"Consumed" Pecha Kucha Presentation

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"Consumed" Pecha Kucha Presentation

  1. 1. Consumed Re-establishing quality in a discount culture
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.

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