commodification
Commodification (or commoditization) is the transformation of what is normally a non-commodity into a commodity, or, in other words, to assign value. As the word commodity has distinct meanings in business and in Marxist [1] theory, commodification has different meanings depending on the context.
Business and economics
In the business world, commodification is a process that transforms the market for a unique, branded product into a market based on undifferentiated price competition. While in economic terms, commodification is closely related to and often follows from the stage when a market changes from one of monopolistic competition to one of perfect competition, a product essentially becomes a commodity when the repeated changes- because of competition-outplay themselves. It is essentially called a performance oversupply- which means that the market is performance saturated and any differentiation, even when being offered, is more than what the market demands. Commodification can be the desired outcome of an entity in the market, or it can be an unintentional outcome that no party actively sought to achieve.
Consumers usually benefit from commodification, since perfect competition usually leads to lower prices. (Crude oil is a notable exception since the small number of producers can exert market power.) Branded producers often suffer under commodification, since the value of the brand (and ability to command price premiums) can be weakened.
Marxist theory
In Marxist political economy, commodification takes place when economic value is assigned to something not previously considered in economic terms; for example, an idea, identity, gender [2]. So commodification refers to the expansion of market trade to previously non-market areas, and to the treatment of things as if they were a tradeable commodity.
For instance, sex becomes a marketed commodity, something to be bought and sold rather than freely given. Human beings can be
considered subject to commodification in contexts such as
Criticism
The process of commodification often has negative connotations for the individuals who discuss it.
Karl Marx extensively criticized the social impact of commodification under the name commodity fetishism and alienation.
Commodification is often criticised on the grounds that some things ought not to be for sale and ought not to be treated as if they were a tradeable commodity.
The concept of commodification itself became popular during the rise of critical discourse analysis in semiotics.
See also
External links
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