How power states and others’ statuses influence status consumption: The role of signaling effectiveness
This research aims to examine how power states and others’ statuses interact to influence status consumption. Specifically, consumers in low-power states are more inclined to engage in status consumption than those in high-power states when others’ statuses are superior. However, consumers in high-power states are more inclined to engage in status consumption than those in low-power states when others’ statuses are inferior. Signaling effectiveness plays a mediating role in the interaction effect of power states and others’ statuses on status consumption. Two studies were conducted to test our hypotheses. Study 1 tested how others’ statuses moderate the effects of power states on status consumption and how signaling effectiveness mediates the moderating role of others’ statuses on the effects of power states on status consumption. Study 2 further tested the two hypotheses in a different scenario through the sense of the power scale used to measure the power state. This research confirms the effects of power states on status consumption depending on others’ statuses and the fundamental mechanism of status consumption. The theoretical contributions and practical implications are of value for both researchers and managers.