What is the lipstick effect?
A) a tendency to buy clothing one has seen on beautiful models
B) treating oneself to a small luxury like lipstick and forgoing a luxury vacation
C) discrimination against women in the workplace
D) favoritism for women in the workplace
E) the tendency of women to buy more expensive items when they are wearing nice clothes and makeup

Question

Quizplus · Accepted Answer

The lipstick effect refers to the tendency of consumers to spend money on small indulgences during times of economic hardship instead of larger, expensive items. This includes purchasing lipstick or other beauty products as a way to treat oneself to a small luxury while forgoing larger luxuries like vacations.

What Is the Lipstick Effect