a brief history of fad products

A Brief History of FAD Products

Jeff Ward, Business DepartmentHIGHLINE COMMUNITY COLLEGE

Fads of the 50s

Fads of the 60s

LSD

Fads of the 70s

Streaking!

Fads of the 80s

Fads of the 90s

Fads of the 2000s

Origins of FAD

• Fiddle Faddle!– : nonsense —often used as an

interjection

• Shortened to FidFad.

• Then, just Fad.

What is a FAD?

• developments that enter quickly, are adopted with great zeal, peak early, and decline very fast. (Kotler, 1994)

• a temporary state of unusually high sales, driven by consumer enthusiasm and a desire to purchase a product or brand largely because of its immediate popularity. (Lilly, Nelson, 2003)

Product Life Cycle

Introduction Growth DeclineMaturity

Time

Sales $

History of the Pet Rock• Began selling in late spring of 1975

• River rock (Rosarita Beach in Baja, California)

• Pet Carrier

• Straw bedding

• Training Manual

• $3.95 selling price

• $ .95 cost

History of the Pet Rock

• Sold 5 million by mid-December, 1975

• $16 million profit

• In 1975 dollars =

• $56,000,000 today

Yo yo Product Life Cycle

1600s 1700s 1900s1800s

Time

Sales $

FAD

Product Variations

Product Add-Ons

Specialty Products

FAD Psychology?

• Apart from general novelty, fads may be driven by emotional excitement, peer pressure (bandwagon), or even a desire to be outside social norms (rebellion).

Beatnik

Hippie

Valley Girl

Preppie

poop

Goth

Utility• In economics, utility is a measure

of relative satisfaction.

• Utility may be affected by consumption of various goods and services and spending of leisure time.

FADs and Utility

• Most fads that take off, if not completely useless, have utility as a small part of their appeal.

• They are fun at first, a statement of something second, and useful third.

• A fad isn’t an innovation, and it usually doesn’t change throughout its short life.

The Popeil Veg-O-matic

= FAD

FAD FAIL!

Hello Kitty

What’s Next?What’s Next?

Jeff PezDispenser

The question was:

“Why are businesspeople (aka evil and unholy pillagers of the planet) allowed to waste natural resources, exploit workers, and pollute the planet in the production of useless and worthless objects that offer no benefit to society?”

Average Businessperson

It’s all about Utility

• Who gets to decide what has utility?– Books about becoming a Neo-Nazi– Teddy Bears– Books about raw food diets– Combs– Park benches made from recycled plastic

grocery bags– Plastic grocery bags

If I Meet Someone’s Need for Utility:

• I am creating jobs• The Standard of Living for many rises• I may be helping development in 3rd world

countries • (No! You’re making them slaves to

capitalism!)• I am paying more taxes to support the

community• I am helping pay for research into better

ways of utilizing resources• I am making little Charlie and Charisse happy

Jeff’s Eco-Pez*Dispenser* Made from recycled bicycle tires.