A Consumer revolution?

For many who believe our current political system has sharply limited individual choice at the polls, the opportunity to express political and social beliefs through consumer choice has gained considerable appeal. This quest for greater personal responsibility has been met by a combination of savvier marketing and (occasionally...) genuine social consciousness (although the two can be hard to distinguish at times...) among politicians, producers, and retailers.

This past election year, politicians from across the spectrum stumbled upon a new funding source that showed surprisingly deep pockets and little of the political backlash associated with large donations from interest groups or corporations. Instant web transactions, available for anyone with a credit card, and sharp advertising by web-savvy political campaigns created a surge in individual political contributions. Grass roots supporters, looking to back their candidate with more than a single vote, began taking advantage of the e-commerce revolution. For politicians seeking an untarnished populist appeal, this new source of funding both sharpens their message and generates substantial campaign revenue. Howard Dean's campaign gathered over seven million dollars from Internet donations in the third quarter of 2003 alone. I have a feeling this year's campaigns offered us only a hint of what we will see in the future. Look for the sort of explosive growth we've seen with conventional e-commerce in future election years. I also think many of the Deaniacs were more jazzed by the idea of Internet populism than the candidate who first chose to exploit it.

Outside of traditional politics, Amanda Paulson wrote of her "quest to enjoy her dinner without guilt" in the Christian Science Monitor. In Paulson's case, this meant visiting a "closed cycle" farm anxious to demonstrate its concern for livestock, organics, and consumers. This sort of consumer-producer relationship is striking. Increasingly, companies are finding new and innovative ways to cater to the ethical concerns of consumers who factor their values into a product's price. Paulson's research led her to a supermarket near her home that carried meat products supplied by another organic farm anxious to establish a values-based relationship with consumers. She described these consumers' choices as "a market-based way of expressing" their beliefs.

The crowds of consumers willfully paying $3000 above average vehicle costs for hybrid cars such as the Toyota Prius have received much more media coverage than ethical eaters. Even with current high gasoline prices and tax credits, few of these buyers expect to recover those three thousand dollars. They are paying that price to satisfy their conscience. According to Daniel Gross, writing in Slate Magazine, "those who buy…Priuses are symbolic, marginal buyers. But economists will tell you that behavior at the margins can influence entire markets." Therein lay the hopes of many hybrid owners – creating the margin market that changes mainstream tastes and desires.

In a starker liberal vs. conservative clash of consumers highlighted by Mr. Gross, Costco and Wal-Mart battle daily for the social/political souls of their customers.

Costco stands firmly on the left, offering starting wages of $10 per hour, corporate acceptance of a unionized work force, and health benefits for all full-time employees while attracting a decidedly upscale clientele (the average Costco member's income, Mr. Gross tells us, is greater than $90,000).

"On the right," Wal-Mart prides itself on prices determined through intense competition on an open market (read: wherever they can find the cheapest labor) and world-renowned efficiency. Wages are based on the same belief. "The average wage at Wal-Mart, which has no unions…is lower than Costco's lowest wage." Looking for the latest hip-hop albums? Buyer be warned (or pleased…): Wal-Mart openly censors material they consider objectionable from music sold in their stores. For social conservatives anxious to compromise between mainstream cultural choices and their traditional values, this can be an acceptable alternative. And the idea of paying simply for labor rather than labels appeals as well.

In all of the above cases, one trend predominates: the free market has, ironically, often shown greater flexibility in meeting the demands of progressive-minded citizens than government action. Are you sick of watching special interest groups dominate campaign fund-raising? Fire off an Internet contribution to your favorite candidate. Do you think the minimum wage is unlivable? Shop at Costco. Are you concerned with government catering to the auto and oil industries? Buy a hybrid vehicle. While many of these choices may seem small in the grand scheme, this new breed of consumer feels strongly that Americans can best express their beliefs every day through what can best be called consumer democracy.

Simply put, more consumers are analyzing what 'value' really means. Does it mean simply 'lowest price?' Or does it relate to our moral and ethical 'values' as well? How about our patriotism? Check out what Al has to say about Wal-Mart and its great values.