“Look at what I own”: the role of social media in luxury brand equity and conspicuous consumption

Purpose This paper analyzes the multifaceted effects of social media on luxury consumption. Specifically, the paper delves into the impact of (1) e-WOM derived from social media on the brand equity of luxury brands; (2) consumers’ social media usage on conspicuous consumption of luxury brands and (3) social self-esteem and (4) expected social return obtained from social media usage on conspicuous consumption of luxury brands. Design/methodology/approach Three survey-based studies were conducted in Portugal with three samples to test the proposed research model. Findings Social media is compatible with the exclusivity positioning of luxury brands. On the one hand, e-WOM nurtures the brand equity of luxury brands. On the other hand, consumers’ social media usage and the expected social self-esteem and social return obtained from social media favor the conspicuous consumption of luxury brands. Originality/value This study sustains with Western samples that, despite the ubiquity of social media, the exclusivity positioning of luxury brands can be nurtured through social media e-WOM, with effects on brand equity and conspicuous consumption, because of the expected social self-esteem and social return. Fashion brands should design social media content that encourages e-WOM to enhance consumers’ social self-esteem and social return.