Selling Dreams to the Underserved: The Outsized Effect of Luxury Advertisement on Economically Disadvantaged Consumers

Luxury advertising typically targets affluent consumers with messages of exclusivity, prestige, and elegance. This study challenges that assumption by proposing that low-income consumers may be more psychologically affected. Based on symbolic consumption and impression management theories, we argue that exposure to luxury ads enhances low-income consumers' anticipated social response which is the imagined admiration they expect if they owned luxury goods. This imagined approval helps them understand the symbolic meaning of the brand and associate it with an aspirational class, fostering a mental identification with the elite. Consequently, even without current purchasing power, they may form aspirational loyalty and a strong future purchase intention. This effect is moderated by conspicuousness and income level, with the most impact on those low in income but high in conspicuousness. Our findings offer a counterintuitive insight: luxury ads may be more effective in creating brand loyalty among non-target, economically disadvantaged consumers.