[Term of the Day]: Prosumer

[Term of the Day]: Prosumer

Term of the Day 
 

Prosumer 

 

Definition — Who is a Prosumer?


The term "Prosumer" has transformed from meaning “Professional consumer” to meaning “Product and Brand Advocate.” Earlier, this term was used for a person who consumes products as well as produces a product. For example, people who produced electricity by installing solar panels on the roofs of their houses were called prosumers. In today's world, this term has got a completely different meaning. The prosumer rather than simply consuming, they have become the voice of that product. They talk about the products on various internet platforms which include real-time platforms like Facebook, Instagram, and YouTube. Their voices play a significant role in the failure or success of a product or a business.


The term ‘prosumer’ was coined by Alvin Toffler in his 1980 book ‘The Third Wave’. Today’s customers are no longer like their counterparts of the past. In fact, there has been a tremendous increase in customer awareness due to the convergence of Internet and Information-Communication Technology (ICT). This is attributed primarily to the rise of social media and has provided customers with significantly greater access to information about products and services, well before they actually purchase them. Therefore, it is necessary for a business not only to learn the importance of these prosumers but also to identify them and build a relationship with them. In the digital era, these prosumers can increase the demand for a product or brand more than any other traditional method of marketing and advertising.


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