social compensation vs. social enhancement

In another study done by Zywica & Danowski (2008), the relationship between social media and self-esteem is approached from the opposite direction. The idea is that both people in low and high on self-esteem will display higher social media activity. People low on self-esteem, also socially anxious and introverts are more likely to use social media because they substitute

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9 online contacts for an undesirable offline network (Valkenburg et. al., 2005). This is called the social compensation hypothesis, because it refers to increasing online social capital as a

consequence of absence of real-life social capital. The rival hypothesis of social compensation is social enhancement. The social enhancement (or “rich get richer”) hypothesis suggests that extrovert and outgoing people are motivated to protect their self-image and to add online contacts to their already large network of offline social network. (Valkenburg et. al. 2005; Vergeer & Pelzer, 2009). The reason why these hypotheses are rivals is because they are both about intensive social network use. Both people with high and low self-esteem tend to intensify their use in social media, whether it‟s to compensate for real-life social networks, or to protect the existing self-image.

According to previous research, the same outcome is predicted, but from the opposite approach. Not only can social media use lead to both high and low self-esteem, high and low self-esteem can also lead to intensified social media use. In this research this is tested through H2cd. For an overview of all hypotheses in the conceptual model, see figure 1.

H2c: Low self-esteem leads to a higher frequency of social media use H2d: High self-esteem leads to a higher frequency of social media use

The expectations are that intensity of social media use will be associated with polarization in self-esteem. According to both hypotheses H2ab and H2cd, the higher the

intensity of social media use, the more extreme the reports on self-esteem will be (H2ab). Next to that both high and low reports of self-esteem are associated with a higher intensity of social media use (H2cd).

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10 Self-Esteem and Conspicuous Consumption

According to economic utility theory, a negative relation can be observed between the price of a product and the consumer‟s demand for the product. But in the case of conspicuous consumption the opposite is true: here the price is taken as an indicator of prestige value (Veblen, 1979). That value is the desired characteristic of the product. When speaking of conspicuity, quantity shifts to quality, meaning a shift from materially valued products to culturally valued or symbolic products (Shipman, 2004). In other words, people are willing to pay more for the symbolic value of a product, rather than the functional value of a product, even during economic recessions (Nunes, Dreze & Han, 2011). Conspicuous consumption is similar to luxury good consumption, but there is a distinction. Where luxury consumption is mere consumption of luxury goods, conspicuous consumption differentiates itself by showing luxury goods to others as a way of signaling status (Nelissen & Meijers, 2011)

People have different motivations for taking part in conspicuous consumption. The most prevalent motivation in existing research is to display wealth and gain social status (Truong & McColl, 2011). People displaying purchased products that have greater symbolic value over utility value, are perceived as more prestigious and may have more social advantages than people not displaying conspicuous goods (Nelissen & Meijers,2011). Individuals who take part in conspicuous consumption often do so in order to emulate others that are superior in the social hierarchy. Since social status depends on the acknowledgement of others, social emulation tends to be overt and public (Bearden & Etzel, 1982).

The motives of taking part in displaying wealth to others in form of conspicuous consumption can be derived from the self-determination theory. This motivation theory posits that people are naturally motivated to adapt to social contexts and have a tendency towards

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11 psychological growth and development (Sheldon et. al., 2004). The self-determination theory primarily focuses on the satisfaction of basic psychological needs such as well-being and self-esteem. Self –esteem, or self-worth, is a basic psychological need because it protects us from anxiety-related defensive behavior and that is why people are motivated to pursue positive self-evaluations (Harmonjones et. al., 1997).

Self-esteem and conspicuous consumption: symbolic self-completion theory People who take part in conspicuous consumption prefer symbolic value over utility value and people are naturally motivated to pursue positive self-evaluations. It is exactly the symbolic value of materialistic goods where people can derive their positive self-esteem from. Conspicuous consumption can serve as a safety net for people‟s insecurities (Braun & Wicklund, 1989). When people are strongly committed towards a self – definition or identity domain(e.g. lawyer, tennis player, parent or member of high income group) and this identity gets threatened, people may feel that their desired identity is incomplete. By presenting of material possessions to others, people present external characteristics to be once again recognizable as member of the self-definition or identity domain.

