Abstract:
The art of signalling social status through luxury and exclusive possession has been an inherent tendency of an affluent society. Consumption of luxury products and availing of luxury services to gain other’s attention and respect in the society and also to denigrate the consumption by other people is nothing but conspicuous. Such a conspicuous consumption does not follow the Law of Demand, and the demand is observed to increase with the increase in the price. Products bearing such characteristics are referred to as Veblen products in the literature. The present work is devoted to the study of available literature on Veblen products and the related marketing strategies, besides developing inventory models for them.
