4th Part
Characteristics of Consumer Buying -
Consumers purchase small quantities of a variety of goods. Extensive shopping and testing are not feasible. Buying is often done in spare moments and is one of the many tasks performed. Types of consumer goods purchased are convenience goods, shopping goods, and specialty goods. Convenience goods like food products, soap, daily newspapers, confectionery, etc. are usually purchased frequently and with a minimum of effort in buying. Shopping goods (like ready-made garments, furniture, shoes, etc.) are those which the consumers buy after considering such factors as suitability, quality, price, and style in the process of selection.
Specialty goods (like TV, Stereo, refrigerators, camera, etc.), these goods have unique characteristics or brand identification for which most buyers are willing to make a special purchasing effort. It also includes the types of services that consumers hire or avail of on payment such as transportation, communication, banking, insurance, house building, medical treatment. education, electricity and water supply, etc.
Profile of Consumer -
The profile of a consumer depends to a large extent on the complexity of the social
structure. By and large, consumers may be divided into the following categories:
1) Age (children, teenagers, adult and senior citizens.)
2) Gender (male-female)
3) Social Cultural Status (literate-illiterate, employed-unemployed, skilled-unskilled, rural-urban, etc.),
4) Economic status (rich-poor-middle class)
5) The Indian consumer community is very heterogeneous in composition, following different religions, speaking different languages, and adhering closely to their varied traditions. All of these have an impact on consumption patterns.
6) India is the second-most populous country in the world. Only 21% live in urban areas and 79% in rural areas. Of this, about 40% live below the poverty line. As a result, there are large disparities in spending on consumption patterns.
7) About 50%. of the National Income in India is derived from agriculture and allied activities while over 70% of the population depends on land for its livelihood.
8) Indian consumers are large, poor, illiterate, ignorant, and apathetic and always
remain at the receiving end.
9) A small section of the population is a very modem in its outlook and behavior, comparable even to the most sophisticated consumer in the world, while a great majority is still traditional.
CLASSIFICATION OF CONSUMERS -
They are of three types -
Urban consumer
Rural consumer
Green consumer
Urban - The urban consumer is the one who’s market dependent and has no links with the environment or with the production process of consumer goods. He is subject to numerous and continuous influences like advertising. Thus, an urban consumer is totally faceless and alienated from his environment.
Rural - In comparison to the urban consumer the rural consumer has immediate and direct access to his environment. He has somehow escaped from the negative impact of media manipulations and market strategies. A rural consumer is more in control of the environment, he is dependent on nature. According to his belief, if he takes care of nature, that is, if he preserves nature, then nature will take care of him. For example, in most parts of our country, trees are worshipped and held in great reverence. The Indian leaf-plates and earthen cups are hygienic, bio-degradable, made from local and natural resources. They do not endanger the environment in any way and are easily disposed of without burdening the environment.
Green Consumer -
Buying Motives - A number of factors influence the purchase behavior of a consumer. Besides factors pertaining to the need and behavior of consumers in making choices, there are a number of influences that affect buyers' decisions about the products and services they select. These are income, age. sex, family size, social status, employment status, mobility habits, educational status, and environment.
There are many i~ltluences internal and external which affect buying decisions - cost, availability, season, demand, environment influences, habit. hobbies, etc. In the modem day market one of the most influencing. the factor is advertising. Business spends huge amounts of money on advertising their products and services projecting them as the most essential things for a good life.
CHANGES IN THE CONSUMER ENVIRONMENT -
The consumer environment all over the world and particularly in India is undergoing changes. Globalization, Liberalisation, privatization, and economic reforms in India are responsible for it to a large extent. As a result of it, Consumers have a wider range of products to choose from, and marketers are constantly competing for higher sales through advertising and innovative sales promotion tools.
Quality consciousness and cost consciousness are also growing. Companies are constantly struggling to improve quality, reduce costs, and provide better after-sales services to their clients.
Consumer awareness has considerably increased and consumer forums are providing protection to consumers against unfair trade practices of the producers and suppliers of goods and services.
