Technology, Social Value and Economic Waste

Technology, Social Value and Economic Waste
Unit V DB BBA 3201
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Many consumers will buy the latest version even though the version they have still meets all their needs. What is the social value of this, and is it economic waste?
Consumers are increasingly buying the latest versions of products because of social value, and this phenomenon results to economic waste as they typically do not require these products. Social value relates to the effect of the surrounding, family and friends in influencing consumer behavior. People influence the purchasing decisions of their friends and families, but it is the younger people who are likely to be associated with a brand because social value has a more profound impact on their decisions as consumers (Perrault cannon McCarthy, 2010). Economic waste is related to using resources in an uneconomical manner by failing to get maximum utility. Manufacturers and producers market their new version of products, and consumers then have to dispose their ‘older’ versions. For instance, people are persuaded to buy newer versions of smart phones, which are merely upgrades to other versions, and the buyers are willing to pay a premium price.
People purchase products and identify with a brand, and marketers realize the need to adapt to personal factors that influence shopping behavior. With advancement in technology, there are new versions of latest gadgets and products being produced. As such, there is also intense competition to attract more customers, while the consumers also want to maintain their social status by being identified with the latest trends. In any case, a person’s social connections have a direct influence on their choices, and if more people buy the latest versions of a product this will likely influence one to also acquire the product. However, the consumers do not get the