Role of Consumer in National Economy & Consumer Movement
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Transcript of Role of Consumer in National Economy & Consumer Movement
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Role of Consumer inNational Economy&
Consumer Movement
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INTRODUCTION
Human wants are unlimited and therefore peopleconstantly try and satisfy their wants and needs as
individual and as a society.
Economics is the study of a decision-making process that
involves choice-making. The place where the choicemaking process take place is called the economy and when
the people of the entire country buy goods or pay for the
services, it may called the economy of the country.
In India, the strength of consumer can change theirposition from receiver of goods and services to one
choosers.
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A customer is the most important visitor in our
premises. He is not dependent on us, we are dependent
on him. He is not an interruption in our work, he is
the purpose of it. He is not an outsider to our business,he is part of it. We are not doing him a favour by
serving him, he is doing us a favour by giving us an
opportunity to do so. . .
- Mahatma Gandhi
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Consumer consume goods and services to obtain
the benefit of enjoyment.
Consumer play an important role in national
economy. An individuals perform economic
functions in their roles as consumer or citizens,has a direct relationship to the total economic
activities of the nation.
A consumer may be described as the collective
power of consumers to take a country forwardwith respect to awareness, education and
development.
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Consumer spends crores of rupee to meet theirrequirements. Consumer is the biggest spender in
the economy.
The consumer is the key person who spends
money for goods and services. The consumer also
pays taxes to the government and the balance
money is deposited in financial institutions as
savings and investments.
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CONSUMER MOVEMENT
The philosophy of the consumer movement
centered mainly around the testing of consumer
goods and evaluating services offered, and actingboth as a source and also as a clearing house of
information, promoting the formation and
development of new consumer organizations, and
providing advice, holding of seminars andrendering practical assistance in consumer
protection and consumer education activities.
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OBJECTIVES OF
CONSUMER EDUCATION Consumer movement is conceived as a socialmovement which seeks to enhance the economic
well-being and bargaining power of consumers.
Consumer in all countries face similar condition of
production and consumption.
Whether a country is developed or is a developing
one, consumer in all countries share the problemsrelated to consumption of goods and services.
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PRODUCT SAFETY: Removing hazardous
products, wrong sales practices and consumerexploitation from the market, they affect
consumers safety.
SOLUTION TO CONSUMER PROBLEM: ConsumerMovement also focuses its activities in solving
consumer problems by interacting with
government to bring about appropriate, new or
amended regulations and for ensuring compliancefrom manufacturers and for imposing penalties
and violations.
THREE MAIN OBJECTIVES
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PROVIDING CONSUMER INFORMATION:
Enacting laws alone cannot solve the consumer
problems. The consumer also need to be informedof these laws. Besides such information, there is a
need for informing the consumer about products.
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CONSUMER MOVEMENT
IN INDIA The first formal consumer movement was startedin 1949 by Gandhian in Madras.
A consumer protection council was established in
Madras.
Many voluntary groups start working for the basic
rights of the consumers.
As a result, such groups started working on it invarious part of India in 70s.
The consumer movement in India started gaining
momentum with the setting up of National
Consumer Protection Council.
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COUNCILS AND ORGANIZATIONS ACTS FOR CONSUMER RIGHTS
Consumer Education and Research
Centre, 1979, Ahmedabad
Essential Commodity Act, 1955
Indian Consumer Union, New Delhi,
1977
Consumer guidance society act, 1956
Voluntary Consumer Organization:
Consumer Coordination Council, April,
1992
Consumer forum
Voluntary health association in India
Standard of weight and measure act,1976
Federation of India Chamber of
Commerce Industry (FICCI)
Consumer Protection Act, 1986
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National Consumer Protection
Council
Information Technology Act,
2000
The Advertisement Standard Council of
India (ASCI)
International organization of consumer
union (IOCU)
Indian consumer Protection Program
(ICPP), 1995
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CERC was established in 1979 in Ahmedabad.
Consumer Education and Research Centre is theleading consumer rights organization in India.
CERC is a non profit, non government body,
dedicated to the protection and promotion of
consumer interests.
Function: Ensure total consumer safety against
unsafe products and services through education,
research, awareness campaign and disseminationof the findings of the comparative testing of
consumer products and product information.
COUNCIL
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COUNCILConsumer Coordination Council (CCC) was
established in March 1993 as a Society
registered under the Societies Registration
Act of 1860.
