Consumed Re-establishing quality in a discount culture
Decision based on price and short-term benefits
Decision based on phsycial attributes and long-term value
Quality Culture
Discount Culture
Statement
By addressing the psychological behaviors associated with consumer decisionmaking and the environments created to promote short-term thinking, design can create support for quality goods to re-emerge in the consumer goods market, resulting in improvements in personal long-term spending and the local economy.
History
Mass production resulted in retail advancements including development of the department store, the price tag and catalog shopping. A broader array of people had access to goods once reserved for the elite.
History
During the Great Depression, retailers broadcasted sales to urge spending. Consumers translated this to mean high initial mark ups. Vicious competition was brewing, but fixed prices and codes of conduct were established to save the local retailer.
History
The catalyst of our discount culture was when Eugene Ferkauf founded Korvette’s. He proved that cutting the traditional 40% markup on goods in half would make profits soar well above the loss. By circumventing anti-pricecutting laws through a “membership only” loophole, he created the discount store model.
How
With the discount model, price control was passed from the makers to consumers.
How
Retailers like Wal-Mart followed Ferkauf’s model and became the norm. They learned that they could tap into psychological behaviors associated with consumer decision-making by masking low quality with perceived value. Hence, the market became flooded with meaningless information.
How
Without the consumer being able to differentiate products, the discount visceral reaction prevailed. Quality retailers could compete for price and compromise quality, or go out of business. Consumer demand for cheaper goods had eliminated choice from the market and the discount culture emerged.
How Consumer Demand for Cheap Goods Low Quality is Masked, Encouraging Impulse Decisions and ShortTerm Thinking
More Cheap Goods Are Purchased Discount Goods Rise to Prominence
Effects
Consumer Demand for Cheap Goods Low Quality is Masked, Encouraging Impulse Decisions and ShortTerm Thinking
More Cheap Goods Are Purchased
Personal Discount Goods Rise to Prominence
Workers Have Less Spending Power
Consumer Falls Into Personal Long-Term Spending Habits
Effects
Consumer Demand for Cheap Goods Low Quality is Masked, Encouraging Impulse Decisions and ShortTerm Thinking
More Cheap Goods Are Purchased Discount Goods Rise to Prominence
Workers Have Less Spending Power
Consumer Falls Into Personal Long-Term Spending Habits
Economic Workers are Paid Less and Benefits are Cut
Intent
We hypothesize that all consumers are able to make decisions based on quality or on discount, but some people are more inclined to one reaction. We will co-design with consumers at either end of this scale to understand the environments which provoke these decisions. Using the Socratic method we will draw on the quality visceral reaction of consumers who are more inclined to purchase at a discount.
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Intent
How we differentiate quality goods from discount goods will be important to the development of our project. Some factors we have identified include functionality, durability, usefulness, responsible production, and services and support. Expert and user opinion will further inform this definition.
Intent
Our prototype is yet to be determined, but may take one of several different forms. Examples include a business classification and certification system, a product labeling system, a guide for consumers, a personal or economic barometer, or a business model, such as a co-op.
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Businesses
Businesses
Consumer Advocacy Groups
Consumer Advocacy Groups