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...refund. That's a major change you will see in marketing. And then you will see companies start to build the very functional, practical dimensions of their brands. If you take Louis Vuitton as an example, they will say, "In the future, when you buy a Louis Vuitton bag, it's not just the most fashionable bag on the market, it also has a two-in-one dimension so you can turn it inside out, and it's red today and black tomorrow. You can use the bag both in the evening and the morning, and you don't have...

Author: /time Magazine | Title: How Shoppers Make Decisions in a Recession | 5/18/2009 | See Source »

...What else can brands do combat this recession? They can play off something I call instant justification. When the buyer from the family goes out and buys this Louis Vuitton bag, it's actually hard to remove the guilt factor when she's in the store. She now has to come home and justify to her husband why she bought this during a recession. And when you look at the curve of guilt, the biggest spike is maybe seconds after you bought that bag, because the only thing you are thinking about is how to justify the purchase. So what...

Author: /time Magazine | Title: How Shoppers Make Decisions in a Recession | 5/18/2009 | See Source »

...much more expensive. And because of that, you actually start to say to yourself, "Hey, is this really worth it?" That's trick number one. Trick number two is related to dopamine and addiction. Take a distance to things. If you go out and you want to buy the bag, the golden rule should be to say, "Hey, I really want that bag, but I'm not going to buy it today, I'm going to wait one day and if I really love it so much I'll come back and buy it." Now we do know from...

Author: /time Magazine | Title: How Shoppers Make Decisions in a Recession | 5/18/2009 | See Source »

...whole Soviet bloc - where it now employs about 2,000 people. Similarly, on the edge of Halle's Neustadt, in a brand-new technology center built on the site of the former Soviet army base, Katja Heppe pulls the claws of a snow crab out of a plastic bag. She's 29, a biotechnology researcher who specializes in synthesizing a polymer from crabs' claws - it's used as an ingredient by pharmaceutical and cosmetics companies. Heppe founded her firm three years ago. Up to 50% of the investment in research and development is subsidized, and Heppe says she came...

Author: /time Magazine | Title: What Germany Got for Its $2 Trillion | 5/18/2009 | See Source »

...Pays to Pack Light. The good news is that Air Jamaica will allow passengers to check their first bag free. The bad news is that your second check bag will now cost you $25. Worse yet, your second bag won't be on the same flight with you to Grenada or Barbados. It'll be sent within seven days, and you'll have to go back to the airport to pick...

Author: /time Magazine | Title: Anniversary Travel Deals, Even If It's Not Yours | 5/18/2009 | See Source »

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