The exponential growth of brands and products has led to a saturation point where consumers are drowned with choices across all sectors (Osenton, 2004, p. 65). Inspired by the notion of value propositions of Michael Porter (1997), the market offers an array of options from clothing to smartphones, often with minimal differentiation in value propositions as highlighted by Matthyssens and Vandenbempt (2008) and in a later work of Porter et al. (2001). This phenomenon raises crucial questions, as highlighted by Payne and Frow (2014) regarding the efficacy of marketing strategies, the significance of brand communication, and the impact of so called ‘competitive advantage’ on consumer decision-making processes, also supported by Rintamäki and Saarijärvi (2021). These questions have led to confusion and overload of advertising messages that contribute to consumer fatigue, leading to a desire for authenticity in value appropriation. However, as Kool et al. (2010) and Pangannavar (2014) highlighted the sheer volume of products produced daily reflects the magnitude of consumer demand, or so-called ‘pulled’ demand and the extensive presence of brands in the market. As Porter (1986) Gereffi (2005), and Koren (2010, p. 13) emphasized on global economy, globalization facilitated the expansion of businesses worldwide and the number of brands has surpassed the variety of products available, exemplified by the plethora of options even for mundane items like bottled water (Valcheva & Sofonova, 2012). This increase also extends to technological products as highlighted by Osterwalder et al. (2015), such as smartphones, where numerous brands offer similar functionalities but differentiate through value propositions like price, design, and service quality.
Therefore, as emphasized by Powell (2014), this overwhelming abundance of choices across various product categories in the contemporary marketplace is fueled by globalization, deregulation, and commoditization. All of which is circulating around the wrong foundational assumption of the economy that leads to bad management practice, namely transaction cost economics, where shareholder value and money is the center of economy (Ghoshal, 2005). The bad management practice also includes the notion of ‘competitive advantage’ which is intricately woven with the pursuit of superior performance (Powell, 2001). This notion, rooted in a deterministic-structuralist paradigm, unveils a fundamental inadequacy in grasping the nuanced interplay of economic and business relations which is underlined by Ghoshal (2005). Powell (2001) further suggests that competitive advantage by one entity inherently implies a corresponding disadvantage for another. Such a perspective paints a picture of 'winner-takes-all' scenarios, where dominance becomes the norm. Consequently, this paradigm not only shapes the evaluation of companies but also leads to such perceptions of profitability, management efficacy, and productivity, often to the detriment of holistic understanding (Ghoshal, 2005).
However, the economic ‘science’ operates within a dynamic framework that is far from being value-free or precisely empirical, a crucial point highlighted by Brodbeck (2014). Unlike the predictable motions of classical physics' mechanical objects based on a deterministic paradigm (Fuchs, 2023; Ghoshal, 2005), human behavior in economic contexts is characterized by its complexity, subjectivity, and unpredictability (Beckert, 1996; Hogg, 2000). In response to these limitations, referring to Brodbeck’s (2001) post-mechanist economic theory challenges the reductionist and deterministic assumptions of economics (Ghoshal, 2005). This theory, according to Brodbeck (2001), recognizes the pivotal role of human creativity in shaping economic phenomena and redefines 'The Economy' as more than just a mechanistic system of production and consumption. Instead, it conceptualizes the economy as a socio-communicative network, wherein individuals engage in constant interactions to create and exchange meaning (ibid, 2001). Also supported by Joullié (2020), central to this post-mechanist perspective is the acknowledgment of human agency and the recognition of the subjective nature of economic value. Therefore, unlike in the classical mainstream economics, where value is often reduced to quantifiable metrics such as price or utility (Ghoshal, 2005), post-mechanist theory emphasizes the importance of context, culture, and social relations in shaping individuals' perceptions of value, further supported by Peters and Fuchs (2023).
Thus, in contrast to the deterministic worldview of classical economics (Ghoshal, 2005), post-mechanist theory embraces uncertainty and complexity as inherent features of economic systems as underlined by Brodbeck (2001). Rather than seeking to predict and control economic outcomes through rigid mathematical models, it emphasizes the need for adaptive, context-sensitive approaches that account for the dynamic interplay of diverse factors (Fuchs, 2023). Therefore as Joullié (2020) highlights, traditional economic models often fall short in capturing the intricacies of human decision-making and the multifaceted nature of economic systems. By recognizing the fundamental role of human creativity and social interaction in economic processes, it goes to criticize the contemporary economic paradigm of transaction cost economics (Brodbeck, 2001; Joullié, 2020) with prioritizing sustainability, equity, and value- as well as relational appropriation. Herein, it is expected that the post-mechanist economic theory paves the way for a more inclusive and pluralistic approach to economic inquiry and policymaking.
This research, as a conceptual paper, seeks to explore the implications of this excess of brands and products on consumer behavior, marketing strategies, and post-mechanist economic paradigm. By examining the dynamics of differentiation, the so-called ‘competitive advantage’, and communication in marketing, the study aims to shed light on the challenges faced by companies in capturing consumer attention and fostering value appropriation amidst a competitive landscape. Thus, as a conceptual paper this study does not involve traditional research methods or data collection processes commonly found in empirical studies. Instead, the study delves into theoretical discussions, synthesizes existing literature, and proposes new perspectives or frameworks as inspired by Davies et al. (2006) and Dreher (2018, pp. 109-124).
For practitioners, particularly marketers, brand managers and policy makers, this study offers practical insights into refining communication strategies and fostering meaningful consumer engagement through an understanding of the economic paradigm where human creativity is in the center. By prioritizing sustainability, equity, value- and relational appropriation in brand messaging as well as consumer behavior, companies can mitigate consumer confusion and enhance brand salience amidst the competitive market. This study also highlights the need for adaptive marketing approaches that prioritize efficiency and effectiveness in resource allocation. Therefore, the objective of this extended abstract is to re-understand consumer behavior through post-mechanist economic theory by exploring the ramifications of the excess of brands and products on consumer behavior, marketing strategies, and the post-mechanist economic paradigm.
Drawing upon marketing theory, this research aims to contribute to a deeper understanding of consumer behavior within a post-mechanist economic theory thus challenging the contemporary consumer behavior theory along with the notion of the so-called ‘competitive advantage’. By highlighting the role of human behavior in economic contexts, the study offers theoretical insights into the intricacies of contemporary consumer behavior and brand management practices.
The implications and expected findings of this study, driven by technological advancements, and shifting consumer preferences, underscore the ongoing innovation and adaptation in marketing practices. By embracing novel communication channels, leveraging data-driven insights, and prioritizing customer-centricity, companies can better go about the complexities of the contemporary marketplace and focus relationships with consumers. Additionally, the emergence of new communication paradigms, such as influencer marketing and experiential branding, presents opportunities for companies to differentiate themselves and capture consumer attention in an increasingly crowded landscape.