CONSUMERISM DRIVING FORCE BEHIND THE BUSINESS.
Presented by: Nupur Bhardwaj
Who is a Consumer ?
• A customer (also known as a client, buyer, or purchaser) is the recipient
of a good, service, product, or idea, obtained from a seller, vendor, or
supplier for a monetary or other valuable consideration.
• Customers are generally categorized into two types:
- An intermediate customer or trade customer; who is a dealer that
purchases goods for re-sale.
- An ultimate customer; who does not in turn re-sell the things bought
but either passes them to the consumer or actually is the consumer.
• A customer may or may not also be a consumer, but the two notions are
distinct. A customer purchases goods; a consumer uses them.
• For the purpose of "goods", a consumer means a person belonging to
the following categories:
- One who buys or agrees to buy any goods for a consideration which
has been paid or promised or partly paid.
- It includes any user of such goods other than the person who actually
• For the purpose of "services", a consumer means a person belonging
to the following categories:
- One who hires or avails of any service for a consideration which has
been paid or partly paid.
- It includes any beneficiary of such service other than the one who
actually hires or avails of the service for consideration.
• Consumerism refers to wide range of activities of government , business
and independent organizations designed to protect rights of the
• It is a process through which the consumers seek redress(to set right) ,
restitution and remedy for their dissatisfaction and frustration.
• This term is used to refer to the consumerists movement or consumer
protection act, which seeks to protect and inform consumers by requiring
such practices as:
- Honest packaging and advertising
- Product guarantees
- Improved safety standards
• It is a movement or a set of policies aimed at regulating the products,
services, methods, and standards of manufacturers, sellers, and
advertisers in the interests of the buyer.
• The consumer is exposed to many hazardous-physical, environmental
and exploitation due to unfair trade practices.
• He needs protection, for instance, against products which are unsafe for
consumption and products which may cause badly injury.
• He needs protection against mal-practices and deceit by sellers.
• He should have adequate rights and right of recourse to redressal
measures against defaulting businessmen.
Need for Consumerism:
• In India the existing markets of products run in shortage , adulteration &
black market prices.
• The profit making attitude of the business failed to discharge social
responsibilities of maintaining fair price, quality of goods & providing
• For example:
- Tooth paste tube filled with air.
- Adulteration in Pure ghee etc.
• To over come from that type of problem consumerism originate.
Components of Consumerism :
• Consumer must be aware of his rights, raise voice against exploitation
and seek redressal of his grievances.
• Consumers' consciousness determines the effectiveness of consumerism.
It is the duty of the consumer to identify his rights and to protect them.
• Voluntary Consumer Organizations engaged in organizing consumers and
encouraging them to safeguard their interests is another important
element of consumer movement .
• The success of consumerism lies in the realization of the business that
there is no substitute for voluntary self-regulations.
Objectives of Consumerism:
• To educate the consumers about their rights.
• To ensure fair trade practices and provide complete information to the
• To build the confidence of Multinational companies for investing in
• To ensure cooperation between government and producers.
• To enforce the rights of people as consumers against exploitation like
poor quality, over charging etc.
Problems faced by Consumer:
- Some problems of consumers exploitation
Warranty and Services.
Consumer Protection Acts in India :
- To protect the consumers from various exploitations, injuries and harm,
the Government of India has made many Acts, for this purpose. These
are as follows :
• Consumer Protection Act, 1986.
- Replacement of defective goods, Repair or removal of defects.
• Sale of Goods Act, 1930.
- Sale, purchase transactions, Mode of payment, Rights of buyers
• Drugs & Cosmetics Act, 1940.
- Enhances penalties for certain offences related to spurious and
• Prevention of Food Adulteration Act, 1954.
- Duplicate food items piracy avoidance.
• MRTP (Monopolies & Restrictive Trade Practices) Act, 1969.
- Checks the misuse of monopoly powers.
• Agriculture Produce Act, 1937.
- Agriculture products must be sealed with Agmark.
• Essential Commodities Act,1955.
- Control of the production, supply and distribution of, and trade and
commerce in certain, commodities.
- As Under section-6 of Consumer Protection Act, consumer has the
• Right to Safety: It is Right to safety against such goods and services as
are hazards to health, life and property of the consumer.