In sum, people are motivated to hold positive self-regard and when people‟s self-concepts are threatened, people may resort to conspicuous consumption to restore the sense of

incompleteness. The completion of a definition or identity domain is called symbolic self-completion theory. In an attempt to corroborate with previous research I have summed up the next hypothesis (H3). For an overview of all hypotheses in the conceptual model, see figure 1.

H3: Self-esteem is negatively associated with attitude towards conspicuous consumption

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12 Method

Method and Measurement

The data was collected by means of an online questionnaire that was completed by voluntary participants in a convenience sample that were approached on Facebook, LinkedIn and e-mail. N = 133, 43 % women, 57 % men, Meanage = 25.63 years, SD = 8.37, age range: 18-83 years, response rate ≈ 8% (estimation).The questionnaire was sent out in both English and Dutch (77% Dutch participants). To test the suggested associations between the mediating effect of self-esteem on the relation between intensity of social media use and attitude towards

conspicuous consumption, we constructed a survey, because cause and effect cannot be proven. Operationalization

In the introducing part of the questionnaire, participants were informed how much time the questionnaire would take and that they had a chance of winning a Barfly™ luxury perfume if they left their e-mail address. They were also informed about the terms of the research and had to Figure 1 Hypotheses corresponding to the central concepts intensity of social media use (IoSM), self-esteem (SE) and attitude towards conspicuous consumption (AtCC)

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13 approve of the terms. The terms included: anonymity of participation, cancellation of research when desired, no risks of discomfort, and insight of the reports of research. Although the order of the scales were slightly different, here first the central concepts are presented, then the control variables.

Intensity of social media use

Levels of activity on social media were measured in time spent on Facebook and Instagram. In the Netherlands Facebook and Instagram are the most used social media. Besides that, these media are both mostly image based, which is important for showing luxury goods (conspicuous consumption). Therefore they are the most applicable in this study (ComScore, 2014). Intensity of social media (Facebook & Instagram) use were measured through a slider, were people had to indicate: amount days per week visited (0-7 days), amount of times per day (0-20 times) visited and average duration per visit (0-8 hours, 0-60 minutes). The scales were kept and a new variable was computed in minutes per day and hours per week for both Facebook and Instagram. For the full questionnaire, see the Appendix.

Self-esteem

Self-esteem was measured through the Rosenberg Self-Esteem Scale (RSE) (1965). This scale is one of the most widely used scales and its validity is convergent with other scales such as Single Item Self Esteem Scale (SISE) (Robins, Hendin & Trzesniewksi, 2001). The scale

consists of 10 items like “On the whole, I am satisfied with myself” (1= strongly agree, 7 = strongly disagree) and “at times I think I am no good at all” (1= strongly agree, 7 = strongly disagree). A factor analysis with varimax rotation was used to check what items could be used for measuring self-esteem. 5out of 10 items were first recoded, because they were composed negatively (all items <.45). The cronbach‟s alpha of 10 items measuring self-esteem was α =.82.

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14 The higher people scored on this scale, the more positive people evaluated themselves. In order to find some answers of self-esteem in relation to social media use I constructed a scale with five items like “In times that I use Facebook a lot, I feel more worthwhile” and “Facebook gives me boosts in self-esteem”. ” (1= strongly agree, 7 = strongly disagree). Also for the relationship with self-esteem and conspicuous consumption I constructed a scale of five items like: “when others notice my purchased luxury goods I feel better about myself” and “By buying luxurious goods I am able to show who I am to others” ” (1= strongly agree, 7 = strongly disagree). For the full questionnaire, see the Appendix.

