Consumer

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Consumers buying fruit in Nanjing, China People are buying fruits.jpg
Consumers buying fruit in Nanjing, China

A consumer is a person or organization that uses or consumes economic services or commodities. [1]

Service (economics) intangible offering inseparable from its creators labor, which brings utility value to their client

In economics, a service is a transaction in which no physical goods are transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the buyer's willingness to make the exchange. Public services are those that society as a whole pays for. Using resources, skill, ingenuity, and experience, service providers benefit service consumers. Service is intangible in nature.

Commodity marketable item produced to satisfy wants or needs

In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.

Contents

Economics and marketing

A consumer is one that buys good for consumption and not for resale or commercial purpose. The consumer is an individual who pays some amount of money or the thing required to consume goods and services. As such, consumers play a vital role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.

Economic system system of production and exchange

An economic system, or economic order, is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area. It includes the combination of the various institutions, agencies, entities, decision-making processes and patterns of consumption that comprise the economic structure of a given community. As such, an economic system is a type of social system. The mode of production is a related concept. All economic systems have three basic questions to ask: what to produce, how to produce and in what quantities and who receives the output of production.

A nation is a stable community of people, formed on the basis of a common language, territory, history, ethnicity, or psychological make-up manifested in a common culture.

In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time. The relationship between price and quantity demanded is also known as the demand curve. Preferences which underlie demand, are influenced by cost, benefit, odds and other variables...

Recently in marketing instead of marketers generating broad demographic profiles and Fisio-graphic profiles of market segments, marketers have started to engage in personalised marketing, permission marketing, and mass customisation. [2]

Marketing is the study and management of exchange relationships. Marketing is the business process of creating relationships with and satisfying customers. With its focus on the customer, marketing is one of the primary components of business management.

Demographic profiling is a tool used by marketers so that they may be as efficient as possible with advertising products or services and identifying any possible gaps in their marketing strategy. Demographic profiling can even be referred to as a euphemism for corporate spying. By targeting certain groups who are more likely to be interested in what is being sold, a company can efficiently expend advertising resources so that they may garner the maximum number of sales. This is a more direct tactic than simply advertising on the basis that anyone is a potential consumer of a product; while this may be true, it does not capitalise on the increased returns that more specific marketing will bring. Traditional demographic profiling has been centered around gathering information on large groups of people in order to identify common trends. Trends such as, but not limited to: changes in total population and changes in the composition of the population over a period of time. These trends could promote change in services to a certain portion of the population, in people such as: children, elderly, and the working age population. They can be identified through surveys, in-store purchase information, census data, and so on. New ways are also in the works of collecting and using information for Demographic Profiling. Approaches such as target-sampling, quota-sampling, and even door-to-door screening.

Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Largely due to the rise of the Internet, consumers are shifting more and more towards becoming prosumer, consumers who are also producers (often of information and media on the social web), influence the products created (e.g. by customisation, crowdfunding or publishing their preferences), actively participate in the production process, or use interactive products. [3] [4] [5]

Internet Global system of connected computer networks

The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link devices worldwide. It is a network of networks that consists of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and optical networking technologies. The Internet carries a vast range of information resources and services, such as the inter-linked hypertext documents and applications of the World Wide Web (WWW), electronic mail, telephony, and file sharing.

A prosumer is a person who consumes and produces a product. The term is derived from prosumption, a dot-com era business term meaning "production by consumers". These terms were coined in 1980 by American futurist Alvin Toffler, and were widely used by many technology writers of the time. The term has since come to refer to a person using commons-based peer production. Technological breakthrough has fastened the development of prosumption. With the help of additive manufacturing techniques, for example, co-creation takes place at different production stages: design, manufacturing and distribution stages. It also takes place between individual customers, leading to co-design communities. Similarly, mass customisation is often associated with the production of tailored goods or services on a large scale production. This increase in participation has flourished following the increasing popularity of Web 2.0 technologies, such as Instagram, Facebook, Twitter and Flickr. This rise in user participation blurs the line between production and consumption activities, with the consumer becoming a prosumer.

