During an economic downturn, even people who are not directly affected spend less on goods and services that signal social status, according to a new study in the Journal of Consumer Research.
"Even when their consumption budget is unaffected by a recession, consumers will change their expenditure patterns because some of these expenses depend on social standards that shift with economic conditions," write authors Wagner A. Kamakura (Duke University) and Rex Yuxing Du (University of Houston).