The role of customers in global business dynamics cannot be overemphasized . This is because the primary aim of doing business is the fulfilment of customers by meeting their needs ( Cook & Ryan, 2015 ; Panneerselvam , 20 12). In this case, c ustomers should be placed at the centre of all business dealings. Moreover, all the factors affect ing manufacturer s , supplier s , retailers and other market stakeholders are ultimately transferred to the customer. Despite the crucial role played by customers at all levels , not as much emphasis is put on their plight . Hence, this essay is aimed at identifying and describing the global market forces, development chain, supply chain, risk s, and strategies from the customer’s perspective.
Global market forces have a direct effect on the market prices , and therefore a significant impact on a consumer’s purchasing power and decisions. In this case, both local and international economies determine the proportion of expendable income that the prospective consumer can spend on purchases. For instance, d uring tough economic times, consumers tend to spend more on basic needs as opposed to luxury and self-actualization needs. On the other hand , the purchases made by consumers are likely to increase when the economy is stable , resulting in an increase in their expendable income . Taxation at the global level also has an impact on the customers. W hen consumer goods and other products are subjected to high taxes , the retailers and manufacturers are most likely to transfer the burden to the consumer . This is through increased prices for both goods and services. In this regard, the customer is the ultimate victim of v arious adjustments that characterize the global market ( Panneerselvam , 20 12 )
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According to Christopher (20 16 ), in business, the amount of risk increases with increase in the number of people involved in the transaction. In this context, the consumer bears the most risk in the entire logistics and marketing process (Kogan & Tapiero , 2 007 ). This is because he/she is located at the periphery of the whole chain. The first risk that the consumer is exposed to is exploitation by the various middlemen. In most instances, there is insufficient information on the cost of production or the level of taxation subjected to particular goods. Moreover, this information is not a priority for most customers but rather the fulfilment of their needs. As a result, the consumer is susceptible to exploitation by the retailer, supplier or even the manufacturer who might capitalize on the lack of such vital information to charge exorbitant market prices. T he consumer is also exposed to the risk of being duped with counterfeit and fake products. This has been fuelled by the globalization of business as well as markets. While some consumers might have knowledge of differentiating genuine products from counterfeits, a significant number of consumers base their purchase decisions solely on the brand name. As a result, scrupulous retailers and suppliers often end up sellin g fake products to the customers who cannot tell the difference between original and fake products .
A development chain i s the composition of all activities and processes undertaken to introduce a new product to either a new or existing market (Petersen et al., 2005) . T he primary target of the development chain is the consumer. A d evelopment chain is thus used by the manufacturer as well as retailers to establish a favorable consumer reputation and attitude towards the new product. As a result , aspects of the product development such as the design, business analytics and commercialization ought to include the consumers’ needs and preferences. The success of any product i n the market is directly related to the extent to which the product developers can successfully convert consumer proposals and ideas into commercially viable goods or services. It, therefore, goes without saying that the consumer is a central feature of the development chain . Any attempts to seclude or downplay the consumer ’s role might result in failure of the product i n the market.
The supply chain involves the movement of goods and services from the supplier to the consumer. The consumer, therefore, affects the supply chain in many ways. However, the most significant influence of the consumer s on the supply chain is that th ey prompt the supplier to pay close attention to any potential gaps in the supply chain. For instance, a consumer can cancel an order if the supplier does not meet the delivery deadline . Likewise, if the delivered goods and services are compromised , the customer can seek a legal intervention . Hence, the possibility of consumers switching allegiance has significantly increased efficiency in supply chain management (Kogan & Tapiero , 2 007 ). C onsumers also help in establish ing and sustain ing dedicated supply chain management . This is by ensuring that supply chain companies meet their responsibility of delivering products in good conditions. For instance, if a logistics company cannot account for faulty goods or discrepancies in quantity , the consumer is left with no alternative other than to cance l any future engagements. Hence, consumers have helped in uphold ing responsibility and honesty in supply chain management.
D ue to the numerous risks involved in logistics and supply chain management, customer s ha ve developed various strategies to avert such uncertainties ( Cook & Ryan, 2015). For instance, most consumers operate along a single fixed line. This implies that the consumer identifies a particular supplier or retailer , and establishes a long-lasting relationship with the designated market player. This strategy helps customers in b uild ing loyalty to and trust in certain manufacturers, retailers or suppliers. It also aids in reducing risks and other uncertainties. Similarly, by having a loyal manufacturer, producer or retailer a customer can lessen the number of intermediaries involved , and therefore this alleviate s the likelihood of being exploit ed . Some c us to mers also carry out extensive market research before making purchase decisions. In this reason-driven purchasing, consumers compar e and contras t different market players before engaging them. In conclusion, therefore, customers play a vital role in global market dynamics.
References
Christopher, M. (2016). Logistics & supply chain management . Pearson UK.
Cook, D. T., & Ryan, J. M. (Eds.). (2015). The Wiley-Blackwell Encyclopedia of Consumption and Consumer Studies . John Wiley & Sons.
Kogan, K., & Tapiero, C. S. (2007). Supply chain games: operations management and risk valuation (Vol. 113). Springer Science & Business Media.
Panneerselvam, R. (2012). Production and operations management . PHI Learning Pvt. Ltd.
Petersen, K. J., Handfield, R. B., & Ragatz, G. L. (2005). Supplier integration into new product development: coordinating product, process and supply chain design. Journal of operations management , 23 (3), 371-388.