Attitude towards luxury goods

Both attitudes towards luxury goods and attitudes towards conspicuous consumption (AtCC) were measured. While attitudes towards luxury goods is the mere attitude, attitude towards conspicuous consumption includes showing luxury goods to others as a status signal (Mason,2001). However, these two variables are very much intertwined and thus both taken into account. Attitudes towards luxury goods were adopted from Dubois, Czellar & Laurent, (2005). The scale consisted of 30 items. The attitudes consist of cognitive related themes (example: “I don‟t know much about the luxury world” (1=strongly disagree, 7=strongly agree)), affect-related themes (example: “All things considered, I like luxury” (1=strongly disagree, 7=strongly agree)), and behavior related items(example: “I almost never buy luxury products” (1=strongly disagree, 7=strongly agree)). A factor analysis with varimax rotation was used to check what items could be used for the cognitive, affective and behavioral dimension of luxury good attitudes. From the cognitive dimension, 4 of the 14 items were first recoded because they were framed negatively. Six items had a factor loading <.45, so these were removed. After removing these, the scale had a Cronbach‟s alpha α = .66. From the affective dimension, 3 of the 7 items were first recoded because they were framed negatively. One item had a factor loading <.45, so

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15 this one was removed, leaving six items. The Cronbach‟s alpha of the affective dimension was then α =.81. From the behavioral dimension, 3 of 9 items were first recoded, because they were framed negatively. Three items had a factor loading <.45, so these were removed, leaving six items. The Cronbach‟s alpha of the remaining items was α=.64. For the full questionnaire, see the Appendix.

Attitude towards conspicuous consumption

A five item scale for attitudes towards conspicuous consumption (AtCC) was adopted from O‟Cass & Frost, (2002). The five items were measured with items like “I hold positive attitudes towards people who (1:gain respect, 2: show who they are) with luxury goods” (1=strongly disagree, 7=strongly agree). A factor analysis with varimax rotation was used to check what items could be used for measuring AtCC. All five items were already positively framed (all items factor loadings>.45). The cronbach‟s alpha of five items AtCC was α =.87. The higher people scored on this scale, the more positive people evaluated others that participated in conspicuous consumption, meaning displaying their luxury goods to the public. For the full questionnaire, see the Appendix.

Control variables

Next to the thesis that self-esteem and use of social media have a significant impact on attitudes towards conspicuous consumption, it is obvious that there exist other influences as well. In order to get a tangible overview of how social media and self-esteem have an influence on attitudes towards conspicuous consumption, the most important variables have to be controlled for. Next to the obvious demographics such as age, SES and gender, personality traits such as materialism (Velov, Gojkovic & Duric, 2014;Wong, 1997), quality assurance (Vigneron & Johnson, 1999) conformity (Velov, Besiok, Mitic & Duric, 2010) have been suggested as a

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16 significant impact on attitudes toward conspicuous consumption. They were taking into account into the questionnaire and controlled for.

Materialism

Materialism was adopted from Richins & Scott, (1992). The orignal scale consists of 24 items, however only eight of the original were adopted. Materialism consist of a possessiveness dimension (example: “I get very upset if something is stolen from me, even if it has little

monetary value”(1=strongly disagree, 7=strongly agree)), a non-generosity dimension (example: “I enjoy sharing what I have” ”(1=strongly disagree, 7=strongly agree)), and an envy dimension (example: “I am bothered when I see people who buy anything they want” ”(1=strongly disagree, 7=strongly agree)). The dimensions are all three part of materialism however a short version was adopted: materialism is not a central concept and the questionnaire had to remain clear. A factor analysis with varimax rotation was used to check what items could be used for measuring materialism. 2 of 8 items were recoded, because they were framed negatively. Two items factor loadings>.45, so these were removed. The Cronbach‟s alpha of the remaining items of

materialism was α =.67, meaning moderately reliable. The higher people scored on this scale, the more people were gave priority to owning goods. For the full questionnaire, see the Appendix.

