One of the best topics that we had in our past discussion is Marketing Convergence. And we taught lots of new stuffs which best suit in the profession of being a good technopreneur as those who run businesses. There are many ways of how Marketing convergence is occurring nowadays. Indeed, “Death of the Consumer” is the main consequence or outcome of the convergence. It may sound negatively when we hear the word “death”. Right? But as far as I know that this death is a new avenue to arise something better than before. This “death of consumer” talks about the number of consumer that is being done. However, good thing newest consumer is now what we call “PROSUMER”. Yes! You heard it right. This term still refers to the person whom to buy and avail products and services. And there is a big difference of being a consumer before and a prosumer of today. Great wall between the two really matters. The advantages of being prosumer have a twist on the difference compare to the consumer. When I got first heard about the prosumer, I am eager to know more and get the pin point definition of it. Indeed, I spent my time browsed and searched some articles to justify and provide my needs. To give differentiate, lets define first the consumer. From the online encyclopedia which is Wikipedia, “Consumer is a broad label for any individuals or households that use goods and services generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary. Typically when business people and economists talk of consumers they are talking about person as consumer, an aggregated commodity item with little individuality other than that expressed in the buy/not-buy decision. However there is a trend in marketing to individualize the concept. Instead of generating broad demographic profiles and psycho-graphic profiles of market segments, marketers have started to engage in personalized marketing, permission marketing, and mass customization.” From that given definition, the consumer which those person decide buy or not to buy on the available products and services. A consumer is free to make decision on availing products and services. Just like a normal consumer, in order to make a right selection, we are able to ask from the seller how good their products may provide. When I remembered the lines once I have read somewhere, it says that “there are two kinds of foolish a consumer might have, it is to ask many times and not to buy or ask once then decide to buy”. So how is this line made foolish to the consumer, it is when clients are going ask questions in many times they are just wasting their time in inquiring then as a result if it not made them attractive they just say “Sige, mubalik rako unya” (I will return later on). Then it would be the sign of not fully satisfying in the marketing of products. Another thing is when consumers asks only for once and immediately purchase and pay for the products. This is very usual to those illiterate people who got too deceived by the seller quickly choose to obtain their selection. Now we also need to define and identify the prosumer. Still from the free online encyclopedia, defined the “Prosumer is a portmanteau formed by contracting either the word professional or producer with the word consumer. The term has taken on multiple conflicting meanings: the business sector sees the prosumer (professional–consumer) as a market segment, whereas economists see the prosumer (producer–consumer) as having greater independence from the mainstream economy. It can also be thought of as converse to the consumer with a passive role, denoting an active role as the individual gets more involved in the process. More recently, in the mental health field, the word "'prosumer'" has come to mean "consumer/provider," also known as a "peer provider," such as a peer support specialist or other mental health consumer who also provides peer support mental health services (background on peer-run mental health services). The word "Prosumerise" has been coined by Widality to represent the merging of the IT and mobility requirements of the prosumer, consumer, and enterprise.” From that meaning, prosumer is still a consumer. However prosumer used the consumer-grade products. This grade means the standard of the product. If it has a high quality then it will also have highest percentage of consumer-grade and vice versa. Another thing, they are consumer targeted products, at consumer prices, but containing some professional-grade functionality. And lastly a prosumer is progressive or developing gradually over the time. They have their own choice. Prosumer doesn’t depend on the available products and services offer but they have a great involvement to denote active roles on the process.
Moving onward is the most crucial indicator of the feasible and practical of the economy will be on consumer spending. When you have to run business, you have to make sure that you have sufficient and well of number of consumer. If there are not enough consumers, there will be no recovery due any doubt to the negative characteristics of consumer data. The death of the consumer is receiving scant coverage. For the advantages of being a prosumer, they can immediately access to the new technology. Thus, this technology meets their specific requirements. For the company, it is important to strengthened relationship with the customer. They must have to demonstrate a willingness to keep their customers satisfied. And lastly, the company now has a new feature, product, service they can market to the customer. We as a customer are conscious on fast inquiring for the orders. Through the wide range of internet, we can simply request and find out the products that we are going to purchase. Aside from that it would be better to communicate through internet to less the time consuming and burden to travel a distance in order to buy products.
