Management and Organizational Studies 3321F/G Study Guide - Midterm Guide: Psychologies, Zeitgeist, Gender Role

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MIT 2306G Midterm # 1 Review
UNIT ONE: Manipulating the Market: An Introduction
Week 1 - The Story of Stuff and Mad Men’s Plantation Capitalism
Consumerism is zeitgeist of our culture
We have moved away from making things personally to purchasing personally
Consumerism stems from the fear of society
Industrial Revolution = Ford‟s assembly line, department stores are modeled off faith of
consumerism
We are trained to desire, it is our duty to buy
Raymond and Fatcher say that Greed is good (for capitalism) success is measured by material
9/11 - George Bush “stimulate the economy”
Annie Leonard - The Story of Stuff
Are there flaws to her argument? Strong points?
Planned obsolescence - Coffee cups etc, we will throw it out and buy another one
Designed to make stuff break, but consumer has enough faith to buy again.
Things are made so that they will eventually be thrown out.
Perceived obsolescence - Change the design so people know its not new, for
example an iphone or fashion in general. Convinces us to throw away stuff that is still
perfectly useful just so we can have the next best thing.
We have more „stuff‟ but our happiness is declining because we have less leisure time
Can be seen as a form of propaganda Our national happiness is declining because
we are working harder than ever but have no time for things that make us truly happy.
We watch tv and shop activities that are not truly fulfilling
Purac’s Definitions
Planned obsolescence
A material condition
Perceived obsolescence
A psychological condition
Consumer Capitalism
Consumer demand deliberately manipulated through mass-making
Victor Lebow - “Price Competition in 1955”
Consumption is way of life
Plantation Capitalism
Master/Slave dynamic
Few maintain power become wealthy at expense of the masses
Mad Men
Culture that has raised consumerism to the height of spirituality
The “Man Men” are privileged position to tell culture what they should want and buy
Advertising becomes a corporate outlet for creativity - business of lying”
Leading sheep the the slaughter house”
Rejects the women frued person, campbell says use this to our advantage
But Draper knows the consumer wants distraction and comfort - happiness is freedom
from fear
Pathos - playing on persuasive appeals on emotions - objects linked to emotion.
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Week 2 - Bernays, Market Manipulation, and the Psychology of Shopping Readings:
Gladwell’s “The Science of Shopping”
The Psychology of Shopping
Psychology is at the centre of consumerism and consumer culture
100 years ago Freud found the psychoanalytic school of thought
o Mind is built up of the id, ego, superego central idea to the market
o Id is governed by the pleasure principal (animal instinct and impulses)
o Superego is the moral principal of the mind when the id comes up with an
impulse the superego counterbalances the impulse
o Ego is the moderator between the id and the superego
o Id and Superego = unconscious
o Ego = conscious
o Freud believes we have dangerous instinctual desires hidden inside of us, they
are our „animal past‟
Presented it to the Vietnamese and they thought it was rubbish, until he proved his
theory correct through WWI
First mechanized war created horror that had never been seen before
o Forced a major redefinition of life
o Savage and archaic forces could be released if socially acceptable (under the
conditions of war)
o Humanity itself is believed to be civilized, but in WWI the savage aggressive
behaviour was released
o This confirmed Freud‟s beliefs
His ideas have been taken and adopted by the world of marketing
The split between the conscious and unconscious mind
Freud‟s nephew Edward Bernays (1891-1995) took these ideas to the marketplace
Father of PR
o Crystallizing Public Opinion (1923)
o You must understand how people think in order to predict their behaviour
o His idea was to influence the masses without them knowing they‟re being
influenced
Wilson persuaded the American populace that war was a good idea and that they
should enter war
Bernays was a member of the American pro-WW1 campaign
Played upon the emotions of the people through a slogan “make the world safe for
democracy”
o Selling the idea that Wilson is a hero who is going to bring an American
democracy to Europe
o People started to see him as a hero in the war - reconfigured himself as a
liberator of the people
o People were subject to influence what about influencing them in times of
peace??
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Influence the masses without their knowledge
Propaganda has proven that this is possible, up to a certain point with certain limits
Bernays looked for things that appeal to rational emotions
It was believed that factual information is the best way to convince people
Bernays decides to appeal to the emotions instead
Tobacco company came to Bernays had a problem that cigarettes were socially
unacceptable for women to smoke in public, figure out a way to make it acceptable so
we can make profit with both genders
Bernays said to connect the cigarette with the idea that women are challenging men by
smoking in public because the cigarette is symbolic for a penis (women has her own
penis?)
“Torches of Freedom”
New York Socialites start smoking their cigarettes in public this made smoking for
women socially acceptable (social figures people wished to emulate)
Smoking was linked to the idea of female liberation
People began to light up in solidarity
Doesn‟t actually make you more independent, but you feel more independent
You can persuade people to behave irrationally if you link products to emotional desire
Age old belief that smoking was not acceptable was broken through this psychological
appeal
“An ancient prejudice has been removed”
Its about linking products to unconscious desires Bernays was the one who realized
you sell to feelings and engage emotionally with customers
“I think I‟ll feel better if I buy this”
Early products advertised as necessities
o Ex. O‟sullivans Heels of New Rubber
o Made a connection between rubber heels and health
o Peter‟s Milk Chocolate – “A Vacation Necessity”
Shift from necessity to desire
“Happiness is the smell of a new car” - you desire it, rather than need it
“Eat more milk” – chocolate, Cadbury playboy bunny (chocolate placed with sexual
desire)
How do we appeal to the masses based on emotion rather than logic?
Modern techniques of mass-consumer persuasion
o i.e. celebrity endorsement
Bernays recognized how systematically you can endorse products through celebrities
If we link the product with individuals we desire we are more likely to purchase the
products
Bernays used this idea to further political agendas as well
o Calvin Coolech?? Reputation as being boring, how do you sell him to the
public?
o Bernays linked Coolech to celebrities
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Document Summary

Week 1 - the story of stuff and mad men"s plantation capitalism. We have moved away from making things personally to purchasing personally. Consumerism stems from the fear of society. Industrial revolution = ford s assembly line, department stores are modeled off faith of consumerism. We are trained to desire, it is our duty to buy. Raymond and fatcher say that greed is good (for capitalism) success is measured by material. Annie leonard - the story of stuff. Planned obsolescence - coffee cups etc, we will throw it out and buy another one. Designed to make stuff break, but consumer has enough faith to buy again. Things are made so that they will eventually be thrown out. Perceived obsolescence - change the design so people know its not new, for example an iphone or fashion in general. Convinces us to throw away stuff that is still perfectly useful just so we can have the next best thing.

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