Q Caveat Emptor' or Caveat Vendor
A Consumers to-day are also conscious of their rights & want to be assured of the right quality of goods being available at the right price. It is in this context that the concept of 'Caveat Vendor' - let the seller beware - is replacing the term 'Caveat Emptor' - let the consumer beware.
Q Consumer Action Charter
A In 1978, a Consumer Action Charter was developed by Anwar Fazal who was the
Regional Director of the IOCU( consumer international) and later became its President. The main features of this charter are -
1 Critical awareness
2 Involvement of action
3 Social responsibility
4 Ecological Responsibility
5 Solidarity
Q The Consumer Manifesto
A The Consumer Manifesto is based on the principles of - Access to essential goods, safety, representation, health; environment, fair practice, equity, availability of grievance redressal means, ethics, accountability, etc. Its main objective is to remove the imbalance in knowledge and power between suppliers and consumers. The modern consumer movement that began more than 50 years ago, has an important role to play in realizing a just and fair society. Its objective today is that the conditions in which consumers have to live must become better and more equitable. It approves of economic growth only when this leads to general well-being and happiness. Through careful research and concerted action, it tries to remove the imbalance in knowledge and power between suppliers and consumers. Some of the factors that stimulated the consumer movement in recent years are(agendas of consumer movement) -
1 Participation by consumer organizations on an equal footing with other corporate groups in society for the formation of policies that affect those they represent;
2 Ensuring that the basic needs of all consumers are met these include adequate food, clothing, shelter, health care, sanitation, and education;
3 To promote rules and regulations, laws that safeguard consumers from hazardous goods and services. Its agenda also includes a reduction in social costs and environmental pollution;
4 Procedures to provide effective redressal to consumer complaints at all income levels;
5 Accurate and adequate information to help consumers choose;
6. Consumer education to ensure that all people may acquire the knowledge and skills necessary to become active and informed consumers. They can thus exercise their rights and play their economic role. Special attention must be given to the needs of vulnerable groups such as children, handicapped, and the elderly.
7. Measures to enhance fair competition and to control harmful business practices. It opposes restrictive trade practices or barriers to trade in order to "protect" business and state enterprises at the expense of the private individual;
Q THE ROLE OF THE STATE
A Directive Principles of state policy is the answer to its application.
Q Main Features of perfect competition - 10
A Features of Perfect Competition
a) Large Number of Buyers and Sellers -
The Perfect competition describes a market situation in which there is no rivalry among suppliers. Buyers do not compete among themselves for goods and services as there is no shortage of any kind in the market place. This situation implies that sellers do not worry if they are unable to sell their products. On the other hand, consumers do apprehend that they may not get the commodities they propose to buy. Every market participant, whether buyer or seller, regards the price as given. Individual buyers and sellers accept the price prevailing in the market without question. Take the example of vegetable prices in the market. All buyers pay the same price to sellers without bargaining. Why such a feature? It is because a single seller cannot charge a higher price as nobody will purchase from him. Knowing this, he does not deviate from the price charged by others selling the same commodity in the market. This situation is described above as a 'Price Taking Behaviour'.
b) Homogenous Products
It is assumed that in a perfectly competitive market there are identical products brought by different sellers. This ensures that buyers are indifferent from whom they will make the purchases.
c) Free Mobility of Resources
Each resource can move in and out of the market very readily without much problem. For example, If you have put up your capital or labor, say. in the car market and find it unprofitable, you can withdraw your investments and go to some other activities without difficulties.
d) Perfect Knowledge
Buyers and sellers in the market possess perfect knowledge. If the consumers are not aware of market prices, they might end up paying higher prices when in fact, the same commodity is available at a lower cost.
Q. Discuss the role of Mass Media & its effect on consumers. 20
Q. What is meant by Mass Media? What is the impact of mass media on consumers? Discuss. 10
Q Analyse the positive as well as the negative impact of advertising through mass media upon consumers.
A Mass Media: Mass media are non-personal channels of communication that are used to inform, influence and persuade large sections of the population. Mass media include print media, electronic media, and display-media. Print media takes the form of newspapers, magazines, manuals, pamphlets, and direct mail. Electronic media refers to radio and television. And display media refers to banners, billboards, signs, and posters. They are all non-personal channels of communication.
