On October 23rd, 2014, we updated our
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Consumerism- Definition Consumerism, the "social movement seeking to augment the rights and power of buyers in relation to sellers," (Kotler, 1972) It is manifest in new laws, regulations, and marketing practices, as well as in new public attitudes toward government and business.
Consumerism- Definition Marketing concept Consumerismis a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in ever greater amounts. In economics, consumerism refers to economic policies placing emphasis on consumption. In an abstract sense, it is the belief that the free choice of consumers should dictate the economic structure of a society
Consumerism The movement seeking to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards" or alternatively: "The theory that a progressively greater consumption of goods is economically beneficial".
Consumerism Consumers are disenchanted with the marketing system. Symptomatic of consumers' malaise are complaints about rising prices, demands for improved products and services, suggestions for improving the adequacy of product information, and concern for the physical environment
Consumerism Consumerism and Public Policy-when is Governmental intervention necessary? What form does Governmental intervention take? Consumer movement had its conspicuous beginning and took up momentum in the US 1962- JFK and consumer rights Ralph Nader- “Unsafe et any speed”
Consumerism in India “ Consumerism actually should be, must be and I hope will be the opportunity of marketing. This is what we in marketing have been waiting for” Peter Drucker
Consumerism in India India is a developing economy. Not all Indian consumers are well educated. Consumers are often exploited, misled by deceptive advertisements, packaging poor after sales service, adulteration, price collusion and so on. Liberalization and competition Survival of the fittest
Situational Factors Situational Factors that aided unethical marketing- Vastness of the country Imbalance in income distribution Backwardness, illiteracy , ignorance Lack of education and information Indian consumers get carried away by clever advertising
Reasons behind the rise Reasons behind the rise of consumerism in India- Imbalance in demand and supply of commodities----- leading to hoarding, black marketing, profiteering Low literacy levels and lack of awareness of rights encourages businessmen to be indifferent to consumers
Reasons behind the rise Reasons behind the rise of consumerism in India- Lack of effective competition Consumerism is still in its infancy Legal framework is time consuming and tiresome Lamentable state of public sector monopolies
Remedies Active participation from the business, Government and consumers. Business must ensure efficiency in production and quality of output and must refrain from Unfair Trade Practices Government through legislations, statutory bodies etc prevent exploitation of consumers. Consumers should assert their rights and protect themselves from business malpractices
Consumer protection in India Marketing concept has to be broadened to include the societal marketing concept. TATA Steel Lifebuoy's “Swasthya Chetna” Tata Tea's Jaago Re! campaign
Changes in the attitude of Indian consumers The attitude of Indian consumers has undergone a major transformation over the last few years. He wants to lead a life full of luxury and comfort. He wants to live in present and does not believe in savings for the future. He is open to the idea of consumption and a better lifestyle. An increase in their income level due to high rate of industrialization, growth of services sector and better employment opportunities
Questions Why social cause marketing? What is the intended objective? Why should companies commit their shareholders' money for social issues? Or is it to do with the company's values? What is the difference between a Social Cause Marketing initiative and a Corporate Social Responsibility Initiative? At what stage of brand life cycle, would it be meaningful for any brand to get out of its comfort zone and start embracing social causes? Are the social cause marketing initiatives truly sustainable