Authors :
Bhavi Jain
Volume/Issue :
Volume 11 - 2026, Issue 8 - August
Google Scholar :
https://tinyurl.com/ypc9jk89
DOI :
https://doi.org/10.38124/ijisrt/26aug1394
Note : A published paper may take 4-5
working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and
ResearchGate.
Abstract :
Why do consumers continue to buy premium coffee, matcha, prestige skincare, fine fragrance, and collectibles
while reducing spending elsewhere? This paper develops a conceptual account of such purchases as micro-luxuries:
nonessential, premium-positioned goods whose absolute price remains low enough to fit within an ordinary discretionary
budget. An integrative review of work on the lipstick effect, hedonic and compensatory consumption, the extended self,
consumer ritual, scarcity, and social influence identifies four linked sources of value: affect regulation, identity construction,
ritualized control, and digitally amplified social meaning. Affordability acts as a gateway rather than the principal benefit;
it converts otherwise inaccessible luxury meanings into a purchase that can be mentally framed as a small reward. The paper
therefore rejects the simple claim that micro-luxury consumption is either fully rational or merely frivolous. Its welfare
consequences depend on frequency, substitution, financial fit, and whether the product creates enduring ritual or only
repeated mood repair. A framework and six propositions are offered to guide empirical tests. The analysis also suggests that
brands can build durable loyalty through credible quality, sensory experience, and repeatable rituals, but risk consumer
backlash when manufactured scarcity, status pressure, or misleading “self-care” narratives overwhelm functional value.
Keywords :
Micro-Luxury; Affordable Luxury; Hedonic Consumption; Compensatory Consumption; Consumer Ritual; Social Media; Emotional Branding.
References :
- R. W. Belk, “Possessions and the extended self,” Journal of Consumer Research, vol. 15, no. 2, pp. 139–168, 1988.
- M. De Veirman, V. Cauberghe, and L. Hudders, “Marketing through Instagram influencers: The impact of number of followers and product divergence on brand attitude,” International Journal of Advertising, vol. 36, no. 5, pp. 798–828, 2017.
- E. Djafarova and C. Rushworth, “Exploring the credibility of online celebrities’ Instagram profiles in influencing the purchase decisions of young female users,” Computers in Human Behavior, vol. 68, pp. 1–7, 2017.
- J. E. Escalas and J. R. Bettman, “Self-construal, reference groups, and brand meaning,” Journal of Consumer Research, vol. 32, no. 3, pp. 378–389, 2005.
- S. E. Hill, C. D. Rodeheffer, V. Griskevicius, K. Durante, and A. E. White, “Boosting beauty in an economic decline: Mating, spending, and the lipstick effect,” Journal of Personality and Social Psychology, vol. 103, no. 2, pp. 275–291, 2012.
- E. C. Hirschman and M. B. Holbrook, “Hedonic consumption: Emerging concepts, methods and propositions,” Journal of Marketing, vol. 46, no. 3, pp. 92–101, 1982.
- M. Lynn, “Scarcity effects on value: A quantitative review of the commodity theory literature,” Psychology & Marketing, vol. 8, no. 1, pp. 43–57, 1991.
- N. Mandel, D. D. Rucker, J. Levav, and A. D. Galinsky, “The compensatory consumer behavior model: How self-discrepancies drive consumer behavior,” Journal of Consumer Psychology, vol. 27, no. 1, pp. 133–146, 2017.
- Pew Research Center, “A majority of U.S. TikTok users are there for reviews and recommendations,” Nov. 21, 2024. [Online]. Available: https://www.pewresearch.org/short-reads/2024/11/21/ a-majority-of-us-tiktok-users-are-there-for-reviews-and-recommendations/
- S. I. Rick, B. Pereira, and K. A. Burson, “The benefits of retail therapy: Making purchase decisions reduces residual sadness,” Journal of Consumer Research, vol. 40, no. 6, pp. 1113–1122, 2014.
- D. W. Rook, “The ritual dimension of consumer behavior,” Journal of Consumer Research, vol. 12, no. 3, pp. 251–264, 1985.
- D. D. Rucker and A. D. Galinsky, “Desire to acquire: Powerlessness and compensatory consumption,” Journal of Consumer Research, vol. 35, no. 2, pp. 257–267, 2008.
- M. J. Silverstein and N. Fiske, “Luxury for the masses,” Harvard Business Review, vol. 81, no. 4, pp. 48–57, 2003.
- R. Thaler, “Mental accounting and consumer choice,” Marketing Science, vol. 4, no. 3, pp. 199– 214, 1985.
Why do consumers continue to buy premium coffee, matcha, prestige skincare, fine fragrance, and collectibles
while reducing spending elsewhere? This paper develops a conceptual account of such purchases as micro-luxuries:
nonessential, premium-positioned goods whose absolute price remains low enough to fit within an ordinary discretionary
budget. An integrative review of work on the lipstick effect, hedonic and compensatory consumption, the extended self,
consumer ritual, scarcity, and social influence identifies four linked sources of value: affect regulation, identity construction,
ritualized control, and digitally amplified social meaning. Affordability acts as a gateway rather than the principal benefit;
it converts otherwise inaccessible luxury meanings into a purchase that can be mentally framed as a small reward. The paper
therefore rejects the simple claim that micro-luxury consumption is either fully rational or merely frivolous. Its welfare
consequences depend on frequency, substitution, financial fit, and whether the product creates enduring ritual or only
repeated mood repair. A framework and six propositions are offered to guide empirical tests. The analysis also suggests that
brands can build durable loyalty through credible quality, sensory experience, and repeatable rituals, but risk consumer
backlash when manufactured scarcity, status pressure, or misleading “self-care” narratives overwhelm functional value.
Keywords :
Micro-Luxury; Affordable Luxury; Hedonic Consumption; Compensatory Consumption; Consumer Ritual; Social Media; Emotional Branding.
