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Consumer sovereignty theory is an idea that consumers knows the best that serves
their welfare and that their preferences determine the allocation of resources and
goods in an economy .In other words the consumer exercise power of rule in
production and have ultimate power over production of goods .The consumer is
regarded a sovereign , king or queen in production and distribution of goods and
services .
The theory of consumer sovereignty is very popular in business but it was back
then during the bourgeois economist era and now the theory is applicable in a
competitive economy .The theory also work in the favor of the consumer’s
preference .The theory is criticized by many because of many factors that makes it
a myth .It is limited somehow in today’s industrialized economy because of
unequal distribution of income , availability of goods , combined choice ,
irrationality of customers , society’s customs and other factors .However it is still
applicable in some fields in business for example in the media .
REFERENCES
4.Tomer F John Why consumer are not sovereign :the socio economic causes of
market failure .Manhattan College Riverdale NY