Question

Status symbols are products, such as Rolex watches or expensive sports cars, that we value because they show others how much money or prestige we have. Do you believe that your peer group values status symbols? Why or why not? If yes, what are the products that you think are status symbols for consumers your age? Do you agree with the assertion that a cell phone is a status symbol for many people?

Answer 1

Answer

I do believe that my peer group values status symbols. Valuing status and follow it is a strange behavior found in many people, that I see in my peer group also. When I buy something that is little expensive, say a jewelry, or a party dress, the first thing that my peer group wants to know about it, is the price of that good. After few days, I see that some of them have come to party wearing a jewelry, or a party dress, or a shoe that are more expensive than what I have. They compete with price of the good. The higher the price, the more status symbol is that good. So they buy it to maintain their status, and to show how wealthy they are than someone else. In economics, we call it a Veblen effect. These status symbol goods do not strictly obey the law of demand, because higher the price, the higher would be the demand for these goods.

The products that I think are status symbols for consumers of my age are, expensive cars, dress, jewelry especially the diamond-setting, shoe, decoration of house,house carpet, the class and flight we travel, the beauty salon we go, the club we go for recreation, etc.

I do think that cell phone is a status symbol for many people, especially if it is a very expensive one. The higher the price of a cell phone, the more status symbol is that phone. If a person buys an expensive cell phone, it may attract his/her friends or relatives, who will compete to buy more expensive cell phone than the one the person has.

I also do believe that a cell phone is not a status symbol for some people, especially the old fashioned people, who are more comfortable with landline telephone. The cell phone is also not a status symbol for some people, who are more reasonable, knows the purpose and importance of cell phone, and use it because they need it.

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