Is the Supply and Demand Economic Model working as it should in 2019? It is a huge NO for consumers
Blog: The Mandated Blogger
E-commerce/Commerce continues to be ruled by suppliers. Yes, we, consumers, do have the last word on who that ruler would be since we close the transaction with the supplier that offers the best terms and conditions. But, is it enough? Is it the way that the Supply and Demand economic model is supposed to work? No, it is not. The supply keeps making most of the calls in the free market exercise.
Americans do not feel satisfy 58% of the time with the price they pay when checking out in e-commerce. Hence, 58% of time the best terms and conditions offered by suppliers do not match those of consumers. It has been mostly a “take it or leave it” modus-operandum given the one supplier to many consumers ever-existent market condition. This situation did change with the Internet. The day e-commerce came into our lives, we were enabled to have a direct one on one discussion with any big consumer product company. The irony is that after more than 20 years of the e-commerce era, consumers do not have a way to discuss those terms and conditions with the supplier before the transaction is closed.
AI, Big Data, Data Science, Data Analytics, big social media heavy-weights, and e-commerce giants work all around of getting the most out of consumers. On top of that, there are the market intelligence and market research industries just in case there is something else missing about how to trigger consumers’ desires. They do know almost everything about us. They can determine our most intimate personality traits based on our digital footprint. In March 2017, the Congress approved ISPs to sell our personal browsing Information. There are advance ad techniques to hit our internal and external consumption triggers. The “ethical” manipulation on consumers is ongoing. AI will allow marketers to create highly personalized ads tailored to buyer’s specific interests in real-time through superior and infinite knowledge. We cannot trust the “Customer Review” feature after some companies have been caught influencing those reviews. It is scary situation and the list goes on and on.
What about the Demand? What about us, the consumers? When would AI, Big Data, Data Analytics, and Data Science work at the service of consumers to fulfill their shopping needs? Either “Savvy” or “Non-savvy” needs, those are our needs. Americans spend an average of 5 hours a week shopping on line looking for price and savings. Why should I waste hours and hours in the internet looking for better prices if Data Science and Data Analytics do that in seconds? I have my ideas about the type of companies I want to buy from. Still, most of the time when I shop online, I do not have information on the selling party because I would have to spend hours searching in the internet trying to find vendor’s information? We need tools to catch up on the amount of information we have about vendors just the same way they have about us. I am sure we do not need to know that much about vendors but something. At least the things that are important to each consumer. Data Mining techniques could do that in a well-organized way in a matter of seconds. I have not seen that solution yet.
Summing up, when Mr. Adam Smith though about the Supply and Demand economic model, the price of a product was supposed to be determined by the interaction of supply and demand in a market. This interaction has been mostly one way, from the supplier to the consumer, even though we have never been readier than today to interact from the consumer to the supplier. mandatum is working to make this happen. We are strong believers that once the commerce/e-commerce playing field is leveled for consumers, it will be a win to win situation for both consumers and suppliers.
It is time for the Supply and Demand Economic Model to start working as it was envisioned by Mr. Adam Smith. It’s consumers’ time.
Start now to change your shopping habits. Make a Mandate. Save money and help the planet.
Remember, you still have the fast/free shipping alternative in case you run out of toilet paper