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 Act

1906-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 Choose The Right to Be Heard
Basic Consumer Rights
The Right to Be Informed The Right to Be Safe
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

ANTI CIGARETTE CAMPAIGNS – CONSUMER GROUP & GOVT.

INITIATIVE

21
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 21 st
century)”-Evans & Berman
 “CONSUMER BEHAVIOR and marketing
action”-6th edition-HENRY ASSAEL.
THANK YOU !