Quiet vs. Loud Luxury: An Analysis of How Personal Confidence and Knowledge Shape Perceptions of Target's Confidence, Status and Subjective Well-Being

Since the 1990s, the luxury market has experienced consistent growth, with a 5% growth rate in 2017 that continued until 2020. It is also projected to grow to around $392.40 billion by 2030 (Bain and Company, 2017). This trend in the luxury sector can be attributed to economic factors, such as increases in disposable income, and other social factors like personal comparisons, leading individuals to view high-end products as increasingly essential in their daily lives (Lewis and Moital, 2016). While conspicuous consumption, which includes the use of brand prominence and expensive goods for status-signaling purposes, has been an important indicator of wealth in the past, recent trends are focused on inconspicuous luxury, which focuses on subtle signals in luxury consumption that are not easily recognized by typical consumers (Eckhardt et al., 2015). We investigate how different forms of luxury consumption- conspicuous (loud) versus inconspicuous (quiet)-influence perceptions of confidence, subjective well-being, and socioeconomic status in others, moderated by individual differences in participants' self-confidence and knowledge of luxury goods. The methodology of this study involves an experimental design in which participants' knowledge of luxury goods is assessed via a preliminary quiz, followed by a self-confidence measure using the Single-Item Self-Esteem Scale (Robins et al., 2001). Participants will then be randomly assigned to view images of individuals displaying either loud or quiet luxury items. They will subsequently rate the targets on perceived confidence, happiness (subjective well-being), and socioeconomic status using adapted scales (Diener et al., 1985; Adler et al., 2000). Two main hypotheses guide this research. Hypothesis 1 is that perceptions of the target's confidence, subjective well-being, and socioeconomic status will vary based on participants' self-confidence and the type of luxury displayed by the target, with more confident participants evaluating quiet luxury more positively and less-confident participants favoring loud luxury. Hypothesis 2 is that these effects will be stronger among participants with greater knowledge of luxury goods, with minimal effects among those with lower knowledge levels.