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The Devil Wears Prada? Effects of Exposure to Luxury Goods on Cognition and Decision Making

Another case in example is Ferrari, which has a programme called ‘One–to–One’, where with the help of a Ferrari advisor, a customer can modify virtually every part of the car, which does no affect reliability. To bring the story a little closer to home, Viren Bhagat, a jeweller from Mumbai, who specializes in bespoke pieces, believes in the take–it–or–leave–it attitude. He believes that allowing a customer to make changes to the design destroys the uniqueness of the price. He also insists that a customer visit his office to buy the price. . | HARVARD BUSINESS SCHOOL The Devil Wears Prada Effects of Exposure to Luxury Goods on Cognition and Decision Making Roy Y.J. Chua Xi Zou Working Paper 10-034 Copyright 2009 by Roy Y.J. Chua and Xi Zou Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Running Head Effects of Luxury Goods The Devil Wears Prada Effects of Exposure to Luxury Goods on Cognition and Decision Making Roy Y.J. Chua Harvard Business School 312 Morgan Hall Boston MA 02163. Tel 617 -495-6465 Fax 617 -496-6568 Email rchua@hbs.edu Xi Zou London Business School Regent s Park London NW1 4SA United Kingdom Tel 44 0 20 7000 8904 Email czou@london.edu 1 ABSTRACT Although the concept of luxury has been widely discussed in social theories and marketing research relatively little research has directly examined the psychological consequences of exposure to luxury goods. This paper demonstrates that mere exposure to luxury goods increases individuals propensity to prioritize self-interests over others interests influencing the decisions they make. Experiment 1 found that participants primed with luxury goods were more likely than those primed with non-luxury goods to endorse business decisions that benefit themselves but could potentially harm others. Using a word recognition task Experiment 2 further demonstrates that exposure to luxury is likely to activate self-interest but not necessarily the tendency to harm others. Implications of these findings were discussed. Abstract word count 114 150 Text word count 2492 2500 Number of References 21 30 Key Words Luxury goods Cognition Decision making Self-interest