Consumerism as an Emerging Force

8/9/2019 Consumerism as an Emerging Force

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CONSUMERISM AS AN

EMERGING FORCE


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Who are c onsum er s?

Th e per sons who b uy g oods a nd s ervice s are calle d c onsum er s.

Th e d efi n ition do e s no t i n cl ud e per sons who o btai n e d g oods a nd s ervice s f o r c omm ercialp u rp os e .Th e per sons who b uys a nd s ell g oods a nd s ervice s f o r re s ale o r c omm ercial p u rp os ewill fall ou ts id e t h e preview o f t h e act .


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Wa ys b y wh ic h pr odu cer s a nd tra d er s ca n d eceive c onsum er s

P rice s m a y be fixe d at h ig h er level s.Seller s m a y fir s t h ike price s a nd th e n o ffer d is c oun ts to attract c onsum er .

Consum er m a y no t be give n th e c o rrect weig h t o r q u a n tit y o f g oods.Ad verti s e m e n t m ig h t m ake fal s e clai ms ab ou t t h eq u alit y o f t h e g ood.Ad verti s e m e n t m a y pr o vid e i n c om plete i n f o r m ati on

no t d is cl os in g t h e ri s ks a sso ciate d wit h th e us e o f th e pr odu ct s.Th e g oods su pplie d to th e c onsum er m a y be h ig h ly a du lterate d.


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Step s req u ire d f o r c onsum er pr o tecti on

Protection to consumers requires the recognition of the followingrights of the consumers by the business and government.

Rig h t t o s afet y:- c onsum er s shou ld h ave rig h t t o pr o tecti on o f h ealt h a nd life agai ns t g oods w h ic h are h azar dous to h ealt h a nd life .

Rig h t t o be i n f o r m e d:- c onsum er shou ld be give n pr o per in f o r m ati on ab ou t t h e g oods th at t h e y in te nd p u rc h a s in g . Th e y shou ld be pr o tecte d agai ns t wr on g a nd m is lea d in ga d verti s e m e n t .


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Rig h ts (c on t)

Rig h t t o c hoos e :- c onsum er shou ld be give n th e rig h t

to c hoos e fr om a variet y o f g oods. Th is will give t h e m a n o pp o rt un ity to s elect g oods o f t h eir c ho ice . In a dd ition, beca us e o f c om petiti on price s c h arge d wou ld be rea son able .

Rig h t t o be h ear d :- c onsum er s shou ld be give n asym pat h etic ear b y g o ver nm e n t . Th eir c om plai n ts a nd grieva n ce s shou ld be pr o perl y loo ke d in to.

Rig h t t o get re d re ss:- it i s no t e nou g h to h ear t h ec om plai n ts o f c onsum er s. It is al so n ece ss ar y to takeacti on on th e s e c om plai n ts a s earl y a s p oss ible . Fo r th is p u rp os e a n appr o priate re d re ss al m ac h in er y mus tbe i n place .


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Consum eri sm-- d efi n ition

A so cial mo ve m e n t s eeki n g t o a u g m e n t t h e rig h ts a nd p o wer s o f t h e

b uy er s in relati on to s eller s

b y Ph ilip K o tler


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UTILITY OF CONSUMERISM

1 . P r odu cer s a nd s eller s will no t take t h ec onsum er f o r gra n te d.

2. Consum eri sm will pr o vid e fee d back f o r t h eb us in e ss.

3 . Consum eri sm will m ake t h e g o ver nm e n tmo re re s p ons ive t o c onsum er i n tere s ts,

pr om pt it t o take n ece ss ar y m ea su re s to s afeg u ar d th e c onsum er rig h ts.


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Consum er pr o tecti on


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Un g u id eli n e s f o r c onsum er pr o tecti on m ea n in g

T he UN Guidelines for consumer protection declare that all enterprisesshould obey the relevant laws andregulations of the countries in whichthey do business.


