Consumer is the King but in Reality is He?

"Happy customers are your biggest advocates and can become your most successful sales team."                                                                                                                                                Lisa Masiello

Consumer is the King but in Reality is He?

Consumer is the one who is able to buy and has the willingness to buy. He buys things acceding to his taste and preference. In reality, his preference is made by the influence of advertisement. Actually, consumer preference is in a way hijacked by the advertisement. The advertisement alters consumer preference in a way.

Consumer changes his demand for various goods and service in accidence with changes in fashion and the pressure of advertisements by the manufacturers and sellers of different products.

Advertisements for goods are repeated several times so that consumers are convinced about their superior quality. When advertisements are able to alter the consumer preference the producer makes a hold.

Is an Advertisement Exposing The Reality?

Market preferences are shaped collectively by individual tastes and preferences. It is the sum of all individual preferences for various goods and services. These patterns are partly shaped by culture and partly implanted by information and knowledge about the products and services.

Product differentiation and branding are the two important methods used by the producer to hijack consumer preference. Branding is like opium once attracted to it will swallow your preference.

Does Consumer Have a Preference?

Theoretically speaking consumer preference is defined based on a common assumption is that if you buy more of one good (keeping purchases of the other goods constant) you will increase your satisfaction but by less proportionate. This is the assumption of “diminishing marginal utility.”

“Tastes” and “Preferences” are synonyms of “satisfaction” you get from a basket of goods and services. Consumer preferences are defined as the individual tastes and attachment towards a group of various goods and services in terms of marginal utility. This permits the consumer to rank his basket of goods and service according to the levels of utility gained from it. Consumer preferences are always independent of income and prices.

Does Money Buy Happiness?

A rational consumer seeks to gain maximum utility or satisfaction from spending his or her income. Money can buy happiness but it cannot make one satisfied.  Happiness is expressed in terms of money no one will be ever happy.  Even if one has an unlimited amount of money, he/she would not be satisfied with what has. Accruing money falsified the marginal utility theory.

In reality, not the consumer makes the demand but it was really made by the producer through branding or advertising. The consumer is not the king, he was made as a king in an imaginary world and it was enforced by the producer. It is high time to come up from the imaginary world, you are not the king you are made as a king to treat as slaves because the king won’t raise complaints.