Abstract
Global crises, from pandemics to geopolitical instability, intensify societal anxiety. Paradoxically, these periods of collective threat often witness surges in luxury consumption. Drawing on Terror Management Theory (TMT), we propose this behavior is a psychological response to the deindividuating nature of such threats. We argue that a collective crisis increases intentions to purchase luxury goods via an intensified need for uniqueness, which functions as a self-affirming mechanism against a threatened sense of personal identity. We test this model using the COVID-19 pandemic as a salient operationalization of a collective threat. We further propose that this effect is counterintuitively moderated by independent self-construal. Findings from an experimental study (N = 276) show that perceived crisis risk increases luxury purchase intention, and this effect is serially mediated by the need for uniqueness. Critically, this indirect effect is strongest for individuals low in independent self-construal, who are prompted to engage in compensatory uniqueness-seeking when their primary buffer of social connection is disrupted. Our findings contribute to consumer behavior research by identifying a novel psychological pathway linking collective threats to consumption and offer insights for brands navigating consumer behavior during periods of widespread uncertainty.