Identity Threat and Compensatory Consumption: Psychological Mechanisms in Consumer Behavior

DOI

10.2991/978-94-6239-642-5_109How to use a DOI?

Keywords

Identity Threat; Compensatory Consumption; Counterfeit Goods; Consumer Psychology

Abstract

In contemporary consumer societies, consumption has transcended mere material exchange to become a vital avenue for individual identity construction and psychological compensation. This paper centres on the concept of ‘identity threat and compensatory consumption’, systematically reviewing recent research developments and analysing the phenomenon through the lens of counterfeit luxury goods. Findings reveal: Firstly, identity threats (such as power deficits or social exclusion) significantly heighten individuals’ preference for symbolic goods, though their outward manifestations vary across cultural contexts. In collectivist societies, conspicuously branded luxury items are often perceived as status symbols, whereas in cultures emphasising equality and restraint, they may be viewed as ‘ostentatious displays’. Secondly, compensatory consumption is not a singular response but the interplay of multiple psychological mechanisms: social comparison and self-esteem restoration act as driving forces (GO signals), while implicit theories, personality traits, and self-control exert moderating or inhibitory effects (STOP signals). Counterfeit goods exemplify this duality: while offering marginalised groups symbolic belonging and transient solace, they simultaneously entail reputational risks and ethical dilemmas that exacerbate identity anxieties. Finally, this paper argues that interventions targeting compensatory consumption should extend beyond products and markets to encompass education, psychological counselling, and institutional regulation, thereby offering more constructive coping mechanisms. Future research should deepen its exploration through cross-cultural comparisons, longitudinal tracking, and digital consumption environments to uncover the dynamic mechanisms of compensatory consumption. This will provide theoretical underpinnings and practical insights for brand strategies, consumer education, and public governance.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xibei Wen
PY  - 2026
DA  - 2026/04/29
TI  - Identity Threat and Compensatory Consumption: Psychological Mechanisms in Consumer Behavior
BT  - Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
PB  - Atlantis Press
SP  - 1033
EP  - 1043
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-642-5_109
DO  - 10.2991/978-94-6239-642-5_109
ID  - Wen2026
ER  -