Foster, The Work of The New Economy
Foster, The Work of The New Economy
Foster, The Work of The New Economy
ROBERT J. FOSTER
University of Rochester
CULTURAL ANTHROPOLOGY, Vol. 22, Issue 4, pp. 707–731. ISSN 0886-7356, online ISSN 1548-1360. C 2007 by
the American Anthropological Association. All rights reserved. Please direct all requests for permission to photocopy or reproduce
article content through the University of California Press’s Rights and Permissions website, http://www.ucpressjournals.com/
reprintInfo.asp. DOI: 10.1525/can.2007.22.4.707.
CULTURAL ANTHROPOLOGY 22:4
What exactly was at stake for this advertising agency in knowing Lois’s laundry
habits? The agency’s explicit concern with the affective dimensions of the person–
product relationship has now become a central preoccupation of brand managers,
especially within the fast-moving consumer goods industry (see O’Shauaghnessy
and O’Shaughnessy 2003). This preoccupation is succinctly formulated in the idea
of Lovemarks. Lovemarks, according to Kevin Roberts, CEO Worldwide of Saatchi
& Saatchi Advertising, are what represent the next step in the evolution of brands.
Lovemarks are brands that are not simply respected and trusted, but loved. Love-
marks possess a “special emotional resonance” (Roberts 2004:74; see also Love-
marks.com n.d.). They signal an emotional connection and attachment to a brand
that goes beyond reason—and for which a premium price can be charged. At stake,
then, in Lois’s laundry habits was the particular love for her family that she per-
formed in washing their clothes with Wave. At stake was the possibility of tapping
into this love and rendering it a quality of a particular laundry detergent—of rep-
resenting the Wave brand as the sign and instrument of the close kin relationships
made and remade in the act of doing laundry.
Kevin Roberts’s discourse on the relationships between persons and products
and thus the relationships among consumers, companies, and brands is not merely
the breathless hyperbole of a high-octane salesman. Over the last few years, one
could hear similar talk in the sober corporate reports of heavily branded consumer
goods. For example, The Coca-Cola Company 2002 annual report, pertinently
entitled “Creating New Value,” asserts “The creation of new value begins with a
commitment to innovation—the kind of insight, creativity and determination that
brings to life new ideas, new products and new consumer experiences.” Value cre-
ation so defined hinges on managing relations between consumers and the brand.
Douglas Daft, then-CEO of the company, explained to “shareowners” that: “Re-
sponsibility for the world’s most beloved and valuable brand requires extreme care
in how, when and why we extend it. We don’t risk consumer loyalty to the brand
or seek an artificial bump in volume by spinning out product after product to chase
the latest fad. But we do ask ourselves continually how we can bring more people
to Coca-Cola.”
Not only must brand extensions in the form of Diet Coke, Vanilla Coke, and
so forth be made judiciously but the brand must also be associated with people’s
emotional experiences; or as the report proclaims, “Value is: connecting with the
world’s passions.” On a global scale, this requirement motivates the company’s
sponsorship of both the Olympic Games and soccer’s International Federation of
Football Association (FIFA) World Cup tournament—“the world’s only truly global
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FIGURE 1. Dancers pose at the 2006 Goroka Show, an annual cultural festival held in the
Highlands of Papua New Guinea. (Photograph by Jan Hoeksema.)
The first type of image engages a common ironic and playful qualification of soft
drinks as modern complements to traditional ways of life. This example was taken
at a popular cultural festival in the highlands of Papua New Guinea (see Figure 1).
The second type of image suggests a serious and critical qualification of soft drinks
as signs of corporate globalization, as threats to all ways of life. This particular
example was taken during a student protest against The Coca-Cola Company at
Yale University (see Figure 2). Both types of images raise questions about the limits
and possibilities of consumer agency in the economy of qualities for assembling a
public around matters of concern.
FIGURE 2. Yale University, March 31 2004. Then-CEO of The Coca-Cola Company Douglas
Daft lectures on ethics while surrounded by a “die in” of students protesting the company’s
alleged complicity in antiunion violence in Colombia. Yale Daily News, 1 April 2004.
(Photograph by Stephanie Dziczek. Reproduced with permission.)
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agent who pays for it. During these transformations its characteristics change.
[Callon et al. 2002:197]
the voicy consumer—“better informed, more critical, less loyal, and harder to
read” (Roberts 2004:35)—haunts this literature. How to reckon with this tough
character? The consensus seems to be, as the notion of Lovemarks demonstrates,
by attempting to incorporate and manage the requalification or destabilization of
products as part of normal business. Even if this sort of management has been going
on since Josiah Wedgwood invented product placement in the 18th century, my
point again is that such reflexive intervention on the part of firms into the processes
whereby products are qualified and materialized has become central to commercial
practice (see Slater 2002). Methodologically, such management exercises require
microsociology and detailed ethnography—including field trips to Queens to do a
load of whites—methods that market researchers share with proponents of science
and technology studies. Theoretically, the reflexive management of qualifications
requires of businesses new ways of thinking about value creation, to which I now
turn.
