FROM UTILITY TO IDENTITY: SYMBOLIC CONSUMPTION AND THE CONSTRUCTION OF SELF IN ALGORITHMIC CONSUMER CULTURE

Abstract

The rise of consumerism coincided with the expansion of algorithmic decision-making in consumer purchases. Algorithm-mediated purchases are increasingly becoming the norm within digital consumer markets; the debate stems from whether these purchases provide functional utility or are part of a broader pattern of symbolism and identity formation. Accordingly, this paper aims to investigate the rise of monetized identity and self-expression within consumer markets and how algorithms perpetuate this category of identity-centric consumption. The audience most susceptible to this falls within the Gen-Z demographic given their reliance on social media channels for maintenance of digital identities and communication with peers. This paper argues that algorithmically derived recommendation systems, digital environments, and aesthetic branding reinforce identity-centric purchases over functional utility, signaling that modern economic participation as a whole will become identity-centric. This paper uses a secondary approach via triangulation, opting for sources inclusive of past studies into behavioral economics and consumer psychology. These are complimented with branding case studies of prominent companies and a subsequent analysis of consumer trend data and social media-driven commerce. Core concepts to operationalize the research include symbolic consumption, status signaling, emotional branding, and social belonging through brands. The primary purpose and relevance of this paper is to understand how digital markets reshape economic rationality and identity formation, and it did so using interdisciplinary triangulation, which proved to be viable. The paper ultimately concluded that Generation Z consumption has not transcended rational utility entirely and is still bound by it, though has an increasingly growing influence of symbolism through algorithmic recommendation systems that are designed to influence identity and create the right conditions for identity influences.