Impact of consumer protection act, 1986 on the buying behavior of consumers through a research method and process

1. Jaipuria Institute of Management, Jaipur
Presentation on:
Impact of Consumer Protection Act, 1986 on the Buying
Behavior of Consumers
Submitted By:
Vidushi Mathur
Submitted To :
Dr. Shubha Johri

2. Topics to be covered
Factors Leading To Consumer Exploitation
Consumer Protection Act,1986
Redressal mechanism
Research Methodology
Results and discussion
Hypothesis testing
Findings
Recommendation

4. Factors Leading To Consumer Exploitation
Deceptive and misleading techniques
False warranties or guarantees
Non Availability of goods
Adulteration
Hoarding
Black marketing

5. Consumer Protection Act,1986
The Consumer Protection Act, 1986 is a benevolent social legislation.
The first and the only Act of its kind in India, it has enabled ordinary consumers to secure
less expensive and often speedy redressal of their grievances.
The act was amended in 2002 and the amendments came into force w.e.f. 15th March
2003.

6. By spelling out the rights and remedies of the consumers in a market so far dominated
by organized manufacturers and traders of goods and providers of various types of
services, the Act makes buyer beware a thing of the past.

8. Redressal mechanism
The act envisages a three –tier quasi judicial machinery at the national state and district level.
District Consumer Disputes Redressal Forums – District Forum(< Rs. 20 Lacks)
State Consumer Disputes Redressal commission – State commission (>= Rs. 20 Lacks < Rs. 1 crore )
National Consumer Disputes Redressal commission – National commission (exceeding 1 crore ) 18

9. Research Methodology
Research problem: To inspect the impact of consumer protection act on consumers while
purchasing.
Sampling Method: Random Sampling (Stratified)
Sample Size: 50
Data Type: Primary Data

10. Results and discussion
70%
30%
Are you aware about the consumer rights?
Yes
No
84%
16%
Do you check MRP before buying
goods?
Yes
No
84%
16%
Do you examine the expiry date
before buying a product?
Yes
No

11. 60%
40%
Do you ask for a bill while purchasing
goods?
Yes
No
38%
62%
Does the company response to your complaints?
Yes
No
62%
38%
Are you attracted by the promotional
offers given by the company?
Yes
No

12. 52%
48%
Are you satisfied with the quality of the
product?
Yes
No
62%
38%
Does children get influenced by the
purchase of any product?
Yes
No
40%
60%
Have you ever thought of joining the
consumer club to fight for your product?
Yes
No

13. 62%
38%
Does children get influenced by
the purchase of any product?
Yes
No

14. Hypothesis testing
Hypothesis1: Female buyers are much more aware about the consumer rights then male buyers.
H1: There is a significant difference between the awareness of right of consumers in females and male
buyers.
To test the above hypothesis , a One way ANOVA has been run across
As per the results of the average of the awareness of the Consumer rights among the buyers we get the p
value as 0.426, and accordingly we accept the null hypothesis i.e. there is no significance difference
between the awareness of right of consumers in females and male buyers. And reject the alternative one.

15. Hypothesis 2: Female buyers have much more impact of consumer protecting act on their buying behaviour
than Male
H1: There is a significant difference between the impact of consumer protection act on the buying behaviour of
the Male and female buyers.
To test the above hypothesis , a One way ANOVA has been run across the average of the answers of the
male and female respondents.
As per the results of the average of impact of consumer protection act among the buyers we get the p value
as 0.972, and accordingly we accept the null hypothesis i.e. there is no significant difference between the
impact of consumer protection act on the buying behaviour of the Male and female buyers. And reject the
alternative one.

16. Findings
• 70% are aware about the Consumer rights
• Afraid to avail them
• File complaints against unfair trade practices
• Does not check the Packaging details of the product
• Ignores the quality

17. Purchase products only after their complete scrutiny
Check on weighing and measuring instruments
Avoid buying fruits and vegetables from unhygienic place
Check print of MRP and quantity on the product
Check the expiry date of the product, particularly that of the eatables and medicines
Always collect bill at the time of purchase
Recommendations