A group of consumer activists representing
various Consumer Organizations gathered (in
April 1992) to work as one body, to raise one
voice on issues related to consumer interests
and various Government policies and
programs affecting the interest of the
Consumers. CCC has been actively involved in
various consumer-related projects and
programs funded by UNICEF, UNDP, FordFoundation, Consumer Welfare Fund and
other funding agencies as also grants from
various Ministries of Govt. of India.
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CONSUMER FORUM
The Consumers Forum is a voluntary organization.
Founded by Lt. Shri Gyan Pandit. The motive of
Consumers Forum is that every person is a
consumer whenever he or she purchases aproduct in the market or gets any service against
on spot payment in any form, is entitled to get the
full satisfaction from the product that are
purchased or the services rendered.
O A A
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VOLUNTARY HEALTH
ASSOCIATION IN INDIA
VHAI is a non-profit, registered society formed
1970.
VHAI's primary objective is to make health a
reality for the people of India by promotingcommunity health, social justice & human rights
related to the provision and distribution of health
services in India.
To ensure social justice , equity and Human Rights
in the provision and distribution of health services
to all, with emphasis on the less privileged
millions.
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CHAMBER OF COMMERCE
INDUSTRY
FICCI established in 1927 on the advice
ofMahatma Gandhi by GD Birla and Ramkumar
Kankrawa, FICCI is the largest and oldest
apex business organization in India.
A non-government, not-for-profit organization,
FICCI is the voice of Indias business and
industry.
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ADVERTISEMENT STANDARD
COUNCIL OF INDIA
ASCI is a self-regulatory voluntary
organization, established in 1985 of the
advertising. Industry committed to the cause
of Self-Regulation in advertising, ensuring the
protection of the interests of consumers.
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CONSUMERS
INTERNATIONAL (CI) Consumers International (CI) is the world
federation of consumer groups that serves as the
only independent and authoritative global voicefor consumers. It is based in London, England.
Founded on 1 April 1960, currently with over 220
member organizations in 115 countries around the world,
the organization continues to build a powerfulinternational movement to empower and protect
consumers everywhere.
ESSENTIAL
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ESSENTIAL
COMMODITY ACT, 1955 The Essential Commodities Act is a law in India
which was established to ensure the delivery of
certain commodities or products, the supply of
which if obstructed owing to hoarding/black-marketing would affect the normal life of the
people.
The Essential Commodities Act, 1955 was enactedto ensure easy availability of essential
commodities to the consumers and to protect
them from exploitation by unscrupulous traders.
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STANDARD OF WEIGHT AND
MEASURE ACT, 1976
An Act to establish standards of weights and
measures, to regulate inter-State trade or
commerce in weights, measures and other goods
which are sold or distributed by weight, measure
or number, and to provide for matters connected
there with or incidental there to.
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CONSUMER PROTECTION
ACT, 1986 Consumer Protection Act of 1986 to protect
interests of consumers. It makes provision for the
establishment of consumer councils and otherauthorities for the settlement of consumers'
matters.
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INFORMATION
TECHNOLOGY ACT, 2000 IT Act 2000 addressed the legal Recognition of
Electronic Documents, legal Recognition of
Digital Signatures, offenses and Contraventions,
Justice Dispensation Systems for Cybercrimes.
SEMINAR ON
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TOPIC:-BUYINGPRACTICES
SEMINAR ON
HSM-604
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Consumers constitute the largest publicbody in the country.
They adopt different practices of buying
for different kinds of goods.
Consumer purchases everything from
daily shopping to occasional purchases. The type and amount of goods sold are
primarily the result of consumer
preferences.
INTRODUCTION
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Quality goods and services
Safety in the use of goods
After sale services which are prompt and
easily available
WHAT DOES THE CONSUMER DESIRE?
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Cost
AvailabilitySeason
Demand
Environmental influence
Habit
Hobbies
FACTORS WHICH EFFECT
BUYING DECISIONS
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Any method of buying is based
on the interaction between the
buyer and seller. it involves threestages:
Inputprocess
output
METHODS OF BUYING
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Input: involves a stimulus, which is often in the form
of a firm's marketing efforts, which are designed to
expose their products
Process: done through advertising price strategies,
distribution networks and other marketing functions.
Output: the consumer gets influenced and the
product or services are out of sellers custody intothe buyers hands in exchange for money.
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The buying process involves a number ofsteps and depends on the buyers personality,motivation, perception and attitudes.
Need
Product awareness
Interest
Evaluation
Purchase
BUYING PROCESS
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Need: a need for a product or service has to
be recognized first, before a person is
motivated to buy.
