3.8: Consumer Sovereignty Flashcards
What is consumer sovereignty?
Consumer sovereignty is the assumption that consumers hold power over producers by making purchasing decisions.
Consumers “vote” for products by buying them, which determines what goods and services businesses provide.
How does consumer sovereignty affect competition?
In a competitive market, consumer sovereignty ensures that businesses provide what consumers demand.
The stronger the competition, the more influence consumers have over the types, styles, and quality of goods and services offered.
How does consumption culture challenge consumer sovereignty?
Consumption culture, driven by marketing and materialism, promotes excessive consumption.
Consumers are exposed to thousands of advertisements daily, shaping their desires and preferences, sometimes leading to products with short life cycles and unnecessary replacements.
What are some ethical challenges to consumer sovereignty?
Lack of alternatives: Consumers may not have many options to choose from.
Persuasive advertising: Corporations can mold consumer preferences, limiting true sovereignty.
Product obsolescence: Trivial product differences and artificial obsolescence increase consumption.
How does the Canadian government regulate consumer sovereignty?
The government imposes regulations, standards, and approvals on products to protect consumers.
However, some argue that these regulations benefit producers more than consumers, especially when monopolies or tariffs create contrived scarcities that raise prices.
What is a consumer boycott?
A boycott is a form of protest where consumers abstain from buying goods or services from a business, organization, or country to express their discontent.
Boycotts aim to apply economic pressure and damage the reputation of the target.
How effective are consumer boycotts?
While some boycotts raise awareness, few result in substantial sales impacts.
The success of a boycott depends on the passion of participants, low costs, and widespread awareness.
Social media has made organizing and executing boycotts easier.
What are some examples of consumer boycotts?
Bluefin tuna: Boycotted for environmental reasons.
Hermès: Targeted for using reptile skins in luxury products.
Kellogg’s: Boycotted over genetically modified organisms (GMOs).
L’Oréal: Targeted for using animal testing for cosmetics.
