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Unformatted text preview: January 23 Marketing is a cause of American’s spending binge? • Increasing personal debt • The euro is lowering the spending power of the dollar, yet Americans are spending more & saving less • Is it due to greed, success or innovative marketing? • Luxury SUVs, expensive homes, leisure travel, phones, & expensive jewelry • The typical American carries over $6,000 in debt, & as high as $25,000 • Americans spend money on things that make them feel good: o Footwear ($400-$800) o iPhone ($600) o pet care ($80/month) o home entertainment centers & accessories ($3,000+ plasma & LCD tvs) Advertising is everywhere: • Billboards, tv, radio • Internet • Public transportation (busses, cabs, planes) Does marketing cause impulse purchases? • 50% of the earned income is going to 20% of the population or 3.5 trillion in the hands of 23 million • Only 20% of the households are married couples with children (a drop of 50% since 1960) Increasing spending ability: • $3.00 for a cup of Starbucks coffee & less than $0.10 if made at home • $40,000 entry level E-class Mercedes commonplace • Consumer credit is up 5% over last year: the assumption being…”if I can’t pay for it today, then I probably can tomorrow” FILM: BURTON SNOWBOARDS...
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This note was uploaded on 04/22/2009 for the course MKT 320F taught by Professor Miller during the Spring '08 term at University of Texas.
- Spring '08