Snob Effect: Interesting Shopping Habits of People belonging to the Lower and Middle Income Group

The Snob effect, also known as dandy effect, is an economic effect that is the subject of people in the lower and middle income group.
The snob effect is one of the elements that john maynard keynes states when counting the factors that determine the tastes and preferences of the consumer. Another name for this is the dandy effect.

Keynes, who argued that classical economics as rational human or, in other words, as homo economicus, cannot actually act rationally. At this point, he stated that the consumer did not make rational decisions and that the snob effect was one of the factors that determined the tastes and preferences of the consumer.

The snob effect means that the consumer may not be able to shop in line with their own income and take care of people who live at a higher economic level, so they can consume more than their budget.
The snobbish effect is the economic / behavioral impact of middle-income people. in particular, two issues dominate this effect; economics and psychology.

The snobbish effect is that individuals belonging to the middle income class do not like their social status and go in different directions. that is, the effort to appear society. the beginning of marginalization.

Let's say an individual is an officer. that is, white collar and middle income. The individual who sees that everyone in social status is dressed from lc waikiki, does not prefer that brand because everyone in his social class prefers, but he does shopping without any rational behavior with purchasing power. so he behaves differently than his own status.

this causes firms to update their pricing policies with individuals' behavioral effects and turn to prestige pricing. so it is both economics and psychology based effect.

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