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Power of the Consumer

Essay by   •  December 5, 2013  •  Essay  •  336 Words (2 Pages)  •  999 Views

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As a consumer, we actually have a lot of say so and power in what we purchase, and how much we are willing to pay for it. For example, at various retail stores such as Wal-Mart, if the original product isn't in your price range, you can purchase Great Value or other alternatives.

These generic products tend not to be advertised through commercials or billboards. Why? Due to the fact they don't need it. At any retail store if a pack of Twizzlers is too expensive for the consumer, they will automatically get the alternative. The alternative products ultimately sell themselves.

There are not longstanding delivery contracts with these generic brands, due to the fact that they are usually store based. Different retailers contain different alternatives for their products. As stated previously, Wal-Mart has great value, and Dollar General has smiley products (the alternative) for their candy.

Customer Not Significant. Share of Purchase Activity:

In the 2012 fiscal year, Walmart's net sales increased by 5.9% to $443.9 billion versus Targets $72.0 billion. On the outside looking in, one could make the assumption that Walmart's gain is due to their appeal to their customers. Wal-Mart is constantly having holiday sales and even price matching guarantees (where if the consumer finds a price lower than the price at Wal-Mart; they'll get the difference on a gift card). Without the appeal of customers, the retail stores would not flourish.

Industry Goods Critically:

The quality of industry products are perceived very critically by end customers. The quality of the product can determine whether the costumer purchases, reject, or even bash their product. With retailers offering basically offering the same things, the quality of the product is what is setting them differently.

The different features the product offers can again self-promote the product. When a customer is satisfied with the product, and a potential customer witnesses this, it could start a chain of buyers. Various things such as what the product offers and various features sets the product at a higher standard for buyers.

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