CONTENTS

Page No.

1. Introduction
1.1. Rise of consumer awareness
1.2. Objectives of the Study
1.3. Meaning of consumer awareness
1.4. Forms of consumer Exploitations

1-2

1.5. Factors causing exploitation of the consumers

2. Rights and Duties of the Consumers

3-3

2.1. Rights of the Consumers

2.2. Duties of the Consumers

3. Consumer Protection Measures

4-5

3.1. Introduction
3.2. Administrative Measures
3.3. Technical Measures
3.4. Legislative Measures

4. Consumer Protection Act of 1986 and Case studies

6-6

4.1. Consumer Protection Act 1986

4.2. Case Studies

5. Data Base and Methodology

7-8

5.1. Collection of Data

5.2. Sampling Technique used
5.3. Statistical Tools used
5.4. Limitations of the Study

6. Analysis and Interpretation of Data

9-14

6.1. Socio-economic Profile of the households

6.2. Consumer Awareness of the People

7. Summary and Conclusion

15-15

BIBLIOGRAPHY
APPENDIX

1.
INTRODUCTION
1.1. Rise of Consumer Awareness
In the globalization, liberalization and privatization era, most of the economic decisions are
taken by the market. Though, the government has withdrawn itself from many economic activities, it
interferes very often when the market mechanism fails due to structural rigidities in the economy and other
factors, to provide goods and services to the people. Consumption is one of the important economic
activities, which requires regular government intervention, as market is unable to promote security and
welfare aspects of the consumers. On the other hand, consumers has to be aware not only of the commercial

aspects of sale and purchase of goods but also of the health and security aspect also. Besides this, they
should be aware of their rights and duties being as rational human beings.
Though, the first consumer movement began in England after the Second World War, a
modern declaration about the consumers rights was first made in USA in the year 1962, where four basic
consumer rights i.e. choice, information, safety and right to be heard were recognized. Ralph Nadar, a
consumer activist is considered as the father of Consumer Movement. 15th March is now celebrated as
the World Consumer Rights Day. The U.N.O. also adopted in the year 1985, certain guidelines to achieve
the objectives of maintaining protection for consumers and to establish high level ethical conduct for those
engaged in production and distribution of goods and services. In India, 24th December is celebrated as
Consumers Day every year.

1.2. Objectives of the Study

The Study based on following objectives:
a) To study the level of consumer awareness of the consumers in the study area
b) To make the students habituated about the survey work
c) To make the students acquainted how different statistical tools can be
applied in different socio-economic problems.

1.3. Meaning of Consumer Awareness

Consumer awareness means awareness of consumers in different aspects of consumption
activities. Consumer awareness is a broader and wider concept. It covers the followings:
a) Consumer awareness about Maximum Retail Price (MRP).
b) Consumer awareness about Fair Price Shop.
c) Consumer awareness about price, quality and expiry date of the product.
d) Consumer awareness about their rights and duties.
e) Consumer awareness about the certified products like ISI, Agmark, ISO-2000 etc.
\1.4.

Forms of Consumer Exploitation

Consumer exploitation is a type of exploitation in which the consumers are exploited or

cheated by the business community in terms of poor quality of product, underweight, under-measurement,
duplicate articles etc.

2.
Some of the common ways by which the consumers are exploited by the business community are as
Follows:
a) Underweight and under-measurement
b) Sub-standard quality

c) High prices
d) Duplicate articles
e) Adulteration and impurity
f) Lack of safety devices
g) Artificial scarcity
h) False and incomplete information
i) Unsatisfactory after sale services
j) Rough behaviour

1.5. Factors causing exploitation of the Consumers

The following are the factors that cause exploitation of consumers:
a) Limited information
b) Limited supply
c) Limited competition
d) Low literacy

RIGHTS AND DUTIES OF THE CONSUMERS

2.1. Rights of the Consumers
The following are the rights of the consumers as coded in the Indian laws, which the business
community has to keep in mind:
a)
b)
c)
d)
e)
f)

Right to safety
Right to choose
Right to seek redressal
Right to consumer education
Right to be heard
Right to be informed.

3.
2.2. Duties of the Consumers
In order to secure rights, the consumers have to fulfill the following duties:
a) While purchasing goods, consumers should look at the quality of the products as well as
on the warranty of the product.
b) They should ask for Cash Memo for the item purchased.

c) They should form consumer awareness organizations.

d) They must complain for their genuine grievances.
e) The must know their rights and duties.

