consumer power
As Within, So without
Consumer power is the influence that consumers can collectively exert upon industry, locally, nationally and internationally.
Whenever we make a purchase of either goods or services, we are contributing to the profitability of the company with whom we are dealing and also all their trading partners too. Sometimes we may feel so strongly that we disagree with their ethics, policies, or politics and the only way that we can effective assert our views is by exerting consumer power in the form of lobbying, letter-writing, or boycotting.
A good example of consumer power affecting legislation is food labelling, we are now much better informed about the ingredients, additives and farming methods used in the production of our food. Statements regarding the origins of our food may be made, for instance the label on canned tuna will state if it has been caught by dolphin friendly methods because many consumers prefer to buy tuna caught in this way. Other products may make declarations that they have not been tested on animals.
Consumer power also impacts on the prices charged for products and encourages innovation and product development. People are not prepared to pay high prices for comparable goods and services and will switch to alternative products or brands if they represent better value for money or are more suited to their needs. This forces businesses to compete for customers by either reducing prices or improving their products and makes sure that consumers are able to get the best possible deal
How can consumers make a difference?
As consumers demand better quality products manufactured from sustainable resources and a more efficient after sales service, businesses must provide them. If they do not react to consumer demands, sales will be lost to companies who are prepared to supply the goods and services demanded.
Consumer power can be exerted in several ways:
- By writing to the company
- Publicity campaigns to raise awareness of unethical or environmentally harmful practices
- Lobbying government for changes in legislation
- Boycotting products and/or producers
- By simply buying the products best suited to individual needs.
If customers feel strongly about an issue they can stop using a product or business. By informing the company exactly why consumers are boycotting their products businesses will be made aware of public opinion and in a position to change their policy accordingly. This will enable businesses to become more socially and environmentally responsible.
Simply by asking questions and being aware of the origins of the goods and services that we buy will ensure that we are better informed and able to make considered choices. We need to consider the manufacturing process, raw materials and labour used during the production process.
Concerned consumers are forming pressure groups such as Greenpeace, The National Consumer Council, Friends of the Earth and the Fair Trade Federation and actively lobbying governments and businesses to persuade them to change their policies and procedures.