• Right to be Informed/ Right to Representation: Consumer has also
the right that he should be provided all those information on the basis of
which he decides to buy goods or services.
• Right to Choose: Consumer has the full right to buy good or services of
his choice from among the different goods or services available in the
• Right to be Heard: Consumer has the right that his complaint be heard.
Under this Right the consumer can file complaint against all those
things which prejudicial to his interest.
• Right to Seek redress: This provides compensation to consumer
against unfair trade practice of the seller.
• Right to Consumer education: Consumer education refers to educate
the consumer constantly with regards to their rights and awareness of
the loss they suffer
Consumer Responsibilities :
- Consumer Responsibilities means, that the consumer should keep a few
things in mind while purchasing or using any good or service. They are
• Consumer should exercise his right: Consumers have many rights with
regard to the goods and services. They must be aware of their rights
• Cautious consumer/ Do not buy blindly: The consumers should make
full use of their reason while buying things. They should not take the
seller’s word as final truth.
• It is also the responsibility of the consumers only to buy goods with the
ISI, Agmark, Woolmark, FPO etc. printed on them.
• Filing complaint for the Redressal of genuine grievances: It is the
responsibility of a consumer to approach the officer concerned there is
some complaint about the goods purchased.
• Consumer must be quality conscious/Do not compromise on quality:
The consumers should never compromise on the quality of goods.
Therefore, they should not buy inferior stuff out of greed for less prices.
• Advertisements often exaggerate/Beware of false advertisement: It is
the responsibility of the consumers to recognize the truth of
• Do not forget to get Receipt and Guarantee/warrantee card: One
should always get a receipt or bill for the things purchased. In case a
guarantee/warrantee card is also offered by seller, it should also be taken.
Consumerism, Driving Force Behind Business:
• Consumerism is one of the important aspects of business as it is related
to an economic theory which helps in boosting up the consumption of
goods and services among the people.
• Businessmen use this theory in order to create demand of their goods
and services among the people. They use various methods to create
demand or to increase the demands of their products or services.
• Advertisement is one of the mediums used for the purpose of
- The main objective behind advertising is to augment consumerism
in order to promote interests of the consumers.
- To disseminate information in a way that they automatically feel
attractive towards the particular product and service.
- To retain the consumer which is possible only by giving them the
worth for their money.
• Consumerism also involves giving greater value of their goods so that
the consumers keep using that product or service for a long period of
• It is also aimed at providing services and worth for money in such a
manner that they recommend these goods and services to other people
• Earlier, businessmen used to take help of only glamorous
advertisements in order to increase the demands of their goods.
• But due to Consumerism, the consumers have become smarter, hence
businessmen have to cater to the needs of the consumers in the best
possible manner for running a successful business.
• Thus, such a phenomenon called consumerism is very important to
follow in order to run a successful business.
Positive Effects of Consumerism:
- Consumerism is appreciated , as a person’s standard of living is valued
by his or her material possessions. There are certain positive effects
such as :
More industrial production.
A higher growth rate economy.
More goods and services available.
More advertising since goods manufactured have to be sold.
Increased production will result in more employment opportunities.
A variety of goods and services to choose from.
More comforts for a better living style.
Negative Effects of Consumerism:
- There are always certain pitfalls to a given situation in a society; and
thus Consumerism has its negative effects on the people and society at
large. These are as follows:
• The wants and desires of the people increase.
• Over-dependence on labor saving devices.
• Crime rate also increases as wants to possess expensive gadgets
Cheaper goods are imported rather than other goods, affecting the
growth of locally based manufacturing industries.
Consumerism has also resulted in ecological imbalances.
Industrial pollution is affecting people in many ways.
Psychological health also can get affected if one’s desires are not met,
such as depression.
Reasons for failure of Consumerism in India:
• The various reasons because of which Consumerism has not been a
success in India, are follows:
Non standardization of products.
Ineffective implementation of Law.
Human Resource and Consumerism:
• Employee is an internal consumer. It is necessary to see that the
employees are satisfied and their desires are taken care of.
• An employee will be happy if the following requirements are fulfilled:
- Health and Medication Facilities.
- Safety and Security.
- Morale boost.
- Human Welfare.
- Growth and Development.
• If these things are present in the organization, then the employee will be
satisfied, otherwise he will leave the organization.