Problem

Decreasing consumer choice

Other Names:
Limited range of consumer goods
Lack of service selection
Nature:

Largely as a consequence of the economic consequences of mass production techniques and economies of scale, the variety in certain classes of goods effectively available to the consumer has decreased.

There is the risk that the manufacturer or planning authority may be out of touch with what consumers want and are prepared to buy. Some goods may consequently be over-produced so that unsold stocks pile up in the shops. In other cases, production may be insufficient to meet consumer demands, so that shortages occur. Furthermore, the emphasis of the producer can easily become too geared to quantity, with insufficient regard being given to the quality or suitability of the product to consumer requirements.

Incidence:

In more or less centrally-planned economies, the size of the planning authority's task can lead to delays and mistakes, and the more centralized the planning the more serious the mistakes. In Poland, for example, a family may have to wait eight to twelve years for a suitable apartment and four to five years for a car, even if they already have the purchase money. In Czechoslovakia, a bottle of whisky costs one-eighth of an average month's salary.

Related Problems:
Inadequate selection methods
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 10: Reduced InequalityGOAL 12: Responsible Consumption and ProductionGOAL 16: Peace and Justice Strong Institutions
Problem Type:
D: Detailed problems
Date of last update
25.07.2020 – 03:31 CEST