Lipstick effect: Difference between revisions
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{{Short description|Economic theory}} |
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{{Notability|date=December 2008}} |
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The '''lipstick effect''' is the theory that when facing an [[Financial crisis|economic crisis]] consumers will be more willing to buy less costly [[luxury goods]].<ref>{{cite web|url=http://www.news-journal.com/hp/content/news/stories/2009/06/24/06242009_Mary_Kay.html?imw=Y|title=Area Mary Kay employee earns 18th new car|last=Kushick|first=Maia|date=June 24, 2009|website=news-journal.com|url-status=dead|archive-url=https://web.archive.org/web/20090628191704/http://www.news-journal.com/hp/content/news/stories/2009/06/24/06242009_Mary_Kay.html?imw=Y|archive-date=June 28, 2009}}</ref> Instead of buying expensive purses and fur coats, for example, people will buy expensive cosmetics, such as high-end brands of [[lipstick]].<ref>{{cite web|url=http://everydaymoney.finance.sympatico.msn.ca/2009/04/lipstick-effect-grips-consumers.html |title=Lipstick effect grips consumers|last=Cuthbertson|first=Dawn|date=April 3, 2009 |accessdate=2009-04-05 |url-status=dead |archiveurl=https://web.archive.org/web/20090408122559/http://everydaymoney.finance.sympatico.msn.ca/2009/04/lipstick-effect-grips-consumers.html |archivedate=2009-04-08 }}</ref> The underlying assumption is that a certain portion of consumers will still buy luxury goods even during a bad economy. When consumer trust in the economy is dwindling, consumers will buy goods that have less impact on their available funds. Outside the cosmetics market, consumers might be tempted to purchase other high-end goods such as expensive beers, or smaller, less costly electronic gadgets. |
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It has been rumored that lipstick sales doubled after the [[9/11 attacks]] on the United States;<ref>{{cite web|author=<!--not stated-->|title=The lipstick as an economic indicator|url=http://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/the-lipstick-as-an-economic-indicator/articleshow/3004168.cms|date=May 2, 2008|website=economictimes.indiatimes.com|accessdate=16 December 2016}}</ref> however, other sources say this is an overstatement. In a ''[[New York Times]]'' article published May 1, 2008, [[Leonard Lauder]] is quoted as saying that he noted his company's sales of lipstick rose after the terrorist attacks;<ref>{{cite web|url=https://www.nytimes.com/2008/05/01/fashion/01SKIN.html?pagewanted=all|title=Hard Times, but Your Lips Look Great|first1=Kayleen|last1=Schaefer|date=May 1, 2008|work=The New York Times|accessdate=Apr 10, 2013}}</ref> he did not claim they doubled. Juliet Shor in her book ''The Overspent American'' talks to consumers' purchase of higher-priced, more prestigious lipsticks, specifically [[Chanel]], that are used in public, vs. lower-priced, less prestigious brands that are used in the privacy of the bathroom. |
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The '''lipstick effect''' is the theory that when facing an [[Financial crisis|economic crisis]] consumers will be more willing to buy less costly luxury goods<ref>http://www.news-journal.com/hp/content/news/stories/2009/06/24/06242009_Mary_Kay.html?imw=Y</ref>. Instead of buying expensive fur coats,getting lipo suction,sex changes, and ball reduction for example, people will buy expensive lipstick<ref>http://everydaymoney.finance.sympatico.msn.ca/2009/04/lipstick-effect-grips-consumers.html</ref>. |
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It has been rumored that lipstick sales doubled after the 9/11 attacks on the USA, {{Citation needed|date=November 2009}} however, other sources say this is an overstatement. In a New York Times article published May 1, 2008, Leonard Lauder is quoted as saying that he noted his company's sales of lipstick rose after the terrorist attacks. He did not claim they doubled. |
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The underlying assumption is that consumers will buy luxury goods even if there is a crisis. When consumer trust in the economy is dwindling, consumers will buy goods that have less impact on their available funds. Outside the cosmetics market, consumers could be tempted by expensive beer or smaller, less costly gadgets. |
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Juliet Shor in her book, The Over Spent American, talks to consumer's purchase of higher-priced, more prestigious lipsticks, specifically Chanel, that are used in public, vs. lower-priced, less prestigious brands that are used in privacy of the bathroom. |
