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About <quagma/>
Created in 2004, <quagma/> covers a hodgepodge of topics including software engineering, politics, sociology, random information, and notes from the author.
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Given an Internet where public information is abundant, there's plenty of material to help guide purchasing decisions and brand/company affiliations. And it couldn't be more critical. Corporations today have immense power and strongly affect the environment, global economy, domestic/international policy, and thousands or millions of lives. Yet in most cases, we empower corporate decisions through micro-level purchasing of goods and services; essentially we create the bottom-line. How important it must be to support the companies that act in accordance with our own individual perspectives, whatever they may be. Further, the supply and production chains of most products we purchase are endlessly complex. That second (and beyond) degree of separation is just as important as the company with which you directly interface - in other words, where they get the parts, material, services, etc. should be of consideration as well. Of course, it would take a lifetime to trace these complex chains for every consumer decision. Fortunately, much of this research is already performed by people who dedicate their careers to these topics. It's sometimes about simply just doing our best. In many consumer decisions, we don't have an unlimited number of choices; we just have to try and pick the best one. To illustrate an example of micro-level decisions aggregating to potentially high-impact, consider gasoline. Most of us in this country needs it. The Department of Energy estimates that the U.S. consumes 19 million barrels of petroleum per day, making us the #1 importer worldwide, and accounting for 22% of world consumption. In a time of global uncertainty, the supply chain between the oil wells and your car's gas tank is important. Many say that gasoline is one of the most important consumer purchases we make, in terms of global impact. So let's consider two gasoline stations, side by side on the road. Let's assume Station A sells gas for $2.48 per gallon, and Station B sells for $2.50. With no other information, it's a simple choice. However let's also assume Station A represents a cooperation that, despite a clear appearance and strong public relations campaign, you disagree with ethically. Let's assume Station B represents a corporation you support, ethically. In the gasoline industry, it's simple to differentiate amongst companies on an environmental/ethical basis. The EPA estimates the average passenger vehicle travels 12,000 miles per year. If you're driving a Honda Civic with 30 mpg, you may put in 400 gallons each year. Assuming you've made the decision to patronize Station B, over the year you'll spend around $1,000, rather than the $992 you would have spent at Station A. The 0.8% difference between stations represents $8 in this scenario over the course of the year (assuming price consistency for brevity) - a fairly negligible difference in your own wallet. However, you will have contributed $992 to the revenue of a company consistent with your values, and not contributed $1,000 to a company inconsistent. So in effect, for $8 out of your wallet, you're essentially creating a $1,992 revenue difference between two competitors. That's to suggest that for every dollar of yours, you create a $249 difference. Where does that money go? It goes to everything from marketing to raw materials. It influences the paychecks of the decision makers, as well as the employees who choose to align themselves with one company over another. In many cases, you don't pay more for gas at one station over another. In those cases, it's simply a matter of location or preference; no impact to your wallet, yet still a ~$2,000 per year difference between competitors. While that's enough incentive to consider gas purchases, the impact grows exponentially as others are influenced to consider these choices. Further, as companies increase revenue, their ability increases to effectively market and become more price competitive. Now picture this same level of impact for most of the purchases in everyday life...
by Tom
in category Everyday Life.
Tags: Impact, Better World Shopper, Gasoline 
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