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