Unit-1

DEFINITION OF A CONSUMER
Consumers are people who buy goods and services to satisfy their needs. As is clear from the above
definition, we buy a lot of things to fulfil our needs. These may include “goods” like food, clothing, fuel,
paper, electronic items, etc. “Services” are the facilities offered to us by various agencies with or
without payment. These include water, electricity, health and sanitation, education,
transport, communications, etc. Thus, by the above definition we are all consumers irrespective of our
age, social and economic background and level of education.
CONSUMER EDUCATION
Consumers are cheated in the market because they do not get proper “consumer
education”.

Consumer education means to educate the consumers as to what, where, when,

how and how much to buy and how to use what they have bought.

If you understand the above definition, you will be able to appreciate the relevance of educating people
so that they can make correct purchases. Consumers are cheated in the market because they do not get
Proper "consumer education". Consumer education has today
become an important part of school and college curriculum.
That is why you are reading this lesson. As per the definition of consumer education we want you to
learn about the following:

 What to buy: You should buy those products that meet your needs and priorities and are of
good quality. Before buying, conduct a market survey and collect as much information as
possible about the product. Then decide about a particular brand. Brand name is the popular
name by which a product is known in the market like Dhara for vegetable oil, HMT for wrist
watches etc.
 How much to buy: Buy just the right quantity as per your need, money and storage space
available. This prevents spoilage and wastage.
 Where to buy: Purchases can be made at retail shops, cooperative stores, company showrooms,
authorised dealers or at wholesale markets.
 When to buy: Some goods should be bought when they are in season (fruits and vegetables)
others should be bought during off season or in genuine discount sales (room coolers, electric
heaters, woollen clothes etc.). Visit shops when the shopkeepers are relatively free. Avoid
Sundays and evenings as far as possible.
 How to buy: Things can be bought either in cash or on credit. You pay less when you pay cash
and if you buy on credit you end up paying more than the original price. You may save and buy
by paying cash, or buy on credit with instalment payments. Analyse the terms and conditions in
the case of instalment purchases. If it is worthwhile, buy the goods on instalments rather than
exhausting your savings cash reserves. Choice is yours! Also ask for the gurrantee and warranty
cards along with the receipt, it is your right!
 How to use: Learn about the proper use of any product or service. Read instructions carefully
before use and always follow them to avoid any problem. You can also ask for a demonstration
of usage.
WHAT ARE THE OBJECTIVES OF CONSUMER EDUCATION?
A. To help consumer manage his money, time and energy to achieve maximum satisfaction.
 B. To help consumers become wiser in buying goods and services.
C. To allow sellers choose the right buyer to sell.
D. To help consumer improve his economic status.
E. To identify an issue that concerns the public correctly.
F. The idea is to teach consumers how to protect themselves.
G. It aims to safeguard knowledge to the general public or the specific group affected by the
issue.
H. Effective consumer education should include such concepts as consumer rights. people need
to be taught about the skills required to implement consumer knowledge, and they need to
know about the products they buy.
WHAT ARE THE CLASSIFICATION OF CONSUMER EDUCATION.
▪ Decision making,
▪ Resource Management, and
▪ Citizen Participation.

CONSUMER RIGHTS & RESPONSIBILITIES

RIGHTS

 The Right to Satisfaction of Basic Needs Citizens must demand access to essential goods and
services such as adequate food, clothing, shelter, health care, education, public utilities, water,
and sanitation.

 The Right to Safety and protection from hazardous goods or services.

 The Right to be Informed and protected against fraudulent, deceitful or misleading information
and to have access to accurate information and facts needed to make informed choices and
decisions.

 The Right to Choose and have access to a variety of products and services at fair and
competitive prices.

 The Right to be Heard and to express and represent consumer interests in the making of
economic and political decisions.

 The Right to Redress and to be compensated for misrepresentation, shoddy goods or

unsatisfactory services.

 The Right to Consumer Education and to become a skilled and informed consumer capable of
functioning effectively in the marketplace.

 The Right to a Healthy Environment that will enhance the quality of life and provide protection
from environmental problems for present and future generations.
RESPONSIBILITIES

 The Responsibility to be aware of the quality and safety of goods and services before
purchasing.

 The Responsibility to gather all the information and facts available about a product or service as
well as to keep abreast of changes and innovations in the marketplace.

 The Responsibility to Think Independently and make choices about well considered needs and
wants.

 The Responsibility to Speak Out, to inform manufacturers and governments of needs and wants.

 The Responsibility to Complain and inform business and other consumers of dissatisfaction with
a product or service in a fair and honest manner.

 The Responsibility to be an Ethical Consumer and to be fair by not engaging in dishonest

practices which cost all consumers money.

 The Responsibility to Respect the Environment and avoid waste, littering and contribution to
pollution.
 UNIT-2

CONSUMER MOVEMENT
The Consumer Movement is an effort to promote consumer protection through an organized social
movement which is in many places led by consumer organizations. It advocates for the rights of
consumers, especially when those rights are infringed by the actions of corporations, governments, and
other organizations which provide products and services to consumers.

