Consumer Exit, Voice, and 'Power' on the Internet

This paper proposes a new conceptualization of Hirschman's (1970) exit and voice theory in the light of discussions about rising consumer power on the Internet. Exit and voice, in this context, are discussed in relation to consumer power sources (technologic, economic, social and legal) and consumer behavioural orientation (consumer as market actor or citizen). The paper defines two new forms of consumer empowerment on the Internet: exit-based and voice-based consumer power. The discussion highlights new perspectives for understanding the effects of newly defined exit and voice behaviours on the Internet with case examples. Thus, the paper (1) highlights the components of rising consumer empowerment on the Internet, (2) suggests consumer approaches for becoming an active market participant rather than a passive recipient of company-generated consumption cycles and (3) presents possible public policy approaches to enhance consumer power for better functioning markets on the Internet.