hueyblog

(Blog entry for Oct 21, 2010. Linked to SunnytheBright’s Post)

Economist, Kenneth Galbraith argues that businesses create artificial wants in consumers through advertising, and that these needs are satisfied through increasing consumption. Consumers are unlikely to have all their desires satisfied for long, as the economy continually produces new output and accompanying wants. Galbraith named this phenomenon “The Dependence Effect” and implies an unending and possibly very bad stream of unsatisfied wants.

In Sunny The Bright’s post, “the things you own end up owning you”, Sunny accuses advertising practices for convincing consumers that they NEED certain products and that advertising can make everyone a “drone” told what to buy. Sunny’s claim seems to mirror some of the workings of the Dependence Effect, a theory with which I don’t fully agree.

I see advertisements as vehicles delivering necessary information for purchase decisions. The presentation of this information can be entertaining in an effort to persuade the customer to buy the product. But there is no evidence that advertisements can control and tell consumers what they NEED or MUST buy. From personal experience, I may find a commercial entertaining or a magazine ad very engaging, but after the critical muscles kick in I know what I really do need-my autonomy is intact.

Teenagers, however, are likely impressionable as they are still growing and accumulating life experiences to make appropriate purchases. Entertaining advertisements may more easily persuade them to buy certain junk food products for instance. And harmful social influences are likely to recruit them into drug usage. Quite reasonably, youth are a vulnerable group to good or bad advertising when they don’t have the critical thinking skills to protect them nor the knowledge to know what’s really good for them.

The Dependence Effect could work especially well for pleasure seekers or materialists who have the income and the time to search for products and potential needs to fulfill. Referencing Maslowe’s Hierarchy, these individuals actively pursue satisfaction of higher order needs and may find or create within themselves, additional higher order needs to fulfill: for example, one may have never used an adult toy; but after much pleasure, one may investigate and look for new innovative models compatible with various parts of the body-this is an illustration of the personal search for hidden sexual wants waiting to be discovered. Advertising, while operating through the Dependence Effect, will introduce these potential sexual wants which may then be satisfied by the promoted item.

The Dependence Effect, however, would not work on critical, and thrift individuals such as myself: I don’t wear the latest trends or have a cell phone. My purchases are based on smart evaluations of my needs. To me, advertising is only a fancy means of helping me decide.

It would be inaccurate to call everyone a drone who gives into marketing-a sweeping generalization that cannot apply to all individuals. Since individuals’ consumer behaviour will be moderated by their values, perceptions and attitudes, each one is  more or less prone to advertising tactics. But in the end, their choices are ultimately their own.



I regularly watch online news for current updates of happenings in our city. And recently, I’ve wondered how news media influences consumer decision making from a marketing perspective.  CTV News has an online section called “Olsen on Your Side” in which the reporter, Olsen, investigates the merits of a specific product: he interviews experts, refers to recent studies, quotes consumer report findings and personally tests products to make an overall assessment. As a consumer looking for fast and reliable information, I personally find Olsen’s reports very informative and relevant; a month ago, I learned of a Dell Printer that saves costs in the long term by providing the best prints with the least amount of ink and that cartridges can be refilled. Another story explored air filter devices, revealing that the most expensive brand was outperformed by a less expensive one. It’s easy to see how handy this information could be for someone looking for a product covered in his reports. From a marketing standpoint, Olsen’s Reports on specific products will modulate consumer purchases by providing facts and expert opinions. In the case of printers or air filters, a most trusted product line (or brand) may no longer be reliable, replaced by a more cost effective and functionally superior one.

Another section of CTV News that I enjoy watching is the Health Section. Within, Dr. Rhonda Low covers the latest scientific findings on drugs, non-prescription remedies, and special treatments. (Here is the link to her page: http://www.ctvbc.ctv.ca/drrhonda/ ) Under the “Prescription drugs” story, for example, Dr. Low talks about a new social trend that has recently emerged in the U.S. States: That teenagers were abusing prescription drugs, namely anti-depressants and painkillers by ingesting them from their parent’s medicine cabinets. News coverage prompted authorities to set up local programs which created drop off depots for parents to safely (from environmental contamination) discard their old drugs. More importantly, it brought social awareness. As another example, the “Supplement Pills” story introduces herbal remedies that have been proven by recent studies to be effective to work against anxiety. Passion Flower, Kava and L-Arginine are some of these remedies. As new product information is brought to the attention of consumers, consumers become more knowledgeable about options and purchase the appropriate products accordingly. Perhaps anxiety sufferers will start to purchase passion flower containing supplements increasing certain product sales.

