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Trickle-Down Effect Definition and Example

Trickle-Down Effect Definition and Example

Trickle-Down Effect: Definition and Example

The trickle-down effect, in marketing, refers to fashion trends flowing from upper class to lower class in society.

Similarly, it may also refer to how new consumer products, when first introduced, are costly and only affordable by the wealthy. As the product matures, its price falls, making it more widely adopted by the general public.

Additionally, the trickle-down effect is a phenomenon where advertisements rapidly disseminate through word of mouth or viral marketing.

Key Takeaways:

– The trickle-down effect in marketing refers to the flow of fashion trends from upper class to lower class.

– It can also describe the process of new consumer products becoming more affordable and widely adopted over time.

– The trickle-down effect should not be confused with trickle-down theory, which focuses on tax breaks for the wealthy.

– The trickle-down effect has theoretical implications in the world of fashion, as fashion is often described as a "movement."

– In addition to the trickle-down movement, fashion can also trickle across or trickle up between different social groups.

How the Trickle-Down Effect Works:

The trickle-down effect in advertising assumes that social classes are influenced by higher social classes. Lower classes seek to imitate the fashions of higher classes to claim higher status, while higher classes create or adopt new fashion trends to differentiate themselves. This behavior leads to innovation and accelerated change.

The trickle-down effect occurs when an ad is unique, humorous, entertaining, or otherwise compelling. People are excited to share it, generating exposure for a company at a low cost within a short period.

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Social media commonly facilitates the trickle-down effect, as viral advertising can gain mass media coverage without traditional advertising costs.

History of the Trickle-Down Effect:

The trickle-down effect originates from the 19th Century with Rudolf von Jhering, who wrote about cultural diffusion. Von Jhering observed that fashion filters down from upper to lower classes. He argued that once a fashion trend is widely adopted, its value decreases, prompting the upper classes to seek new trends that lower classes will eventually adopt.

Thorstein Veblen incorporated the trickle-down effect into the theory of conspicuous consumption, which posits that luxury goods display wealth to others.

In a modern context, the trickle-down effect applies not only to classes but also to age, ethnicity, or gender.

Trickle Down vs. Trickle Across vs. Trickle Up:

The trickle-down effect has theoretical implications for fashion, as fashion spreads or "trickles" from one area of life to another. Other movements in fashion include trickle-across and trickle-up.

Trickle-down fashion describes trends accepted by the top social class that gradually become accepted by lower classes. It requires hierarchical society with a desire for upward mobility.

Trickle-across movement involves fashion trends spreading horizontally between similar social groups, facilitated by mass communication, marketing campaigns, and trend following from fashion designers.

Trickle-up fashion starts with lower-income groups and works its way up through society. Chanel supports the trickle-up pattern, creating functional and comfortable designs.

Trickle-Down Effect vs. Trickle-Down Theory:

The trickle-down effect is related to the trickle-down theory of economics, which suggests that tax breaks for the wealthy stimulate the economy. Trickle-down theory advocates for income and capital gains tax breaks for businesses, investors, and entrepreneurs to promote economic growth.

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Example of the Trickle-Down Effect:

Social media influencers, like Kim Kardashian, can set fashion trends with a single post. For instance, Kardashian’s post wearing a neon pink Yeezy dress sparked a trend that spread to runways, fashion brands, and retail outlets, leading to a significant increase in neon product sales.

Trickle-Down Effect FAQs:

– The trickle-down effect brings change to society through hierarchical influence.

– Trickle-down communication involves leaders distributing messages to direct subordinates, who then pass the information down through the organization.

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