Can Consumer Power Lead to Market Equalization on the Internet

The study's findings reveal that both exit-based and voice-based consumer power enhanced the general power of consumers and lead to market equalization, resulting in consumers who feel that on the Internet they are on the same footing with companies.

Abstract

ABSTRACT: Consumers today are able control many marketing communications and relationships as a result of increasing digitalization in consumer markets. are now re-discovering nature of active consumer power in this new age of digital communication. Furthermore, such digitally empowered consumers can now easily generate and organize anti-consumption movements and change dynamics of consumption markets. However, there has not been enough investigation of how these consumer empowerment and market equalization processes work, or how they will likely change markets and society in both near and long term future. Therefore this study proposes a new consumer power and market equalization model that can be investigated in two ways: (1) exit-based consumer power, and (2) voice-based consumer power. The study's findings reveal that both exit-based and voice-based consumer power enhanced general power of consumers and lead market equalization, resulting in consumers who feel that on Internet they are on same footing with companies. KEYWORDS: Consumer Power, Empowerment, Equalization, Market Equalization, Consumer Exit & Voice, and Internet Introduction Prior inception of Internet, companies either presumed that consumers were easy control or denied existence of consumer power because of a general consumer inability practice their rights and power. However, this situation has changed as a result of digital revolution. Clearly, changes in consumer power dynamics play a fundamental role in our evolving understanding of current and future markets. Thus, consumer power needs be continually re-investigated in light of changes in today's markets. Power as a concept is attractive many social science scholars, yet it remains a sophisticated and mysterious concept for many. Social scientists define power and its dimensions from various perspectives. Investigating and synthesizing such a wide range of power perspectives into an understanding of today's reality is a major challenge. In a simplistic version, power can be defined as the ability make someone or something do what you want them to, even when they do not want to (Jordan 1999:10). On other hand, if there is domination and pressure change individual behaviours in a market it might eventually generate resistance in response such dominance (Izberk-Bilgin 2010). In general, power, as a concept, is also directly related both domination and inequalities in a society (Foucault 1983). The reason why many scholars are interested in power concept is because concept sits at heart of social equality-inequality paradigm as is well-described by Jordan (1999: p.15), as follows: We are often interested in power because it is word we use examine all sorts of inequalities and these should be our focus, not power itself as a theoretical concept but power as term for whatever it is that generates inequalities and oppressions. [Emphasis added] Thus, discussion of power concept in concert with market equalization process is indispensable. From a marketing point of view, marketing power imbalances and inequalities between consumer and corporation communications plays a major role as de-facilitator of consumption. In other words, if there are wide-spread inequalities and power imbalances among market actors, they are more likely value consumer liberation and emancipation actions from company-generated consumption meanings (Firat and Venkatesh 1995; Krishnamurthy and Kucuk 2009), consumer escapes from company dominated markets (Hirshman 1970; Kozinets 2002; Kucuk 2008b), and an increase in consumer anti-consumption movements in markets (Kozinets and Handelman 2004; Kucuk 2008b; 2009b; Izberk-Bilgin 2010). These consumer actions have gained more strength on Internet because of Internet's inherently anti-hierarchical, non-censored, and technologically equalizing architecture (Kucuk and Krishnamurthy 2007; Kucuk 2008a; 2008b). …