Positive - Interactive - mass media and society are in an interactive role. They affect each other. If there are more advertisements for health care products and fitness institutes, yoga, it encourages people to take a second look at their health. An increased number of such advertisements creates health awareness. On the positive side, they add to our knowledge of various Products and services which are required for healthy living. Thus, they set before us the goal for a better life, better clothing, better food, etc., not just for an individual but for the entire family. To some extent, they motivate some of us to work hard, earn more.
Knowledge& current affairs -
Impart education
Negative -
1 Dissatisfaction - Customers often get dissatisfied when there is a discrepancy between the actual performance of the product and the expected performance. Our expectations tend to increase as a result of tall promises made in the advertisements.
2 Anxiety and Irritation - They occur for various reasons. Consumers sitting with other family members often feel irritated when they have to watch the advertisements of some personal hygiene products and family planning devices.
3 Confusion - It occurs when some advertisements make common and conflicting claims. Some bombard the customers with excessive but irrelevant information. Others hide more information than they reveal. A number of herbal and non-herbal hair oil and shampoo brands claim to brighten, blacken, lengthen and soften hair. All their models are pretty or handsome too. However, how many of us know, for certain, if the models endorsing products are their actual users? If they do at all, for how long? Similarly, some advertisements for cooking oil, suggest pure desi ghee is good for health while the other one may caution against cholesterol and recommend refined oil. All of these create confusion among consumers.
4 Restriction of Freedom of Choice - products of big companies with massive advertisement budgets get more exposure in the media. Alternative products from small producers with fewer advertisements get less exposure and may escape the attention of consumers. Some home remedies and herbal preparations are equally effective as advertised products for common health problems still impressed by appealing way of presentation, consumers, however, opt for advertised items.
5 Stress - Symptoms of stress may develop when some consumers fail to consume or possess the desired advertised products. If we look around ourselves, we will see that number of consumer nondurables and durables have become status symbols. Some of us crave for such symbols, they may even overstretch their means of finance to purchase such goods. But when they are unable to achieve them despite best efforts, they may turn desperate and start showing signs of stress.
Q Summarize the survival strategies of the consumer.
A 1 Validation of Traditional Survival Strategies - One way to deal with the negative impact of the spread of consumerism is to follow the time tested traditional survival strategies of ethnic and rural groups. They continue to practice sustainable consumption and production methods of survival in agriculture, water, and soil management, afforestation, recycling techniques, doing with less, and avoiding wastage.
2 Dissemination of Information through Educational Institutions & Families
Consumer education need not be the responsibility of NGOs only. Educational institutions can impart consumer responsibility along with families.
3 Scientific Backup - This is done by comparative testing of products. Consumers, especially in urban areas, need information based on scientific data to be able to make informed choices.
4 Role of Woman in Influencing Consumption Patterns
Rise and spread of consumer awareness is closely related to the empowerment of the female segments of the population. Many studies in consumer behavior have revealed the role of women in the purchase decisions which influence both individual family units and global patterns of production and consumption. The position of women in any culture determines the consumption of various consumer goods such as domestic labor-saving equipment ex washing machines etc. Therefore, for any consumer survival strategy to be successful, the role of the woman is important. If the woman can be made aware and become informed consumers, many problems can be automatically solved.
Women have been acknowledged to be the reservoir of traditional wisdom, regarding eco-friendly patterns of survival in a whole range of activities. This knowledge is in full display in household kitchen routines as well as washing techniques daily. A whole range of household remedies and herbal preparations for minor ailments are routinely passed on from one generation to another especially from mother to daughter. Ways of preserving and reusing food articles, recycling household waste, and discarded clothing is also taken care of by a woman. Methods of contraception, child-rearing, herbal cures, cosmetic and beauty aids are prepared and used with the help of local flora and fauna by Indian women. With the spread of urbanization, these techniques are under threat. Therefore, documentation is required for the preservation and promotion of these eco-friendly techniques.
