I have always felt extremely lucky having a large and diverse group of friends. When we get together, there is always sharing of ideas and information that we have come across, from books, world news or documentaries we have seen.
With corporate social responsibility becoming an extremely published topic over the last few years, a few friends and I have become intrigued with learning and sharing this information as we come across it. Our growing passion in seeking information and questioning what we have always believed in, is leading us to discussing the growing fair trade, organic and green product markets that we are starting to see in supermarkets. One thing we have noticed, is they are only taking up a small section in the supermarket isle, there seems to be a larger isle for a huge variety of packet chips compared to the few rows of organic vegetables and fair trade coffee and chocolates. As a marketing student, I always have to throw in my two cents that the more we start buying these products, the more these supermarkets will start stocking these products, and slowly the product lines will expand and the prices will start dropping.
To explain further, I want to explore the basis of consumer power.
Whenever we buy any product or service, from any shop or supplier, we are contributing to the profitability of that company. This profit is then moved down the line, to their trading partners, suppliers, manufacturers and parent companies. When we are handing over profit, it goes regardless if we agree or strongly disagree with the company and associated trading partner’s ethics.
There still are a large number of people who have a lack of knowledge about business operations, and I also need to say there are many companies, who do not provide, honest and accurate information about their business dealings. This leads to many consumers becoming unknowingly ignorant about the business story behind the products they are buying. They are simply unaware that purchasing a product, contributes to a profit, which could end up in the bank of a company that may not operate ethically or with our best interest at mind.
When groups of people become aware of dodgy manufacturing process, or the unethical trading policies of some corporations, they start exerting their consumer power with lobbying or boycotting. Lobbying creates a strong collective voice that attracts media attention, spreading the word to a larger audience. Lobbying groups are also effective at getting government intervention, demanding legislation reviews or regulation changes.
Over recent years, especially with the growth of the internet, more consumers are learning about companies and their crafty business tactics. Many consumers are starting to take action against these companies, by not buying or showing support towards their business and stopping handing over their own dollar as profit. Boycotting, is this practice when we stop buying particular brands or products because we do not agree with their business values or ethics.
Companies are "in business’' to make a profit, if they want to remain profitable and competitive, they need to supply products and services that consumers want. The more pressure consumers place on companies, the more these organisations are forced to make operational changes, ensuring their brand and product remain in favour in the consumers mind. This pressure, not only can be shown by banding together in large groups such as lobby action, but it can be done by us all on an individual level. If we all start swapping the products we are not satisfied with, for products that we prefer as being more ethical or environmental at the checkout, we can slowly, one by one, make a dramatic affect on product sales.
This movement by the consumer is called a change in demand. Corporations that do not respond to changing demand lose sales, which over time can be detrimental to the success and longevity of a profitable organisation. The more we demand corporations to manufacture products using ethical practices, sustainable resources and healthy processes, the more companies will provide these products and the more companies that provide the market, the better the price of these products become.
Consumer power is a massive driver on pricing strategies that companies use to gain a greater market share. If you have ever considered buying environmental or ethical products, but found them too expensive, just remember that if you start to buy them today, your consumer power will be counted towards generating more demand, which leads to increased supply, with a wider product range at cheaper prices
Here are some thoughts on how you can start to exercise your consumer power;
- Become an informed consumer
- Researching more about companies, products and brands. Find out about parent companies and trading partners as well. Seek to understand where the product comes from or where it was manufactured.
- Look for alternatives
- See what your regular stores offer, are there better alternative? If you cannot find what you want, ask the store manager if they can make a special stock order. If you do not want to talk face to face send a message on their Facebook/Twitter walls.
- Google! When you start searching for ethical, green or healthier products online, not only can you find reputable local suppliers, you will be amazed at the number of existing business all over Australia, with online stores and fast delivery times.
- Join online campaigns
- Many lobbying groups have an online community pages, providing information and even electronic petition where you can digitally sign to show your support at a collective level.
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