VALUE (CO-)CREATION
Callon’s notion of the economy of qualities complements the claims of contem-
porary business literature that value creation is a process of cooperation between
producers and consumers. The business literature, as already indicated, represents
this process as essentially cooperative, a long-term relationship of intimacy and re-
spect, an enduring yet evolving love affair between equal partners. C. K. Prahalad
and Venkat Ramaswamy, both professors of business, have recently theorized how
the “interaction between the firm and the consumer is becoming the locus of value
creation” (2004a:5; see also 2004b). More precisely, this interaction is the locus
of “cocreating” value. That is, consumers now no longer merely purchase offerings
autonomously created by the firm, but instead engage in personalized interactions
with the firm with the aim of cocreating products and services that realize desired
outcomes. This engagement has been identified as a trend, dubbed “Customer-
Made” and defined as “The phenomenon of corporations creating goods, services
and experiences in close cooperation with experienced and creative consumers,
tapping into their intellectual capital, and in exchange giving them a direct say in
(and rewarding them for) what actually gets produced, manufactured, developed,
designed, serviced, or processed” (Trendwatching.com n.d.).
More radically, Prahalad and Ramaswamy see the roles of production and con-
sumption, producer and consumer converging in the cocreation of experiences that
deliver “unique” value to consumers. That is, these experiences and the interac-
tions that facilitate them necessarily vary from individual consumer to individual
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consumer. They vary because firms can never fully control or manage how individual
consumers will go about the cocreation of their experiences. Firms that pay attention
to such variable cocreation experiences, Prahalad and Ramaswamy argue, enable
consumers to cocreate value that these same consumers are “by design, ‘willing
to pay for’ ” (2004a:13). Such firms therefore put themselves in a position to
defend against the “commoditization” of their products and services. By commodi-
tization, Prahalad and Ramaswamy mean a process by which competition renders
price the only quality relevant to consumers; that is, commoditization results in
consumers seeking the lowest price possible for products regarded as generic and
interchangeable.
To be fair, Prahalad and Ramaswamy also recognize that firms and consumers
are not only cooperators but also competitors. (Indeed, one of Prahalad and Ra-
maswamy’s [2000] earlier articles was bluntly entitled “Co-Opting Consumer Com-
petence.”) Firms and consumers compete in the extraction of value from cocreation
experiences; firms and consumers coextract as well as cocreate value This agonistic
aspect of the joint labor in value creation is slightly more pronounced in Callon’s
representation of the economy of qualities. Callon talks of “conflict and negotia-
tion around the qualification of goods” (Callon et al. 2002:197). He locates the
qualification of goods at “the heart of economic competition and the organization
of markets,” a process that “different economic agents can manipulate to suit their
strategic goals” (Callon et al. 2002:200). And these economic agents include not
only competing firms but also consumers whose attachment to particular goods is
always contingent, a function of qualifications or evaluations that are never final.
The danger of inattention to cocreation against which Prahalad and Ramaswamy
warn thus signals a basic paradox that Callon’s current economy of qualities presents
to firms:
In the economy of qualities it is preferable for the service provider to co-
operate with the consumer and therefore to deal with a calculating consumer,
at least on a regular basis without long intervals in-between. This is possible
only by limiting the periods of routine attachment and by constantly calling
into question the singularization of products proposed in order to launch
new negotiations and adjustments of their (re)qualification. [Callon et al.
2002:211–212]
In other words, because of the constant need for a firm to stay in touch with the
consumer’s qualifications, the reflexive destabilization of products moves to the
center of marketing practice.
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WORK OF THE NEW ECONOMY
the return of clean clothes to each separate family member’s closet or dresser. Lois’s
laundry routine thus constructed a set of kin relations that defined her as the person
responsible for caring for the household’s clothing. These kin relations, and the force
of moral personhood implicated therein, stretched beyond the bounds of Lois’s own
household. It is hardly irrelevant—and completely consistent with the agency’s
profile of brand loyalists—that Lois began using Wave on the recommendation of
her mother, who also used the brand.
