Oct 27, 2015

Black (Hat) Friday -desire & steering markets

Instrumental vs. terminal desires

In general, terminal desires are generated by our emotions, whereas instrumental desires are generated by our intellect.

The desire that eventually prevails is often the one that is at the limit of our understanding.

Markets prey on terminal desire.

Market forces influence desire and use all means necessary to drive sentiment, politics, behavior and finally your wallet.

‘If thou wilt make a man happy, add not unto his riches but take away from his desires.’ Epicurus

Red vs. Black

Celebrated on the Friday after Thanksgiving in the USA(and has crept into other countries as well), Black Friday marks the last stretch of the year and the beginning of the holiday shopping season that could provide retailers the opportunity to move from a deficit (red) to profits(black). Back in the 1960s this color-coding term was coined because accounting was done sans computer, profits and losses were inked in ‘the books’. Since then this Black Friday has gained exponential popularity particularly shooting up around 2000s. No doubt due to technological advances in connectedness and Big Data mining the retail commerce-machine began their campaign using the latest marketing, psychology and social engineering available at that time to motivate the masses into their bright fluorescent lit big boxes.

Preying on our desire, our biological sense of survival for existence and fear of scarcity -with a dash of status anxiety,retailers have -as they are supposed to do, volleyed to increased sales.Unfortunately, the target of these marketing campaigns is directed at the middle to lower income people that make up the lion’s share of our population.You won’t find a lot of rich people standing in line at 4am to buy (filling the blank).

This also provides retailers the opportunity to clear their shelves of the old and make room for the new year’s stock and answer to their shareholders.

Absinthe vs. Wine

It is said, Absinthe’s rise to popularity occurred due directly to the Great Wine Blight of the mid-19th century that devastated the most of the vineyards of France. Wine became a precious commodity that only the well heeled could afford.

Enter Absinthe. Originally used as a remedy by the ancient Egyptians and Greeks for all manner of ailments. Also known as the Green Fairy because of herbs added to the final step in process, Absinthe was supplied to soldiers in their rations as an anti-malaria prophylactic in the1860s. The return of the soldiers into the routine of daily lives coincided with the Great Wine Blight. The high cost of wine due to it’s scarcity made the resourceful French -already with the taste of the anisette on their tongue turn to this source for there imbibing pleasure.

Later, when the Phylloxera aphid [btw, American in origin] was overcome wine sales did not recover. Moreover, Absinthe had become a significant part of the French middle class culture of the time. So much so, that the drinking of Absinthe was depicted in arts by writers, poets, painters, satirist and dramaturges. Just like the hair club for men, these artists did not just portray this green liquid they partook.

The French wine makers were not having it and launched a smear campaign claiming Absinthe was dangerously addictive and rumored it contained a psychoactive drug. So very pervasive was this crusade blaming imbibers for violent crimes and anti-social behavior that it permeated to surrounding countries and was governmentally banned in the early 1900s -in Belgium, Brazil, Switzerland, the USA, France and other countries.

Why celebrate with Absinthe on Black Friday?

To transgress!