CONSUMERS PROTECTION MEASURES

3.1. Introduction
In order to protect the interest of the consumers, government has adopted three strategies:
a)

Administrative measures

b)

Technical measures

c)

Legislative measures

3.2. Administrative Measures

Administrative measures of the government include the distribution of essential
commodities through Public Distribution System(PDS). PDS is a system through which the government
distributes some
essential commodities at a reasonable price through Fair Price Shop. In a free market
economy, price of a commodity is determined in the market through the free play of demand and supply.
Equilibrium price is that price at which demand and supply of the commodity are equal to each other i.e.
there is zero excess demand and excess supply. But sometimes government interferes in the market
systems by fixing the price lower than the equilibrium price, to protect the interest of the consumers
belonging to the lower strata of the society. This price is known as Control Price. When government fixes
price lower than the equilibrium price, demand exceeds supply , which leads to black-marketing and
hoarding. To check this government sales different commodities at different FPS at control price.

3.3. Technical Measures

Technical measures consist of Standardization of the product. One of the important
measure taken by the government to protect the consumers is the creation of institutions for setting up the
standards for making and producing various products and enforcing them. In India, this has been achieved
through Bureau of Indian Standards(BIS), and Agmark. While BIS caters to the industrial and consumer
goods while Agmark is meant for the agricultural products.

4.
The Bureau of Indian Standards, earlier known as the Indian Standards
Institution(ISI), whose headquarter is located at Delhi, has the responsibility of lying down the standards for
industrial and consumer goods on a scientific basis and certifying the goods that meet the standards and the
prescribed quality.
The Agmark is implemented under the Agricultural Produce(Grading and
Marketing) Act of 1937, as amended in 1986. This scheme is run by the Directorate of Marketing and
Intelligence(DMI) in the Ministry of Agriculture, Government of India. Products such honey, masala etc,
carry such marks.
At international level, an institution called International Organization for
Standardization(ISI), established in 1947 locate at Geneva, serves to provide such a common reference

standard. All the international Companies, goods produced by them, and institutions are certified as ISO
6000, ISO 14000 etc.
For setting international food standards, there is a similar body called Codex Alimentaries
Commission(CAC). This was formed in 1963 by the Food and Agricultural Organization(FAO) and
World Health Organization(WHO), located at Rome, Italy. It develops food standards, guidelines and
codes for production and international trade in food products like milk, fish etc.

3.4. Legislative Measures

Legislative measures include enactment of Consumer Protection Act, 1986. The
Government enacted a specific law called the Consumer Protection Act, 1986. The Act provides for the
establishment of consumer disputes redressal agencies at District, State and National level for the protection
of consumer interests and to redress their grievances in speedy, simple and inexpensive manner. The Act has
led to the setting up separate Department of Consumer Affairs in Central and State Government, which
focus exclusively on the rights of the consumers, as enshrined in the Act.
CONSUMER COURTS

NATIONAL CONSUMER COMMISSION

(National Level)

STATE CONSUMER COMMISSION

(State Level)

DISTRIST CONSUMER FORUM

(District Level)

5.
CONSUMER PROTECTION ACT OF 1986 AND CASE
STUDIES
4.1. Consumer Protection Act of 1986
The industrial revolution and the development in the international trade and commerce
has led to the vast expansion of business and trade, as a result of which variety of consumer goods have
appeared in the market to cater the needs of the consumers and a host of services have been made available
to the consumers like insurance, transport etc. The advertisement of goods and services in T.V and other

media influence the demand of same by the consumers, though there may be manufacturing defects or
shortcomings in quality and purity of products or deficiency in services rendered. In spite of various
provisions made providing protection to the consumers against adulterated and sub-standard articles in
different enactments like Code of Civil Procedure, 1908, MRTP ACT, 1969, IPC, 1960 etc., very little
could be achieved in the field of consumer protection.
In order to provide for the better protection of the interest of the consumers, Consumer
Protection Bill 1986 was introduced in Lok Sabha in 5th December 1986. The Bill was passed by both
Houses of Parliament and got the assent of the President on 24 December 1986, popularly known as the
Consumer Protection Act of 1986.
The Act of 1986, seeks to provide better protection to the interests of the consumers and
for the purpose that there is Consumer Councils and other authorities for the settlement of consumer
disputes and for matter connected therewith. To provide quick redressal of consumer disputes, a quasijudicial institution is set up at all the three levels. These bodies have been empowered to give relief of a
specific nature and to award, wherever appropriate, compensation to the consumers. Penalties of noncompliance of the orders given by the quasi-judicial bodies have also been provided.

