Final answer:
Buying an expensive, unaffordable car to impress others is an example of conspicuous consumption, as it creates the perception of wealth and reflects a desire to symbolically communicate higher social status through material possessions.
Step-by-step explanation:
Buying an expensive, unaffordable car in order to impress friends is an example of conspicuous consumption because it was bought to create the perception of wealth. Conspicuous consumption is the purchase and use of certain products to make a social statement about status. This behavior is often observed in individuals who want to symbolically communicate their social standing, acquiring items that are not necessarily essential but serve as a symbol of stratification and are seen as markers of success in a culture that emphasizes consumption.
For instance, someone may purchase a luxury car that is beyond their financial means as a way to flaunt perceived wealth or status, even though a less expensive car would suffice for transportation. The phenomenon of conspicuous consumption suggests that the price and the social statement associated with the purchase can act as a signal of quality or social class, even if the buyer is not an expert on the products they are purchasing. Therefore, the act of buying an unaffordable car to impress friends fits into this concept because it is an attempt to reflect a higher social status through material possession, even if it is not a practical or affordable choice.