The social web is a set of social relations that link people through the World Wide Web. The social web encompasses how websites and software are designed and developed in order to support and foster social interaction. These online social interactions form the basis of much online activity including online shopping, education, gaming and social networking websites. The social aspect of Web 2.0 communication has been to facilitate interaction between people with similar tastes. These tastes vary depending on who the target audience is, and what they are looking for. For individuals working in the public relation department, the job is consistently changing and the impact is coming from the social web. The influence, held by the social network is large and ever changing.

Law and politics

The law primarily uses a notion of the consumer in relation to consumer protection laws, and the definition of consumer is often restricted to living persons (i.e. not corporations or businesses) and excludes commercial users. [6] A typical legal rationale for protecting the consumer is based on the notion of policing market failures and inefficiencies, such as inequalities of bargaining power between a consumer and a business. [7] As all potential voters are also consumers, consumer protection has a clear political significance.

In regulatory jurisdictions that provide for it, consumer protection is a group of laws and organisations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace. The laws are designed to prevent the businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in society. Consumer protection laws are a form of government regulation that aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food.

Concern over the interests of consumers has spawned consumer activism, where organized activists do research, education and advocacy to improve the offer of products and services. Consumer education has been incorporated into some school curricula.[ citation needed ] There are also various non-profit publications, such as Which? , Consumer Reports and Choice Magazine , dedicated to assist in consumer education and decision making.

Consumer activism

Consumer activism is a process by which activists seek to influence the way in which goods or services are produced or delivered. Kozinets and Handelman attempt to define the broad concept as any social movement that uses society's drive for consumption to the detriment of business interests. Consumer activism includes both activism on behalf of consumers for consumer protection and activism by consumers themselves. Consumerism is made up of the behaviors, institutions, and ideologies created from the interaction between humans and materials and services of which they consume. Consumer activism has several aims:

In India, the Consumer Protection Act 1986 differentiates the consummation of a commodity or service for personal use or to earn a livelihood. Only consumers are protected per this act and any person, entity or organization purchasing a commodity for commercial reasons are exempted from any benefits of this act. [8]

See also

Related Research Articles

Consumerism social and economic order that encourages the purchase of goods and services in ever-greater amounts

Consumerism is a social and economic order that encourages the acquisition of goods and services in ever-increasing amounts. With the industrial revolution, but particularly in the 20th century, mass production led to overproduction—the supply of goods would grow beyond consumer demand, and so manufacturers turned to planned obsolescence and advertising to manipulate consumer spending. In 1899, a book on consumerism published by Thorstein Veblen, called The Theory of the Leisure Class, examined the widespread values and economic institutions emerging along with the widespread "leisure time" in the beginning of the 20th century. In it Veblen "views the activities and spending habits of this leisure class in terms of conspicuous and vicarious consumption and waste. Both are related to the display of status and not to functionality or usefulness."

Distribution (marketing) making products available to customers

Distribution is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries. The other three elements of the marketing mix are product, pricing, and promotion.

Goods tangible and intangible thing, except labor tied services, that satisfies human wants and provides utility

In economics, goods are materials that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods that are tangible property, and services, which are non-physical.

Direct marketing type of marketing sending messages directly to consumers

Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. By contrast, advertising is of a mass-message nature.

Consumer behaviour determinants of consumer behaviour

Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioural responses that precede or follow these activities. Consumer behaviour emerged in the 1940s and 50s as a distinct sub-discipline in the marketing area.

Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send advertisements, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Marketing emails can be sent to a purchased lead list or a current customer database. The term usually refers to sending email messages with the purpose of enhancing a merchant's relationship with current or previous customers, encouraging customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and sharing third-party ads.

In advertising and marketing, aspirational age is an ideal age whose characteristics consumers aspire to embody. Thus, marketing messages aimed at that target age will resonate with consumers of other ages.

Goods and services outcome of human efforts to meet the wants and needs of people

Goods are items that are usually tangible, such as pens, salt, apples, and hats. Services are activities provided by other people, who include doctors, lawn care workers, dentists, barbers, waiters, or online servers, a book, a digital videogame or a digital movie. Taken together, it is the production, distribution, and consumption of goods and services which underpins all economic activity and trade. According to economic theory, consumption of goods and services is assumed to provide utility (satisfaction) to the consumer or end-user, although businesses also consume goods and services in the course of producing other goods and services.

