Degree

BS (Social Sciences & Liberal Arts)

Faculty / School

School of Economics and Social Sciences (SESS)

Department

Department of Social Sciences & Liberal Arts

Date of Award

Spring 2025

Date of Submission

2025-07-25

Advisor

Dr. Tehzeeb Amir

Committee

Aliya Iqbal Naqvi

Project Type

SSLA Culminating Experience

Access Type

Restricted Access

Abstract

This study investigated the manifestation of the lipstick effect among Pakistani Gen Z and Millennials during periods of financial instability. While the lipstick effect had been extensively explored in Western economies, there was limited research addressing its psychological and cultural dimensions in emerging markets. The study examined how financial insecurity influenced small luxury purchasing behaviour, focusing on the mediating roles of self-esteem and social conformity, and explored gender and generational differences in emotional coping strategies. A cross-sectional, quantitative design was employed, utilising an online survey with a final sample of 139 participants aged 18–43 years. Standardised measures assessed financial threat, retail therapy engagement, self-esteem, and social conformity. Pearson correlations and independent samples t-tests were conducted to test the hypotheses. Findings revealed that financial threat significantly lowered self-esteem and heightened social conformity, although it did not directly predict increased retail therapy behaviours. Women engaged more strongly in retail therapy than men, and Millennials exhibited greater emotional reliance on purchases, whereas Gen Z showed higher conformity-driven consumption. These patterns suggest that emotional and social factors, rather than financial constraints alone, may underlie compensatory consumption behaviours among Pakistani youth. The study contributes to the cross-cultural understanding of the lipstick effect and highlights the importance of emotionally intelligent marketing and policies that promote financial resilience and psychological well-being.

Pages

80

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