Consumerism: a peril or virtue!

Citation

Ali, A.J. (2007), "Consumerism: a peril or virtue!", International Journal of Commerce and Management, Vol. 17 No. 4. https://doi.org/10.1108/ijcoma.2007.34817daa.001

Consumerism: a peril or virtue!

The front cover story of The American Conservative (Barber, 2007), “I shop therefore I am” was provocative yet insightful, playing on Descartes' proof “I think, therefore I am,” a common argument in both philosophical and general discourse. In fact, the expression is often invoked to assert one's identity and to underline the essence of existence; exercising the right to think. Even though, the expression has seldom been discussed in management and organizational literature, its relevance to management and organization practice should not be underestimated.

In “I shop therefore I am,” Benjamin Barber confronts a growing market and social phenomena-consumerism. His main argument is that the global marketplace, in recent years, has created children with consumer power and adults with the appetites of “spoiled kids.” Specifically, he asserts that today's business practices, and marketing in particular, induces adults to emulate the tastes and habits of children and then easily manipulates them to buy goods for which they have no need. That is encouraging consumers to remain “childish and impetuous in their taste [and] helps ensure that they will buy the global goods designed for indolent and prosperous youth.”

Barber blames consumerism for creating a situation where civilization is treated not as “an ideal or an aspiration” but as a “video game.” This development is a predicted outcome of a culture that prefers “easy over hard, simple over complex, and fast over slow.” Barber distinguishes between two streams of capitalism: productivist capitalism and consumerist capitalism. The first creates synergy between making money and helping others. It is the type of capitalism that has led to remarkable progress and prosperity in many industrial nations, notably the USA This type of capitalism has rewarded energetic risk takers and allowed them to flourish by facilitating the growth and serving the welfare of other nations. The second is a new form which profits only when it addresses those “whose essential needs have already been satisfied but who have the means to assuage invented needs.” This form, according to Barber, is evolving in the USA and a few other industrialized countries. It espouses an ethos that is vehemently condemned by productivist capitalism.

Regrettably, the attitude which prefers easy over hard work, entitlement over obligation, and leisure over work, in the long run, leads to a less productive society and ultimately endangers the welfare of its members. There are those who attribute the rise of this phenomenon to affluence. Certainly, affluence is a desired state, but when affluence gives rise to attitudes which do not appreciate productive and responsible participation in economic activities, the society experiences setback. It should be mentioned, however, that consumerism does not always immediately lead to laziness and less productive involvement in economic affairs. In Japan, Finland, Singapore, the USA and Germany, consumerism is on the rise. Nevertheless, these countries are still a source for creative thinking and their productive involvement in the world economy and its growth is exemplary.

As an outlook and a pattern of behavior, consumerism is characteristically linked to the evolution of capitalism, globalization of marketing, and the emergence of the global entertainment industry as a determinant factor in shaping tastes and habits of people across the globe. Consumerism is often equated with giving customers' freedom to make choices in the marketplace, and experience happiness and gratification resulting from possession and consumption of desired material objects. From social and market perspectives, these are not necessarily bad. In fact, choices and gratification can be instrumental in stimulating imagination and creative thinking, thereby steering companies towards seizing emerging opportunities and aligning their activities to social trends and productive economic endeavors.

This by no means precludes the prospect that consumerism and accompanying attitudes can be a source of complacency and eventually an economic and social liability. This is especially true when consumerism reinforces the habit of buying just for mere possession of goods or purchasing without regard to one's basic needs. When consumerism is equated with self-gratification and a selfish desire to engage in uncontrolled spending and extravagancy, then it turned into a dysfunctional attitude with all its destructive consequences.

Whether it is a source of creative imagination or a dysfunctional attitude, consumerism is a powerful trend in today's economy. In developed nations, consumerism is the outcome of the interplay of various forces ranging from manipulative business practices that lure buyers, weak social institutions, glorification of celebrities and the desire by segments of the youth and adult population to emulate their life styles, and governments' encouragement of consumption, to a complacency resulting from affluence and the enjoyment of leisurely activities. In developing nations, consumerism is linked to the rising influence of the global entertainment industry, MNCs intrusiveness in all aspects of economic and social life, unfulfilled expectations of a huge segment of the youth population, weak legal institutions, and the longing of various social classes to have a similar life style to that which is projected in the west.

Indeed, the wave of consumerism may constitute a more serious challenge to developing rather than developed nations. The scope of such a challenge is unfolding, transforming most of these nations into consumption-based societies thereby encouraging a dependency on imports and threatening local industries and social structure. However, in determining whether or not consumerism is a peril or virtue, the following questions, should be raised:

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  Is shopping a means for socialization and satisfying basic needs or merely extravagant spending?

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  Do consumers have the skill and knowledge to understand the nature and impact of persistent advertisement messages?

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  Do corporations purposefully entice consumers to engage in shopping?

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  Is consumption glorified on a large-scale?

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  Do large or influential segments of the population seek to emulate the lifestyle of celebrities?

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  Do consumers consciously make a link between personal identity and consumption pattern?

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  Does exposure to brand advertisement leave an immediate impression upon some segments of the population?

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  Do people normally buy more than what they basically need?

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  Do people consciously make a connection between consumption and the prosperity of the society?

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  Do people make a connection between engaging in leisurely activities and happiness?

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  Do people appreciate hard work, creative involvement, and productive activities?

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  Does public policy and priority maintain a balance between consumption and production, spending and investment?

These questions, among others, shed light on the nature of consumerism and whether or not it contributes to the decline or growth of the economy. Barber's concerns and fears are real and should be examined in the context of societal and economic trends. Businesses activities are always instrumental in safeguarding civilizations, but they are not the determining factor. Ultimately, the transmission and survival of a civilization is the outcome of the collective action of its people.

Abbas J. Ali

ReferenceBarber, B. (2007), “Spent youth”, The American Conservative, Vol. 6 No. 9, pp. 7-12.