WRITE THE IMPORTANCE OF CONSUMER MOVEMENT

(1) Protection from Unsafe Products: An important object of consumer movement is, the united
fight of consumers against harmful and unsafe products produced by manufacturers and sold by
traders. The examples of such products are medicines causing side effects, sold without any written
warning, sale of stale products, etc.

(2) Protection against Unfair Trade Practices: Businessmen do various unfair trade practices like
overcharging the customers, using inaccurate weight and measures, selling inferior quality goods,
resorting to black marketing, etc. Consumer movement protects the consumers from such
malpractices.

(3) Protection Against Pollution: Due to consumer movement, business organizations are under
pressure to take the necessary measures to control air, water and noise pollution.

(4) Bringing Consumers Together: It was very easy for business organizations to exploit unorganized
customers. However, due to consumer movement, customers are collectively fighting for their
rights. Thus, consumer movement has succeeded in uniting and getting a fair deal for consumers
from the business world.

(5) Control on Monopolistic & Restrictive Trade Practices: Many Laws and Acts have been
introduced to protect the interest of consumers against monopolistic and restrictive trade practices
of businessmen.

(6) Creating Consumer Awareness: Consumer movement creates awareness among consumers and
educate them through lectures, seminar, workshops, media, public meetings, etc. regarding
consumer rights.

(7) Timely Supply of Essential Commodities: Consumer movement has made it possible for
consumers to form Consumer Co-operative Societies for production and distribution of essential
commodities on co-operative basis so as to ensure their regular supply at reasonable prices.

(8) Right to get After Sale Service: After sale service is provided by manufacturers and sellers to the
customer even after effecting sales. Seller must provide after sale services in case of consumer
durable products. The seller is supposed to undertake free repairs and maintenance of products sold
during the warranty period. The awareness about this right of consumers has been brought through
consumer movement.
 (9) Pressure on Government: Since consumers are now united, they are able to exert pressure on
the government to enact various laws and introduce measures for consumer protection.

(10) Link between Consumers and Business Community: Various consumers, by passing on
consumer grievances, their suggestions, etc to business organizations are getting justice for
consumers.

(11) Legal Help: Various consumer protection associations helps the consumer to get their
complaints against malpractices of traders, redressed through Consumer Disputes Redressal
Agencies or Civil Courts.

WHAT IS THE NEED OF CONSUMER MOVEMENT?

WHAT ARE THE FEATURES OF CONSUMER MOVEMENT?

(1) Voluntary Movement: It is a voluntary and collective movement of consumers. A group of active
consumers come together and form an association to fight for the protection of consumers. It is non
political and non religious association of consumers.
(2) Protection of Rights: Consumer movement improves the strength and unity of consumers. It uses this
strength to make the businessman and the government to give guarantee of the products sold and to
give the rights to consumers such as right to choose, right to safety, etc.

(3) Wider Term: The concept of consumer movement is not only restricted to commercial activities, but
it is also extended to public utility services like banking, transport, telephone, medical, etc. According to
the provision of the Consumer protection Act, 1986, the term consumer includes all types of user of
goods and services.

(4) Democratic Movement: Consumer movement is powerful but democratic movement of consumers.
It ensures that, the rights of consumers are recognized and protected. For taking the decision the
meetings are adopted in a democratic method. It desires to end capitalist exploitation but in a
democratic way.

(5) Prevention of Unethical Practice: The consumer movement prevents the adoption of unethical
practice like black marketing, adulteration, under weight, etc.

(6) Safety and Security: The main object of consumerism is to ensure safety and security of consumers. It
helps in promoting consumer welfare.

(7) Creating Awareness: Consumer movement aims at creating awareness and unity among consumers
so that collective action can be taken against various malpractices.

(8) Caveat Venditor: It means "Let the seller beware". Before consumer movement, goods were sold
with the condition "Caveat Emptor" which means "Let the buyers beware, and every buyer while buying
was forced to check the goods and make sure that the goods are as desired quality. Because once goods
were sold, co complaints were entertained but now seller has to be careful before selling the goods and
this is all because of the consumer movement.

(9) Enforcing Consumer Rights: Consumer movement not only aims at protecting consumer rights but
also aims at enforcing four basic rights of consumers, i.e. rights to safety, rights to choose, rights to
redress, rights to be informed.

WHAT ARE THE TYPES OF CONSUMERS?(4 TYPES)

Loyal Consumers: Loyal consumers are likely to comprise a small segment of your consumer base.
However, because of their loyalty, they are valuable to every business. Once they have found the right
company to do business with they will remain loyal, often becoming a promoter of the brand by sharing
their experience with their friends, family and extended social network. According to a recent study,
only between 12 percent and 15 percent of consumers are loyal to a single retailer. However, that small
group tends to generate between 55 percent and 70 percent of brand sales. How can a brand
successfully market to a loyal consumer? The keys are personalisation, individualised attention, and
repeated marketing contact. These kinds of marketing strategies will yield the biggest return on
investment.