Conformity

Conformity was adopted from Mehrabian & Stefl (1995). Conformity is one of the predictors of attitudes towards conspicuous consumption. Previous research suggested that people high in conformity score higher on attitudes towards conspicuous consumption. The scale consisted of 11 items like “I often rely on, and act upon the advice from others” ”(1=strongly disagree, 7=strongly agree) and “Basically my friends are the ones who decide what we do together” ”(1=strongly disagree, 7=strongly agree). A factor analysis with varimax

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17 rotation was used to check what items could be used for measuring conformity. 3 of 11 items were recoded, because they were framed negatively. Two items factor loadings<.45, so these were removed. The Cronbach‟s alpha of the remaining items of materialism was α =.82, meaning well reliable. The higher people scored on this scale, the more people saw themselves as

conforming. For the full questionnaire, see the Appendix. Quality assurance

Quality assurance was adopted from Truong & McColl (2011). Previous research suggested that quality assurance is a predictor of attitudes towards luxury goods (mere consumption of luxury goods). People scoring higher in on quality assurance are expected to score higher on attitudes towards luxury goods. The scale consisted of four items like “The high level of reliability in luxury products attracts me”. and “I think highly of the latest designs and technics”. (1=strongly disagree, 7=strongly agree). A factor analysis with varimax rotation was used to check what items could be used for measuring quality assurance. All items were

positively framed and all factor loadings>.45. The Cronbach‟s alpha of the items of quality assurance was α =.86, meaning well reliable. The higher people scored on this scale, the more people though superior quality was an important factor in buying luxury goods. For the full questionnaire, see the Appendix.

Dataset Preparation and Analyses

Participants with results with extreme outliers and missing variables were deleted from the data set. As described in the method, the validity and reliabilities of the scales were then measured. After having done factor analyses with varimax rotations on every scale that was measured with multiple seven-point Likert items, the items with low factor loadings (<.45) were removed. The Cronbach‟s alpha reliabilities had a range from α =.64 (behavioral dimension of

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18 attitude towards luxury goods) to α =.87(attitude towards conspicuous consumption). Average scales were then computed to be able to interpret the data in a meaningful way. The self-esteem scale was split into high and low to test H2ab and H2cd accordingly. Original scales for social media (Facebook and Instagram) use ,but also a new variable was computed (social media hours per week). For the full questionnaire, see the Appendix.

Results Hypothesis Testing

H1: social media use and attitudes towards conspicuous consumption

Hypothesis H1 predicted that people with intensified social media use would have more positive attitudes towards conspicuous consumption (AtCC). A simple linear regression between Facebook use per week (hours)and AtCC showed that Facebook use was not a predictor of AtCC F (1,132) = 0.04, p = 0.84. Facebook use per week (hours) b* = 0.02, t = -0.20, p = .84, 95% CI [-0.10, 0.01]. Neither (Instagram) days per week had significant effects on attitudes towards conspicuous consumption, nor had times per day and duration per visit. Another simple linear regression between Instagram use per week (hours) and AtCC that Instagram use was not a predictor either F (1,132) = 0.53, p = 0.47. Instagram use per week (hours) b* = -0.06, t = -0.73, p = .47, 95% CI [-0.02, 0.01]. ]. Neither (Instagram) days per week had significant effects on attitudes towards conspicuous consumption, nor had times per day and duration per visit. Social media use and AtCC were not affiliated with one another, thereby rejecting H1. For an overview of the results conceptual model, see figure 2.

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19 H2ab: social media use and self-esteem

Hypotheses H2ab predicted people using social media more, these people would have more extreme outcomes on self-esteem. A simple linear regression between Facebook use per week (hours) and self-esteem showed that Facebook use was not a predictor of low self-esteem (scores lower than 4 on a 7-point Likert scale) F(1,132) = 0.04, p= 0.85. Facebook use per week (hours) b* = -.06, t = -0.19, p = 0.85, 95% CI [-0.01, 0.01]. Neither (Facebook) days per week had significant effects on low self-esteem, nor had times per day and duration per visit. Facebook use per week (hours) was not a predictor of high self-esteem either (scores higher than 4 on a 7point Likert scale) F(1,132) = 1.14, p= 0.29. Facebook use per week (hours) b* = 0.10, t = -1.07, p = 0.29, 95% CI [-0.01, 0.00]. Neither (Facebook) days per week had significant effects on high self-esteem, nor had times per day and duration per visit.

