SNOB EFFECT
The person’s behavior to desire and own unusual, expensive or unique goods.
These goods generally have high economic value but low practical value. aka. The luxury goods. For example — paintings, exclusive clothes, premium watches, antique items. etc.
The people who are affected by this effect mindset works like:
- Out of the box,
- Allergic to trends,
- Focus on status,
- Usefulness is their least concern,
- The only concern is uniqueness and exclusivity.
What they carve for is to stand out of the crowd. They tend to do that by doing the most bizarre shopping.
Tbh, who needs the glass heels when regular ones already make our feet scream at the end of the day? But hey, if they come with a kingdom and the crown, we’ll dance through the pain! 💃🏻
- This effect is totally against the general nature of demand in economics, here, demand increases when less people own certain goods.
- It is a negative *network externality- person’s demand for goods falls against the increase of the purchase of that good by other people.
*Network Externalities- When a person’s demand for goods depends on the purchase of goods by the other person.
- Here Market demand is less elastic — doesn’t get affected that much.
The billionaire’s spoiled kid does not care about what the inflation rate is because his bank balance is already inflated, now all he has to work hard on is to how to spend these money “mindfully”.
Conclusion:
- Both effects can make you brain crazy at their extremes. 🤯
- One can’t go medieval, one got to walk with the world and sometimes it is necessary to stand out of the crowd. Balance is the key🗝️
- And to find balance, we got to find contentment. 🧘🏻♀️