Discount Consumers: Discount consumers are always on the hunt for discounts, as the name suggests.
Like loyal consumers, they also have a tendency to frequent the same organisations and brands.
However, they only make purchases when there is some kind of sale or discount. To market to the
discount consumer, you need to advertise your offers and specials! Social media is a great way to share
sales and ongoing promotions, as are personalised emails or brochures. If you have a sale going on, you
need to let your customers know.

Impulsive Consumers: Impulse consumers are the most difficult when it comes to maximizing marketing
collateral. These consumers often don’t shop with a specific product or service in mind, let alone a
brand. Rather they make purchases capriciously, buying when something strikes their fancy. Considering
the whimsical nature of impulsive consumer purchasing habits, tailoring marketing efforts to them may
not seem to be the best use of your resources, right? Wrong. The vast majority of purchases are actually
impulse purchases.

When brands figure out how to effectively market to impulse consumers, they can drive up their sales.
Keep in mind that impulse buying tends to be emotionally driven as opposed to logically driven. This is
distinct from more rationally driven consumer types, such as discount consumers (driven by a desire to
save money) and loyal consumers (driven by fealty to a specific brand). The key is to tap into the
impulsive consumer’s emotions.

Need-Based Consumers: Need-based consumers purchase to fulfill a need. Maybe they have run into
financial trouble and need advice. Perhaps they are going on vacation and need a new set of luggage.
They could be approaching a milestone in their life and are seeking legal advice. In order to market to a
need-based consumer, your marketing strategy needs to anticipate these needs effectively. That means
utility-centric marketing, across multiple channels, including print, online, and social media. You need to
segment your consumers by needs and tailor a marketing strategy to each of these needs, outlining how
you can help in a particular situation or promoting a specific service.
 UNIT-3

WARRANTY
A warranty is a product manufacturer or service provider's documented guarantee of quality as
promised to a customer.

Warranties provide customers with legally-ensured service replacement or correction of issues insofar
as the warranty stipulates in its conditions, for the duration of its term. A warranty's term generally
commences at the date of delivery or provision. The document stipulates what is guaranteed and what
repairs or remediations will be performed to ensure the promised quality of the service or good, failing
these conditions.

Warranties commonly cover defects in workmanship but may also cover physical abuse. Support service
for products may also be covered by warranty, ensuring not only that a product functions as intended
but that the customer has assistance in understanding its operation.

A good warranty of sufficient term and backed by quality service helps ensure buyer confidence, fosters
good customer relationships, promotes the sellers brand and as a rule, improves sales.

DEFINE THE TERM MISBRANDING.

The action or practice of labelling a product or commodity incorrectly, misleadingly, or dishonestly with
regard to content, manufacturer, etc.

WHAT IS MISLEADING ADVERTISING?

Under the Consumer Protection Act 2007, advertising is seen as misleading if it involves false, misleading
or deceptive information that is likely to cause the average consumer to act in a way they might
otherwise not. Advertising may also be considered misleading if important information that the average
consumer needs to make an informed decision is left out. Misleading advertising covers claims made
directly to consumers by manufacturers, distributors and retailers, as well as in advertisements,
catalogues, websites etc.

EXPLAIN THE TERM BLACK MARKETING

Illegal free market which flourishes in economies where consumer goods are scarce or are heavily taxed.
In the first kind, black market prices are higher than the 'official' or controlled prices. In the second kind,
prices are lower than the 'legitimate' or taxed prices, due to tax evasion. Black market and black money
go hand in hand.

EXPLAIN THE TERM ADULTERATION

the action of making something poorer in quality by the addition of another substance.
"we're working on a new diagnostic test to more rapidly monitor food adulteration"

BASIS FOR COMPARISON GUARANTEE WARRANTY

Meaning The guarantee serves as a Warranty is a written assurance
promise made by the that the facts specified in the
manufacturer, to the buyer, that product is true and genuine, but
 in case the product below if they are not it will be repaired
quality, it will be repaired, or replaced.
replaced or the money deposited
will be refunded.
What is it? Commitment
Assurance

Applicable to
Product, service and Product only.
persons.

Condition of sale May or may not be a condition Subsidiary condition of sale,

of sale which may be expressed or
implied.
Validity It can either be oral or written.
It is generally written and
so it is easy to prove.

Cost The buyer has to pay for

Free of cost warranty.

Term Varies from item to item Long term

Money back (in case of default) Yes no

DISCUSS ABOUT ETHICAL PRACTICES

Acting in ways consistent with what society and individuals typically think are good values.
Ethical behavior tends to be good for business and involves demonstrating respect for key moral
principles that include honesty, fairness, equality, dignity, diversity and individual rights.

UNIT-4