1. Read “The Consumption Dilimma,” (Please read pages 13 – 17, “consumers: Changing the Terms of Engagement”) for the Oct 1 class which will feature guest lecturer Prof. Pa Her, Professor of Psychology, followed by discussion.) WEF_ConsumptionDilemma_SustainableGrowth_Report_2011
Identify and comment on one argument made in the article regarding consumer spending.
2. If you have not already done so, remember to complete a typed summary of your research project (a few sentences or short paragraph that includes a central question you want to research or argument you want to make).
Consumer engagement is one of the arguments brought in the article. A slow shift from “super consumption” to “new normal” has not made a significant impact on the global economy. The article suggests “nudging” super consumption toward a sustainable level is essential to the global economy. There is no one way to engage consumers to change their trends, since consumerism is embedded in our mind from childhood through family and early education systems. As the movie “Consumed” showed our “children” are brainwashed to consume from birth. A combination of government and companies must lead today’s norm of consumerism towards sustainability. With today’s advanced technology, where a quick internet search will enable a consumer not only to buy what they were looking for but also direct them to various other items that can be bought based on their initial search, leads to super consumption. The advance marketing employed in influencing a consumer can be applied to invert super consumption towards a more sustainable consumption.
Francisco Diaz
Prof: Sean MacDonald
2/22/2015
Assignment on consumption dilemma
According to the article, the author is trying to explain that in order for a change; there has to be a shift made. A change in which the value of objects; is the most important ingredient. If consumers do not appreciate what consume, it would not make any sense to buy goods and services then. Understanding how consumers choose is a requirement to harnessing their choices in transformative change. If consumers are not aware of their choices, the outcomes might vary. A shift from one Era to another might not make any significant impact on the global economic. It might be impossible to engage consumers to change their styles or habits. Everyone thinks differently, and everyone has different points of view. When it comes to making a decision, not everyone makes the same decision. Consumerism can be inherited through family or inserted in our minds. The economic changes have great influence in Consumerism. For instance; when the economic is good consumers will be consuming a lot. On the other hand; when the economic is bad consumers will not consume that much. Now a day, everything is more easy and convenient for consumers. We have the use of technology available to us; something that probably did not exist decades ago. With the use of computers and smart devices; consumers can buy whatever they want in a matter of minutes.
Francisco Diaz
Prof: Sean MacDonald
2/22/2015
Assignment on consumption dilemma
According to the article, the author is trying to explain that in order for a change; there has to be a shift made. A change in which the value of objects; is the most important ingredient. If consumers do not appreciate what consume, it would not make any sense to buy goods and services then. Understanding how consumers choose is a requirement to harnessing their choices in transformative change. If consumers are not aware of their choices, the outcomes might vary. A shift from one Era to another might not make any significant impact on the global economic. It might be impossible to engage consumers to change their styles or habits. Everyone thinks differently, and everyone has different points of view. When it comes to making a decision, not everyone makes the same decision. Consumerism can be inherited through family or inserted in our minds. The economic changes have great influence in Consumerism. For instance; when the economic is good consumers will be consuming a lot. On the other hand; when the economic is bad consumers will not consume that much. Now a day, everything is more easy and convenient for consumers. We have the use of technology available to us; something that probably did not exist decades ago. With the use of computers and smart devices; consumers can buy whatever they want in a matter of minutes.
The one topic of this article is about consumers engagements. Despite of numerous opinions transmit by leaders to lead to a new approach in term of consumption. This means to converge to a new normal consumption instead of staying hang to the supper consumption. Such idea is still far to be reach to a sustainable consumption which is essential for the global economy. Consumer’s engagement is not shifting the global economy towards sustainable consumption with enough speed or at scale. In response, many consumers remain confused about claims to sustainability of particular products and services, and doubtful as to their ability to affect the workings of the economy as a whole through their individual purchases.