What makes a prosumer and consumer differ? A certain site stated that, a Prosumer is researching a products value, performance, and price through social networks (twitter, tumblr, facebook) and consumer product reviews (such as Amazon.com), and prices comparison shopping engines such as Nextag.com and Thefind.com, before making a final decision or purchase. In that way it is clearly defined that a prosumer has a great involvement in choosing what the best is for the amount they are going to pay. In fact, within these web sites a Prosumer researches all aspects of a products performance, price and social acceptance in relative comparison to similar products within the same category. The Prosumer is searching for the highest quality product that best meets their personal needs for the maximum amount of money they are willing to spend. Based on that search criteria, the Prosumer is also willing to venture into new shopping distribution channels in order to purchase that product. As a matter of fact, a prosumer has a capability to take risk in order that he/she can undertake business venture that would lead to profit. Who founded the prosumer? The Prosumer terminology was identified by the Earl Jean Brand, where the company recognized a new consumer niche of premium denim consumers who because of the economic downturn desired a high quality, status image, socially acceptable and high performing jeans wear products at value prices.
Examples.
1. A very good example is a prosumer niche of a particular brand of jeans. That prosumer make customizing in his own style of a high quality of jeans. Not just that, a prosumer should be check the performance, price and the accurate value of an item which he/she is going to spend.
2. Another sample is when a prosumer is going to search and browse a certain online buying of foods such as McDonalds, a prosumer will just drag the menu or click the option of the combination of burger, how many patties and soon. The two above mentioned scenario are few for those happenings where “Death of a Consumer” occurred.
3. To give another sample is when a technological development that opens new opportunities, nor is it a new form of connectivity. What has developed is a specific style of how to interact with customers and with data, a style significantly different from the early stages of the Internet as mass media. Thus, current websites such as eBay and Amazon are primary examples of how to create added value through transparency and participation. In this way, these companies represent the “new” Web. When I have found the new objective of eBay, I was felt well on that. eBay has its new good format, eBay does not sell directly. In fact, it insists on being called a “venue”. A venue where eBay will going to offer to customers a place where they can become sellers and/or buyers. In eBay’s world, both seller and buyer are eBay’s customers. That’s an excellent idea to motivate ones life. There would be performance evaluations on the both side of buyer and seller. The seller pays for the privilege of selling (via a complex system of final-value fees levied against the total cost of the transaction), and only the buyer can leave negative feedback (a recent update to the feedback mechanism that resulted in a near rebellion of small- and medium-volume sellers). Indeed, eBay via Paypal offers a safety net of transactions, most transactions are self-regulating, and in short it could be adjustable. At the end of a transaction, both sides — seller and buyer — leave public feedback on a variety of the transaction’s aspects. For safety precaution, the customer will always remain anonymous or unknown to prevent illegal activity. Thus, in a manner of speaking, eBay’s customers take on the role of employees. And there is more: eBay offers its customers a whole range of venues for expression, ranging from discussion boards about coins or purses to help with transactions gone bad. What is interesting in these forums is that very few actual eBay employees participate; the content and answer providers are fellow eBayers. The eBay is just a new avenue to arise something good for the common good of both buyer and seller. Strategic plan, patience on taking risk and spending time is the capital on this matter. Like eBay, Amazon.com successfully deploys this strategy while defending its dominant market position. At Amazon, customers review and evaluate books, films, gadgets, clothes, food items, beauty products — anything that’s for sale on Amazon.
