CONSUMERISM IN INDIA

CASE STUDY ON BLENDO MAGIC

GROUP NO. 13

GROUP MEMBERS:

K.DIVYA

R.LAKSHMIPRIYA

B.PRIYA

B.SHARMILA

CONSUMERISM

“Consumer is the king/queen of market, if he/she is getting exploited than the market will be ruined.”

DEFINITION: According to Bennett, Consumerism

encompasses “the wide range of activities of government, business, and independent organizations that are designed to protect people from practices that infringe upon their rights as consumers.

HISTORY OF CONSUMERISM• The first recorded consumer protest occurred in

1775 in Massachusetts where people who sold tainted food were sentenced to pillory.

First period of consumerism:The first period came at the turn of the century, a time when huge corporations such as standard oil were amassing power.1890-Sherman Antitrust Act1906-Meat Inspection Act 1914-Federal Trade Commission Act

Second period of consumerism: The Great Depression and the

Guinea Pigs book, which exposed unsafe medicines, cosmetics, and foods, sparked the second period of consumerism.

Third period of consumerism:

The third period of consumerism began in the 1960’s.

In 1962, Rachel carson’s Silent Spring made consumers aware of the dangers of pesticides and other chemicals in foods and other products.

In 1965, Ralph Nader’s Unsafe at Any speed exposed the automobile industry’s disregard for even rudimentary safety precautions.

In 1989, when the bush Administration came to power, the marketing industry had grown used to relaxed rules on everything from children’s advertising to nutritional labeling.

1990- Rebirth of consumerism

CONSUMERISM IN INDIA

1) In vast country like India, majority of our population is illiterate,

uneducated, ignorant and ill-informed.

2) Poverty, lack of social awareness, accepting life as it is and

passive outlook are some of the factors which make consumer

movement difficult to increase.

3) There may not be a positive common objective for the consumers

except their desire for safe quality products, for reasonable price

and a feeling of strong negative reactions against the products.

4) The advertisement bombarded on the consumers make them

quite confused and hence again a need for consumer guidance

EXAMPLES..

Tooth paste tubes filled with air at the other end. 300 grams of vanaspati is found in a 500 grams

tin of ghee, but labelled as PURE GHEE. One litre milk packet contains 40% of water,

where packet is sealed with label “PURE MILK”. One kilogram of sugar packet weights only 970

grams, whereas labelled as NET WEIGHT ONE KILOGRAM.

A match box does not contain the labelled number of sticks.

STAKEHOLDERS IN CONSUMERISM

Consumers Business Enterprises or Industry Government Profit/Nonprofit Organisation

BENEFITS OF CONSUMERISM

Consumer education Consumer groups can liaison between

Government and Industry. Product research and information to

customer. Inculcate Honesty, Responsiveness and

Responsibility on to Manufacturers and Marketers.

Move towards Social Concept of Marketing.

RIGHTS OF TRADITIONAL SELLER

To introduce any product in any size any style, provided it is not hazardous to personal health or safety.

Right to spend any amount to promote the product, provided not to be unfair competition.

Right to use any product message, provided it is not misleading or dishonest in content or execution.

Right to use any buying incentive programs, provided they are not misleading or unfair.

RIGHTS OF TRADITIONAL BUYER

Right not to buy a product that is offered for sale.

The right to expect the product to be safe.

The right to expect the product to perform as claimed.

The Right to Be Safe The Right to Be Informed

The Right to Be Heard The Right to Choose

Basic Consumer Rights

CONTINUED…….

o The right to safety: To be protected against the marketing of goods that are hazardous to health or life.

o The right to be informed: To be protected against fraudulent or misleading information, advertising, labeling, etc and to be given the facts needed to make an informed choice.

o The right to choose: To be assured access to a variety of products and services at competitive prices.

o The right to be heard: To be assured the consumer interests will receive full and sympathetic consideration in the formulation of government policy.

CONSUMER PROTECTION ACT The Consumer Protection Act 1986 is a social welfare

legislation which was enacted as a result of widespread consumer protection movement.

A separate Department of Consumer Affairs was also created in the Central and State Governments to exclusively focus on ensuring the rights of consumers as enshrined in the Act.

The special feature of this Act is to provide speedy and inexpensive redressal to the grievance of the consumer and provide him relief of a specific nature and award compensation wherever appropriate.

The aim of the Act is also to ensure the rights of the consumer, viz. the right of choice, safety, information, redressal, public hearing and consumer education.

KEY CONSUMER RIGHTS LEGISLATION The Prevention of Food Adulteration Act – 1954

– This is a consumer-oriented legislation designed to protect the health of the public by prohibiting adulteration of food.

The Essential Commodities Act – 1955 – This act is used to control, in the interest of the general public, the production, supply and distribution of trade and commerce in certain commodities declared essential.

