AbstractConspicuous consumption, the purchase, and exhibit of expensive and luxury items to signal wealth and status to others, is common in everyday life. Although conspicuous consumption seems to be exclusive to high‐status people, past research suggests that conspicuous consumption also allows people to compensate for feeling being lower in the social hierarchy. Four studies (Study 1a: N = 242; Study 1b: N = 208; Study 2, N = 242; Study 3, N = 128) examined the relationship between subjective socioeconomic status (SES) and conspicuous consumption, and the moderating role of social mobility beliefs. We found that people with low subjective SES are more likely to engage in conspicuous consumption (Studies 1a, 1b, and 2). We also provided evidence for the joint effect of subjective SES and social mobility belief on conspicuous consumption, such that low subjective SES people who perceive low social mobility are more prone to conspicuous consumption than other people (Studies 2 and 3). The findings are robust to whether subjective SES was measured (Studies 1a) or manipulated (Studies 1b, 2, and 3) and various forms of conspicuous consumption. The current research contributes to the literature on SES, conspicuous consumption, and social mobility belief. Practical implications and future directions are discussed.