Trend and Fads Differences

1. TRENDS
AND
FADS

4. Hoverboards, loom bands, tamagochi
pets, designer coffee lattes, Candy
Crush, Pokemon Go – these are just
some of the products that became
popular in recent and not-so recent
memory.

5. Most of the time, they come as
consumer products bearing a
definite price tag, touted in
advertisements as “cool” or as the
new “in” thing.

6. According to Bikhchandani, Hirschleifer, and Welch
(1992)
Define fads as “seemingly drastic
swings in mass behavior without
obvious external stimuli.”

7. Mass behavior means a huge
following, a mob subscribing to its
use or patronage.

9. Take the example of a fax machine
as a product that can only be used
with other fax machines.

10. Facebook becomes a more valuable
social media platform not only
because more people use it, but
also because it expands the
connections one account holder
could obtain.

11. However, this only explains why
some products generate a huge
following. It still cannot explain why
some goods exit the market very
rapidly.

12. INFORMATION CASCADES
This happen when a potential
consumer or user abandons his or
her own information and defer to the
decision made by other individuals.

13. FOR EXAMPLE
A mob gathered around a food park
in the city is enough to entice a
group of newcomers to join the
crowd.

14. FINITE VARIABILITY
This happens when its
manufacturers can no longer
manipulate or introduce new
features; thus, wearing out the
interest and loyalty of its initial
market.

15. This can be true for some fads – the
product can be so limited in design
and execution and leaves no more
possibility for product innovation.

16. FOR EXAMPLE
Pokemon Go app’s popularity
declined rapidly because
developers did not introduce new
elements to keep players from
getting bored.

17. A FAD is often used
interchangeably with the word
TREND.

18. FADS
A fad is any form of behavior that is
intensely followed by a population for a
short period of time. The behavior will
rise relatively quickly and fall relatively
quickly once the perception of novelty is
gone. There are some great fads out
there!

20. TREND
A new item or a practice that
stabilizes and transforms into a
habit, a lifestyle, or an enduring
product.

22. EXAMPLES
Fidget spinners, parachute
pants, Gangnam Style. Those
are fads. Social media,
recreational marijuana, artificial
intelligence. Those are trends.

24. FACTORS
SHAPING TRENDS

25. Understanding factors that shape
trends can provide us insights into
how to predict trends, how they are
developing, and how they are
sustained.

26. HUMAN NEEDS
Humankind will instinctively tend to its
needs. Our desire to build a better world
and improve the quality of life compels us
to discover, invent, and explore new
technologies, products, services, and
skills.

27. HISTORICAL FORCES
History bears changes, upheavals,
conflicts, issues, and solutions
carried on by humankind.

28. GLOBALIZATION
The global exchange of goods and services,
including human capital. What happens in
one part of the world can easily be picked up
by the rest of the world through information
and communication technologies, such as
broadcast television and the Internet.

29. DIGITAL CONNECTIVITY/SOCIAL MEDIA
Social media, as enabled by digital
technologies, continues to expand
and grow each day. Take
FACEBOOK for example.

30. FACEBOOK
The most popular social networking site in
the Philippines. It has grown into a multi-use
environment, catering to businesses and
entrepreneurial where information circulated.

31. The platform uses specific activities
or status information to find more
people who would be interested in
the products ads.

32. It has become the go-
to platform to find out
what is currently
making news or in
Twitter speak, what is
“trending.”

33. To find what is trending, it uses the
hashtag (#) to be placed before a
word or a phrase so it will be easier
for users to find specific content.

35. A PICTURE IS
WORTH A
THOUSAND
WORDS