Status, Self-Worth, and Luxury Consumption: The Mediating Role of Self-Esteem Among Malaysia’s T20 Consumers

Abstract

This study investigates the influence of status conformity on conspicuous consumption behaviour among Malaysia’s T20 consumers, with self-esteem examined as a mediating factor. Drawing on Veblen’s Conspicuous Consumption Theory and Maslow’s Motivational Theory, the research explores how external social pressures and internal psychological drivers interact to shape luxury consumption. A survey of 180 respondents, selected through stratified multi-stage sampling across Selangor, WP Kuala Lumpur, and WP Putrajaya, was conducted at authorised service centres of premium car brands. Data analysis using Partial Least Squares Structural Equation Modelling (PLS-SEM) reveals that status conformity significantly influences both conspicuous consumption behaviour and self-esteem, while self-esteem itself significantly drives conspicuous consumption. Mediation analysis further indicates that self-esteem partially mediates the relationship between status conformity and conspicuous consumption. The demographic profile shows that middle-aged, highly educated professionals and business owners dominate luxury consumption within the T20 group. These findings underscore the dual role of external conformity pressures and internal self-esteem mechanisms in driving conspicuous consumption. The study contributes to theoretical advancement by integrating socio-psychological perspectives and provides practical implications for luxury marketers and policymakers, highlighting the need for strategies that recognise both social belonging and self-image reinforcement in shaping affluent consumer behaviour.