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Consumer Capital is crucial for startups at early stages

Published by Aeon Flux on November 21, 2020
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STARTUPHuman needs are often satisfied, but wants can never be.Consumer capital as a term was first introduced in the 1920s and has been continuously refined since…Consumer capital, in simple terms, refers to the notion of corporate entities manipulating the consumer to purchase (and continue purchasing) material goods, thus driving the capitalist economy. It is in actuality a theoretical economic and social-political condition in which consumer demand is manipulated in a planned way through mass marketing strategies that ultimately benefit the seller.The concept of consumer capital started during the boost of departmental stores in the US in the 1850s. Human needs are often satisfied, but wants can never be. Hence, the idea was for consumers to keep buying their products in order to fulfill their wants. This resulted in consumer loyalty for the stores and also provided them with continuous revenue. Slowly the concept evolved and sellers used their knowledge to manipulate customers regarding products like cigarettes and soap.Besides these examples of consumer capitalism, the best example in history was orchestrated by the American government during World War I. The state encouraged citizens to purchase foodstuff not to satisfy their needs but to support their country in an effort to receive financial support for the ongoing war. It was a show of solidarity and nationalism for their country.Another great example of consumer capitalism is from the works of Edward Bernays who is known to be the founder of the public relations industry. His first great success was organising one of the first consumer capitalist marketing campaigns selling cigarettes to women, on the psychological premise that women should declare their independence from their male counterparts by smoking.Today startups with limited access to capital believe that bootstrapping and fundraising are the only methods to effectively generate cash to carry out business activities. There…

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