Is it a good idea to display luxury brands and other signals of status? It depends on the situation. Studies have shown that people who appear to be wealthy tend to be considered more intelligent, disciplined, and competent than those who do not. But new research found that people believe someone who shows off their social status cares more about benefiting themselves than helping others. This means people are less willing to collaborate with them. Modesty may be key when cooperation is essential, but the researchers also found that in some cases, status signaling has advantages.
Experiments showed that participants were less likely to choose someone who signals their wealth or status to join a group seeking cooperative members. But participants were more likely to choose that person when they're looking for a competitive team member. These findings suggest that people should change how they present themselves depending on their social goal.
This is the era of social media. People can easily share their wealth and status to large audiences, but they need to consider the consequences. Posting about luxury purchases and expensive vacations online may help you to persuade others and frighten competitors, but it could also signal to potential friends or future employers that you are unlikely to think about the needs of others. This makes things tricky for people who may want to impress others while also demonstrating that they are a team player.