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By Neil Hopper Borden

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Technological Development and Fashion as Demand Influences There are two forces so vital in changing living habits and consump­ tion attitudes that they should be pointed out. They are invention, or technological development, and fashion. The effect of these upon the business of a manufacturer may be direct and relatively quick, as is illus­ trated in the case of clothing, where fashion swings bring shifts in de­ mand for particular textiles; or, as in the case of the safety razor, where in a relatively few years there was a considerable shift from the old, straight-edge razor to the safety type.

Advertising creates needs only in the sense that it makes consumers aware that a product offers a satisfactory solu25 Digitized by Google Original from UNIVERSITY OF MICHIGAN 26 • ADVERTISING: TEXT AND CASES tion to a need. Often, particularly in the case of new products, con­ sumers are unaware that the products will fill certain needs or desires. Advertising serves to let them know what the product will do for them, but the latent desires or needs must be present. A great proportion of new inventions are doomed to oblivion.

Consumption Expenditures The greatest limiting factor on the demand for many wantable prod­ ucts is the number of dollars which family units have to spend. The greater the income of a family, after taxes, the more are the dollars available for discretionary spending, after caring for the necessities. Ac­ cordingly, in studying opportunities to influence demand for products, it is helpful not only to know the distribution of families and individ­ uals among income groups, such as is given in Exhibit 4, but also to know how these families spend their dollars among various classes of goods and services.

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Advertising, text and cases by Neil Hopper Borden

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