Stories such as Lois’s alert brand owners to the ways in which consumers
use products in myriad personal projects of self-fabrication and, especially, infuse
certain products with emotion; for, as Kevin Roberts notes, “best of all, emotion
is an unlimited resource” (2004:43). Getting in touch or emotionally connecting
with consumers is thus a precondition for translating consumption work—the use
of products—into surplus value. (By consumption work, I refer to the social prac-
tices by which persons transform products into artifacts “invested with particular
inseparable connotations” [Miller 1987:190]). This translation involves treating the
production of consumers themselves, to recall Marx’s terms—the production of
their subjectivity—as a source of value creation from which surplus value can be
extracted. How is this translation accomplished?
I submit that consumption is a form of labor open to exploitation analogous to
wage labor (see Foster 2005). Adam Arvidsson (2005:237) similarly suggests that
consumers, active and creative, produce an “ethical surplus”—“a social relation, a
shared meaning, an emotional involvement that was not there before”—in their use
of branded goods. That is, consumers use goods to produce a “common”—a com-
municative context within which goods can acquire use-values. Brand management,
then, is all about guiding and anticipating this productive process without suppress-
ing the creativity and autonomy of consumers. For Arvidsson, brand management
exploits consumers in two ways: quantitatively, by absorbing the time consumers
put into creating a common, and qualitatively by establishing the production of a
common through communicative interaction on the premise of brands as necessary
means of production.
Put otherwise, brands represent the appropriation of the appropriations of
branded goods by consumers. This way of putting things emphasizes the “marks”
in Lovemarks, for despite rhetorical claims to the contrary, brands that qualify as
Lovemarks are the legally protected intellectual property of brand owners. Ac-
cordingly, the premium price that consumers pay for brands represents a charge
levied for access to the meanings, social relations, and affect that consumers
themselves have produced (see Coombe 1998). Jones Soda Company (n.d.), a
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Seattle based soft-drink firm and a clear example of the phenomenon of “Customer-
Made,” regularly changes the labels on its glass bottles. These labels feature
black and white photographs—of landscapes, children, or cars—submitted by
consumers of Jones Soda. According to a New York Times business report, “To
Charge Up Customers, Put Customers in Charge” (Taylor 2006), Jones cus-
tomers can order for $34.95 a 12-pack that features their own photographs—
“a form of Internet-enabled personalization that is the company’s highest-margin
business.”
Given that the creativity and agency of consumers is always productive of
new meanings, relations and affect, brands thus function for their owners as stable
platforms for the perpetual destabilization or requalification of products. Herein
perhaps lies the significance of the distinction between goods and services in defining
a “new economy”: goods that consumers once owned are now effectively services
that consumers lease on a continuing basis. It is as if the new economy is a version
of the (really old) kula economy, in which what Malinowski called “cumulative
possession” is the norm: shell valuables must always, sooner or later, be passed on to
one’s partners. That is, what the new economy reflects is not the dematerialization
of things into events, but a shift from the permanent transfer of ownership of
things to the ongoing rental of things. In buying branded goods, consumers pay
again and again to recover the outcomes and means of their own productivity and
subjectivity.
Brand management, then, is ideally a solution to the paradoxical problem
identified by Callon, on the one hand, and by business writers like Prahalad and
Ramaswamy, on the other hand. Voicy consumers need to be actively engaged, their
creativity and innovation encouraged as part of the never-ending quest to requalify
products for purposes of competitive advantage. At the same time, this agency and
innovation needs to be anticipated and guided, contained within the parameters
of a brand’s identity. Consumer overflowings are welcome to the extent that they
develop the brand in certain directions, but unwelcome to the extent that they
exceed the frames of permissible or manageable use. What sort of possibilities for
a politics of value (creation) does this delicate task of managing the economy of
qualities open up and shut down? For if the reflexive destabilization of products
preoccupies marketing executives, then it is fair to say that it also preoccupies many
consumers. What sort of possibilities for alternative forms of joint action—for
making new publics—emerge as the commodity networks enrolling consumers
lengthen to include “actors and interests operating at different spatial scales” (Slater
2002:106)?
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CULTURAL ANTHROPOLOGY 22:4
FIGURE 3. Alphonse Hega’s second entry for the 1998 Coca-Cola PNG national calendar
competition. (Photograph by Alphonse Hega [see Hirsch 2004].)
FIGURE 4. Alphonse Hega’s winning entry for the 1998 Coca-Cola PNG national calendar
competition. (Photograph by Alphonse Hega [see Hirsch 2004].)
