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Lesson 2 What is Consumerism?
Objective Explain the phenomenon of consumerism.

What is Consumerism?

Power has shifted away from the producer toward the consumer. With a world of competitors only a click away on the Internet, consumers expect to receive more information.
In the past, conventional wisdom has been that you create value in the marketplace through:
  1. Product leadership: innovation, quality
  2. Operational efficiency: low-cost provider (WalMart, Kmart)
  3. Customer intimacy: How well I know my customer and can respond to her needs (Merrill Lynch)
Shifting the Supply Chain to the Demand Chain
Businesses have begun to separate these concerns in order to create consumer value.
The following graphic demonstrates how the producer's perspective of

  1. "Here's what I will supply for you," relates to the customer saying,
  2. "Here's what I want."
Separate Concerns
Separate Concerns
The e-Business value proposition must reflect the movement of consumerism, or supply chain into the demand chain.