4.2. Case Studies

1. Mr. S.L.Pati VS. Postmaster, Baligarh, Orissa(1993)
Money order not delivered in time to the concerned person, is a case f deficiency in service of worst
category. If this would be the normal act of the Post Office and the office, which belong to the Union
Government, no one would have faith in services rendered by them. As a result, an amount of Rs250/- plus
the money order amount of Rs.1000/- along with interest @ 18% was the compensation awarded to the
deprived person.
2. Mr. K.C. Panda VS SDO,Telecom Department, Berhampur, Orissa(1994)
Telephone line was disconnected even if bill was paid. Proceeding before District Forum, Telecom
Department made an apology for the mistake occurred inadvertently. But, in spite of apology, an amount of
Rs. 2000/- was the compensation awarded to the person concerned by the Telecom Department.

DATA BASE AND METHODOLOGY

5.1. Collection of Data
The project report is based on primary data collected by the students of Class 11th Commerce,
KV No. 2, CRPF, BBSR. Data collected by the investigator for his own purpose, for the first time, from
beginning to end is called primary data. According to Wessel, Data originally collected for the purpose of
the investigator are known as primary data. When data collected by the others are used by others for their
use or investigation then it is known as secondary data.

6.
5.2. Sampling Technique Used
Total number of households selected for the project is 80. These household has been selected
by sampling method. There are two statistical enquiry methods:
a) Census Method
b) Sampling Method

Census method is that method is that method in which data are collected covering every item
of the universe or population relating to problem under investigation. Sampling method is that method in
which data are collected about samples or a group of items taken from the population. There are different
types of sampling techniques such as: random sampling, quota sampling, stratified sampling, deliberate
sampling etc. But for the project concerned deliberate sampling method is used. This is also called judgment
sampling. According to this method, for selecting a sample no specific procedure is used, rather the
investigator, according to his own desire selects those households which represent the universe fully.

5.3. Statistical Tools Used

For analysis of data simple percentage method and arithmetic average is used.

Percentage:

Gt-Gt-1
Percentage increase/decrease=

_________

X 100

Gt-1
Gt= Value of the Variable in time period t
Gt-1= Value of the Variable in time period t-1

Arithmetic Average(Mean):
Sum of all the values of different items in the series
Arithmetic Mean= ____________________________________________
Total number of items
=

X1+ X2++Xn
_____________________________
N

= Xi

i = 1, 2, 3.n

i=1
Besides mean and percentage, different types of diagrams like bar diagram, pie-diagram etc. has been
used to represent data in a simple and systematic manner.

7.
Pie Diagram:
Pie diagram is a circle divided into various segments showing the values of a series.
Degree measure of an item= % value of an item X 3.60

5.3. Limitations of the Study

The study is based on primary data, collected by the Students 11th Commerce,
K.V.No.2, CRPF, Campus ,BBSR. Each Student of the Class interviewed two consumers, one representing
his/her father/mother and the other representing his neighbor. The study area of the project is limited to
Bhubaneswar city only. The sample size of the project is 80 only. So, the sample of the project is very small.
Since the study is limited to Bhubaneswar city only, all the respondents are of urban background.

ANALYSIS AND INTER PRETATION OF DATA

Socio-economic conditions of the Households
a) Tabular presentation of Data
Total number of households surveyed for the purpose is 80. Each student of 11th
Commerce conducted survey work. Each student interviewed to the head of the family relating to different
aspects of consumer awareness mentioned in the questionnaire.
Table No. 1 represents total family members of the surveyed households. Table No.2
represents the occupational status of the head of the household. Table No.3 represents educational
qualifications of the head of the household. Table No.4 represents educational status of total households
surveyed. Table No.5 represents income level of surveyed households.
Total family members of the surveyed households are 420, out of which 220 are female
and 200 are male. The average family size of the household 5.35. Total number of persons interviewed is
80, out of which 68 belong to service class. Out of these 68 families, 3 female members are interviewed for
the purpose as male members are staying outside the station. Two families are from big business class
whereas 10 are from small business family out of 12 business family interviewed.
Out of total 80 of the families interviewed 55 are highly qualified. They are Graduate,
Post Graduate and even some posses Professional and Technical qualifications. Out of total, 23 are at
Primary and Secondary level, whereas 2 are illiterate. Out total family members 190 are Graduate, Post
Graduate, and Professionally and Technically qualified. Again, 170 members are at Primary and Secondary
or Higher Secondary level, whereas 10 are illiterates. Rest 20 belong to below 5 years and hence are not
mentioned in the educational status. Table No. 5 represents the distribution of income levels of surveyed
households. Out of total 80 families 10, 60, 10 belong to low income, medium income and high income
group respectively.

8.
Table No. 1
Sex-wise Family Members of the Households
Sex(M/F)
Male
Female
Total

Family Members
200
220
420

Average family Size

2.5
2.75
5.25

Table No.2
Occupational Status of the Head of Households
Occupation
Services
Big Business
Small Business
Total

No. of Households
68
02
10
80

Percentage(%)
85
2.5
12.5
100

Table No. 3
Educational Level of Head of families
Qualification
Illiterate
Primary
Secondary
Tertiary
Total

No. of Households
02
13
10
55
80

Percentage(%)
2.5
16.25
12.5
68.75
100

Table No.4
Educational Status of Family Members
Qualifications
Illiterate
Primary
Secondary
Tertiary
Total

No. of Persons
10
30
170
190
400

Percentage(%)
2.5
7.5
42.5
47.5
100

Table No.5
Income Level of the Households
Income level
Below 5000(Low)
5000-20000(Medium)
20000-and above(High)
Total

No. of Households
10
60
10
80

Percentage(%)
12.5
75
12.5
100

9.
b) Diagrammatic Presentation of Data
Different type of diagrams are used to represent the data. Diagram No. 1, a Bar Diagram
represents sex-wise family members of the households. Diagram No.2, a Pie Chart represents occupational
structure of the head of the households. Diagram No.3 and 4 are the Pie Charts represents income level of
head of households and educational status of head of households respectively. Diagram No.5 and 6 are the
Bar diagrams represents educational status of whole family and income level of head of households.
Diagram No.1
Sex-wise Family Members

Diagram No.2
Occupation Structure

Diagram No.3
Income Level of Head of Households

Diagram No. 4
Educational Status of Head of Households

10.
Table No.5
Educational status whole family

Table No.6
Income of head of Households

6.2. Consumer Awareness of the Households

a) Tabular Presentation of Data
Table No. 6 represents the preferred use of toothpaste, Table No. 7 represents the
influence of different agencies on families while purchasing different brand of toothpastes used by the
surveyed households and Table No.8 represents different aspects of consumer awareness in day to day life
of the surveyed households.
Table No.6
Preferred use of Toothpaste
Brand
Close-up
Colgate
Pepsodent
Anchor
Others
Total

No. of Households
30
22
12
06
08
80

Percentage(%)
37.5
27.5
15
7.5
10
100

Table No.7
Source of influence on the Purchase of different Brand of Toothpaste
Sources
TV
Newspaper
Magazine
Others
Total

No. of Households
56
06
10
08
80

Percentage(%)
70
7.5
12.5
10
100

11.
Table No. 8
Different aspects of Consumer Awareness
Yes
No
65(81.25%)
15

Consumer Awareness
Knowledge about Certified
Products
Check MRP, Expiry and
Manufacturing date
Knowledge about Fair Price Shop
Check ingredients used
Knowledge about Consumer
Courts
Ever gone to Consumer Court
Insist cash Memo for Consumable

68(85%)

08

60(75%)
35(43.75%)
77(96.25%)

20
45
03

10(12.5%)
57(71.25%)

70
23

goods purchased
From table No.6, it is evident that highest percentage of families i.e. 37.5% prefer
Close-up
followed by Colgate with 27.5%. Income and occupation factor did not influence the purchase or
consumption of toothpaste of Close-up or Colgate. However, in case of lower income group, out of 10, 6
families use either Anchor or Promise and they prefer to it as it cost less than other brand of toothpastes. On
the other hand, quality of product is important for high and medium income group, using Close-up and
Colgate. Besides, quality of product and price, choice of children also taken into account while using the
Colgate or Close-up for about 20% of the households. Majority people come to know about the product
through advertisement on TV, followed by magazine, newspaper and other agencies as evident from Table
No.7.
Table No.8 depicts different aspects of consumer awareness i.e. about standardization, MRP,
date of manufacturing and expiry, knowledge about Consumer Courts, rights and duties of the consumers
etc. Out of total families, 81.25% of families check MRP, date of manufacturing and expiry. However,
56.25% of people interviewed, check the ingredients used in the product. As far as Consumer Court is
concerned, majority of them (96.25%) have knowledge about it but only 10 out of total respondents have
gone to the Consumer Court to redress their problems on different occasions.. Lastly, it is clear from Table
No. 8 that majority of households(71.25%) surveyed, insist for Cash Memo at the time of purchase.
However, it is limited to non-consumable durable items and some consumable items when large quantity is
purchased.
b) Diagrammatic Presentation of Data
Use of different brand of toothpaste used by the surveyed households depicted in
Diagram No.7 and source of influence on the purchase of different brand of toothpaste is depicted in
Diagram No.8. in the form of a Pie-Chart.
Diagram No. 7
Diagram No.8
Use of different Brand of toothpaste
Source of influence on different
Brand of Toothpaste

12.
SUMMARY AND CONCLUSION
6.

Summary and Conclusion

The objective of this project is to assess the people of different class in the society about
different aspects of consumer awareness viz., price and quality of products used by them, about Fair Price
Shop, standardization of products, about Consumer Forum, about their Rights and Duties etc. Consumers
will lead a happy, healthy and prosper life if they fully aware about the above mentioned aspects.
For the project report, total number head of households interviewed is 80 and all belong to
urban area. Out of total head of family interviewed, 78 are literate whereas only 2 are illiterate. All belong

to different income group i.e. high, medium and low income group. However, majority of them belong to
medium income group(75%). Again, on the basis of occupation, 85% of respondents are government
servants whereas other are businessmen.
Close-up is the most preferred brand(37.5%) of toothpaste followed by Colgate(27.5%)
among the surveyed households. Households from medium and high income group prefer respective brand
of toothpaste taking into account the quality of the product and wishes of their children also. On the other
hand, for the low income group, the most important factor that determines the use of toothpaste is the price
of the product. Again, majority of respondent(70%) are influenced by the advertisement about the product
and the important media is Television.
As far as consumer awareness is concerned, majority of respondents have knowledge about
certified products, check MRP, date of manufacturing and expiry at the time of purchase. However majority
of them do not check about the ingredients used in the product. On the other hand, majority of them have the
knowledge of Consumer Courts, but out of total respondents only 10 have ever gone to the Consumer
Courts for complaining about different commodities they purchased and consumed. Lastly, it is evident
from the study that, majority of them insist for Cash Memo at the time of purchase, but, it is limited to
consumer durable goods and for consumer non-durable goods when large quantities of goods is purchased.
To conclude, people are concerned about different aspects of consumer awareness i.e. their rights and
duties, certified products, MRP, date of manufacturing and expiry of the products they used, Consumer
Courts etc as far as urban area is concerned.
Educational implications of the study is that every students as well as parents should
be aware about different aspects of different commodities they consume in day-to-day life. They should
have knowledge about certified products, Check MRP, date of manufacturing, and expiry at the time of
purchase of a commodity. They must have awareness about their rights and duties. This project report will
give a preliminary idea about survey work to the students. Lastly, students will get an idea about how
statistical techniques can be used in different socio-economic problems.

BIBILIOGRAPHY
Bibliography
1. Prof. S.P. Gupta, Statistical Methods, S.Chand and Company Ltd, 1994, New Delhi.
2. S.Mishra and V.K.Puri, Indian Economy, Himalaya Publishing House, Mumbai,2000

13.
4. Ruddar Dutt and K.P.M. Sundharam, Indian Economy, S. Chand and Company Ltd., 1994.
5. Statistics for Economics, Textbook for Class XI, NCERT, New Delhi, 2005.
6. Indian Economic Development, Textbook for Class XI, NCERT, New Delhi,2005.
7. The Consumer Protection Act 1986, the Law House, New Delhi.
8. Contemporary India, A Social Science Textbook for Class X, NCERT, New Delhi,2003.
9. Economic Survey, Directorate of Economics and Statistics, Planning and Co-ordination

Department, Government of Orissa, 2006-07.

APPENDIX
A. Questionnaire
1. Name of the head of family:__________________________
Education:________ Occupation:_______
Age:_________ Sex(M/F):_______
2. Residential Address:_____________________________________________
_____________________________________________
3. Age (In years)

No. of Persons
________________________
Male Female
Total
________________________________________________________
Below 5
5-14
15-64
65 and above
_________________________________________________________
Total:
4. Level of Education
No. Of Persons
________________________________________________________
Illiterate
Primary
Secondary
Graduation
Others
__________________________________________________________
Total
5. Monthly Income
( In Rs/-)
_________________________________________________________
Up to 1000
1000-5000
5000-20000
20000-50000
50000 and above
__________________________________________________________

14.
6. What do you use to clean your teeth ?
Toothpaste_____ Tooth Powder_____ Any Other______
7. