2. 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.
3. 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.
4. 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.
5. Statement
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.
6. 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.
7. 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.
8. 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.
9. How
With the discount model, price control was passed from the makers to consumers.
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.
10. 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.
11. 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.
12. How
Consumer Demand
for Cheap Goods
Low Quality is Masked,
Encouraging Impulse
Decisions and Short-
Term Thinking
More Cheap Goods
Are Purchased
Discount Goods
Rise to Prominence
13. Effects
Consumer Demand
for Cheap Goods
Low Quality is Masked,
Encouraging Impulse
Decisions and Short-
Term 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
14. Effects
Consumer Demand
for Cheap Goods
Low Quality is Masked,
Encouraging Impulse
Decisions and Short-
Term 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
15. 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 Qua
P ri c lity
lity lity P ri c
Qua Qua e
16. Intent
ry
ch
ua
ar
Analyze Data Analyze Data
br
M
Fe
Observe Interview Develop a Prototype Observe + Interview Refine Prototype Observe +
Research
Organize Test Groups
Test Prototype Test Prototype
Find Opportunity
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.
17. 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.
18. 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.
19. ril
Intent
Ap
nalyze Data
ch
ril
ar
Ap
ta Analyze Data
M
Complete Protocol Package and Document
Refine Prototype Observe + Interview Complete Protocol Package and Document
Consumer
Businesses
Advocacy Groups
ype
Consumer
Businesses
Advocacy Groups
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.
