Buying In - (Page xi) buying in xi available to shoppers,” The New Yorker argued, “brand loyalty is in fast decline,” and “the customer is king.” The Economist, too, pointed to superinformed shoppers who have acquired “unprecedented strength” in their dealings with commercial persuaders and approvingly quoted a famous ad executive announcing: “For the first time, the consumer is boss.”Advertising Age soberly informed its readers that because of “the power of the public,” consumers have lately obtained “increasing sway . . . over any product’s success”—in fact, the consumer is in control. It’s one thing to conclude that the advertising business is evolving with the new media landscape. But these giddy claims go well beyond that: After all, the consumer marketplace helps shape everything from the economy to popular culture. So what would constitute proof that the consumer is “boss” and “in control” in some way that’s new and unprecedented? Lower credit card balances? A conspicuous absence of logoed apparel on city streets and in malls? A disappearance of consumer fads, trends, and crazes? A decreasing amount of advertising? Shrinking landfills? Bigger and more effective boycotts of unhealthy or ethically suspect products? Increased saving rates? Maybe—but of course, none of this is happening. Instead, one thing that did happen between 2000 and 2006— right as the new consumer was said to be bossing corporate America around like never before—was that the profits of Fortune 500 companies soared; indeed, companies in the “consumer staples” category of that famous index saw their profits more than double. This despite the fact that the real wages of most Americans were, at best, flat. During precisely the same period, the personal savings rate actually fell into negative territory for the first time since the Great Depression.
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.