Another story I’d like to discuss relates to consumer protection: http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20100927/bc_ctv_investigates_the_cure_3_100927/20100930?hub=BritishColumbiaHome

Briefly, this report is about an alternative health practitioner who claims to have herbal pills that cure cancer. The practitioner labels herself as a “Natural Health Doctor”, a designation that is currently unregulated by the statutes. This report is a good example of how the news media can serve to warn consumers of unscrupulous business practices. Natural health practitioners should receive a drop in business following this report.

On the topic of alternative medicine, I’d like to share a personal story. A friend of mine, “Jill”, had a gum/tooth problem and consulted a “Naturopath”. (Note: Naturopaths are approved and regulated in B.C.) The naturopath recommended injections into Jill’s gums; injections that were a mix of vitamins, minerals and some stem cells that would promote reattachment of teeth. These injections would be several and would range $9000 plus. I told Jill not to place too much trust into her naturopath and that she needed at least a second opinion before spending such a large sum. I also reasoned that if she had a rotten tooth, it would not make sense  to reattach her tooth; instead it should be pulled out. Fortunately, after much periodic discussion with Jill, she took my advice and went to see a periodontist. Jill did have a rotten tooth that needed to be taken out. In the end, a specialist had solved Jill’s problem and money was not wasted on an opportunistic “service provider.”

Jill’s story reminds me of what Tamar said in class: That the more financial, or psychological risk that a consumer faces, the longer the search for product or service information becomes. Consumers who become heavily trusting and reliant on a health care practitioner would likely  tend to become less critical and readily accepting to wrong advice. As an impartial observer, I gave quality advice that aided the consumer decision process that Jill implicitly went through. Being knowledgeable reduces overall risk and increases the chance of finding the right product solution.

News reports not only deliver current information on the quality and safety of consumer products (as in Olsen’s reports), but they also contribute to the macro environmental factors of marketing. In general, Rhonda Low’s reports commonly touch on drug safety and lab test results which prompt regulatory bodies to enact laws to regulate the distribution and sale of specific drugs. In this way, news coverage contributes to the “political/regulatory” factor- the last letter of C.D.S.T.E.P in marketing’s situational analysis.

Ever heard of a catchy tune on TV or in a movie?; One that instantly hit the spot and made you wish you had known its name? You’d likely then conduct a search online, typing in the lyrics onto YouTube or a search engine and hope the lyrics are matched to a song. Well on many occasions, this has happened to me. Through chance, I’ve learned about many great musicians and collected a hefty number of songs. When I was watching a hilarious movie, I came across a song which became one of my favorites (It plays partway through this clip: https://www.youtube.com/watch?v=EGmxNNf7-2U&feature=related)

Here, Haddaway’s Song is used as Roxbury’s theme. Why is this song so catchy and memorable? Besides being a great tune, I think the movie itself is a key factor. A good (or crappy) movie serves as “context” that creates a strong memory link.

Movies are excellent promotional vehicles as they are exposed to millions of potential viewers. To this effect, covert advertising is commonly used; it involves having a product and brand logo clearly shown in a screenplay. In Mission Impossible, Tom Cruise talks into a Nokia Phone during a tense scene. In Who Framed Roger Rabbit, Busty Jessica puffs one from a pack of Camel. We are likely the most cognizant of advertisements that make the most impact. In movies, the “advertisement” is not static as in a magazine; instead, it is a dynamic one.

Now, I wouldn’t say that movie theme songs are promoted by covert advertising. Rather, these theme songs are promoted only as a by-product of how effective movies can be as advertising media. I’d like to call these  instances of “unintentional advertising.”