Author and researcher Josh Kaufman writes in his book The Personal MBA that when a person is given a choice between different alternatives, they will most likely choose the option with the highest perceived status. 

High status generally means being associated with people and organizations that we think are exclusive, important, influential, or some other widely desired quality.

As Kaufman points out, this has important implications if you’re selling a product or service: 

Kaufman suggests that consciously building social signals into your offer is an effective way to increase its appeal to your target market.

For example, people want to signal to others that they’re attractive, confident, intelligent, interesting, and wealthy.

Marketing guru and public intellectual Seth Godin writes in his book This is Marketing that there is a schism in our culture based on how we measure status.

This is what domination sounds like: 

And here’s what affiliation sounds like: 

As Godin puts it: “Seeing the difference unlocks an understanding of our world, our political landscape, and how your customers might see things.”

Godin illustrates the difference using two figures from popular culture. 

Every search for the “nicest guy in Hollywood” brings up a picture of Tom Hanks. And every search on “The Godfather” gives you a picture of the fictional character Don Corleone. 

Tom Hanks cares about affiliation, and Don Corleone prioritizes domination.

Researchers Lauren McCann and Gabriel Weinberg write in their book Super Thinking that the concept of an arms race can help you avoid the trap of unproductive status-seeking. 

As McCann and Weinberg point out, an arms race is a “race between two or more countries to accumulate weapons for a potential armed conflict.”

But you can use the concept to understand any type of escalating competition. 

For example, many people go into debt trying to keep up with their social circles (or social circles they aspire to be in) by buying bigger houses, designer clothes, and fancier cars. 

This dynamic is the basis of the phrase “keeping up with the Joneses,” which comes from the name of a comic strip that followed the McGinis family. The McGinis family was obsessed with matching the lifestyle of their neighbors the Joneses.

These are all examples of arms races over status. 

But there are at least two problems with arms races: 

As an organization, avoiding an arms race means differentiating yourself from your competition, instead of pursuing a one-upmanship strategy over deals or features. One way to do this is by focusing on improving and communicating your organization’s unique value proposition.

“We inevitably feel the need for status and recognition, so let’s not deny it. Instead, let’s cultivate such status and recognition through our excellent work.”

- Author Robert Green in his book The Laws of Human Nature