Another simple linear regression between Instagram use per week (hours) and self-esteem that Instagram use was not a predictor of low self-self-esteem (scores lower than 4 on a 7-point Likert scale) F(1,132)= 0.92, p= 0.35. Instagram use per week (hours) b* = 0.29, t = 0.96, p = 0.36, 95% CI [-0.01, 0.01] ]. Neither (Instagram) days per week had significant effects on low self-esteem, nor had times per day and duration per visit Instagram use per week (hours).

Instagram use per week (hours) was not a predictor of high self-esteem either (scores higher than 4 on a 7-point Likert scale) F(1,132) = 0.81, p= 0.37. Instagram use per week (hours) b* = -0.03, t = -0.90, p = 0.37, 95% CI [-0.01, 0.00]. Neither (Instagram) days per week had significant effects on high self-esteem, nor had times per day and duration per visit. Social media use and self-esteem were not affiliated with one another, thereby rejecting H2ab. For an overview of the results conceptual model, see figure 2.

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20 H2cd: self- esteem and social media use

Hypotheses H2cd predicted that people reporting high or low measures of self-esteem, these people would use social media more intensively. A simple linear regression between self-esteem and Facebook use per week (hours) showed that low self-self-esteem (scores lower than 4 on a 7-point Likert scale) was not a predictor of Facebook use per week (hours) F(1,132) = 0.04, p= 0.86. Self-esteem b* = -.06, t = -0.19, p = 0.85, 95% CI [-86.32, 72.81]. Neither had low self-esteem significant effects on (Facebook) days per week visited, nor had it on times per day and duration per visit. High self-esteem (scores higher than 4 on a 7-point Likert scale) was not a predictor of Facebook use per week (hours) either F(1,132) = 1.14, p= 0.29. Facebook use per week (hours) b* = -0.10, t = -1.07, p = 0.29, 95% CI [-8.74, 2.63]. Neither had high self-esteem significant effects on (Facebook) days per week visited, nor had it on times per day and duration per visit.

Another simple linear regression between self-esteem and Instagram use per week (hours) showed that low self-esteem (scores lower than 4 on a 7-point Likert scale) was not a predictor of Instagram use per week (hours) F(1,132)= 0.92, p= 0.35. Self-esteem (low) b* = 0.29, t = 0.96, p = 0.36, 95% CI [-26.57, 66.84]. Neither had low self-esteem significant effects on (Instagram) days per week visited, nor had it on times per day and duration per visit. High self-esteem (scores higher than 4 on a 7-point Likert scale) was not a predictor of Instagram use per week either F(1,132) = 0.81, p= 0.37. Self-esteem (high) b* = -0.08, t = -0.90, p = 0.37, 95% CI [-7.22, 2.71]. Neither had high self-esteem significant effects on (Instagram) days per week visited, nor had it on times per day and duration per visit. Self-esteem and social media use were not affiliated with one another, thereby rejecting H2cd. For an overview of the results conceptual model, see figure 2.

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21 H3: self-esteem and conspicuous consumption

Hypothesis H3 predicted that people higher in self-esteem would score lower in attitudes towards conspicuous consumption (AtCC). A simple linear regression between self-esteem and AtCC showed that self-esteem was not a predictor of AtCC F (1,132) = 1.33, p = 0.25. Self-esteem b* = -0.10, t = -1.15, p = .25, 95% CI [-0.15, 0.04] Self-Self-esteem and AtCC were not affiliated with one another, thereby rejecting H3. For an overview of the results conceptual model, see figure 2.

Attitudes towards luxury goods

Being similar but distinct in relation to attitudes towards conspicuous consumption, attitudes towards luxury goods were also included in the survey. Because the construct is slightly different, the same analyses were run, with attitudes towards luxury goods as the independent variable. However, despite the distinction none of the effects on attitudes towards luxury goods were significant either and thus generating very similar results.

