Definition of Consumerism

Introduction

Personal happiness with purchasing material possessions and consumption is often associated with criticisms of consumption starting with Karl Marx and Thorstein Veblen, but can actually be traced back to the first human civilizations. In economics, consumerism can also refer to economic policies that place an emphasis on consumption, and, in an abstract sense, the belief that the free choice of consumers should dictate the economic structure of a society (cf. Producerism, especially in the British sense of the term).

History

Although consumerism is commonly associated with capitalism and the Western world, it is multi-cultural and non-geographical, as seen today in Tokyo, Singapore, Hong Kong, Shanghai, Taipei, Tel Aviv and Dubai, for example. Consumerism, as in people purchasing goods or consuming materials in excess of their basic needs, is as old as the first civilizations (Ancient Egypt, Babylon and Ancient Rome, for example). Since consumerism began, various individuals and groups have consciously sought an alternative lifestyle through simple living.

While consumerism is not a new phenomenon, it has only become widespread over the 20th century and particularly in recent decades, under the influence of neoliberal capitalism and globalization.

Popular media used “Consumerist” as a short-form for “Consumer-Activist”. Webster’s dictionary added “the promotion of the consumer’s interests” alongside “the theory that an increasing consumption of goods is economically desirable” under “Consumerism”.

Consumerism in India

In India, as a developing economy, it is felt that the plight of the consumers ar not different from that of the counterparts in the rest of the world. In spite of the fact that not all the Indian consumers are well educated and hence, unable to comprehend and understand the complex methods of marketing, they are also exploited and very often become victims of false claims for products, mislead by deceptive advertisements, misled by packaging, poor after sales service and so on. Because of the above felt abuses, there is observed and seen a growing consumer awareness leading to the growth of consumerism and an increasing demand for consumer protection in India.

Consumerism can be said to be a still in its infancy stage. But the consumer movement is slowly gaining momentum.

Rapid rise in the consumer earnings, fall in the savings rate resulting in generating increasing amounts of disposable income to be spent on consumer products and services. With the advent of the information age bringing with it real time images of the global life style; and thus making high spender and budget shoppers spend lawishly on products and services.

Consumer Rights

A perfect example that I would like to put forward

Manufacturers deliberately set out to fleece consumers by using tactics like misleading or deceptive packaging.

Despite the government of India enforcing a law by the name of Standards of Weight and Measures Act, 1977, manufacturers blatantly flout the rules and tampered with the packaging of the products.

The Act requires definite and conspicuous declaration of name and address of the commodity inside, the net quantity in standard unit of weight or measure, the date of manufacture and the maximum retail price and the expiry date. It has laid down the standards of weights and measures or the number for different commodities so that the commodities are packaged in a rationalized standard quantity by weight measures or number to facilitate the purchase transaction as also the price comparison.

Extensive research in several departments reveals the deception in the diminutive print. Packaging of some products do not carry the manufacturing date; some do not have expiry date on them and some brands do not convey the warning like “best before” or “use by”. For perishable stuff, such declarations should clearly be conveyed to the consumers.

In reality, if you ask any shopkeeper, you get a curt” “It is a fast-moving item. We don’t stock anything stale.” Some manufacturers entertain the buyers by incorporating a treasure hunt for the relevant label. They print the information in colors that merge with the plastics, emboss it so you need to run your fingers on it, or hide it under a decorative flap.

The manufacturing date on a toothpaste tube has to be dug out of the crimped tail. As for the expiry date on a battery cell, the number on medium or large ones are visible under a lens, but the script on the seat of a pencil cell is beyond the power of magnifying glass.

A well-known manufacturer gets “20% off ” printed in big bold letters and in mini print it says: “On the recommended retail price. Taxes extra as applicable”. This is a surreptitious way to dupe consumers in buying the product. A large number of unidentified consumers do not get what they pay for. Packaging sizes and container shapes for many products deceive and confuse consumers about the amount of product they contain, and some manufacturers have been increasing package size while decreasing content 

It’s a common practice for manufacturers to tactically reduce the weight contained in a package while keeping the size of the box, bottle, or container the same, and misrepresent the quantity of good sold. The quantity of the product inside the packet is not consistent with what is specified on it. It is not just a question of grams or a few rupees but an unjust enrichment to manufacturers and a needless loss to consumers.

Very few buyers check if the packed commodities weigh less than weight marked on the panel. If they do so, they don’t try to question the malpractice. Shopkeepers often do not have electronic weighing machines that can detect small discrepancies.

As a matter of fact, the packet should weigh more than the marked weight, because the given weight is actually the net weight of the product inside, which is its weight before packaging. On the contrary, the weight of product inside the packet and that of the packet itself is less than marked weight on the panel of packet. The net result is that consumers are taken for a ride, with erring shopkeepers going scot-free. What consumer should do to control such malpractices?

If you find the product suspicious in case of anomaly weight, get it weighed at the shop itself. And write a short note in the form of complaint to the manufacturer in corporation with the shopkeeper.

Bring it to the notice of weights and measures department, which is supposed to take the sample and initiate legal proceedings against the manufacturer.

If manufacturer refuses to fall in line, you ca approach the district-or state-level consumer court for redressal.

Consumer protection is government regulation to protect the interests of consumers, for example by requiring businesses to disclose detailed information about products, particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights (that consumers have various rights as consumers), and to consumer organizations which help consumers make better choices in the marketplace.