I had also read from a noble article in the internet. The article is in titled “Consumer or Prosumer” which is written last August 10, 2010 by Tim Moore. This is a very good article for those who got confused between the two matters. It specified here the buyer as a consumer “One that consumes, one that acquires goods or services for direct use of ownership” or “A heterotrophic organism that ingests other organisms or organic matter in a food chain”. By that definition, it’s all about the sale, which cares about the person. It is really selfish, demeaning view of our valued customers. Definitely, it is an old version of being a client. On the other hand, Prosumer is “One who is converse to the consumer, denoting an active role as the individual gets more involved in the process.” So what’s the best side of being a prosumer? It is they are interested in others first, sharing, giving, earning their trust. This means that consumer needs to express their feelings or opinions. This is also important, seller must have to consider the suggestion of the consumer, in order to modify and alter things for better. They are not just mindless “organisms” who just “consumes” matter. Tim Moore gave his point of view. It is that customers are critical. Just like what changing of today. We are living in a modern world. Right? Indeed, people are changing, their taste, likes and most especially their choices. We can get poor or rich service anywhere. This will also means that life is stressful; anxiety is growing as our neighbors in lives. Truthfully, procrastination or the putting off is up to 40%, rage and rudeness are increasing across the board amongst ‘service’ providers. One of the best standards mentioned in this article is the Apple Store (in fact, Tim Moore loves this store). How I wish to visit and buy gadgets in this magnificent store. This store is a perfect example of everyone in the company, top to bottom, viewing everyone that walks in the door as a Prosumer. It is stated on the article that they appreciate the services render by the Apple Company. They are going to help you, not to pressure. Not just like the other store we usually visit who will immediately get closer to you and ask if what you want. One of the preeminent factors of Apple Store is that their products are everything works and is never locked, feel free to use as you wish. See the beauty of Apple. They have the full trust to the prosumer not to snatch and steal on their high tech gadgets. In case you have something broken, Apple will provide the fix for free. And if you need a genius, go the genius bar and get excellent service from people who want to help you and get it right the first time. They will help you to choose and get some advices. Tim Moore shared that as a prosumer, he feels great and comfortable and surely he love to be back. That’s was really amazing and very attractive on the eye of the prosumer. So if we are going to ask on how should be able to be one of them. Well Tim Moore commends you for your honesty. More business leaders needs more humility when it comes to examining their business model and accepting that changing to a social media system is going to be disruptive to the current one in place, but it is critical. Yes this is true! Most of the seller use to fool their clients in terms of giving critics about their selling product and services. They will just stress the good side and never mention on the possible instances that a product might be imparted. Just to bear and gain profit from their dirty-old strategic plan of marketing. As those of us who run businesses, they find themselves in the most anxiety filled time in modern history; along with that, there are a couple of obstacles they have to acknowledge first before proceeding. Or shall we say, there are capitalist who don’t have an adequate knowledge on handling business but they just have the sufficient strong vibes on taking risk. Today’s climate is hard on business leaders, with uncertainty at every turn, the complexity of adjusting to new demands, increasingly shorter product lifecycles, and competition.
Here are just a few helpful suggestions by Tim Moore, to see things from the Prosumer’s perspective that may help tweak or make something adjustment in operation and get us on the right path without having to do a lot of heavy lifting:
1. Understand we are all in the same boat. Every business is in the similar situation. They are all struggling to catch up the social behavior of customer and have to gain profit from it. Not just to earn money but to have a good relationship towards them. Some of the customer feels like being only treated a customer. In which some of them left feel like suspicious and distrustful. Sellers are really defensive on the price of the products and services they have. While on the prosumer side, he/she would effort to search on the internet to find cheaper. So as a result of it most of the people will only have work and face on the computer while the business profis of the community dwindle or decrease. To solve this, we should have to lift or hands on the computer and look and realize the situation and do something about it.
2. SEE the goal. To run business the only goal of it is to gain profit and growth. Right? But it is not just about it. The only way to have it is to build customer’s equity or the trust of the customer. The prosumer should have only to see and realize that there is no hidden agenda on your business. It’s not only about selling your product, but what’s important is to help and learn them from their experience. You shouldhave the resolution of experiences that they have. And finally peak an interaction with you. Look hard on your operation you still have enough time to change and apply some of the good principles.
3. Make the shift ASAP. Most of the company still operates the advertisement to use media and advertise their sales. According to BTW, they earn trust, it’s not automatic, it takes time and isn’t as easy as advertising it, we must make the shift from ’selling things’ to noticing people! We need to build a desire with our Prosumers, cultivate relationships, and create a sense of comfortable community for them. One of the good formula shared on here that Thoughts + Feelings = Actions. This would help to apply those thoughts and feelings to become the reality of that solution. Prosumer’s experience when we get an opportunity, that we are going to dazzle them with service, since we are all human, using my formula will create: Trust + Desire = Purchase, and continued experience results in loyalty and advocacy.
Indeed, the “Death of the Consumer” is not a problem or an issue which needs resolution. It’s about arising a new avenue for the clients to have a great involvement and role on the operation a new “Prosumer” is now born. Prosumer has an enormous power to enhance the growth of the community. Now it’s my turn to ask you. How do you view your customer? You should ask them. You have to know what their recommendation is, deal with them and learn from their experience. Look hard. A good technopreneur must be on it.
RESOURCES:
http://en.wikipedia.org/wiki/Prosumer
http://techcrunch.com/2007/06/15/the-rise-of-the-prosumer/
http://publicculture.org/articles/view/21/3/from-consumer-to-prosumer-to-produser-who-
http://timmooreonline.wordpress.com/2010/08/04/consumer-or-prosumer/
http://www.acrwebsite.org/volumes/display.asp?id=6542
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