Wishful Thinking: Retail Premiums in Mid-Nineteenth-Century America

Abstract

“Wishful Thinking” discusses the origins of retail premium schemes in America. An entirely new marketing strategy that began appearing in the early 1850s, giving away free things with purchases helped fuel the consumer revolution of the 19th century by inducing people to buy things they did not necessarily want or need. The article focuses on the three most prevalent forms of premiums – gift distributions, prize packages, and gift book establishments – and draws on scholarship from various fields, including advertising and marketing history and economic anthropology. In addition to describing various premium schemes and linking them to nascent consumerism, the article posits why they might have been so successful, despite the fact that many were clearly fraudulent.

Financial fraud, scandals, and regulation: A conceptual framework and literature review

“…In the emerging new economic setting, norms for proper business behaviour were lacking and economic relations became more impersonal. Transactions increasingly occurred between distant parties, so that assessing the counterparty's trustworthiness became more difficult (Balleisen, 2017;Hollow, 2015;Klaus, 2014;Mihm, 2007;Robb, 1992;Woloson, 2012). Economic actors could capitalise on this increased information asymmetry in their dubious dealings, but at the same time were confronted with rising competitive pressure.…”

“…on the other hand, scandals certainly did not always depress investor enthusiasm (olien & olien, 1990;Schell, 1990). Several authors suggest that, in retrospect, dubious schemes actually helped to develop the economy involved (see olien and olien, 1990, on Florida; Schell, 1990 on Mexico;andMihm 2007, andWoloson, 2012 on the effect of counterfeit money and retail premium schemes respectively on the US economy). Below, it will be shown that the impact of dubious practices figured prominently in the sense-making of fraud and scandals.…”