Today I would like to give you a brief overview of the Consumer society we live in, and in
connection with that a little more on shopping. A consumer society is a culture in which
consumption of material goods is encouraged, and the economic health of the society is
dependent on the spending of the population.
If non-essential consumption was removed, the economy would collapse. As soon as the
consumption of the masses became an essential part of the economic equation, capitalism and
consumerism were born.
Consumerism is the idea that purchasing material possessions results in happiness. In these
societies leisure time is dedicated to spending money on goods, thinking about spending
money on goods, showing off goods purchased and where goods serve a purpose beyond
basic needs, such as giving prestige or identity to owner. For example buying an expensive
watch so it is no longer purchased solely to perform its original purpose which is to tell time.
The throw-away society is a related term, it is a human society strongly influenced by
consumerism. The term describes a critical view of over-consumption.
Dia2 This “Consumer Society” is not only a so to say, disease of the today's culture, but is
one that has existed from the very dawn of civilization. It has been noted that ancient empires
such as the Romans have suffered from consumerism; this is evident in their clothing which
typically depicts their social class and status within the community.
The most basic garment in Roman clothing was the tunic. For most Romans and slaves the
tunic would be the entire clothing they dressed in before setting foot outdoors. The toga was
allowed to be worn only by free Roman citizens. Foreigners, or even exiled citizens, could not
appear in public wearing a toga. The toga was made of wool. The rich had the luxury of
choice of what kind of wool they sought to wear.
Dia3 Now back to our main topic.
Consumerism is potentially harmful because the affluence in western countries can only be
maintained if the developing countries remain hungry.
Karl Marx was heavily critical of capitalism and one of his famous quotation is:
„The pursuit of luxury or positional goods while others go hungry is unjust”
Dia4 There are 2 main institutions of the consumer society.
Advertising and consumer credit.
Due to the fact that consumer societies are dependent on consumption, advertising is a
defining characteristic. Advertising did not exist in subsistence societies, because people
didn't need to be reminded or convinced to acquire something that they needed such as food
or shelter. In a growth based economy, the population needs to be convinced to continually
increase its consumption levels.
The other important institution is Consumer Credit. Cultural values about spending in the
U.S. up through the early 20th century emphasized thrift, prudence, and living within your
income. Poorer households were forgiven for using installment payments to purchase the
necessities of life. With mass production of automobiles and household appliances, however,
came a large expansion of institutions of consumer credit. By the 1920s, department stores
were issuing charge cards, and automobile financing was common.
Dia5 The inventor of the first bank issued credit card was John Biggins in 1946. The Diners
Club Card was the next step in credit cards. By 1951, there were 20,000 Diners Club
cardholders. A decade later, the card was replaced with plastic. Diners Club Card purchases
were made on credit, but it was technically a charge card, meaning the bill had to be paid in
full at the end of each month. Later came American Express, Visa, Mastercard and Discover
Card.
Dia6 The future of credit cards
Multiple cards are taking up valuable wallet space. An answer to this problem comes in the
form of the Dynamic Card. This card has a computer chip built in, allowing multiple accounts
on one card, and has a slim keypad to enter in account passwords for added security.
Like most things, there are advantages and disadvantages to credit cards. Knowing some of
these can help you decide if you do or do not want to use them.
Credit cards can make it easier to buy things. If you don't like to carry large amounts of cash
with you or if a company doesn't accept cash purchases. Credit cards may also offer you
additional protection if something you have bought is lost, damaged, or stolen. In addition,
some credit card companies offer insurance on large purchases.
The biggest disadvantage of credit cards is that they encourage people to spend money that
they don't have. Because of the High Interest Rates and Increased Debt people can get into
serious debt.
In 1998, about 40% of families carried unpaid credit card balances. The average amount of
credit card debt among households with at least one credit card was $8000 by the end of 2001.
In that year, total outstanding consumer credit in the U.S. topped $1.5 trillion.
But the use of the credit card has revolutionised the way people shop.
Dia7 Many people are addicted to shopping, who see it as a way to relieve problems and
stress. They are called shopaholics. This shopping phenomenon is commonly known as retail
therapy. Retail therapy is shopping with the primary purpose of improving the buyer's mood
or disposition. On the other hand there is Buyer's remorse. It is the sense of regret after
having made a purchase. It may stem from fear of making the wrong choice, guilt over
extravagance, or a suspicion of having been overly influenced by the seller.
Dia8 The Amount of money spent for arguably non-essential items, such as pleasure boats,
jewelry, stemware, alcohol, candy and toys between early 2010 and early 2011.
The Internet Is also Changing the way How People Shop.
Today’s consumer is smarter, more proactive and better informed.
Dia9 A short introduction into the history of online shopping.
In 1990 Tim Berners-Lee created the first World Wide Web server and browser. It opened for
commercial use in 1991. In 1994 other advances took place, such as online banking and the
opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced
SSL encryption of data transferred online, which has become essential for secure online
shopping. Also in 1994 the German company Intershop introduced its first online shopping
system. In 1995 Amazon launched its online shopping site and eBay appeared. Amazon and
ebay are the 2 most popular shopping websites.
Ebay is the world’s largest online auction and shopping website in which people and
businesses buy and sell a broad variety of goods and services worldwide. You can get nearly
anything you need or want at prices better than you can find in shops or online stores.
Similar sites here in Hungary are teszvesz.hu and vatera.hu.
Dia10 Some advantages of online shopping
You can shop day and night, 24 hours a day.
You can buy from the comfort of your own home.
A lot of stores can be visited in a few minutes.
Discount coupons are available most of the time so you can save money.
An endless supply of products.
Some disadvantages
You can’t pay by cash most of the time.
You can’t touch or try on the product.
Returning merchandise is difficult, in case of wrong size.
Shipping and handling cost can be quite high.
The volume of the Hungarian online retail sector was 155 billion forints in 2011, and online
sales of services were also up significantly. So the online sector is still capable of
improvement.
Dia11 Online shopping has become increasingly popular over the past decade
Critics of consumerism often point out that consumerist societies are more prone to damage
the environment, contribute to global warming and use up resources at a higher rate than other
societies. It is because trying to reduce environmental pollution without reducing
consumerism is just not possible.