Arun Jain is Samuel P. Capen Professor of Marketing Research and chair of the Department of Marketing in the School of Management. He is an expert on retailing.

How do you account for recent kid phenomena like Pokemon, beanie babies and virtual pets? Are corporations that sophisticated, or have consumers lost their ability to ignore these marketing blitzes?

Pokemon, beanie babies and the like are successful because they are so cute and cuddly. They are moderately priced, thus almost anyone can afford them. Once you get one, you can't resist buying more. Instead of flooding the market with unlimited quantity, the supply of beanie babies is being carefully controlled by the manufacturers. This has created an artificial scarcity in the market place. Manufacturers have contributed to the formation of cult-like clubs and media has fueled their speculative value. In a prosperous economy where our basic needs are easily met, there is enough discretionary income to indulge in such little pleasures of life.

What are your predictions for the upcoming holiday shopping season? Will consumers spend, spend, spend this year?

American consumers are the happiest they have been in the recent past. The economy is humming along, with almost full employment, high wages and a stock market that seems to know no barriers. Consumers have money in their pockets and in their brokerage accounts. They are feeling good and will be generous towards themselves and their loved ones. Add to it the frenzy of the new millennium and we have the makings of a winning Christmas season for retailers. We should see a 20-25 percent increase in growth from last year.

What will be the hot toy/adult gifts this year?

This will be the year for Pokemon, or pocket monsters. The timely release of the movie based on these creatures has unleashed a goldmine for Nintendo. The video games, trading cards, figures, apparel and plush toys based on the lovable characters are going to ring cash registers. Closely behind will be toys based on "Toy Story 2." For adults, it is going to be a year for DVDs and looking "mahvelous." When Y2K rolls around, everyone will not be interested only in exorcising Y2K bugs; they will want to look swank, trés chic and glamorous. They will want to remember it with finery and elegance. After all, who will be around for the next millennium? Floor-length ballgown skirts, strapless evening gowns, dresses, cashmere sweaters, pashmina wraps, French-cuff shirts and tuxedos are "in" this year. Out is the 10-year cycle of casual office wear.

Will the increasing popularity of online shopping have any impact on retailers at the average mall? Must the savvy retailer also have a Web site to compete in today's high-tech marketplace?

Retailing as we know it today will change dramatically in the next five years. Stores that primarily serve as a warehouse of products will find it increasingly difficult to compete in the new digital economy. To be relevant, stores will have to provide an incredible in-store experience to shoppers. Instead of being left alone in a warehouse to search for a product and guess about its workmanship, successful stores will serve as consultants to shoppers. Individuals will be able to take their problem to the stores and get assistance. The sales lady who knows what dress would look good on you for the cocktail party at the Albright Knox, which scarf will bring out the color of your eyes and which perfume matches your personality, will win. Stores that provide human touches in an increasingly impersonal, mechanical world will be the winners. Cyber shopping can never provide the fun and excitement of walking through a Bloomingdales, Daimaaru, Wing's or Brumel. Using the Web, these stores can serve customers around the globe beyond their narrow trading areas. As more and more homes become connected to the digital highway, stores will find it competitively disadvantageous not to be accessible. The Web will become another medium of communication and order-taking from customers.

What do you dislike most about the way corporations market to you and your family members?

In recent years, at least in the Buffalo market, we have become a sales-crazy town. Almost every week every store is having a "sale" with huge price reductions. It makes you wonder about the excessive price gouging going on if one were to buy an item that is not on sale. Also, service levels have declined as the retailers have cut back on both the number of store personnel and their training. Most salespeople know very little about the product they sell and certainly are in no position to be of help to the shoppers.

What question do you wish I had asked, and how would you have answered it?

I thought that you would have asked about the hoopla associated with Y2K. Unlike our bicentennial whimper celebration, it seems that Y2K will be a bust. I don't see all the trinkets that showed up for 1976. Some businesses are using "fear appeal" to sell people items they will not need. Educated people are stockpiling water, canned food, candles and even power generators for fear of Armageddon! Vineyards have sought to spread the message about the impending shortage of bubbles to jack up prices, but the spoilers among them have announced their availability by tons. To this observer, the winners will be food stores and hospitals, come September.