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22 Figure 2 Results of the hypotheses corresponding to the central concepts intensity of social media use (IoSM), self-esteem (SE) and attitude towards conspicuous consumption (AtCC)

Other Variables Influencing AtCC

Given the fact that there is no significant relationship between the central concepts and no mediation taking place, there might be some interesting associations to find amongst the

controlling variables, such as conformity, quality assurance and materialism. A multiple linear regression model with attitudes towards conspicuous consumption (AtCC) as dependent variable and self-esteem, Facebook use per week (hours), Instagram use per week (hours), conformity, quality assurance, and materialism as independent variables was significant, F(5,132) = 5.28, p < .001. The regression model could therefore be used to predict attitudes towards conspicuous consumption, although the strength of the prediction was moderate: 20 percent of the variation in attitudes towards conspicuous consumption could be predicted on the basis of self-esteem,

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23 Facebook use per week (hours), Instagram use per week (hours), conformity, quality assurance, and materialism (R2 = .20). Self-esteem, b* = -0.18, t = -.20, p = .84 , 95% CI [-0.34, 0.28], Facebook use per week (hours), b* = 0.03, t = .39 , p = .70 , 95% CI [-0.01, 0.01], Instagram use per week (hours) b* = -0.10 , t = -1.20, p = 0.23 , 95% CI [-0.21,0.01], conformity b* = 0.28 , t = 3.13 , p < .01 , 95% CI [0.14, 0.61], quality assurance b* = 0.29 , t = 3.57 , p < 0.01 , 95% CI [0.13,0.43], materialism b* = 0.08 , t = 0.90 , p = 0.37 , 95% CI [-0.13,0.35]. In the model, both conformity and quality assurance are significant predictors of AtCC.

In contrast to the predictors in the hypotheses, it appears that other variables like conformity and quality assurance are predictors of AtCC. In understanding how the variables that significantly explain variance in AtCC, relate to other constructs, a bivariate correlations table was made. Materialism was both positively associated with both conformity , r = 0.25, p <0.01, and AtCC, r = 0.20, p < 0.05. Scoring higher on materialism would mean that one would also score higher on both conformity and AtCC. Conformity was positively associated with materialism r = 0.25, p <0.01 and AtCC, r = 0.30, p < 0.01 but negatively related to self-esteem r = -0.37, p < 0.01. Scoring higher on conformity would lead to higher scores on materialism and AtCC, but lower scores on self-esteem. Quality assurance was positively associated with AtCC r = 0.32, p < 0.01.Scoring higher on quality assurance would lead to higher scores on AtCC.

Discussion

With interest to luxury brands being relatively new in the social media market and thereby having consistently higher net profits (Bloomberg, 2014) as well as concerns to social media possibly influencing well-being (Tazghini & Siedlecki,2013; Denti, 2012) are the reasons why this paper has been assembled. A possible positive relation was tested between intensity of

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24 social media use and attitudes towards conspicuous consumption with self-esteem as an

explaining variable of this relation by means of a survey.

Analyses showed that none of the six hypotheses had a significant effect, meaning that intensity of social media use was not a predictor of attitudes toward conspicuous consumption and self-esteem. Self-esteem was not a predictor of intensity of social media use nor was it a predictor of attitudes toward conspicuous consumption. Therefore a possible mediation was excluded. These results contradict existing literature suggesting more activity on social media such as Facebook and Instagram having significant effect on well-being and attitude toward conspicuous consumption.( Bagozzi and Dholakia, 2002; Smith et. al., 2005) Throughout this research, attitudes towards conspicuous consumption and attitudes towards luxury goods are intertwined variables. Luxury good consumption is the mere consumption of luxury goods and conspicuous consumption is displaying luxury goods to the public. Attitudes towards luxury goods were also included as a dependent variable, but analyses showed similar results.

Although the hypotheses were declined, there were some interesting effects found within the controlling variables materialism, conformism and quality assurance in relation to the main variables. Materialism, quality assurance and were positively associated with attitude toward conspicuous consumption. The most interesting associations that came forward was that

conformity was positively related to attitudes towards conspicuous consumption, but negatively to self-esteem.

