Saturday, September 27, 2008

Can Consumer Patriotism exist in the Current Financial Climate?

I read the following post earlier this afternoon after hearing that the FCO are actively employing blogging as a means of reaching out to the general public. I thought the article was interesting; traditionally people are happy to pay a premium price for domestic products based on the assumption that it helps protect the local economy. As people become ever more cautious about how their money is spent however, I imagine that the majority of purchase decisions will instead be influenced, in the main, by price. It is becoming less likely that consumers will pay a premium for these products simply because they are locally sourced.

As consumers buy fewer domestically produced products, I imagine that domestic organisations will be increasingly required to truly warrant the reason for their being. It will become increasingly imperative for organisations to offering real added value, or face a mass exodus from the business towards foreign firms. For a number of years, I have been convinced that both Britain and the US are quickly losing ground to foreign organisations. As we progress ever further into the 21st Century, both British and American organisations seem to have forgotten that the key to success is to truly realise the customer's needs. Conversely, foreign firms appear to have become significantly better at recognising precisely what the customer demands at a price significantly lower than that offered by domestic firms.

As production and innovation are increasingly undertaken by foreign organisations, it is becoming increasingly important that domestic firms take a long hard look at their current position. Are they really as innovative, efficient and cost effective as foreign firms? It is incredibly naive to assume that domestic consumers will continue to buy locally simply to protect local jobs. Organisations must recognise that the current financial crisis will challenge this traditional assumption. In order to remain competitive, the organisation must ensure that it continues to offer real innovation, that recognises the true needs and wants of the customer.

read more digg story

Show the Rogue some Stumble love

No comments:

Post a Comment