Abstract
This research presents a series of studies, which show that luxury goods do neither signal power nor prestige when they are used in the context where ones status is attacked. Instead we demonstrate that showing a counter-signal, that is, the exact opposite from a luxury good (e.g. cheap and shabby clothes) can enhance a person’s perceived prestige if the signal is used as a response to when the person’s social status has been attacked. Our research helps to shed some light onto the partially conflicting findings that past research has been revealed about contents of signaling of luxury good.