9.3 Consumer Culture and Mass Marketing

The rise of consumer culture in the early 20th century transformed American society. Fueled by mass production and clever marketing, people began buying more goods than ever before. This shift reshaped social values, emphasizing material possessions as markers of success and status.

Mass marketing strategies emerged to create demand for new products. Companies used national advertising campaigns, psychological techniques, and new media platforms like radio to reach consumers. Credit and installment buying made expensive items more accessible, further boosting consumer spending and economic growth.

Rise of Consumer Culture

Emergence and Drivers

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• Consumer culture emerged in the late 19th and early 20th centuries driven by industrialization, urbanization, and rising disposable incomes
• Concept of conspicuous consumption introduced by Thorstein Veblen described the use of goods and services to display social status and wealth
  • Examples of conspicuous consumption included luxury cars (Cadillac) and designer clothing (Chanel)
• Department stores played a crucial role in promoting consumer culture by offering a wide variety of goods in one location
  • Major department stores included Macy's, Marshall Field's, and Bloomingdale's
• Advent of mail-order catalogs expanded consumer culture to rural areas and small towns
  • Sears, Roebuck and Company catalog became known as the "Consumer's Bible"
  • Montgomery Ward also gained popularity with its mail-order business

Mass Production and Accessibility

• Mass production techniques made consumer goods more affordable and accessible to a broader segment of the population
  • Henry Ford's assembly line revolutionized automobile manufacturing
  • Ford's Model T price dropped from $850 in 1908 to$300 in 1924 due to efficiency gains
• Rise of consumer culture led to changes in social values emphasizing materialism and pursuit of the "American Dream" through consumption
  • Ownership of household appliances (refrigerators, washing machines) became symbols of middle-class success
• Consumer culture influenced gender roles particularly for women who became primary targets of marketing efforts
  • Women often portrayed as household's primary consumers in advertisements
  • Products like vacuum cleaners and electric irons marketed as liberating women from household drudgery

Mass Marketing Strategies

Emergence of National Brands

• Mass marketing emerged as a response to the need to create demand for mass-produced goods and services in the early 20th century
• Advent of national brands necessitated new marketing strategies to build brand recognition and loyalty
  • Coca-Cola became one of the first nationally recognized brands through aggressive advertising
  • Kellogg's cornflakes transformed breakfast habits through national marketing campaigns
• Use of market research and consumer surveys became prevalent allowing companies to tailor products and marketing messages to specific demographics
  • George Gallup pioneered scientific polling techniques for market research
  • A.C. Nielsen Company developed methods for measuring radio and later television audience sizes

Psychological Techniques and Media Platforms

• Psychological techniques in advertising focused on appealing to consumers' emotions and subconscious desires
  • Edward Bernays, known as the "father of public relations," applied Freudian psychology to advertising
  • Advertisers used fear appeals to promote products (Listerine mouthwash to combat "halitosis")
• Rise of radio and later television as mass media platforms revolutionized advertising by providing new channels to reach large audiences simultaneously
  • Radio soap operas sponsored by consumer goods companies (Procter & Gamble)
  • Television commercials became a powerful medium for product promotion (1950s Marlboro Man campaign)
• Billboard advertising and product placement in movies became popular techniques to increase brand visibility
  • Burma-Shave's roadside rhyming signs became a cultural phenomenon
  • Coca-Cola's product placement in films dates back to the 1930s

Targeted Marketing Strategies

• Development of marketing segmentation strategies allowed companies to target specific consumer groups
  • Demographic segmentation based on age, gender, income (Gerber baby food for new parents)
  • Psychographic segmentation based on lifestyle and values (Volkswagen's "Think Small" campaign targeting non-conformists)
  • Behavioral segmentation based on purchasing habits and brand loyalty (frequent flyer programs for airlines)

Credit and Consumer Spending

Installment Buying and Credit Cards

• Widespread adoption of credit and installment buying in the early 20th century made expensive consumer goods more accessible to the middle class
• Installment buying pioneered by companies allowed consumers to purchase goods through regular payments over time
  • Singer Sewing Machine Company offered installment plans as early as the 1850s
  • General Motors Acceptance Corporation (GMAC) popularized auto financing in the 1920s
• Introduction of credit cards in the 1950s further facilitated consumer spending and changed purchasing habits
  • Diners Club launched the first universal credit card in 1950
  • American Express introduced its first credit card in 1958

Financial Industry Growth and Regulations

• Expansion of consumer credit led to the growth of the finance industry
  • Development of credit reporting agencies (Equifax founded in 1899)
  • Creation of credit scoring systems (FICO score introduced in 1989)
• Credit and installment buying contributed to the economic boom of the 1920s by increasing consumer purchasing power
  • Sales of durable goods like automobiles and household appliances soared
• Government regulations enacted to protect consumers and ensure transparency in credit transactions
  • Truth in Lending Act of 1968 required clear disclosure of credit terms
  • Fair Credit Reporting Act of 1970 regulated the collection and use of consumer credit information

Economic Impact and Risks

• Reliance on credit and installment buying created new financial risks for consumers
  • Potential for overindebtedness and financial instability
  • Credit-fueled spending contributed to the stock market crash of 1929 and subsequent Great Depression
• Consumer credit facilitated the post-World War II economic expansion
  • GI Bill provided low-interest mortgages to returning veterans, boosting homeownership
  • Revolving credit accounts like department store charge cards became popular in the 1950s and 1960s

Social Impact of Consumer Culture

Shifting Values and National Identity

• Consumer culture led to a shift in social values emphasizing material possessions as indicators of success and personal fulfillment
  • "Keeping up with the Joneses" mentality emerged in suburban neighborhoods
• Consumer culture played a role in shaping national identity with certain products becoming symbols of American culture
  • Coca-Cola as a symbol of American capitalism during the Cold War
  • Blue jeans (Levi's) representing American casual style globally
• Growth of consumer culture contributed to the homogenization of American society
  • Mass-produced goods became widely available across different regions
  • National chain stores (Woolworth's, A&P) offered similar products nationwide

Youth Culture and Social Mobility

• Consumerism influenced the development of youth culture with teenagers becoming a distinct consumer demographic
  • Rock and roll music industry targeted teens (45 rpm records, transistor radios)
  • Fashion trends like poodle skirts and leather jackets marketed specifically to teenagers
• Consumer culture impacted social mobility as access to consumer goods became a marker of middle-class status
  • Ownership of a television set signified middle-class achievement in the 1950s
  • Suburban home ownership represented the attainment of the American Dream

Cultural Critiques and Urban Development

• Expansion of consumer culture led to critiques of materialism and concerns about environmental sustainability
  • Vance Packard's "The Hidden Persuaders" (1957) criticized manipulative advertising techniques
  • Rachel Carson's "Silent Spring" (1962) raised awareness about the environmental impact of consumerism
• Growth of consumer culture influenced urban planning and architecture
  • Development of shopping malls (Southdale Center, first enclosed mall, opened in 1956)
  • Suburban retail centers and strip malls reshaped community landscapes
• Consumer culture gave rise to counter-cultural movements
  • Beat Generation of the 1950s rejected materialistic values
  • 1960s hippie movement embraced alternative lifestyles and anti-consumerist attitudes