The Consumer is and Always will be King
In business and economic studies, it is
always emphasized that the customer is and perhaps will always be
"KING". Well it may be a debatable case, especially when one
considers arguments like "supply creates demand". It is
true and correct to point out that indeed Supply does create demand, but let’s
go back to the initial source or rather "inspiration" for this supplier.
A supplier or entrepreneur (as many would prefer to call him/her) derives
a business idea or project initially from observing consumer traits and hence
comes up with what they feel will be lucrative to offer the concerned consumers
or customer. Later on of course, the supplier will turn to the competitors
offering similar products so as to better their project or business and also
look at a variety of other factors too. Ultimately the source of supply itself
is in fact demand or rather the Consumer. Whatever the supplier will want to
introduce to a market, be it an invention of a totally new item or better
version of an already existing product, the initial source will remain to be consumer
oriented. Even Alexander Graham Bell when inventing the very first telephone, I
could say, simply derived his invention from the curious aspect of wanting
people (the consumers) to communicate over long distances.
It is for this reason that
organisations and institutions that have prospered have always adhered to “the
customer is king” principle. Remember that a customer’s complaint or
recommendation, no matter how nonsensical it may sound, if looked at critically
can simply take your business project or institution in a whole new direction
and perhaps open doors that you never thought your business would actually
enter. Many companies start up offering perhaps a single service or product,
but over time due to customer response may end up offering even up to ten other
accessories.
Understanding the Consumer and their
consumption pattern has been the whole basis and subject content of Economics.
Much as aggregates help understand an economy in totality and enhance the
development of economic policy, the individual consumption patterns still end
up been exaggerated and hence overlooked. Earlier last week, Prof. Angus Deaton
earned a Nobel Prize in Economics from some breakthrough work in helping us
understand better the #Consumer and
general Consumption patterns in relation to Poverty and economic policy
development.
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