how did credit and advertising help the boom Flashcards
big question 2
example of a new electrical company that became a household name
Hoover
what was mass nationwide advertising first used for in the USA
during the war to get americans to support the war effort
what did war time propagandas do after the war
many of the advertisiers used their skills to set up agencies such as to sell cars
did they encourage americans to spend or save
spend
what did people have confidence in that encouraged the stock market boom
properity
did lots of people buy shares in companies
yes, and so got a % of profit in return
what is the credit industry
- if someone wanted or needed to buy something that they did not have money for straight away they could use credit
- called buying things on “hire purchase” (HP)
what did hire purchase (credit) mean for ordinary people
could afford to buy things that had previously been to expensive
how were people persuaded that they could afford cars
saw adverts for cars and got persuaded to buy it using the cheap HP schemes (that they paid for over many years)
how many cars were bought on credit (HP)
6/10 cars
how many radios were bought on credit (HP)
8/10 radios
what was the MAIL ORDER CATALOGUE
- a marketign tool
- ordered goods over the phone
-> paid for them over time
in what ways did hire purchase help the economy to boom
- more demand for goods meant more jobs and wages
- more people could affords to buy products, including poorer people, which increased demand
- the increase in demand meant that faster production methods were needed - which led to mass produce -> assembly lines
- business made bigger and consistent profits from guranteed payments meant they could reinvest and expand their business
what did more demand for goods mean
more jobs and wages
how did demand increase
more people could buy products because of credit
