| Pub. Date | : | June, 2021 |
|---|---|---|
| Product Name | : | The IUP Journal of Brand Management |
| Product Type | : | Article |
| Product Code | : | IJBRM50621 |
| Author Name | : | Gerd Nufer |
| Availability | : | YES |
| Subject/Domain | : | Marketing |
| Download Format | : | PDF Format |
| No. of Pages | : | 4 |
It has always been interesting for scientists to look at economic indicators in order to explain current economic developments and to forecast a boom or a recession. In addition to classic, hard economic indicators such as the Gross National Product or the Ifo index, there are also a number of psychological and soft indicators that economists consult. The lipstick effect is one of these psychological indicators. The paper introduces the lipstick effect, explains the causes behind the phenomenon, shows the connection to brand management and provides references to the current Corona pandemic.
The Phenomenon Lipstick Effect
The lipstick effect states that an uncertain
economic environment causes women to
demand more products that increase their
attractiveness (McKeachie, 1952; and
Hagen, 2016).
The high-heels effect works in a similar
way: shoe heels become higher as soon as
the economy falters (Wolking, 2017).
The lipstick effect phenomenon has
been observed worldwide for almost 100
years (Nelson, 2001; and Hill et al., 2012):
The first time the lipstick effect was
investigated was between 1930 and 1933
during the Great Depression. At that time,
six million Germans were out of work at