Using experimental, archival, and longitudinal data, we demonstrate how consumers avoid signaling status with luxury consumption when the audiences who receive these signals have lower relative economic status. Consumers feel varying degrees of discomfort when they can afford what others cannot; therefore, we developed and validated an Exclusivity Discomfort Scale and found this individual difference amplifies the luxury avoidance effect. We observe this effect in the avoidance of luxurious cars, vacations, and personal electronics.

Christensen, Brandon, Joe J. Gladstone, and Alixandra Barasch. Under review Journal of Marketing Research

We found that Black business owners applying for small business loan received inferior treatment compared to White applicants of identical creditworthiness. However, these discriminatory effects were mitigated for Black loan applicants perceived by loan officers as having higher socioeconomic status. We also discovered that businesses with LLC or corporate legal structures signal greater sophistication to financial service workers than sole proprietorships. Importantly, this sophistication signal similarly mitigates the discrepancy in loan approval rates between Black and White business owners with identical creditworthiness.

For a dramatization of the context we study, watch episode 1 of The Falcon and the Winter Soldier starting at 35:26 on Disney+

Scott, Maura, Sterling Bone, Glenn Christensen, Anneliese Lederer, Martin Mende, Brandon G. Christensen, and Marina Cozac (2024). Journal of Marketing Research

Typically, displaying wealth has been considered a way to signal status, suggesting that consumers would want to talk about high-price purchases rather than those for which they saved money. While previous research has focused on gaining status through the ownership of expensive goods, we predict that getting a deal can signal competence. Across seven studies we demonstrate consumers are more likely to generate word-of-mouth (WOM) for purchases made on deal than at full price. This effect is mediated by the extent to which consumers expect others will view them as competent. In addition, the increase in WOM for deals is amplified when getting the deal requires the use of a consumer's knowledge and agency. Interestingly, the expectation of being seen as competent does not affect high-income consumers’ word-of-mouth likelihood.

Woolley, Kaitlin,  Brandon G. Christensen, Alixandra Barasch, Ann McGill, and Jane Risen. Submitting to Journal of Consumer Research

Consumers are naturally much more in tune to what a price can signal for demand dynamics, since consumers are the demand. But consumers neglect how prices serve as signals to suppliers to invest more in valued products, or for more competitors to enter a market and ultimately make prices more competitive. We find that prompting consumers to consider how prices affect supply dynamics reduces the intuitive appeal of price control regulations.

Christensen, Brandon G., Amit Bhattacharjee, Jason Dana, John G. Lynch. Targeted for submission to Journal of Marketing