One of the arguments made in the article about consumer spending was the strategies need to reflect the complexity of the ways in which consumers choose. Even though the article recommend a deeper upstream shift in consumer values maybe effective long term approach and a more authentic way of engaging with consumers, in a pre-competitive environment, however, the values of the consumer are deeply embedded and comparatively difficult to change. Due to the fact that they are already installed in childhood, through families and education. In order to rectify consumer values, it requires a long term shift including media, businesses, public policy and education. Especially for the next generation, in which their behaviors are influenced by social leverage points.
in this article the author argued that “Understanding how consumers choose is the prerequisite to harnessing their choices in transformative change. also Engaging consumers, and “nudging” their choices towards sustainable consumption, is essential to creating a more sustainable global economy” (pg13)
the author trying to explain if media/ad companies and government find more way to provide new better transparent product qualities , consumer will not hesitate to purchase and consume more.
but if consumer are not satisfy with the product and not sure what’s in the product , people wont be comfortable to try such product .
But promoting product/ ingredient transparency is a way to reach out consumer to buy sustainable consumption.
youssouf diallo
this article talks about how the rate at which we are growing as a population and the rate that we consume can not last or we will kill are planet. they also say that even though we are trying to make changes the ideas that we are using at the moment are not enough. at this rate we are already 50 percent over the earth’s limit and we will soon be 75 percent. we need swift, quick, and extreme measures. One way to do it would be to change the inherent idea people have to consume. Consuming inherently is not a bad thing but they way people consume now is dangerous. We take and then get sick of new things too quickly and the things we like are harming the environment. They need to start telling and teaching kids about things that are sustainable and safe.
In reference to the article “The Consumption Dilemma”, the author emphasizes on consumers engagement by ultimately understanding their choices and installing new approaches to attain a more sustainable global economy.
As discussed, the interaction between businesses and consumers plays a vital role in building consumers’ trust based on genuine applications through technology and data. Whereas, the challenge remains on modern technology to formulate efficient and sustainable ways to construct consumers’ engagement.
Furthermore, the more businesses are transparent and tend to understand the consumers decision-making influences; rational, emotional, and contextual practices, the more they will achieve sustainable consumption and achieve an accelerated and long-lasting relationship with the consumer. Moreover, women play a vital role in the influence of decision making within the market. We can deduce that women are a weapon in shifting to sustainable consumption.
Finally, the potential of consumer engagement not only affects business models, but also shifts businesses into a new direction by adjusting consumption and introducing new opportunities to businesses.
Jamien Suarez
Consumer engagement needs to be shifted to a sustainable economy. Rational decision making is one of the three aspects of consumer spending with price being the most important factor when making purchases. But rational decisions are not common as consumers tend to buy based on the influence of the environment. Studies in the U.S. have shown women are responsible for making 80% of household good purchases. And the Consumer Electronics Association shows women have outspent men by about 55 billion dollars. This is interesting because women can have a very large influence on the economy and consumer spending. Women can contribute to the shifting of a sustainable economy.
One argument made in “The Consumption Dilemma” is that in order to make the shift to a sustainable culture it is essential that we begin to see people as citizens rather than consumers, which has become the norm. The article states that this ethos is more enduring than the previous model where marketing groups individuals, taking away their identity.
In order to treat people as citizens it is necessary that we recognize what influences citizens (family, friends, places of worship, schools). capitalize on the renewed impetus for networks that has come about from technology, understand a shift from “me” to “we” and engage citizens through an idea of shared responsibility.
Francisco Contreras
Professor Sean MacDonald
Q.Identify and comment on one argument made in the article regarding consumer spending.
A.The US economy has been maintain by consumer spending. From birth we got the habit of always wanting more and needing the newest things from what we see on TV, Magazines and all the advertising done which always been are engagement to spending. The article explains how the market needs to find different spending behaviors to have the consumer spend more efficient. “The issue may be as much about where consumers are engaged as how they are engaged and who they are.” In order for consumers values and thoughts of wanting the newest IPhone or Ford truck to change in more sustainable ideas. The article states “So while transforming consumer choice through changing consumer values may offer the greatest long-term leverage, it implies a long-term shift involving media, businesses, public policy and education.” The TV ads, magazines and families need all to start changing the way we engage to spend more and become more conserved spenders.
One argument for engaging consumers, is to “nudge” their choices towards more sustainable long term consumption, via “emphasizing value above ‘stuff'”. As in Changing their psyche from replacing Smart Phones every several months (electronics), aka – a sacrifice, towards responding by doing something different.
