Consumers use the Internet in different ways to make different decisions. For example, consumers are more likely to seek opinions of others through social media and product-rating sites when making choices that have a great deal of personal impact (e.g., healthcare options or major electronics purchases).

A Deloitte report highlighted that consumers who are influenced by social media are 4 times more likely to spend more on purchases. Moreover, the influence can be so high that 29% of consumers re more likely to make a purchase on the same day of using social media.

The Deloitte report noted that consumers who use social media during their shopping process are four times more likely to spend more on purchases than those who do not. It goes even further. Social media influences shopping behavior in all age groups, but especially the important younger and Hispanic populations.

As a part of the current Information Age, the power of social media has impacted consumerism by providing immediate access to things such as product specifications. Finally, social media impacts consumerism through consumer retention, which is an organization’s ability to keep the customers that they already have.

The good image of brand or product can lead the consumer to make decision on their purchases. When consumer’s friend on social media shares or recommends services or products on their social media, it affects brand attitude and influences their decision-making. Many marketers use social media for marketing campaigns.

Social media has become a main way consumers communicate with each other and their own stories. favorite brands. From a consumer standpoint, social media is a way to tell their own personal story and create connections with people like them.

Positive Consumerism Effects

• More industrial production.
• A higher growth rate economy.
• More goods and services available.
• More advertising since goods manufactured have to be sold.
• Increased production will result in more employment opportunities.
• A variety of goods and services to choose from.

In general, there are five main negative aspects of consumerism, including:

• Causes more pollution.
• A major contributor to resource depletion.
• Leads companies to develop low quality products.
• Promotes poor labor standards and pay for workers.
• Does not necessarily lead to increased happiness beyond a certain point.

Consumerism increases debt levels which in turn results in mental health problems like stress and depression. Trying to follow the latest trends when you have limited resources can be very exhausting to the mind and body. Consumerism forces people to work harder, borrow more and spend less time with loved ones.

These can include pollution by producing industries, resource depletion due to widespread conspicuous consumption, and problems with waste disposal from excess consumer goods and packaging. Lastly, consumerism is often criticized on psychological grounds.

Furthermore, consumerism is an important component of the concept of supply and demand because it involves the supply of goods and services and the demand (consumption) of goods and services by individual consumers. Allows for a large variety of goods and services. Improves the quality of life for people.

Misuse of land and resources. Exporting Pollution and Waste from Rich Countries to Poor Countries. Obesity due to Excessive Consumption. A cycle of waste, disparities and poverty.

The negative effects of consumerism include the depletion of natural resources and pollution of the Earth. The way the consumer society is working is not sustainable. We are currently overusing Earth’s natural resources with more than 70 percent.

A fundamental effect of overconsumption is a reduction in the planet’s carrying capacity. Excessive unsustainable consumption will exceed the long-term carrying capacity of its environment (ecological overshoot) and subsequent resource depletion, environmental degradation and reduced ecosystem health.

Overconsumption is the result of excessive credit or excessive debt, and it can bring big risks of heavy losses for lenders like banks and other financial institutions. Over the past few years, the local governments have put large amounts of investment toward projects and public activities.

Consumption that creates economic bads such as pollution that exceed economic benefits can be viewed as overconsumption. For example, a widget sold for $1 that produces $32 in air pollution to manufacture. In order to reduce overconsumption, the price of economic bads could be included in the cost of goods.

We tend to over-consume mainly because we subconsciously (and let’s be honest consciously too!) realize that there is “plenty” of what we have. Plenty of water, plenty of food, plenty of money, etc. You deal with water as if it’s liquid gold.

Overproduction is a situation characterized by an excess of a given product or service on the markets. It is where marginal cost exceeds marginal benefit. Answers A, B, D and E do not describe an overproduction situation.

The Great Depression was a time of economic hardship in America. A main cause of the Great Depression was overproduction. Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off.

Marx described the epidemic of overproduction as such: Society finds itself put back in a state of momentary barbarism. Industry and commerce seem to be destroyed. And why? Because there is too much civilisation, too much means of subsistence, too much industry and too much commerce.

Overproduction is a driving force in natural selection, as it can lead to adaptation and variations in a species. Darwin argued that all species overproduce, since they have more offspring than can realistically reach reproductive age, based on the resources available.

Overproduction by definition, in biology, means that each generation has more offspring than can be supported by the environment. The organisms with these traits are more likely to live and have offspring who will inherit the helpful traits.

Overproduction arises under capitalism because the unlimited drive to expand production periodically comes into collision with the limited confines of the market economy. Plenty of people want and need things, but do not have the money to buy them. They lack “effective demand”, according to the bourgeois economists.

Avoid overproduction by making things only as quickly as the customer wants. Just-in-time inventory lets you hold the minimum stock required to keep your business running. You can order what you want for your immediate needs and limit overproduction by only producing what is needed, when it is needed.

For Marx, capitalist crises are crises of “overproduction”: too many commodities are produced than can be profitably sold, and too much capital has been invested in industry, in the attempt to claim a share of the available profits.

: the act or an instance of producing too much of something By law, a French wine maker can only produce so much wine from a given acre of vines.

noun. excessive production; production in excess of need or stipulated amount.

What happens when there is overproduction in a market? There is a deadweight loss.

Underproduction, the production of less food than is needed for service, can increase costs as much as overproduction. Furthermore, underproduction may involve both additional labor costs and often the substitution of a higher-priced item.