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In a recent study by four university researchers, the effect is attributed to evolutionary psychology: "This effect is driven by women’s desire to attract mates with resources and depends on the perceived mate attraction function served by these products. In addition to showing how and why economic recessions influence women’s desire for beauty products, this research provides novel insights into women’s mating psychology, consumer behavior, and the relationship between the two. . . . Although the lipstick effect has garnered some anecdotal lore, the present research suggests that women’s spending on beauty products may be the third indicator of economic recessions—an indicator that may be rooted in our ancestral psychology"<ref>See Hill, S. E., Rodeheffer, C. D., Griskevicius, V., Durante, K., & White, A. E. (2012, May 28). Boosting Beauty in an Economic Decline: Mating, Spending, and the Lipstick Effect. ''Journal of Personality and Social Psychology,'' available at http://personal.tcu.edu/sehill/LipstickEffectMS20March2012.pdf</ref> |
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| ⚫ | ''[[The Economist]]'' tested the lipstick effect in 2009 with statistical analysis, stating that "reliable historical figures on lipstick sales are hard to find, and most lipstick believers can only point to isolated, anecdotal examples as evidence of the larger phenomenon. Data collected by Kline & Company, a market-research group, show that lipstick sales sometimes increase during times of economic distress, but have also been known to grow during periods of prosperity. In other words, there is no clear correlation."<ref>{{Cite magazine|url=https://www.economist.com/node/12995765|title=Lip reading|magazine=[[The Economist]]|date=January 22, 2009 |language=en|access-date=2018-04-30}}</ref> |
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==References== |
==References== |
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[[Category: |
[[Category:Economics effects]] |
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[[Category:Cosmetics]] |
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[[Category:Lipstick]] |
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[http://everydaymoney.finance.sympatico.msn.ca/2009/04/lipstick-effect-grips-consumers.html] |
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[[pl:Efekt szminki]] |
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[[zh:口紅效應]] |
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Latest revision as of 23:11, 30 December 2023
The lipstick effect is the theory that when facing an economic crisis consumers will be more willing to buy less costly luxury goods.[1] Instead of buying expensive purses and fur coats, for example, people will buy expensive cosmetics, such as high-end brands of lipstick.[2] The underlying assumption is that a certain portion of consumers will still buy luxury goods even during a bad economy. When consumer trust in the economy is dwindling, consumers will buy goods that have less impact on their available funds. Outside the cosmetics market, consumers might be tempted to purchase other high-end goods such as expensive beers, or smaller, less costly electronic gadgets.
It has been rumored that lipstick sales doubled after the 9/11 attacks on the United States;[3] however, other sources say this is an overstatement. In a New York Times article published May 1, 2008, Leonard Lauder is quoted as saying that he noted his company's sales of lipstick rose after the terrorist attacks;[4] he did not claim they doubled. Juliet Shor in her book The Overspent American talks to consumers' purchase of higher-priced, more prestigious lipsticks, specifically Chanel, that are used in public, vs. lower-priced, less prestigious brands that are used in the privacy of the bathroom.
The Economist tested the lipstick effect in 2009 with statistical analysis, stating that "reliable historical figures on lipstick sales are hard to find, and most lipstick believers can only point to isolated, anecdotal examples as evidence of the larger phenomenon. Data collected by Kline & Company, a market-research group, show that lipstick sales sometimes increase during times of economic distress, but have also been known to grow during periods of prosperity. In other words, there is no clear correlation."[5]
References
[edit]- ^ Kushick, Maia (June 24, 2009). "Area Mary Kay employee earns 18th new car". news-journal.com. Archived from the original on June 28, 2009.
- ^ Cuthbertson, Dawn (April 3, 2009). "Lipstick effect grips consumers". Archived from the original on 2009-04-08. Retrieved 2009-04-05.
- ^ "The lipstick as an economic indicator". economictimes.indiatimes.com. May 2, 2008. Retrieved 16 December 2016.
- ^ Schaefer, Kayleen (May 1, 2008). "Hard Times, but Your Lips Look Great". The New York Times. Retrieved Apr 10, 2013.
- ^ "Lip reading". The Economist. January 22, 2009. Retrieved 2018-04-30.