Many consumers are often misled, and confused about claims to how long a product or service will make due, hence rapid replacement & change. “How consumers choose” mentions “Emotional”, like brand image and social influences for being factors in purchasing or replacing things, this is seen in objects such as iphones, apple smart phones upgrading to new versions etc.
This article was very informative and interesting. The part that stuck out to me was on page15 titled “Women as ambassadors of the cultural imperative”. Women have the largest buying power. We purchase 80% of household goods. Women do control the buying decisions in the household. Millions of dollars are spent annually to market numerous goods and services to the woman demographic in order to capitalize on profits. This excerpt also mentioned women being more risk averse than men meaning that long term benefits are a huge part of what drives women to spend money on particular goods and services.
Article suggests that more engagement from younger generation is needed in order to bring some change in consumer spending. Compared to our older generations, current generation is more aware of global social and environment issues. Therefore, as we marker and promote new products, it is acutely essential to win the trusts of new generations for they seek business transparency and honesty is the required to win trust.
The current trend of super consumption of unsustainable stuff can be impacted by consumer spending habits. The article shows that this nudge is just that a nudge and is only being practice by a small percentage. More needs to be done to encourage and foster the turn toward sustainability we need. We have engage the consumer on multiple levels (rational, emotional and context). For this to be done there are going to be roles played by governments, companies, societies (social norms) and us as an individual. Specifically a shift in our psyche from us to we as citizens. The article goes on to identify that a change in consumer values would lead to the greatest long term changes, but these are very hard to change. Values are normally established in childhood via families, social norms, public education and media.
One radical form of consumer engagement is co-creation of goods and services enabled by new communications technologies. On this also there are limits to how widely this can be applied, depending on the type of product and services and the availability of the supply side of consumer innovation. The Article mentions that even where co-creation is not possible, consumer engagement can become far more collaborative and more socially driven, building far stronger brands in the process.
One of the arguments made in the article is the idea of “From Behaviors to Values” it is stated that “traditionally, the focus of efforts to change consumer behavior has been at the point of purchase and pre-purchase, with mixed results.” Believe is that a greater change in consumer values might bring a long term approach to consumer spending. Based on the fact that majority makes their choice of purchase on the price value, raising price value might increase spending. It seems that this approach will work for a longer period even decade since consumers believe is that the higher the price the better the quality. In some cases this is true; higher price better quality however, this does not apply in most cases. Less consumer think toward the fact that less expensive product can be as good as the expensive ones and at times the less expensive could be better. The idea has been embedded into consumer from childhood and it is difficult to withdraw such influence from most consumers. Controlling and transforming consumers spending via the idea of “from behaviors to values” will be at the greatest influence to consumer choice and will create a much longer result.
Very informative article, although I seem to want to add something that was probably explained in higher terminology. On page thirteen the article has a short list of three points suggesting how the consumers choose. He starts off by listing “Rationale”. I just want to add that a lot of people who make rationale choices has had this value of contentment instilled in them from a young age. This has a lot to do with background economics, social status and financial hardship experiences, meaning, people who earn money or salaries by more menial and strenuous ways somehow tend to be more “smart” and reserved when spending. Also coming from poor families plays a part here too. This lack of luxurious items grows with you and you generally satisfy yourself with just purchasing the needed items for the lowest cost or best value.
When he talks about “Emotional” spending I would think that as a consumer you should have more money than the “average Joe” to be able to buy on intuitions and spur or the moment. Not quite. Going off topic a bit, a lot of people who purchase like this actually tap into credit reserves, like credit cards, loans etc. because spur of the moment buying is not something you have saved for, so most times credit comes into play here. (So going a little more off route). I think this is part where the whole hype of having stellar credit comes from, because I would think that if you are planning to buy something why not save for it… but no.. spur of the moment buyers who just purchase at a moments notice are the ones who mostly need to tap into credit lines at any given day. But then again what does stellar credit mean to people like this? You can get stellar loans? Live in stellar debt? A little off the topic probably but this came to mind when I got deep into the part about consumers who buy randomly with little thought.