Product awareness: people have to be aware
of the products available for the satisfaction of
a particular need.
Interest: the buyer must be interested in
buying and fulfilling a need.
Evaluation: a customer needs to evaluate a
product in terms of its quality and price per
unit.
Purchase: after evaluation purchase is made.
WISE PURCHASE IN THE
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Wise buying takes time. Buying is acomplex process and good buying involves
finding answers to a number of questions
as: What to buy?
When to buy?
How to buy? How much to buy?
Where to buy?
How much to pay?
WISE PURCHASE IN THE
MARKET
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This deals with selection of article which will
satisfy wants of a family.
So, the consumer has three ways by whichhe can find for himself about the market
offering. They are:
inspection,testing, and
trial.
WHAT TO BUY?
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Inspection is the careful looking over of the goods
in the market to determine as accurately as
possible by the appeal they make to the senses.
Testing is designed primarily to measure the
durability of a commodity.
Trial is a valuable aid because it shows the
adaptability of goods to the special needs of theconsumer. By this trial the consumer knows how
well or how poorly the commodity satisfies his
needs.
He can obtain information from market agencies,
advertisements, labels, pamphlets, and
catalogues or sales persons etc.
GUIDELINES WHILE
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Determine what you need. Decide on the quantity.
Go to the relevant store.
Evaluate the products suggested by the seller.
Buy perishable foods only if they are
seasonal.
Products with quality certified marks should bepreferred as they certify acceptable quality.
GUIDELINES WHILE
DECIDING WHAT TO BUY
CONSUMER SHOULD BE WARY
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Sellers may misguide them with a
view to achieve greater profits.
Sometimes a wrong price sticker isput to hide the M.R.P.
Consumers should not pay more than
M.R.P. Sometimes they do not display prices
clearly
CONSUMER SHOULD BE WARY
OF THE FOLLOWING
WHEN TO BUY?
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A consumer has to decide whether to buy
when it is most convenient for him to makethe purchase .
A buyer can safely opt for buying goods as
and when he needs in the following cases:The buyer is not sure about the future,
The market facilities are adequate and
convenient,The buyer gets the satisfaction of buying
goods at his own convenience rather than
saving money
WHEN TO BUY?
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The future needs are determined,
There is tendency for a rise in prices,
There is adequate space for storage,
There is offer of reduced prices,
There is possibility of increasedexpenditure in the future than in the
present
BUYING GOODS IN ADVANCE
IS USEFUL WHEN:
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There are a number of ways in which
one can buy goods or services:
Cash purchases
Credit purchases
Credit cards
Installment buying
Mortgage purchase Mail buying
Telemarketing and on-line marketing
Black-marketing
HOW TO BUY?
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This may give answers for thefollowing questions also:
How much the family needs?
How much money the family can
afford to make bulk purchases?
How long will the commodity last?How much can the family save by
buying in bulk?
HOW MUCH TO BUY?
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Savings in prices justify the storage
costs involved, It gives a fair return on capital
investment on the goods,
It will cover possible loses from
spoilage.
BUYING IN BULK IS
ADVANTAGEOUS IF:
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The wide variety of options that we
have before us are:
a)Whole sale shopsb)Consumer coops
c)Manufacturers showroom
d)Authorised dealers.
WHERE TO BUY?
Whil l ti t i hi h t b
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While selecting a store in which to buy a
consumer must decide whether he wants to
save time, energy or money.
Selection of a store depends not only on the
place where the desired quality goods are
available, but also on the services that
accompany the purchased goods.
The whole sale market proves to be the best
of all but the only disadvantage is that one
cannot pick and choose as the selling is inbulk.
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In the cost analysis, the price the
consumer should pay depends upon:
How much the article is worth to him,The extent of satisfaction he can obtain
from the article,
The less acceptable qualities in similaruse articles,
Number of uses the article can be put
to
HOW MUCH TO PAY?
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In some ways this is the most
difficult problem facing theconsumer as to what price he
should pay for each of the great
variety of goods.He also finds that some stores
offer special discounts tostimulate or attract business on
dull days.
CONCLUSION
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It is highly important therefore that the
consumer tries to learn all about the prices. The more informed he is ,the more he knows
bout the reasons for such high prices-
whether it is due to better quality or extraservices etc.,
In todays world of specialization ,the
consumer too needs to become a specialist inmaking choices.
It is time for enlightened consumers to start
CONCLUSION