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Corporate-Consumer Relationship

By February 16, 2015

is a term first used by David Giannetto in Big Social Mobile to describe the ongoing battle for power between consumers and for-profit companies.  Giannetto breaks down the relationship into three main stages: 1) pre-capitalism where consumers dominated due to the inability of most companies to operate in areas that exceeded the ‘word of mouth’ that their reputation created, 2) capitalism, beginning with the creation of a wage-labor economy, where corporations gained dominance and could (eventually) utilize marketing methods that drown out their local reputation, forcing consumers to make a buying decision based upon perceived value and not true value, and 3) social economy, where the market dynamics of capitalism still exist but are counterbalanced by consumers having an independent voice (via social media) that allows them to share information outside of corporate controlled platforms, forcing companies to consider the true value they deliver and shying away from marketing based solely upon the use of perception to increase their (nonexistent or lacking) value proposition.  See graphic 3.1 in Big Social Mobile.