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GUIDELINESPhys ical s afet y:- g o ver nm e n t shou ld a do pto r e n c ou rage t h e a do pti on o f appr o priatem ea su re s in cl ud in g legal sys te ms to m ai n tai n th e s afet y rec o r ds.P r omo tion a nd pr o tecti on o f c onsum er s ec onom ic i n tere s ts:- Th e g o ver nm e n tp o licie s shou ld s eek t o ac h ieve t h e g o al s o f s ati s fact o r y pr odu cti on a nd perf o r m a n ces ta nd ar ds, a d eq u ate d is trib u tion m et hods, fair b us in e ss practice s agai ns t practice s wh ic h c ou ld a d ver s el y affect t h e ec onom icin tere s ts o f c onsum er s.


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Guidelines( cont. )

Sta nd ar ds f o r t h e s afet y a nd q u alit y o f c onsum er g oods a nd s ervice s:-g o ver nm e n t shou ld f o r mu late t h eelab o rati on a nd im ple m e n tati on o f s ta nd ar ds at t h e n ati on al a nd in ter n ati on al level s f o r t h e s afet y a nd

q u alit y o f g oods a nd s ervice s a nd giveth e m appr o priate p u blicit y.


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Gu id eli n e s (c on t.)

Dis trib u tion facilitie s f o r e ss e n tialc onsum er g oods a nd s ervice s:-

a) Ado pti n g o r m ai n tai n in g p o licie s to e nsu re t h e efficie n t d is trib u tion o f g oods a nd s ervice s to c onsum er s.

b) En c ou ragi n g t h e e s tabli shm e n t o f c onsum er c oo perative s in r u ral area s.


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Mea su re s e n abli n g c onsum er s to o btai n re d re ss:- g o ver nm e n t shou ld e s tabli sh legal o r a dm in is trativem ea su re s to e n able c onsum er s to o btai n re d re ss th r ou g h f o r m al o r in f o r m al pr o ce du re s th at are fair ,

in expe ns ive a nd acce ss ible . S u c h pr o ce du re shou ld take partic u lar acc oun t o f n ee ds o f lo w -in c om ec onsum er s.


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Edu cati on a nd in f o r m ati on pr o gra mm e s:-g o ver nm e n t shou ld d evel o p o r e n c ou rageth e d evel o p m e n t o f ge n eral c onsum er

e du cati on a nd in f o r m ati on pr o gra ms, beari n g i n m ind th e c u ltu ral tra d itions c on cer n e d.Th e ai m o f su c h pr o gra mm e s shou ld beto e n able pe o ple t o act a s d is cri m in ati n gc onsum er s ,capable o f m aki n g a n in f o r m e d c ho ice o f g oods a nd s ervice s, a nd c ons ci ous o f t h eir rig h ts a nd re s p ons ibilitie s.


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PLIGH T OF T HE INDIAN CONSUMER

Factors responsible for consumer plight1.Short supply of many goods and services.2.Lack of effective or workable competition.3.Unfamiliarity of consumers with products.4.Unconciousness of rights.5.Complex legal processes.6.Unorganise and underdeveloped consumerism.7.Poor performance by public sector.

8.Ineffective implementation of laws protecting consumer interests.


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COUN T ERFEI T S AND PASS-OFFS

Counterfeit products are fakes that use thesame name, design, color scheme,trademark and even name as that of theoriginal.Pass-off products are fakes that usesimilar sounding name with deceptive

similar color schemes and packaging.


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GOVERNMEN T MEASURES

T HEY ARE CLASSIFIED IN TW O CA T AGORIES-1. Statutory regulation of private business.

(mandatory for the business)2. Development of the public sector. (relating to

the growth of public sector for the purpose of initiating healthy competition avoidingmalpractices.


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S T AT UT ORY REGULA T IONS

Statutory weapons- control the production,supply, distribution, price and quality.

Important regulations- competition act,IRD act, essential commodities act,prevention of food adulteration act, etc.


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CONSUMERISM

It is still in its infancy stage which is limited tothe urban sector only leaving behind majorityof the Indians.

