Advertising, Stock Market and Credit Flashcards
What did mass produced products become the foundation of?
An enormous boom in consumer goods
What happened to the prices of telephones, radios, vacuum cleaners and washing machines as they were mass produced on a vast scale?
They were cheaper
More people could buy them
Example of a household electrical company
Hoover
What proposed the latest, most efficient techniques?
The Industrial Efficiency Movement
What techniques were used by big industries to get people to buy their goods?
Sophisticated sales
Marketing techniques
What had first been used during the war to get America to support war effort?
Mass nationwide advertising
Where had many advertisers learned advertising techniques?
War time techniques
What agencies did many advertisers set up?
Consumer items-
Cars
Cigarettes
Clothing
What advertisements encouraged Americans to spend?
Posters
Radio
Travelling salesmen
What could people do if they didn’t have the money to spend?
Borrow it easily
Buy now pay later hire schemes/ buying on credit
What encouraged the stock market boom?
Confidence that prosperity would continue
How did people gain a percentage of a company?
Bought shares in companies and gained percentage of profits
How did companies invest and expand more?
Many people bought shares in the mid 20s and this put up their price
When did people buying shares stop working in favour of the investors and companies?
When people started selling shares for large profits
How could people previously borrow money?
If they were well off or if they pawned items in pawn shops
What was buying things on the never never or hire purchase?
Putting down a small deposit and paying the rest off over time
How many cars and radios were bought using hire purchase?
6/10 cars
8/10 radios
How did the mail order catalogue (eg sears roebuck) work?
Ordered goods on the phone and they were delivered
Paid in instalments over weeks months or years
How is hire purchase help the economy?
- More demands for goods meant more jobs and wages
- People could afford to buy products increasing demand
- Increase in demand meant faster production methods were needed so companies had to mass produce leader to wider use of assembly lines
- Businesses made bigger and consistent profits from guaranteed payments which meant they could reinvest and expand businesses
How much did female employment increase by during the boom? What did this mean?
24%
More people were earning money which could be spent on goods or invested in savings schemes for radios or cars
In 1920, how many owned shares? How many times did this increase by in 1929?
4 million
5 times as many by 1929
What deposit did people pay to buy shares?
10%
What was ‘buying on the margin’?
Borrowing money from banks to buy shares or paying a small deposit of 10%
Paying the remaining amount back with the profits they made when the shares were sold
