What Is Consumer Sovereignty?

Consumer sovereignty is a concept that explains the relationship between consumers and producers in the market. An economic system in which consumers express their own wishes and preferences through their consumption behavior is called consumer sovereignty. In other words, consumers buy goods and services from the market according to their own wishes and preferences, so that information such as consumer wishes and preferences is transmitted to producers through the market. Therefore, the producer arranges production according to the information returned by the consumer's consumption behavior, and provides the goods and services that the consumer needs.

Consumer sovereignty

Consumer

This year's "3 · 15" is getting farther and farther, without even touching my nerves. This may prove a welcome change: Consumer rights protection is no longer with the annual "

"Consumption" has become one of the hottest words in recent times. Continue to reduce interest rates on deposits and loans, temporarily waive the interest tax on deposits, substantially increase the minimum grain purchase price and food and agricultural subsidies, and reduce taxes on housing transactions. Careful people have discovered that the country has frequently introduced a series of powerful measures to strengthen consumer confidence To stimulate the consumer demand of urban and rural residents. The era of mass consumption has two remarkable characteristics, that is, the principle of consumer sovereignty and consumption determine production and economic life. "In a market economy activity subject to the principle of consumer sovereignty, what is produced is determined by the collective decision of the individual or family as a consumer according to their preferences." Everything revolves around consumers What you produce is up to you, as long as you have demand. In this way, although consumption in the private sector is a personal matter, it is not just a personal matter. These two principles control economic life. It is precisely these two principles that increase our consumers' responsibility. This responsibility is social responsibility and moral responsibility. Therefore, we should advocate responsible consumption-consumers must take social responsibility and moral responsibility for their consumption behaviors ^[1]

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The theoretical basis of data (information) capital is the basic principle of consumer sovereignty. Adam Smith argued in his "The Wealth of Nations" that useful abilities of social residents and individuals also belong to capital. According to the theory of consumer sovereignty, the consumer's consumption behavior plays a decisive role in the most basic economic problem of commodity production, and the information quality of consumer behavior becomes data capital. Consumer behavior data is used as an asset to participate in and promote the production and circulation of commodities, and therefore has the right to participate in the value-added portion generated by the distribution of data capital. Various consumptions are integrated into consumer assets through digital trading platforms. The digital trading platform unifies the integrated consumer assets into production to form capital. Data information is valuable in itself. Data capital originates from the theory of consumer sovereignty and aggregates the useful capabilities of social residents and individuals to form capital. Collecting all kinds of information about consumption choices and providing them to the producers of goods in a timely and accurate manner, this kind of information has great value in itself, which is conducive to enterprises' production planning and cost planning. Before the Internet era, consumer information itself was formed through a free market, and gathering information was very difficult. Information is only a potential resource before it is aggregated and has not yet become capital. Consumption data is aggregated, consumption growth becomes consumption capital, and a unified consumption behavior is formed, which has the effect of demand for scale. The entire consumption data is systematically summarized, and the consumption power formed is inestimable. With consumption data, merchants can plan production more efficiently and optimize for low-cost operations.

Digital trade practices a human-centered humanistic concept-a management system that really takes consumers as the main body and starts from the consumers themselves, and classifies daily consumption behavior. A large number of user consumption behaviors are classified, which is also a summary of consumption data fed back from consumption behaviors. The digital trading platform is a system that truly considers consumers: consumers get value in return from the process of converting their consumption expenditures into consumption capital. Digital trade is achieved through the use of advanced Internet. Mastering the consumption data of all parties is just like mastering advanced technology. It can reduce production costs and seize the opportunity in competition. Data (information) is also productivity. Consumption is as important as productivity. Consumption behavior is the driving force of the economy. Consumption-oriented, this will completely change the "production center" tendency of "production for production", change passive production to active production, avoid causing economic crisis again and again, return economic activities to consumption itself, and promote the harmonious unification of production and consumption To promote a virtuous circle of the national economy and build a harmonious society.

The rapid development of information technology has stimulated efficient interaction between consumers and suppliers. This is the focus of all high-tech enterprises that build trade channels. The product supply that is constantly promoted to the public is like a bright power, just like the power of "yang" in the field of traditional eastern philosophy. And the consumer demand in a latent state is the opposite side that all "yang" forces desire to seek interaction. This potential force is like the energy of "yin" sides. When the two forces cannot be harmoniously blended, the level of this space is in a state of chaos. How to make "Yang" the driving force of "Yin" and how to make "Yin" the driving force of "Yang" is the most concerned solution in the field of business. The digital trade platform is such a business that can effectively promote model. In the digital trade industry, the interactive needs of users and merchants have triggered the emergence of digital trade platforms. This is a center of integration of supply and demand. This platform is the integration of all system software equipment and communication technology, and provides a good foundation for all possible business operations. Consumers and suppliers will revolve around the center of the digital trading platform, which is like Tai Chi from the Promise, and the two instruments in Tai Chi are the two main roles of supply and demand in digital trade. In the traditional Chinese Taiji chart, the two forces of "yin" and "yang" can push each other, and each other must have a space to accommodate each other. This space is shown in the Taiji chart as the eyes of the yin and yang fish. So what is the finishing touch of digital trade?

The two main bodies of supply and demand, centered on the digital trade platform, are interdependent in the service field of the digital trade industry, just like the two elements in Taiji. By applying the theory of consumer capital, users creatively share the circulating profits among business entities, just like the positive eyes in the Yin Yuan, and play an important traction role in the driving force for user participation. The huge user group can be seen in the development process of the digital trade industry, consumer users show great enthusiasm for participation. This is the main source of power to promote the development of merchants. In the operation of digital trade, consumer capital can also enter the field of digital trade conveniently through the joint operation of knowledge-sovereign cooperation. This is like a gloomy eye in Yang Yuan, which can speed up the construction process of the merchant's digital trade platform and reduce the investment risk of the merchant. At the same time, this business model of harmony and cooperation has greatly mobilized the sense of cooperation between the two parties. Based on the energy of the above two fulcrum points, the digital trading platform model has reached a balance of power and energy during the journey, thereby entering a situation of high-speed spiral rise.