Q. Explain the role of women & NGOs in consumer protection. 20
A above answer for women
Role of NGOs - NGOs or non-governmental organizations are non-profit, non-political, non-proprietory, and non-commercial organizations. NGOs from small community groups to large national and international organizations play an important role in bringing the political, economic, and social change in society. They have credibility among people as they are independent of government and industry and are made up of individuals who are genuinely concerned with the problems of the people and are committed to social action. They can reach many constituencies with their messages and are able to involve themselves in the design and implementation of projects.
NGOs can act as intermediaries between the government policymakers, the market forces, and the consumers and use this opportunity to get involved in development programs at the micro-level. They can monitor government policies and ensure that these do not clash with the interests of the local consumer or citizen.
Social Responsibility - NGOs can help in creating social responsibility among consumers. As a responsible consumer, the area of his activity expands to include not only what he can carry from the market to his home for personal use, but what he can give in return to society and to the environment. This involves not only action but also the decision not to act in a certain established or acceptable manner. For example, as a user of market commodities, the consumer takes partial responsibility for garbage disposal. Good examples are the buildings of large dams in the Indian hinterlands. These plans are now meeting with stiff resistance from the local population. It is so because these projects not only dislocate indigenous populations who were settled in the area for generations but also destroy the local flora and fauna and cause extensive damage to the environment.
Awareness - NGOs can educate the consumer, make them aware of their rights. They can help to strengthen the consumer movement by organizing campaigns and advocacy programmes on various consumer issues. Consumer organisations can bring out the appropriate publications, such as manuals and magazines, pamphlets and leaflets in local languages. It can highlight various aspects of consumer protection in different areas, with reference to the law, rules, regulations, and procedures. It can educate consumers regarding rights and responsibilities.
They can also organize workshops, seminars and training programmes not only on consumer-related topics but also in building up the capacities and developing skills of individual consumers. This will enable them to take a more effective part in the consumer movement. They can help, guide, and train individual consumers so that they can represent their grievances and disputes before various Consumer Disputes Redressal forums. The organizations can also join hands with the people in launching boycott programs besides filing Public Interest Litigation on important consumer issues. They can interact effectively as consumer groups with trade and industry to ensure a better deal for consumers by evolving appropriate codes of conduct and business ethics.
Q (a) Explain Public Interest Litigation (PIL) in relation to Consumer Protection. 20
(b) Discuss enforceability of Court Orders in consumer-related Public Interest Litigations
Q Discuss the scope and mode of Public Interest Litigation (PIL). Who is competent to file a petition under PIL? Explain. 20
Q Explain the advantages and disadvantages of Public Interest Litigation (PIL). 10
Q What are the utilities and limitations of the following in grievance redressal of consumers ? 10
(a) Public Interest Litigation (PIL)
A. PIL - Public Interest Litigation means a legal action initiated in a court of law regarding a matter which is connected with the interest of the public. Public means an individual, body of individuals, or the masses in general. The purpose of PIL is to provide justice to the ordinary citizen. The PIL can be filed by any concerned third party if the constitutional rights of an individual or group of individuals are violated. In such a case, the individual or groups of individuals is not in a position to move court personally for securing justice because of various impediments such as poverty, helplessness, lack of awareness, or socially and economically disadvantaged conditions. The petitioner of the PIL does not file it for personal gain or for monetary benefit. He/she does not file it for political or other oblique motivation.
Factors Giving Rise to PIL
The PIL started in India as a result of the feeling among some of the judges of the Supreme Court that mainly the rich and politically powerful people can approach the Courts for securing justice in India. The ordinary people, illiterate, socially, educationally, and economically disadvantaged could not approach the court of law. 'The high cost, complicated, and slow legal procedure makes it difficult for them to approach the court of law. It is assumed that PIL will help to bring radical changes in society, it could help in enforcement of the fundamental rights of weak and poor people.
Manners of taking cognizance -
Letters and Telegrams
The courts with the aim of providing justice to the poor and disadvantaged section of the population have dispensed with procedural formalities to such an extent that even letters, postcards, and telegrams, addressed to judges, the court, or the Legal Aid Committees have been accepted.
