Lipstick effect
Economic theory
Nº Q9251472 ★★★★
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Lipstick effect
Economic theory
The lipstick effect is the hypothesis that when facing an economic crisis, consumers will be more willing to buy less costly luxury goods. The concept was publicized in 2008 when Leonard Lauder said that he noted his company's sales of lipstick rose after the 2001 terrorist attacks.
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The lipstick effect is the hypothesis that when facing an economic crisis, consumers will be more willing to buy less costly luxury goods. The concept was publicized in 2008 when Leonard Lauder said that he noted his company's sales of lipstick rose after the 2001 terrorist attacks. The lipstick index is an indicator derived from this hypothetical effect and first was used to describe increased sales of cosmetics during the early 2000s recession. Analysis and subsequent recessions have provided evidence controverting Lauder's claims, though related indices have been proposed for other cosmetics, including nail polish and mascara.
Texto: Wikipédia em inglês, CC BY-SA 4.0. · Imagem: Sjr (Public domain) ·