Theoretical Implications & Future Suggestions

According to the results of this research, intensity of social media use is not affiliated at all with attitudes towards conspicuous consumption, nor is it affiliated with self-esteem. This contradicts existing research suggesting that social media use is affiliated with both high and low

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25 self-esteem. (Valkenburg et. al. 2005). One might expect that when people use social media, people compare themselves to others and draw conclusions how well-off they are (Steinfeld, Ellis & Lampe, 2008). This research shows that intensity of social media use is not related with self-esteem at all. If the results were to be generalized, people could use social media as much as they want; their own self-esteem is not affected, which is a premature conclusion. Also in contrast to earlier research (Kim & Ko, 2011)., intensity of social media use is not affiliated with attitudes toward conspicuous consumption. It would mean that people can use social media how much they want; it would not affect their attitude towards people showing their luxury goods to the public, which is an odd finding, because luxury brands have proven to do exceptionally well due to social media engagement (Ng, 2014). An explanation for the effect not being found, might be due to an alternative point –of-view related with personality. In this research conformity was strongly related to both self-esteem and attitudes towards conspicuous consumption. Taking conformity as a starting point instead of intensity of social media use, people high in conformity have lower self-esteem and have higher attitudes towards conspicuous consumption moderated by social media use. Amount of social media use was in this survey a predictor of attitudes towards conspicuous consumption, but it might be an enhancer (moderator) to predictor conformity of attitudes towards conspicuous consumption. For the alternative

conceptual model, see figure 3.

Also, no effects of self-esteem on attitude towards conspicuous consumption were found, which contradicts the symbolic self-completion theory (Braun & Wicklund, 1989). If the results were to be generalized it would not matter how high or low ones self-esteem is, people would not differ in attitude towards conspicuity, which again would be a premature conclusion. A possible explanation for the effect not being found is the sample. In the sample only 12 of the 133 people

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26 (9%) had low self-esteem. A more equally divided sample is needed to say more about the differences in self-esteem. The explanation here could be the notion of social desirability. In an individualistic society as the Netherlands, self-esteem is desirable. People are not very likely to report extreme low self-esteem. Another sample is needed, or more indirect measures are needed, like an expirement were self-esteem is manipulated.

In sum, the findings in this research are probably not significant because of a shift in the conceptual model and social desirability. However, in future research the same variables can be used in an alternative conceptual model. It is recommended to measure (or manipulate) self-esteem in an indirect way, to fence off social desirability.

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27 Managerial Implications

The main take away from this survey is that, in contrast to earlier research, attitudes towards conspicuous consumption were not predicted by use of social media, and it seems that personality factors underlie this relationship. Suggestions by previous research were that brand managers of luxury brands need to make sure that the social media activities require engagement and interactivity. Managers also needed to adapt their social media interface to the users need (luxury versus necessity). In addition to this, it is suggested that managers need to take

conformity into account. Managers of luxury brand have to acquire a deeper understanding of their costumers and how their costumers react to changes from their peers. If conformity is high, brand managers could integrate conformity elements in their advertising messages.

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36 APPENDIX

Questionnaire

Conspicuous Consumption Informed Consent Form Dear participant,

First of all, I want to thank you for participating in my research I am conducting for my Master thesis in Communication Sciences in Amsterdam.

In this study I attempt to collect information about luxury goods and social media. I need your help in doing so. Participating will only take around 10 minutes of your time and is of unmistakable value for me and science in general.

Leave your e-mail address at the end of the survey if you would like to have a chance of winning a €39 Barfly™ fragrance (for men and women) that I will randomly award to one of the respondents that have left their e-mail.

As this research is conducted under the authority of ASCoR and the University of Amsterdam, you are ensured that:

1. Your participation is anonymous and your answers will in not in any case be shared with third parties.

2. You can abort the research at any time you please. You can also retract from your willingness to participate within 24 hours after participating, upon which your answers will be deleted.

3. The research will impose no considerable discomfort to you and that no deceptive information will be provided, as well as content that you might experience as shocking.

4. After a maximum of 5 months you can, if you please, attain the research report in which the findings of the research will be elicited.

If you are under the age of 18, please do not participate in this research.

