The Four Seasons Hotel
September 30, 2004

The Revolting Consumer
Revolting, according to the dictionary, can be applied either to someone rebelling against oppression or to someone who is repellent and abhorrent. Both definitions seem to fit today’s consumer. The marketplace is a war zone. Businesses are warring ferociously against each other for customers and dollars. And they are also engaged in a kind of guerrilla war with consumers. In that war, businesses are increasingly facing rejection, resistance and downright sabotage. Both sides benefit from — and are affected by — new technologies.

Marketers may face a backlash from consumers fed up with useless features built into products and annoyed at the assumption of their receptiveness to any new product. Consumers are also increasingly annoyed and even enraged by what they see as intrusiveness on the part of marketers — spam, autodial marketing calls, junk mail and junk inserts in mail, unwanted faxes, etc. This is compounded by what many perceive to be a decline in service. This point of view is summed up by William Gibson’s sardonic observation that “far more creativity today goes into the marketing of products than into the products themselves.”

In response to what is perceived as an overly aggressive marketing onslaught, consumers are enlisting technology to enable them to prevail against superior forces — answering machines, zappers, TiVos, spam blockers, list removal, unlisted numbers. For example, in spite of music industry efforts, illegal downloading of music and file swapping go on.

And, of course, marketers are fighting back in what seems increasingly to be an all-out war:

• The recording industry is attacking the trading of music files online, going after both consumers and service providers.
• Technology promises the use of “directional sound” ads aimed at individual consumers, as in the movie “Minority Report”.
• More human-seeming virtual agents — “verbots” and “V reps” — are being used for customer service, because they may be more cost-efficient.

Companies are also looking for more peaceful ways to engage consumers, recognizing that belligerence and antagonism are not helpful in building customer relations. Indeed, the Anthropologie chain doesn’t spend any money on traditional marketing; instead it focuses on creating a “store experience” to appeal to its narrowly-defined market niche. Electronics manufacturers, seeing that 85 percent of buyers of their products do not feel they are knowledgeable about those products, offer more useful product information. And even though TiVo does not yet appear to be successful, many marketers feel they must find more unobtrusive ways to advertise.

Look at the nature of the relationship between producers and consumers:

• More people are giving money or store gift cards instead of presents, at least partly to save themselves from what they see as the hassle of shopping.
• A surprisingly large percentage of companies don’t respond to e-mails from customers.
• Spam e-mail increasingly involves some sort of scam.
• Compulsive shopping is being seen as a medical disorder.

Implications:
As Charles Handy notes, consumer resistance to — and annoyance at — marketing, combined with an erosion of trust, creates a situation with immensely harmful potential for businesses. Shoshana Zuboff and James Maxmin state additionally that businesses’ failure to deliver good service means more demands from consumers to be treated with a respect they increasingly feel they are not getting.

The relationship between business and consumers today is like a marriage that has gone sour. Both parties dislike and distrust each other, but they are still bound together. Infidelity is certain to result. It is not a healthy situation, and it will continue to get less healthy unless business takes the steps necessary to reverse course.

Potential negative consequences:
• Declining support for business in federal and state governments, with adverse legislation and regulation resulting.
• More and bigger liability decisions in courts.
• Even less customer loyalty and more encouragement for new competition.
• More consumers ripping off companies, as with false claims of injuries.
• Many more complaints to both business and regulatory authorities.

Issues Analysis provided by: Weiner, Edrich, Brown, Inc.
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