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FIGURE 5. Chennai, India, June 2005: Billboard with controversial picture by Sharad Haksar
on busy street. (Picture courtesy of Getty Images/AFP.)
moreover, claimed that the billboard was an expression of his artistic freedom and
not an attempt on his part to reap commercial gains: “If MNCs [multinational
corporations] do not want their trademark image used in art, they should have a
disclaimer on every one of their products! By that yardstick, if I take a photograph
of a street, house-owners can object to their house being in the image. Where does
it stop?” (Rajagopalan 2005). From this perspective, the legal action threatened
against Haksar was an attack on his right and capacity to produce semiotic rather
than commercial value, that is, to make meaning or to communicate in the public
domain. The question asked by one Mumbai-based blogger commenting on the case
is entirely appropriate: “The question is, when a brand and it’s [sic] slogan becomes
part of the popular culture, how far can it—or should it—be ‘protected’ ” (Bansal
2005).
The disjunction between Haksar and the attorneys’ perspectives recalls the
extent to which such misalignments in a commodity network are capable of pro-
ducing unanticipated results. Haksar’s own billboard cannot escape this condition.
Despite his claim that the point of the billboard was “to highlight the problem of
water shortages in my city, and not to bring Coca-Cola down,” Haksar’s image was
perceived differently by activists accusing Coca-Cola bottling plants across India
of depleting (or “mining”) groundwater, accusations strenuously denied by The
Coca-Cola Company (n.d.a). In fact, it was on the website of the India Resource
Center (IRC), a cyberspace clearinghouse largely devoted to campaigning against
the company’s operations in India, that I initially learned of the Chennai billboard
controversy. According to an IRC news release that appeared the day after Haksar
was served legal notice: “Mr. Haksar’s billboard highlights the severe water shortages
being experienced by communities that live around Coca-Cola bottling plants across
India” (IRC 2005). Amit Srivastava, Coordinator of the IRC, thanked Haksar for
the photographer’s apparently unintended efforts. That is, Haksar’s self-professed
gesture of irony had been taken up as a public protest of transnational corporate
practice. It was perhaps exactly this interpretation of the Chennai billboard that
prompted Hindustan Coca-Cola’s legal action in the first place.
Haksar’s image and Amit Srivastava’s use of it are both unruly overflowings,
instances of consumer agency that escaped the bounds of brand management and
therefore prompted a call to the trademark—or perhaps Lovemark—police. These
overflowings, unlike Alphonse Hega’s efforts, both indicate and accomplish the
proliferation of concerned groups, that is, the organization of a public around a
matter of concern. This public is not coterminous with an already existing social
community; it is instead an affiliation of strangers organized by and around the
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CULTURAL ANTHROPOLOGY 22:4
ABSTRACT
My goal in this article is to apprehend claims about person–product relationships now
circulating in the world of business. I take up approaches that presuppose the embeddedness
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CULTURAL ANTHROPOLOGY 22:4
of economic action in shifting networks or assemblages of people and things (human and
nonhuman actors), and that call attention to the agency distributed within such networks.
I discuss the work of Michel Callon and his colleagues and specifically their notion of “the
economy of qualities” (Callon et al. 2002). I pose two sets of related questions. First, can
we translate marketing claims that relationships between consumers and corporate brands
define a locus of value creation into the terms of Marx’s theory of value? And how might
this translation revise not only the marketing claim, but also Marx’s understanding of
surplus value creation? Second, can we translate the claim that value creation hinges
on a dynamic relationship between corporations and consumers into terms of a theory of
participatory democracy? That is, what sort of political potential might inhere in this
relationship? In particular, how might this relationship endow consumers with agency
not only in value creation but also in “making things public” (Bruno Latour 2005b)? I
address these questions of commodity networks and consumer agency with a set of visual
props drawn from my research into the sociotechnical lives of an iconic type of global
commodity: Coca-Cola brand soft drinks.
NOTES
Acknowledgments. This article began as a plenary talk for the 2006 biennial spring conference
of the Society for Cultural Anthropology in Milwaukee. I thank Judith Farquhar, with whom I
coorganized the conference and developed its theme of “Translations of Value,” for her encour-
agement and support. Three anonymous reviewers provided an unusually rich and provocative
set of comments, not all of which I have been able to address, for which I am grateful. Kim
Fortun, Dan Reichman, and, especially, Julia Elyachar offered stimulating and detailed responses
that have improved the article and given me much to think about besides. Eric Hirsch and Jan
Hoeksema generously granted me use of their images. Photographs provided by Yale Daily News
and Getty Images are used with permission.
Editor’s Note: The “New Economy” and globalization have been analyzed in many Cultural
Anthropology articles. See, for example Anna Tsing’s “The Global Situation” (2000). Branding
and value creation have also been important topics, as, for example in William Mazzarella’s
award-winning “ ‘Very Bombay’: Contending with the Global in an Indian Advertising Agency”
(2003), and the special issue devoted to value creation introduced by Paul K. Eiss and David
Pedersen’s, “Introduction: Values of Value” (2002).
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