Final answer:
True, buying expensive products for the purpose of showcasing wealth is known as "luxury badging," which is a form of conspicuous consumption. It's a way to symbolically communicate social status through material possessions, such as luxury vehicles, designer clothing, and mansions, even when less expensive alternatives exist.
Step-by-step explanation:
True, such behavior is referred to as "luxury badging." Individuals often engage in conspicuous consumption, which is the purchase of luxury goods to symbolically communicate social standing. Luxury badging is one aspect of this behavior, where people buy expensive products such as high-end cars, designer clothing, and luxurious mansions, despite alternative products being able to serve the same functional purpose. They do this not only for personal enjoyment but also to signal wealth and status to others.
For instance, driving a $100,000 luxury car makes a different social statement than a modestly priced $17,000 vehicle, even though both provide transportation. Similarly, owning designer shoes or trendy sneakers that one does not wear for their intended athletic purpose is another example of luxury badging. The behavior of flaunting wealth through material possessions is not limited to the traditional upper class; individuals who might have experienced upward mobility ('new money') may also indulge in luxury badging as a means to exhibit their newfound wealth.