Roles of consumerism1. Consumer education2. Product rating

3. Liaison with government and with producers


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Consumer groups in IndiaConsumer guidance society of india(1966)

Akhil bhartiya grahak panchayat(1974)Consumer education and research centre(1978)Jagruk panchayat(1980)Consumer forum(1980)SMN consumer forum(1986)Consumer coordination council(1992)

W omen graduate union(1915)Indian association of consumers(1956)W omens India association(1917)


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OPPOR T UNIT Y FOR T HE INDUS T RY

1. SOUND MARKE T ING ME T HODS2. CO-OPERA T ION W IT H CONSUMER

MOVEMEN T

3. INVES T MEN T IN T ES T ING T HE SAFE T Y4. DEALING W IT H CONSUMER COMPLAIN T S.5. PROPER ADVER T ISING.6. INVES T MEN T IN RESEARCH AND

DEVELOPMEN T DEPAR T MEN T .


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Advertising code

Make honest claimsDo not affect the generally accepted standards.Safeguard against promotion of hazardousproducts andObserve fairness in competitionT he code seeks to ensure protection to

consumers against spurious advertising andguarantee that generally accepted standards of morality are upheld.


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CONSUMER PRO T EC T ION AC T (1986)

It provides for the system for protection of the consumer rights and redressal of theconsumer disputes.It extends to whole of the India except for Jammu and Kashmir.Its objective is to provide for the better

protection of the consumers interests andto settle disputes and connected matters.


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Cost of consumer protection

Economic costSocial cost

Opportunity cost


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CONSUMER PRO T EC T ION COUNCILS

T hey are divided in 2 categories-1. central council

2. state councils.


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OBJEC T S OF COUNCILS

Protection against marketing of goods that arehazardous.Providing right to be informed about equality,potency, purity, standard and price.Providing right to be assured for variety of goodsat competitive prices.Providing right to be heardProviding right to seek redressal.Providing right to consumer education.


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Consumer dispute redressal agencies.

agencies

District forum(for dealing cases

Involving up to 5 lakh)

State commission(for dealing cases

Involving more than5 lakh but less than

20 lakhs)

National commission(for dealing cases

More than 20 lakhs)


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Consumer complaints

It can be made by following persons-1.Consumer to whom such goods and services are

provided2.Any recognized consumer association, whether

the aggrieved consumer is a member of suchassociation.

3. One or more consumer having same interests4. T he central or the state government.


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REMEDIAL AC T ION

Following can be the orders which can be made-1. T o remove defects pointed out by lab.2. T o replace the good with new one.3. T o return the complainant the price4. T o pay compensation for loss or injury.5. T o remove defects in the service so provided.6. T o discontinue unfair/restrictive trade practices.7.Not to offer hazardous goods for sales

8.T

o withdraw the hazardous goods from market.9. T o provide for adequate costs to parties.


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PENEL T IES

Failure to comply with any order will makethe parties punishable with imprisonmentfor any term not exceeding 2 years or withfine not exceeding 10,000 rupees or both.


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CONCLUSION

T he act has been hailed for the time frame setfor the disposal of the cases. In fact, the actenvisages a simple, inexpensive and speedyredressal of the consumer grievances related todefective goods, deficient services and unfair trade practices. But several problems comes inthe way of expeditious disposal of the cases.One redeeming feature of the consumer protection act is that it applies not only to theprivate sector but also to the public sector.


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Design T hinking and Innovation at Apple

Apple's approach to innovation, management, anddesign thinking has made it different from every other.For several years, Apple has been ranked as the mostinnovative company in the world, but how it has achieved

such success remains mysterious because of thecompany's obsession with secrecy. T his note considersthe ingredients of Apple's success and its quest todevelop, in the words of CEO Steve Jobs, insanely greatproducts. Focuses on: 1) design thinking; 2) product

development strategy and execution; for example- Apples i-phone Apples laptops etc.


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Refere n ce s

Mis ra , S .K , Pu ri , V.K. (2002 ). Ec onom icEn vir onm e n t Of B us in e ss. Mum bai .H im ala yaPu bli sh in g Hous e

Ch er un ila m, Fra n ci s. (2009 ). Bus in e ss En vir onm e n t . Mum bai . Him ala ya Pu bli sh in gHous eK As wat h apa .In ter n et Site s-- Goo gle .c om , Wikipe d iaAns wer s

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Consumerism as an Emerging Force