The strategic position of consumers in the information society

Abstract

In this paper, a conceptual framework is outlined for examining the strategic position of consumers in a society in which computer networks are assigned an increasingly important role in the distribution of goods and services. The framework deals with relationships among consumers as well as relationships between consumers and other actors in the distribution system, and in both cases the relationships can be based on either common or conflicting interests. With the aid of the framework, the author characterizes the strategic position of consumers in terms of influence and power or powerlessness. The technological impacts dealt with are related to both the consumers' own use of computer technology, and its use by other parties such as suppliers and retailers. Examples of developments discussed in the paper are computerized checkout registers, electronic funds transfer systems, and home computers connected to central information systems. The author predicts that the strategic position of consumers will be weakened as the new technologies become more commonplace while the strategic position of the most powerful commercial and institutional actors is likely to be strengthened. A number of strategies for collective consumer action which could countervail this tendency, are outlined at the end of the paper.