"Consumed" Pecha Kucha Presentation

ConsumedRe-establishing quality in a discount culture

Decision based on price and short-term benefits

There is a discount culture in America. People are programmed to shop at mass retailers, wait for sales to make purchases, and find thrill in hunting down knock-offs. Consumers generally make decisions based on price and short-term benefits. However, it hasn’t always been this way. Which brings us to our project, Consumed.

Decision based on phsycial attributes and long-term value

Historically, retail originates in the bazaar culture, where there was a reciprocity between buyer and seller, so both had equal power. Consumers determined quality by examining the physical attributes of a good. Decisions were made based on the inherent long-term value of a product.

Quality Culture Discount Culture

We became interested in why there is such a difference in these two cultures and mindsets. There is a fundamental historical pattern that people are able to make decisions based on quality but many times they don’t. We believe that both quality and discount decisions are based on the same visceral responses, but the evolution of our culture has caused the discount response to prevail.

By addressing the psychological behaviors associated with consumer decision-making 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.

Statement

Discount Culture

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-price-cutting laws through a “membership only” loophole, he created the discount store model.

History

With the discount model, price control was passed from the makers to consumers. How

Take this example of milk. Two clearly differentiated products with pricing structures based on quality can coexist, until the consumer demand for higher quality product at lower cost is met.

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

HowConsumer Demandfor Cheap Goods

Consumer Falls IntoPersonal Long-Term

Spending Habits

Workers Have LessSpending Power

More Cheap GoodsAre Purchased

Low Quality is Masked,Encouraging ImpulseDecisions and Short-

Term Thinking

Discount GoodsRise to Prominence

Consumer Demandfor Cheap Goods

Consumer Falls IntoPersonal Long-Term

Spending Habits

Workers Have LessSpending Power

More Cheap GoodsAre Purchased

Low Quality is Masked,Encouraging ImpulseDecisions and Short-

Term Thinking

Discount GoodsRise to Prominence

Effects

Personal

Effects

Workers are PaidLess and Benefits

are Cut

Consumer Demandfor Cheap Goods

Consumer Falls IntoPersonal Long-Term

Spending Habits

More Cheap GoodsAre Purchased

Low Quality is Masked,Encouraging ImpulseDecisions and Short-

Term Thinking

Workers Have LessSpending Power

Discount GoodsRise to Prominence

Economic

Quality Price

Quality

Quality

Price

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.

Intent

ResearchObserve Interview

Test PrototypeTest Prototype

Develop a Prototype Complete Protocol

Analyze DataAnalyze DataAnalyze Data Febru

ary

March

April

Organize Test Groups

Find Opportunity

Package and Document

Consumer Advocacy GroupsBusinesses

Observe + Interview Observe + InterviewRefine Prototype

Intent

To begin our project, we will focus on research. This will involve observing and interviewing consumers, identifying opportunities, consulting with experts, and organizing focus groups to verify our findings. From here, we will begin developing a prototype that will encourage consumers to make decisions based on quality in real life scenarios, which will be tested and evaluated several times by a test group.

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.

Intent

ResearchObserve Interview

Test PrototypeTest Prototype

Develop a Prototype Complete Protocol

Analyze DataAnalyze DataAnalyze Data Febru

ary

March

April

Organize Test Groups

Find Opportunity

Package and Document

Consumer Advocacy GroupsBusinesses

Observe + Interview Observe + InterviewRefine PrototypeResearchObserve Interview

Test PrototypeTest Prototype

Develop a Prototype Complete Protocol

Analyze DataAnalyze DataAnalyze Data Febru

ary

March

April

Organize Test Groups

Find Opportunity

Package and Document

Consumer Advocacy GroupsBusinesses

Observe + Interview Observe + InterviewRefine Prototype

Intent

After finalizing our prototype, we will then package and document our work. Depending on the final direction of our prototype, we will collaborate with either local businesses to develop new plans and strategies or with consumer advocacy groups to help consumers to make decisions based on quality and more accurately understand the environments that retailers create to manipulate their decision process.