Some of the consumer issues that the Consumer law takes action are on

Antitrust

Class action

Competition policy

Competition regulator

Extended warranty

Fairtrade labeling

Food safety

Mandatory labeling

Product recall

Predatory mortgage lending

Transparency (market)

Summary

Let’s just remember one thing. India has been a poor country for a long, long while now. Folks below the poverty line have numbered a strong platoon of people. And despite it all, the population has grown, survived and continues to thrive in its sheer numbers. People have found a way to survive. The fittest have survived on high value brands, the less fit have thrived on brands of a lesser caliber in the country. Those even lower in the hierarchy have survived on the fringe of the commodity in every category of want and need. Consumption needs have always found answers. Consumption solutions for all!

There is therefore a pyramid of consumption that lies all over the slopes of Maslow’s hierarchy of needs. But then, everybody, rich or poor, has fallen within the confines of this pyramid. And just as long as they do, there is indeed potential for a robust market for commodities, quasi-brands, brands, super-brands and of course at the ultimate level of the self-actualizing folk, no brands at all!

Every one of these segments has a value though. And in value rests the potential for the marketer. The one big true-blue competitive advantage for India of the present and India of the future is indeed its large population base articulating every basic need in consumption of products, services and utilities.

Time to change the paradigm of India’s population then! Every marketer of whatever origin, be it from within India or outside, will queue up in the consumer markets of the country, trying to woo the wallet of the willing. As traditional source markets reach a plateau in their consumption, nascent markets like the one in India will hold a great deal of allure to the marketing man in his western straitjacket.

The competitive advantage of India will rest in both its own shores and in the foreign lands of its source markets. As the WTO regime opens up markets that do not discriminate and markets that don’t raise the usual high tariff walls that have been the distinct characteristic of the past that has gone by, the Indian product and the Indian brand has a challenge to seize and exploit to its advantage.

Response

The market for MS Office is large and it’s a world player, as for you it would be good if you could identify a niche, or an USP and play Nicher. Defender too is a good strategy. As you cannot go aggressive Ms would outright squash you or buy you. You could play defender.

List the three stages in the consumption process. Describe the issues that you consider in each of these stages when you made a recent important purchase

Response

The three stages in the consumption process shown are (1) prepurchase, (2) purchase, and (3) post purchase. The student selected should develop fairly unique sets of issues related to each of these phases based on the different products and purchases situation.

Critics of targeted marketing strategies argue that this practice is discriminatory and unfair, especially if such a strategy encourages a group of people to buy a product that may be injurious to them or that they cannot afford. For example, community leaders in largely minority neighborhoods have staged protests against billboards promoting beer or cigarettes in these areas. On the other hand, the Association of National Advertisers argues that banning targeted marketing constitutes censorship and is thus a violation of the First Amendment. What are your views regarding both sides of this issue?

Response

It is important to guide discussion to the legitimate interests on both sides. However, in this situation the discussion should also examine the legitimacy of each side’s basic point. For what groups should target marketing not be allowed? Or under what specific circumstances should target marketing be allowed? Is the argument that target marketing unduly influences those who cannot resist its appeal reasonable? Is the counter-argument that banishing target marketing amounts to censorship and is unconstitutional equally specious? Discussion should initially focus on the validity of each argument, and then evolve toward a compromise that will protect target marketing efforts while recognizing the needs of society.

Can you give an illustration of some product you purchase just for its image?

Response

Some products purchased for the image (in some cases) Nike – to belong to a particular group. A few decades ago Car was a product purchased for social status. Being seen in a Mercede’s Benz.

Explain a product position and why positioning strategy is important

Response

A product position is the image that the product projects relative to images presented by both competitive products and other products marketed by the same company. Positioning is how you want the customer to view your product compared with competition. Product positioning is the process of identifying the most important beliefs, attitudes, and product-use habits of the customer; assessing how the marketer’s product is perceived relative to these factors; and then placing the product in its most advantageous light. A positioning strategy incorporates what is known about the environment, the target market, and the product differentiation. Before a product position strategy can be determined, the marketer must identify key attitudes and perceptions toward the attributes of a particular product relative to competitors.

You company markets microwaveable dinners. Your research suggests that 40 percent of your customers use coupons. What additional information would you need from your research division to determine whether this percentage is a potentially profitable market?

Response

Is the potential market segmenting the right size and does it have the necessary growth characteristics? Does the segment have sufficient long-term profitability? Considerations include: the threat that the segment has too many competitors, the threat of a new competitor, the threat of substitute products, the threat that the power of buyers becomes oppressive, or the threat that the power of suppliers becomes oppressive.

What is a market strategy and how does it differ from a marketing strategy?

Response

A market strategy is an element of the marketing strategy. Marketing strategy is the process of evaluating the options for achieving the marketing goals. By looking at the options for attaining each objective, the marketing manager can identify the major strategy alternatives.

Do it yourself

Observe a consumer shopping and attempt to infer the variables involved in the situation. Make a report of the observed behavior and the inferences drawn.

Interview a peer about the variables thought to be important influences on consumer behavior in the purchase of a specific product (e.g. car, stereo, house, vacation, camera, etc.). Then to do the same for an older person and compare and contrast the responses.