Issuu on Google+

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.

e P ri c

lity Qua

Qua lity

lity Qua

P ri c e


Observe

Organize Test Groups

Find Opportunity

ar ch Refine Prototype

Observe + Interview

Research

Test Prototype

M

br Develop a Prototype

Interview

Analyze Data

Fe

Analyze Data

ua

ry

Intent

Test Prototype

Observe +


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.


ype

ril

ril Ap

Analyze Data

M

ta

ar ch

nalyze Data

Ap

Intent

Complete Protocol Refine Prototype

Observe + Interview

Package and Document Complete Protocol

Package and Document

Businesses

Businesses

Consumer Advocacy Groups

Consumer Advocacy Groups


"Consumed" Presentation