3 ms·
This mentions the phrase "positive consumer reactions" but it's not clear what that means. Are they asked about their sentiments to the company? If so, this is
by jmyeet 4y ago
This mentions the phrase "positive consumer reactions" but it's not clear what that means. Are they asked about their sentiments to the company? If so, this is meaningless. When asked, people virtue signal what they'd like others to believe about them.
The true test is consumer behaviour and here there are legion examples of consumers basing their purchasing behaviour solely on lowest headline price. I mean the airline industry is a case study of this. The only thing that matters is the advertised seat price. Checked bags, which were once free/included, are now an extra to lower the advertised price. Air travel largely sucks because of consumer preferences.
There are two lessons I'd like people to take away from this:
1. You can't rely on companies to police themselves be it based on consumer sentiment or anything else. This is the why libertarianism is so laughably flawed. Markets rely on government action and restrictions; and
2. Consumer sentiment or even consumer behaviour is not an effective way to police company behaviour because everything is so inextricably intertwined. Take the recently averted rail strike. This was to give essential workers paid sick leave where taking unpaid sick leave could lead to consequences to their job. What action can consumers take to communicate this to the companies involved?