galbraith claims in advanced market societies, many consumers wants are 'created by firms and thus artificial.

Question

what theory is galbraith rejecting?

Answer 1

The theory that you need a drink and a toy with your processed sodium patty in order to make a meal that you are happy about

Sageandscholar asserts that the addition of a soda and a toy adds value to a happy meal. The soda is the most inflated item in the meal, add ice and its almost entirely profit. My main point centers on the toy. The toys are tied into to multi tiered marketing approaches. The majority of them are cartoon movie related. Most current animated features are extended commercials for the product splash that accompanies them. When is the last time you needed, really needed a $12 plastic talking backpack that is too small to carry anything in, has non functional straps, but sings song snippets when you push the smiley shaped mouth button? A recent toy in the happy meal family were Hummers. Product placement? Food is a need, but is fast food a need? I would argue that a sandwich with 2 days worth of sodium and three days worth of transfat is a 'created, artificial need'. I'm lovin it - check out the imagery used in the advertising - Compare the body shape of the people in the commercials with the body shape of the people you see waiting in line for their combo meal. Real need? Get real.

Answer 2

He is rejecting the traditional assumptions regarding the theory of consumer demand.

In partucular, he is saying that consumers do not have a fixed set of wants -- each want giving the consumer a certain amount of value or happiness. Instead, firms convince us that there are products that we want but did know about until their marketing blitzes showed us otherwise.

Answer 3

Good answer from Allan - not sure I agree about the toy with the drink - this is just adding value.
But a good example of Allan's concept is Hallmark. They are constantly bringing out new cards for new events or holidays, ones we did not traditionally give cards for. Now we find ourselves buying cards for every event imaginable because it is expected of us. Without Hallmark we wouldn't miss this product at all.