A-Z Popular Blog Encyclopedia Search »
Business
 Advertisements
Related Guides
Related Topics

6 Examples of Consumerization

 , updated on
Consumerization is the tendency for businesses to purchase more consumer products and services with time. It is common for a product to be first introduced as an expensive business good that is beyond the budget of most households. With time, consumer versions are introduced and rapidly improved. The price of the consumer version may fall rapidly due to competition and economies of scale. When this occurs, the business version of the product becomes a comparatively poor value and businesses begin to adopt the consumer versions of the product. The following are illustrative examples.

Refrigerators

As early as 1861, several commercial refrigerators were in operation. These were large custom built machines that were sold to breweries and meat packing houses. It wasn't until 1913, that consumer versions of refrigerators were first launched. Prices fell and the technology was rapidly improved such that small businesses began to purchase consumer refrigerators. Business refrigerators began to resemble the consumer models with greater capacity.

Microwave Ovens

The first commercial microwave oven was available in 1947 and the first home microwave oven in 1967. Eventually, business models for restaurants began to resemble the consumer product.

Televisions

Digital commercial signs such as those that display flight information at an airport were often replaced by large flat screen televisions beginning in the 2000s. As prices fell, it became possible to use this consumer technology to build large signs and digital billboards.

Computing

Early commercial computers were large, expensive and power hungry. These were well beyond the budget of households. In the late 1970s, computers began to make appearances in the home. Businesses began to adopt consumer computers for desktops in the 1980s and consumer computers for servers in the 1990s. In the 2000s, cloud computing emerged as a method of using many cheap computing units as a common resource. This dampened demand for high-end computers designed for business systems.

Mobile Devices

Early mobile phones and pagers were primarily purchased by businesses. As their price declined in the mid-1990s, these devices began to be designed for the consumer market.

Apps

As employees began to bring their own smart phones to work, they began to use cloud-based apps to accomplish tasks. Software designed for consumers began to replace far more complex business applications for many common tasks. Software firms began to shift to a software as a service model such that business software was fully hosted in the cloud with a mobile app user interface. This changed the way that software was sold as many software companies had success by-passing the IT department and selling directly to business units.

Notes

Consumerization is related to digital convergence, the process by which many technologies become one.
Overview: Consumerization
Type
Definition
The tendency for businesses to adopt consumer products.
Related Concepts

Business Models

This is the complete list of articles we have written about business models.
Added Value
Aftermarket
Agent
Arbitrage
Auctioneering
Barter
Augmented Product
Bespoke
Bricks And Clicks
Business Markets
Business Products
Business Services
C2B
Club Goods
Coercive Monopoly
Collective Business
Concession
Complement Good
Consumer Business
Consumer Goods
Collectives
Consumer Services
Cottage Industry
Creative Services
Digital Business
C-to-C
Digital Services
Convenience Good
Ebusiness
FMCG
Gig Economy
Middleman Cutting
Global Business
Designer Label
Haute Couture
Digital Goods
Intermediary
Long Tail
Fast Fashion
Market Maker
Financial
Middleman
Niche
One Stop Shop
Productization
Recommerce
Retail
Managed Services
Services
Used Goods
Markets
White Label
Micropayments
Microtransactions
Modular Products
Original Equipment Manufacturer
Product-as-a-Service
Razor And Blades
Store Within A Store
Two Sided Market
Utility Computing
VAR
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Types of IT Service

The definition of information technology service with examples.

IT Architecture

The definition of IT Architecture with examples.

Solution Architecture

Examples of common solution architecture diagrams.

System Architecture

Examples of system architecture diagrams.

Software as a Service

Common examples of software as a service.

IaaS Definition

The definition of infrastructure as a service with comparisons.

Networking Basics

A list of basic computer networking concepts.

Reverse Proxy

An overview of reverse proxies with examples.

Business Models

A list of common business models.

Cost Structure

Detailed examples of how to map out the cost structure of a business.

Revenue Structure

A definition of revenue structure with detailed examples.

Recurring Revenue

Common types of recurring revenue.

Business Services

Common examples of business services.

Business Services Definition

The definition of business services with examples.

Consumer Services

Common examples of consumer services.

Business-to-Business Definition

The definition of business to business with examples.

Business To Business

Examples of business-to-business markets.

Creative Services

The definition of creative services with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map