The "potato effect" means that during the Great Depression, consumers abandoned high-end luxury goods and turned to low-end products, which led to an increase in demand for the latter, which in turn pushed up the prices and sales of high-cost products. Generally speaking, a catty of bread is 2 yuan, and a catty of potatoes 1 yuan. During the Great Depression, food consumption will decrease, but the total food consumption cannot be reduced. Therefore, people will reduce their consumption of bread, and the demand for potatoes will rise, which in turn will lead to an increase in potato prices.
Extended data:
Products that meet the three conditions can also make full use of the "lipstick effect" to promote sales: first, the products sold have additional significance besides practical value; Secondly, the absolute price of the commodity itself should be low; Thirdly, businesses should make full use of the situation to guide consumers and detonate their desire for consumption.
The potato effect regards "potato" as a synonym for cheap and low-end food in a broad sense. That is, during the economic crisis, the demand for low-end cheap food rose and the price also rose. To put it simply, before the crisis, people's demand slipped to the lower level of Malosey's demand level. Similarly, in the face of the economic crisis, the number of people eating pizza will inevitably decrease. As a substitute, the demand for pies is bound to increase.
References:
Baidu encyclopedia-lipstick effect
Baidu Encyclopedia-Potato Effect