Reasons for Prosperity (2) (T1) Flashcards
Who did companies hire to promote advertising?
Began hiring psychologists to design campaigns and target specific groups of people.
What is an example of companies boosting their advertising to certain groups?
Lucky Strike encourage young women to smoke in public with their cigarettes as ‘torches of freedom’.
What did advertising campaigns begin to emphasise?
Slogans, brand names, celebrity endorsements and consumer aspirations.
Why was there a constant need to create demand?
Growth in industrial production required a continuous market.
Did advertising techniques work?
Yes, they began to associate products with a slogan, also believed they could not manage without the product.
How much were companies spending on advertising by 1929?
Spending $3 billion annually on advertising, 5 times more than 1914.
What bought a revolution in advertising?
The new mass media, principally cinema and radio.
What was the consumer boom financed by?
By easy credit/hire purchase
What was easy credit/hire purchase?
People would pay a deposit to secure an item and then pay the rest in regular instalments.
What was the advantage of hire purchase?
They could acquire goods before they’d paid for them.
What was the downside of hire purchase?
With instalments they had to pay more than if they’d bought them outright.
What would happen if people missed repayments?
The goods would be repossessed.
How many goods were sold on credit by 1929?
$7 billion
How many cars were sold on credit?
75%
How many major household appliances were sold on credit?
50%
