The term “consumerism” is used to refer to the consumerist movement or consumer activism, which seeks to protect and inform consumers by requiring practices such as honest packaging and advertising, product guarantees, and improved safety standards. In this sense it is a movement or a set of policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer.
Many facts can be considered as causes of consumerism such as advertisement, Easy access to credit card, a, lack of financial education, competition and showing oneself social, fashionable and up to date and many more. There are several definitions for consumerism, but the one we’re interested in is Consumerism used to describe the effects of Equating personal happiness with purchasing material possessions and consumption. Consumerism is often associated with a desire to purchase goods and services which: Are often “wants” rather than “needs”.
An example you when to market and see the slogan outside of Old navy store “Priced so low, you can’t say no,’’ (Cave109). You don’t want clothes but as you see price are low you will buy more clothes. For some people brand names matters a lot for them because the prestige associated with a particular brand. Hence, a sweater sold in a Calvin Klein store will have a substantially higher price tag than say, a sweater sold in an Old Navy, even though that sweater may have been produced by the same Chinese manufacturer with the same specifications.
But they will choose Calvin Klein because of brand. Though there is nothing wrong with the purchase of a good or service that gives pleasure if consumer can afford it. However, the situation becomes problematic when consumer starts spending more than they earn just to satisfy his poor spending habit. An extremely competitive business is to sell consumer products, be it a car, deodorant, perfume, or jeans. Consequently, we are constantly bombarded with advertisements whether we are watching TV, using an Internet, in the movie theatre, at the gas pump or in the shopping mall.
According to Effectively Embedded: The Thirteenth Annual Report on Schoolhouse Commercializing Trends: 2009-2010 a Branded entertainment is a multi-billion dollar enterprise. The marketing research firm PQ Media reports that, internationally, $48. 34 billion was spent on consumer events in 2009, and $6. 25 billion on product placements. The United States accounted for 45. 1% of global spending: in 2009, $21. 02 billion was spent in the United States on consumer events and $3. 61 billion on product placements.
The long-term consequence of this level of advertising, particularly at the younger generation, according to article Advertisement: How the industry hits its target, selling kids. In 1998, total $140 billion was spent only by teens. Even these days,’ people ask their kids before buying things so mostly advertises try to involve kids in their ads. So kids can recommend them. According to Persuasive techniques in contemporary advertising by Richard Campbell, Ad agencies and product companies often argue that the main purpose of advertising is to inform consumers straightforwardly of available products.
Advertisers play with the consumers feeling. They target to your problems and give guaranty to cure them. For example one of my friends is over weigh and she found a flyer in her mail box. Get Rid of excess weight from I lipo surgery and don’t worry about money because insurance cover it. She search on net before going for lipo suction and she found so many side effect of it that she scared and cancel the plan. Why is it so easy to get a credit card? Because credit card companies make a lot of money from interest revenue and credit card fees.
For example, in the United States, pre-tax profits for credit card companies have grown 360 percent from 1990 to 2003, while fee revenues have grown 250 percent. Therefore, with this type of profitability; it is in their interest to issue as many credit cards as they can and people don’t think twice before buying are they have money in their account or not. So if they like something they just buy it. Mostly seen in teenagers as they don’t think whether the product what they are buying is worth it or not.
Moreover they spend than they earn. According to ‘’David Gerard Hogan’’ in his essay Fast Food despite a few health-conscious items on the menu, fast-food chains now aggressively advertise the concept that ‘’bigger is better,’’ offering large “super-size” or “biggie” portions of French fries, soft drinks, and milkshakes. Critics point to this type of marketing as a reason for an excessively and greatly increasing per-capita caloric intake among fast-food consumers, resulting in fast-growing rates of obesity in the United States.
These foods may be less in price and better in taste but consequently it costs a lot health wise. Sometime people buy things only to show off their neighbors, friends, and coworkers or to relatives because they bought something new. So to show them, that they can also buy something new and equal or better than them. Lots of people spent money to just so they would be talked about in parties about fashion. They do not want to wear a dress twice and they want to show that they follow the latest fashion which is available in the market.
By spending money, they achieved happiness and satisfaction. After watching an advertise video of acne removal cream on TV one of my friend who was facing the problem of acne orders it. The ad was so good and impressive that she though the kit will help her and she can to get rid of acne. In the video they show that a model that has a face full of acne, after using their product she had a beautiful and clear face. But after using it my friend did see any changes and disheartened.
The Same thing happened with my uncle. He is bald. One day he was reading a newspaper; on the second page he saw an ad that was featuring a famous person. He was giving the message that if ‘’I can do it why can’t you. ’’ Good news now company is giving 50% off and a 60 days money back guarantee, so people means you don’t have anything to lose, just try its once. After reading a lot and being impressed by famous people, He bought it.
Guess what not a single new hair grew and they have not given my uncle money back. Conclusion: As personal insolvency practitioners, it is our mandate to provide for the financial rehabilitation of debtors. A debtor’s financial rehabilitation starts with the recognition that he or she has a problem, and it is the practitioner’s responsibility to articulate and explain the problem. It is my hope that this article has provided the reader with sufficient information to do the latter.