Conspicuous consumption in emerging market: The case of Chinese migrant workers

The urbanization in transitional economies of emerging markets creates a unique consumer segment, migrant workers, and meanwhile brings opportunities and challenges to multinational marketers of name-brand products. This study investigates the relationship between social identity and conspicuous consumption in such a largely overlooked and untapped market in China. Our findings indicate that migrant workers' conspicuous consumption, as indicated by their purchase of name-brand products, is mainly driven by the bandwagon effect to associate with aspiration group, differing from those more privileged consumers who may engage in conspicuous consumption to disassociate from the crowd. The moderating role of traditional Chinese cultural values is further examined. In addition, subjective norm is found to mediate the impact of conspicuous consumption on purchase intention of name-brand products, supporting the hypothesized bandwagon effect. Finally, theoretical contributions and strategic implications to marketing in emerging markets are discussed.