Trends vs Fads

Lesson 1.1: Definition of Trends and Fads

• A fad is a short-lived, intense interest or fashion, characterized by a quick rise and fall in popularity
• Fads often lack utility and don't satisfy strong consumer needs
• Fads are temporary crazes or activities followed enthusiastically for a brief period
• Typically, fads involve widely shared enthusiasm for something short-lived
• Some followers of fads may remain loyal even after the decline
• Trends appeal to newness, either stabilizing or transforming habits or lifestyles
• Trends seek innovation and practical solutions for improving life
• Trends develop slowly with longer staying power
• The effects of trends may last for years or even decades
• The consumer adoption of trends is greater, due to its effectiveness
• Trends often span across industries and may influence others

Spotting Trends

• Trendsetters are individuals or events that start or cause trends, for example, EDSA People Power Revolution in the Philippines and Gandhi's leadership in India
• Futurists study and predict the future based on current trends
• Trendspotting involves studying trends and their development, and how they affect society

Lesson 1.2: Types, Elements, and Characteristics of Trends

• Megatrends are long-term events influencing all aspects of life
• Examples of megatrends are demographic changes, urbanization, climate change, and technological advances
• Megatrends are not easily influenced but can be responded to
• Macrotrends focus on specific aspects of larger trends
• Examples of macrotrends are facets of climate change, such as melting glaciers, rising sea levels, or advancements in technology like IoT and AI
• Microtrends are smaller-scale trends within specific segments
• Microtrends are driven by niche interests, demographics, or emerging subcultures
• Examples of microtrends are dietary preferences, niche fashion, emerging social media platforms, and specific technological preferences

Three Different Stages of Trends

• The emergence stage is where an idea gains traction among a niche or early-adopter audience
• The emergence stage originates from various sources like subcultures, influencers, or technological innovations, and starts attracting interest from trendsetters and tastemakers
• The adoption stage is where gains momentum and spreads to a wider audience
• The adoption stage receives increased exposure through media, social sharing, and endorsements, and becomes recognizable and accepted within popular culture
• The Mainstreaming/Mainstream Stage is when it becomes fully integrated into mainstream culture and widely accepted by the general population
• Mainstreaming happens when a trend becomes a ubiquitous part of everyday life, losing some original novelty

Elements and Characteristics of a Trend

• Trends have a longer staying power compared to fads, with products or ideas having a longer period of popularity
• Acceptability means that trends have been accepted by many industries and people
• Acceptability means trends receive popular support from consumers and companies
• Trends are rooted in people's cultural traditions, beliefs, and values, and persist due to connection with society's culture
• Transitory increase and decrease shows temporary increase or decrease, and can last longer periods but eventually may slow down and decline

Additional Notes

• The Modernization theory focuses on the development of countries, proposing that societies progress through stages of economic growth, social change, and technological advancement
• It emphasizes the adoption of modern practices and institutions to achieve development and prosperity
• Liberalization refers to the reduction or removal of government restrictions and regulations on economic activities
• Liberalization emphasizes the promotion of free markets, competition, and private enterprise, leading to decreased government intervention in the economy
• Generally Recognized As Safe (GRAS) is a regulatory designation used to promote the safety of edible products, particularly perishable items
• GRAS designation emphasizes the importance of safety assurance in food consumption, enhancing consumer trust and confidence in the product
• Peter Panning refers to the strategy of capturing people's attention through nostalgia or familiarity in product development
• Peter Panning aims to evoke emotional connections or associations with past experiences, effectively engaging consumers and driving interest in the product
• Asking the WH questions involves exploring various aspects of a situation or problem to gain a comprehensive understanding
• Asking the WH questions helps identify patterns by examining who, what, when, where, why, and how factors, providing assurance through thorough inquiry and analysis
• Finite Variability refers to the strategy of collecting feedback and comments from buyers to ensure the continuous improvement of products
• Online selling platforms like Lazada, Shopee, and Zalora use this approach to gather insights from customers, identify areas for enhancement, and adapt their products to meet consumer preferences better
• Planned Obsolescence refers to the strategy of deliberately designing products to become obsolete or outdated after a certain period, compelling consumers to upgrade to newer versions
• Microsoft's decision to stop supporting Windows 10 by 2025 aligns with the Planned Obsolescence concept, as it encourages users to transition to newer operating systems, ensuring continued revenue for the company
• Incubation is the stage of intuition where thoughts and ideas are processed subconsciously, allowing for indirect or implicit formulation
• During incubation, the mind works on problems or ideas in the background, often leading to sudden insights or solutions without conscious effort

