Prosumer

Definition

A prosumer is a blend of producer and consumer, referring to individuals who actively participate in the creation and distribution of products or services, often leveraging technology to do so. This concept highlights the shift from traditional consumption towards a more participatory role in the marketplace, where consumers not only consume but also create and influence the products they use. Prosumers often engage with brands and companies through social media, providing feedback, ideas, and even content that shapes the offerings in the market.

5 Must Know Facts For Your Next Test

1. The term 'prosumer' was popularized by futurist Alvin Toffler in his 1980 book 'The Third Wave', highlighting the changing roles of consumers in an evolving economy.
2. Prosumers have significant influence over product development and marketing strategies, as their feedback can shape brand offerings.
3. The rise of digital platforms and social media has empowered prosumers to connect with brands and each other more than ever before.
4. Prosumers often seek authenticity and transparency from brands, leading companies to engage in more meaningful communication and relationship-building.
5. This shift towards prosumerism reflects broader economic trends, such as the gig economy and the increasing value placed on customer experience.

Review Questions

• How do prosumers influence product development in today's market?
  • Prosumers influence product development by actively participating in feedback loops with companies, sharing their opinions and ideas through social media and other channels. Their input can lead to significant changes in products before they hit the market. Companies recognize that engaging with prosumers helps them align their offerings more closely with consumer needs and preferences, leading to higher customer satisfaction and loyalty.
• Discuss how the concept of prosumer aligns with current trends in technology and consumer behavior.
  • The concept of prosumer aligns closely with current trends in technology as it thrives on digital platforms that facilitate interaction between consumers and brands. Social media allows prosumers to share their experiences and ideas, influencing others and shaping brand identities. Additionally, the rise of user-generated content further supports this trend, showcasing how consumers have become active participants rather than passive recipients of marketing messages.
• Evaluate the implications of prosumerism for businesses in terms of marketing strategies and customer engagement.
  • Prosumerism significantly impacts businesses by requiring them to rethink traditional marketing strategies and customer engagement practices. Companies must now adopt a more participatory approach, actively involving consumers in the co-creation of products and services. This shift leads to more personalized marketing efforts and fosters deeper relationships between brands and consumers. Businesses that embrace prosumerism can leverage consumer insights for innovation while building strong communities around their brands.

Related terms

Crowdsourcing: The practice of obtaining ideas, services, or content by soliciting contributions from a large group of people, often via the internet.

User-generated content: Content created by consumers or users of a product or service, which can include reviews, videos, blogs, and social media posts that shape brand perception.

Collaborative consumption: A model of sharing resources among a group of people, where individuals can access products or services without owning them outright.