Chapter 2: Consumer Power
Definition: Consumer Power
Consumer power consists of a consumer’s perceived ability to resist a firm’s marketing efforts and influence a firm’s actions.
Source: Akhavannasab, S., Dantas, D.C. and Senecal, S. (2018), “Consumer empowerment in consumer–firm relationships: conceptual framework and implications for research”, AMS Review, Vol. 8 Nos 3/4, doi: 10.1007/s13162-018-0120-4.
In today’s interconnected world, consumer power holds immense potential to shape the economy and influence business practices. As a consumer, your choices and demands play a significant role in guiding firms’ actions and strategies. The economy and consumers are intertwined in a dynamic relationship, where the buying behaviour of individuals drives market trends and determines the success of businesses.
In the pursuit of sustainability, consumers bear a crucial responsibility in their everyday choices. By opting for eco-friendly products and supporting socially responsible businesses, you can foster a demand for sustainable practices and encourage firms to adopt more responsible approaches. Your buying decisions hold the power to drive positive change and incentivize companies to embrace ethical and environmentally friendly operations.
Nour Negm speaks passionately about consumer power in this TED Talk presentation.
Negm, N. (2020, July 16). The POWER we have as consumers [Video]. YouTube. https://youtu.be/qUG1XUDMBcs
The conventional metrics of progress and success often prioritize economic growth and profitability, but the concept of sustainability challenges these traditional notions. In the context of sustainability, success is measured not only by financial gains but also by social and environmental well-being. Businesses need to adopt a holistic approach that values long-term resilience, social impact, and ecological preservation.
Moreover, the concept of the tragedy of the commons reminds us of the collective impact of individual consumer behaviours on shared resources. Each seemingly insignificant choice we make as consumers can add up to significant environmental consequences. Embracing sustainable consumption practices is essential to safeguard the planet’s limited resources and create a more equitable future for all.
“We have been told a story that casts us in the role of consumers, people who merely take in products that were made far away. The reality is that as human beings we make choices, and the choices we make around what we wear are having profound implications for our planet as well as for some of our most vulnerable fellow human beings.”
~~ Andrew Morgan, filmmaker and director of ‘The True Cost’ from Safia Minney’s book ‘Slow Fashion: aesthetic meets ethics‘
As a consumer, your power lies not only in the products you buy but also in the values and principles you support. By demanding transparency, responsible practices, and sustainability, you contribute to reshaping the economy and promoting a more sustainable and ethical marketplace. Every consumer choice has the potential to be a catalyst for positive change, fostering a world that cherishes both prosperity and sustainability.
Knowledge Check!
Resources
- Kevany, K. (2019). Conscious consumption and sustainable development. Encyclopedia of Sustainability in Higher Education, 1-7. https://doi.org/10.1007/978-3-319-63951-2_269-1
- Kim, H. (2022, 26). What is conscious consumerism?. Network for Business Sustainability (NBS). https://nbs.net/what-conscious-consumerism-really-means/
The tragedy of the commons is an economic problem where the individual consumes a resource at the expense of society.
Amendolare, N. (2017, November 21). What is the tragedy of the commons? [Video]. Ted-Ed. https://youtu.be/CxC161GvMPc
