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Abstract

In this research, we propose and show that the perception of economic mobility plays an important role in individuals’ minds and decisions. While most of the previous literature on economic mobility focused on quantifying the degree of mobility present within a society and examining its socioeconomic ramifications, we extend prior research by taking a psychological approach and examining the psychological consequences of the perception of economic mobility. Specifically, in a series of three studies, we propose and demonstrate that those who perceive economic mobility within their societies to be high (vs. low) would perceive their current social status to be higher. In doing so, we argue that individuals’ hope and the subsequent perception of psychological distance to the upper levels of the socioeconomic ladder serially mediate this relationship. We further propose that such perception of economic mobility would influence the degree to which individuals identify with brands that differ on the social status dimension and also the purchase likelihood for those brands.