The price of prestige: guilt, pleasure, and the psychology of luxury shopping

Abstract

In an era dominated by social visibility and digital influence, luxury consumption has evolved beyond material indulgence into a psychologically and socially charged behaviour. This study investigates the intricate interplay between luxury consumption behaviour, decision-making motives, financial strategies and the psychological consequences of engaging with high-end goods and services, particularly in the context of India’s rising “flex culture.” Using a mixed-methods design, the study combines survey responses from 120 respondents with qualitative findings based on 10 in-depth interviews. The results show that although intrinsic drivers like personal fulfilment and product excellence underpin most luxury buying decisions, extrinsic factors (particularly social media, peer influence, and status signalling) strongly influence consumption behaviours, frequently resulting in emotional ambivalence and post-purchase regret. A high percentage of respondents indicated overspending or use of credit-based transactions, emphasising the development of financially risky behaviour among aspirational consumers. Inter-generational differences also reinforce diverse approaches to luxury, such as impulsive, image-driven purchases among young consumers to more calculated, value-based choices among older consumers. The study suggests that luxury consumption, as far-reaching and ambitious, is equally embedded in processes of identity-making, emotion regulation and fiscal decision-making. It recommends intentional interventions through such programs as financial literacy programs, psychological training, ethical marketing guidelines, and influencer responsibility towards developing a wiser, responsible, and healthy luxury-consuming culture.