The Ironic Effects of Credit Card Balances and Credit Limits on Conspicuous Consumption

Keith Wilcox, Babson College, USA
Lauren G. Block, Baruch College, USA
This research examines how credit card balances affect consumers’ preference for conspicuous products. We demonstrate that credit card balances increase consumers’ preference for luxury products by reducing their debt avoidance. Additionally we show an ironic effect of available credit, such that increased credit leads consumers to reduce their conspicuous consumption.
[ to cite ]:
Keith Wilcox and Lauren G. Block (2011) ,"The Ironic Effects of Credit Card Balances and Credit Limits on Conspicuous Consumption", in NA - Advances in Consumer Research Volume 38, eds. Darren W. Dahl, Gita V. Johar, and Stijn M.J. van Osselaer, Duluth, MN : Association for Consumer Research.