Advertising campaign series of advertisement messages

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). An IMC is a platform in which a group of people can group their ideas, beliefs, and concepts into one large media base. Advertising campaigns utilize diverse media channels over a particular time frame and target identified audiences.

Market (economics) Mechanisms whereby supply and demand confront each other and deals are made, involving places, processes and institutions in which exchanges occur.

A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and resource allocation in a society. Markets allow any trade-able item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for sale.

Business marketing is a marketing practice of individuals or organizations. It allows them to sell products or services to other companies or organizations that resell them, use them in their products or services or use them to support their works.It is a way to promote business and improve profit too.

A target audience is the intended audience or readership of a publication, advertisement, or other message. In marketing and advertising, it is a particular group of consumers within the predetermined target market, identified as the targets or recipients for a particular advertisement or message. Businesses that have a wide target market will focus on a specific target audience for certain messages to send, such as The Body Shops Mother's Day advertisements, which were aimed at the children and spouses of women, rather than the whole market which would have included the women themselves.

Marketing ethics is an area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics overlap with media ethics.

Digital marketing is the marketing of products or services using digital technologies, mainly on the Internet, but also including mobile phones, display advertising,and any other digital medium. Digital marketing channels are systems based on the internet that can create, accelerate, and transmit product value from producer to the terminal consumer by digital networks.

The Data & Marketing Association, also known as the DMA, is a trade organization for marketers. In 2017 their web site stated "Yes, 100 years ago we were the Direct Mail Marketing Association and then the Direct Marketing Association. Now we embrace ..."

The concept of the informed consumer is a fundamental one in the law of the European Union. Since the general Resolution of 1975, one of the primary objectives of the European Community, and then the European Union, has been the provision of information to consumers. The rationale is that market actors who are informed and have a greater capacity to understand the importance of their market actions and choices, and are enabled in making better choices.

Cloud marketing

Cloud marketing is the process of an organisations efforts to market their goods and services online through integrated digital experiences, by which they are specialised for every single end user. The aim is to use advertising methods to target customers via online applications through social media websites such as Facebook, Twitter and various online portals to target consumers. Cloud marketing platforms are supported with third parties which maintain the platform. Cloud Marketing was established by a company in Raleigh, North Carolina calling it SharedVue Marketing Technologies. The marketers targeting clients need to ensure their material is compatible with all electronic media devices. Cloud marketing requires efforts in data privacy and data protection especially for EU markets where GDPR general data protection regulation defines new rules.

Critical consumption is the conscious choice of buying or not buying a specific product according to ethical and political beliefs. The critical consumer recognizes the importance of considering some characteristics of the product and its realization, such as environmental sustainability and respect of workers’ rights. Indeed, critical consumers take full responsibility for the environmental, social and political effects of their choices. The critical consumer can sympathize with certain social movement goals and contributes towards them through modifying their consumption behavior.

References

  1. "Consumer - Define Consumer at Dictionary.com". Dictionary.com.
  2. Cross, Robert G. (1997). Revenue management: hard-core tactics for market domination. Broadway Books. pp. 66–71. ISBN   978-0-553-06734-7.
  3. Gunelius, Susan (3 July 2010). "The Shift from Consumers to PROsumers". Forbes. Retrieved 2 July 2016.
  4. Scammell, Margaret. "Citizen Consumers: towards a new marketing of politics?" (PDF). p. 6. Retrieved 2 July 2016.
  5. Prosumer Revisited . Retrieved 2 July 2016.
  6. Krohn, Lauren (1995). Consumer protection and the law: a dictionary . ABC-CLIO. ISBN   978-0-87436-749-2.
  7. "An Institutional Analysis of Consumer Law". Vanderbilt Journal of Transnational Law. Archived from the original on March 2, 2007. Retrieved 2007-01-29.
  8. "Consumer vs Customer". Consumerdaddy.com. Retrieved 2010-03-10. The consumer protection act 1986 of India, is a little more generous with the word 'Consumer'. According to this law, consumer is not only a person who uses the product for domestic personal use, but also one who uses the product to earn his daily livelyhood.