The Consumer Is God in Today's Market

The Consumer Is God In Today’s Market

“The consumer is God” was stated by the founder of Matsushita Electric Corporation, Konsuke Matsushita and it reflects the connection between the seller and the buyer (Draganov, 2005). In a highly competitive market, consumers always have a superior position towards the seller. This means that whatever the consumer request or needs it’s upon the seller to satisfy these needs by producing quality goods and services. Any person or company that is venturing into business has only one motive, and that is to make a profit and good customer relations; hence a lot of money is invested in identifying consumer choice and demand.

In the 1960s, India had few motor manufacturers, which were dominating the market, but with the entrance of several other new motor manufactures, those manufacturers were forced to change their products according to the taste and preferences of the consumers (Draganov, 2005). This in itself demonstrates the strength of consumers, which no company can afford to overlook. If a company fails to understand consumer choice and demand, then the core objective of the company will not be met. In a competitive market the consumer dictates the price, when and how the product will be produced and will also determine which company survives the market. Like God, consumers determine which company ‘lives’ and which ‘dies’ in such a market.

However, in a market where a monopoly exists, consumers are forced to accept products and services the suppliers’ produces. In this market, the supplier is God. But with globalization and Governments introducing consumer protection acts or laws, competition has increased and such markets are becoming fewer. The consumer is God in today’s market; he will not change his demand, but the seller or supplier will change the product to suit the demand.