Lipstick Effect

Lipstick Effect

A theory that states that during periods of recession or economic downturn, consumers will eschew purchases of big-ticket luxury items and seek material solace in smaller indulgences, such as premium lipstick.

Also known as the "leading lipstick indicator".

The lipstick effect is one of the reasons that the restaurant and entertainment industries typically do well amid recessions. Cash-strapped consumers want to treat themselves to something that will allow them to forget their financial problems, but they cannot afford to escape to Bermuda. Therefore, they often settle for dining out and going to a movie.


Investment dictionary. . 2012.

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  • lipstick effect — /ˈlɪpstɪk əfɛkt/ (say lipstik uhfekt) noun a pattern of spending in an economic downturn in which people indulge more often in small luxuries because they have made the decision to forego large purchases. {from the reported tendency of women to… …  

  • lipstick indicator — n. The tendency for lipstick sales to increase prior to and during a recession. Example Citation: You re not imagining it: Shopping can contribute to your psychological health in times of stress, says Dr. Jane Greer, a New York psychologist.… …   New words

  • lipstick lesbian — n. A lesbian who is beautiful, stylish, or markedly feminine. Also: lipstick. adj. lipstick lesbianism n. Example Citations: There are many L words depicted in Showtime s newest drama The L Word. It s set in Los Angeles. It explores loving… …   New words

  • Lipstick feminism — also referred to as stiletto feminism or slut feminism [http://www.findarticles.com/p/articles/mi qa3693/is 200505/ai n14801820/pg 1] is a branch of feminism in which it is not seen as contradictory to both be a feminist and to put on a show to… …   Wikipedia

  • Lipstick on a pig — To put lipstick on a pig is a rhetorical expression, used to convey the message that making superficial or cosmetic changes is a futile attempt to disguise the true nature of a product. [ [http://www.usingenglish.com/reference/idioms/put+lipstick+… …   Wikipedia

  • lipstick — makeup make up , make up make up (m[=a]k [u^]p ), n. 1. 1. The way in which the parts of anything are put together. [1913 Webster] The unthinking masses are necessarily teleological in their mental make up. L. F. Ward. [1913 Webster] 2. The… …   The Collaborative International Dictionary of English

  • Goldilocks effect — (GOHL.dee.loks uh.fekt) n. When something succeeds or prospers because it is neither too big nor too small. Example Citation: Size does matter. Up to a certain point, the more widgets you produce, the cheaper each widget becomes. But you no… …   New words

  • poverty effect — n. A reduction in consumer spending based on a perception of relative poverty caused by the decreasing value of stock market portfolios. Example Citation: Some economists are already talking about a poverty effect caused by sinking stock prices.… …   New words

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