What are the advantages and disadvantages of consumer sovereignty?

Answer 1

Well, the advantages and disadvantages depend on your perspective.

For consumers, the advantages are that stores have to compete for our business, and if there is a demand for something, it is likely that more people will start making it, and that there will be faster and cheaper versions.

On the other hand, if we are in the minority on size or preference in any area, the down side is that the market decidedly does NOT cater to us, but instead discriminates against us, shunting us to a secondary market that has much more limited choices and availability.

Advantages for marketers might be that if you can really understand and capture a niche market, you can cross-market a lot of things to them, and perhaps even sell their information to other firms trying to sell to a similar market.

Disadvantages would be that the more niche the market, the fewer people you have to market to, and the more limited the profits.