Weights and Measures Act – 1958 – This Act was enacted to safeguard the consumers against the exploitation of weighing measures of commodities by traders.

CONTINUED…….. The monopolies and restrictive trade practices

Act – 1969 – This Act was enacted in order to regulate the monopolistic and restrictive trade practices followed by companies.

Drugs and cosmetics Act – 1940 – Just as in food products, drugs of sub-standard quality are manufactured and marketed. The prices charged for medicines are not proportionate to the cost of production.

Packaged commodities Order – 1975 – This order provides that procedures of several packaged commodities should print on the packages the contents, weights, price, month of manufacture, the date of expiry of the products, etc.

CONTINUED…..

Further: Drugs Control Act, 1950 Dangerous Drug Act, 1930 The Drugs and Magic

Remedies(Objectionable Advertisement) Act,1954

Household Electrical Appliances(Quality Control) Order,1976 and many other Acts in favour of consumers.

CONSUMER GROUPS IN INDIA

Voluntary Organization in Interest of Consumer Education (VOICE)

Consumer Care Society Bombay Telephone Users' Association Citizen consumer and Civic Action Group (CAG) Grahak Sahayak Consumer Guidance Society of India All India Chamber of Consumers (AICOC) Consumer Coordination Council Akhil Bhartiya Upbhokta Congress Consumer Unity and Trust Society Consumer Rights Education & Awareness Trust

(CREAT) Rajkot Saher/Jilla Grahak Suraksha Mandal Upbhokta Sanrakchhan & Kalyan Samiti Upbhokta Margdarshan Samiti "UMAS"

THE MOST IMPORTANT FEDERAL AGENCIES

High Mark Credit Information System: It keep a record of defaults and frauds that help banks and credit card companies to analyse the risk profile of individuals before extending credit. HEADQUARTERS: DELHI

CIBIL(Credit Information Bureau (India) Limited):Its a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports. HEADQUARTERS: DELHI

CERC(Consumer Education and Research Centre): It is a non profit, non government body, dedicated to the protection and promotion of consumer interests through active use of research, media, law, advocacy and information dissemination. HEADQUARTERS: RAJASTHAN

CONTINUED…..

CRISIL(Credit Rating and Information Services of India Ltd.): It is India's leading Ratings, Research, Risk and Policy Advisory Company based in Mumbai.

CUTS International(Consumer Unity & Trust Society): Provides forum for the opperessed classes to get justice. HEADQUARTERS: MUMBAI

CU(Consumers Union Organisation): For expert Ratings, buying advice and reliability on hundreds of products. HEADQUARTERS: DELHI

CGSI(Consumer Guidance Society of India): It handles consumer complaints and offers legal guidance to those wishing to file suits in the Consumer Court. HEADQUARTERS: HYDERABAD

© Copyright 2010 Anupam Kumar

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ANTI CIGARETTE CAMPAIGNS – CONSUMER GROUP & GOVT. INITIATIVE

CASE DISCUSSION

1) What are the basic rights that may protect the case of Neha to redress her problem?

CONSUMER RIGHTS

o The right to be informed: The company didn’t provide any adequate information about the limitations of warranty.

o The right to choose: The Salesman didn’t provide any alternatives for Neha for choosing a mixie. Neha also got convinced with his reply.

o The right to safety:It failed to provide safety measures for handling voltage fluctuations.

o The right to be heard:To be assured the consumer interests will receive full and sympathetic consideration in the formulation of government policy. Neha is still waiting for the reply from the consumer court.

2) Comment on the company’s approach in handling consumer complaints in this case?

COMPANY’S APPROACH

The company’s approach in handling customer complaints is not so good.

The dealer’s salesman said that Blendo-Magic brand is the best in terms of price & features.

The company also charges for freight & labour charges.

They have used low quality goods for the production of mixie.

WHAT THE COMPANY MUST HAVE DONE: The company should provide Toll free number for clarifying

the customer’s doubts. They should not charge for shipping and loading service

charges etc. The organization should take a compliant as a challenge

and prove themselves as company which considers customer value.

For any organization, customers are the asset and hence the complaint received from the customers, should be handled immediately without any delay.

The customer compliant handling person should lead the customer to know how he/she will be compensated for the product.

CONCLUSION

Consumerism is fast emerging as an environmental force affecting major business decisions as consumers become more aware about their rights. Even though comprehensive statutory measures have been provided in India for curbing unfair business practices, for protecting consumer interest, and for promoting consumerism; companies have yet to do a lot.

REFERENCE……

www.consumerdaddy.com “MODERN MARKETING principles and

practices”- R.S.N.PILLAI & BAGAVATHI. “MARKETING,8e(marketing in the 21st

century)”-Evans & Berman “CONSUMER BEHAVIOR and marketing

action”-6th edition-HENRY ASSAEL.

THANK YOU !