Lesson 2: Understanding Local Networks

• A network is a group of people with whom we interact daily, including family, friends, colleagues, and connections made through technology
• Networks are comprised of nodes (individuals, organizations) and ties (relationships)
• Density in networks is measured by the number of connections between actors
• Hierarchy in networks means actors establish relations across different groups in the community, not limited to one group
• Complexity is the extent to which links between actors serve multiple relationships and interests
• Individuals with complex relationships are bound in different social grounds
• Interdependence refers to dependence of individuals or things on each other, which promotes cooperation and social capital, benefiting the community
• Symmetric ties are reciprocated ties, often seen in direct family relationships
• Asymmetric ties are non-reciprocated ties, typical in encounters with strangers
• Social analysis through network mapping exposes power relations, connections, issues, and problems within organizations or communities
• Social analysis through network mapping enables a more complete understanding of social situations
• Strategic thinking involves conceptual, imaginative, systematic, and opportunistic thinking about future success
• Intuitive thinking is a cognitive process based on instinct, gut feelings, or tacit knowledge
• Intuitive thinking draws on past experiences, pattern recognition, and subconscious processing for quick insights or judgments

Lesson 3: Global Networks (Globalization)

• Bounded Rationality refers to the limits individuals face in decision-making due to constraints in time and resources, and impacts policymakers, leading them to focus on specific issues at a time
• Globalization are processes of international integration involving exchange of world views, products, ideas, and cultural aspects
• Globalization is the transformation of economies from self-sufficient to interconnected and interdependent global economy

Types of Globalization

• Economic globalization is the movement of goods, capital, services, technology, and information
• Socio-cultural globalization is the sharing of ideas, hobbies, values, facilitated by internet and media
• Political globalization is the trend towards multilateralism, emergence of NGOs as watchdogs

Causes of Globalization

• Improved communication is the development of technologies like the internet, email, and satellite TV, which facilitates multinational operations and worldwide marketing
• Improved transportation includes refrigerated and container transport, bulk shipping, and air transport, which enables mass movement of goods globally
• Free trade agreements are promoted by MNCs and rich capitalist countries, and supported by organizations like WTO and IMF
• Global banking means that modern communication technologies allow capital to flow freely, and massive trading is done through international stock exchanges
• Growth of MNCs enables investment in farms, mines, factories globally, as well as production and sale of goods and services on a massive scale

Effects of Globalization

• Globalization has changed food supply, with food being available regardless of seasons or locations
• Division of labor means production processes are moved to cheaper locations, affecting job markets
• Less job security is due to jobs becoming more temporary and insecure, leading to multiple job changes
• Damage occurs to the environment when increased transport leads to more fossil fuel use and pollution
• Climate change poses a serious threat
• Cultural impact is due to connectivity through platforms like YouTube, and homogenization of cultures, removal of local competition by MNCs

Other Positive and Negative Effects of Globalization

• Positive effects include the introduction of efficient technologies, opportunities for businesses to expand internationally, and access to capital flows, technology, and larger markets
• Negative effects include worsened income inequalities, dominance of transnational corporations, lowered environmental standards in pursuit of competition, disruption of family structures due to migration, and lack of environmental protection in developing countries leading to pollution