Suo Moto
Even if nobody files a petition before the court, the court can initiate the action on its own in case there is a violation of the constitutional rights of people, by simply taking into consideration reports published in a newspaper or through any other source. Such a practice is called suo moto.
SCOPE OF PIL
1 Consumer Protection
PILs have been used to enforce consumer rights in several cases. In National Consumer
Protection Samiti Vs. Gujarat Housing Board (Special Civil Application 5285189), a consumer
organisation filed a case against the Gujarat Housing Board, on behalf of the residents of a particular colony, questioning the hike in the service charges for the supply of water,
drainage, streetlights, etc.
2 Labour Law
This is another area where the judiciary has adopted an activist role. In PUDR Vs. UOI (AIR 1982 SC 1473) the petitioners alleged that in the course of the construction work connected with the Asiad projects, the the-contractors had violated numerous labor laws. The Supreme Court took a serious note of the matter and issued appropriate directions. In many other cases, the courts issued directions to ensure that workers were paid the minimum wages at least. The Courts have also dealt with the issue of bonded labour in numerous cases.
Who can file PIL
The purpose of PIL is to provide justice to the ordinary citizen and thus in the case of PIL, the courts have relaxed the traditional stand on locus standi. The PIL can be filed by any concerned third party if the constitutional rights of an individual or group of individuals are violated. In such a case, the individual or groups of individuals is not in a position to move court personally for securing justice because of various impediments such as poverty, helplessness, lack of awareness, or socially and economically disadvantaged conditions. The petitioner of the PIL does not file it for personal gain or for monetary benefit. He/she does not file it for political or other oblique motivation.
The Supreme Court held that when a public wrong or public injury was caused by an act of the state or public authority, which is contrary to the Constitution or the law than any member of the public, acting bonafide and having sufficient interest, can approach the court to seek judicial redressal for a legal wrong related to such public wrong or public injury.
TYPES OF PIL(modes)
There are two types of PILs :
i) Representative Social Action and
ii) Citizen Social Action
Representative Social Action
This is a form of PIL whereby any member of the public can approach the court to seek judicial redressal for a legal wrong caused to the individual or groups of individuals who are not in a position to move court personally for seeking justice because of various impediments such as poverty, helplessness, lack of awareness or socially and economically disadvantaged conditions. In such a case, the petitioner is accorded locus standi to sue as the representative of another person or group.
Citizen Social Action
The cases under this category of PIL, the Supreme court has shifted its traditional view, as the courts being a forum to enforce individual rights. The Supreme Court in S.P. Gupta Vs Union of India,(1 982 SC 149) held that any member of the public with sufficient interest could approach the court.
ADVANTAGES AND DISADVANTAGES OF PIL
Advantages
The first and foremost advantage of PIL is access to a National Forum of decision making
and power by those people who were until now voiceless and invisible. The relaxation of procedural formalities has helped in ensuring that the poor have access to justice. The relaxation of the rule of locus standi has resulted in representative action where a person or a group, with a sufficient interest in a particular cause, can file litigation on behalf of a large number of others who cannot afford the cost of litigation.
PLL has also given an opportunity for courts to address important problem areas like environmental protection, consumer protection, etc., which affect a large number of people. PIL has also being used to enforce social accountability. The acceptance of even letters and telegrams by the courts, as PILs, reduces the cost of such litigation and also encourages public-spirited individuals and groups to bring to the notice of the court any situation which requires the Court's intervention. The appointment of commissions by the courts as fact-finding bodies to check into the allegation made in the petition and the reports of the commission has been instrumental in the dispensation of justice in various cases.
Disadvantages
There is always the possibility that the instrument of PIL may be misused by a person
in the name of public interest. The popularity of PIL has resulted in a large number of such cases being filed which adds to the already considerable backlog in the courts. Moreover, it requires the court to spend a lot of time in dealing with issues that should ideally be taken care of by the executive or the legislature. Besides, considering the nature of the cases involved in PIL. The orders of the court are not easily enforceable by the enforcement agencies and thereby requiring the petitioners to approach the court regularly for subsequent direction.
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