Consumerism is a term referred to the phenomenon of the market under which the market has become consumer-oriented rather than sellers’ market as was the case in the past. The market was sellers- market till the time, the production of the goods was equal to or less than the demand of the consumers.
At that time, the consumers were in search of sellers who could cater to their needs. In such situations, some of the sellers had monopoly over the market for some specific goods while other marketers were able to charge more for their goods. It is because, the supply was less than the demand, and thus, prices could be hiked.
As an economic phenomenon, whenever the demand is more than supply, prices of the goods go up. In such situations, some people are not able to afford the hiked prices of the goods, thus, the demand of the goods automatically goes down, this results in the balance of demand and supply.
The reversal of this theory is equally true, whenever, the supply of the goods is more than the demand, the prices of the products go down to create the same balance in the demand and supply of goods. In such situations, the market becomes consumer- oriented.
In the market which is consumer- oriented, consumers have the liberty to choose the goods of their choice based on the criteria of quality of goods, prices of the goods and the affordability of the consumers. In such situations, people choose only those goods which give them the worth of their money.
Therefore, businessmen have to advertise in the best possible manner to spread awareness among the people about their goods as well as to provide good quality products to remain in such consumer- oriented manner. Such is the effect of consumerism on the market.