If you have any questions regarding this research feel free to contact me and I will gladly answer them. Should you have any complaints about the process or conduct of this research, you can contact the representative of the Ethical Committee of ASCoR on

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37 the adres: ASCoR secretariaat, Commissie Ethiek, Universiteit van Amsterdam, Nieuwe achtergracht 166, 1018 WV Amsterdam, Dutch telephone number: 020 525 3680; ascor-secr-fmg@uva.nl. Confidential treatment of your complaint is guaranteed.

Sincerely,

Sam Janssen

E-mail: samjanssen90@gmail.com

Telephone: 0619931450 University of Amsterdam Supervisor: dr. Ester de Waal

 I hereby declare to have taken full notice of the terms of this research (1)

Again, thanks for participating in this research. You will be now be asked to fill in multiple statements. Please fill in the statements as truthfully as you can and remember there are no right or wrong answers.

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38 Strongly Disagree (1) Disagree (2) Somewhat Disagree (3) Neither Agree nor Disagree (4) Somewhat Agree (5) Agree (6) Strongly Agree (7) I get very upset if something is stolen from me, even if it has little monetary value (1) I get particularly upset when I lose things (2) I would rather buy things than borrowing them from others (3) I enjoy sharing what I have (4) I don't like to lend out things, even to good friends (5) When friends perform better in a competition, it makes me happy for them (6) I don't get what is coming to me (7)

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39 There are certain people I would like to trade place with (8)

The next questions are about your social media use. Please use the slider in order to indicate your social media use

How many days per week do you visit Facebook? ______ Days per week (1)

How many times per day you visit Facebook? ______ Times per day (1)

How much time do you spent on Facebook during EACH visit? ______ Hours (1)

______ Minutes (1)

How many days per week do you visit Instagram? ______ Days per week (1)

How many times per day you visit Instagram? ______ Times per day (1)

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40 How much time do you spent on Instagram during EACH visit?

______ Hours (1)

______ Minutes (1)

Thanks again for your contribution to scientific research, you have now completed around 33% of this questionnaire. You will now be asked some questions about luxury

goods.Note: Luxury goods are defined as goods that are higher priced goods than similar goods with the same function

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41 Strongly Disagree (1) Disagree (2) Somewhat Disagree (3) Neither Agree nor Disagree (4) Somewhat Agree (5) Agree (6) Strongly Agree (7) I don’t know much about the luxury world (1) In general luxury products are better quality products (2) A fine replica of a luxury brand is just as good (3) Luxury products inevitably are very expensive (4) In my opinion, luxury is too expensive for what it is (5) Few people own a truly luxury product (6) Truly luxury products cannot be mass produced (7) A luxury product cannot be sold in supermarkets (8)

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42 A real luxury brand does not advertise its products (9) In my opinion, luxury is pleasant (10) Some education is needed for appreciating luxury products (11) In my opinion, luxury is really useless (12) A product must be somewhat useless to be a luxury product (13) In my opinion, luxury is good taste (14)

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43 Strongly Disagree (1) Disagree (2) Somewhat Disagree (3) Neither Agree nor Disagree (4) Somewhat Agree (5) Agree (6) Strongly Agree (7) All things considered, I rather like luxury (1) Im not interested in luxury (2) Luxury makes me dream (3) Luxury products make life more beautiful (4) I could talk about luxury for hours (5) I would not feel at ease in a luxury shop (6) When I wear a luxury item, I feel a bit like im disguising myself (7)

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44 Strongly Disagree (1) Disagree (2) Somewhat Disagree (3) Neither Agree nor Disagree (4) Somewhat Agree (5) Agree (6) Strongly Agree (7) I almost never buy luxury products (1) One buys luxury goods primarily for ones pleasure (2)

For the most part, luxury goods are to be offered as gifts (3) One needs to be a bit of a snob to buy luxury goods (4) The luxury items we buy reveal a little bit of who we are (5) Today, everyone should have access to luxury goods (6) People who buy luxury products seek to imitate the rich (7) People who buy those products try

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45 to differentiate themselves from others (8) Those who buy luxury products are refined people (9)

The next statements are about social media (like Facebook and Instagram) and luxury goods. Please fill in the statements as truthfully as you can and remember that there are no right or wrong answers.

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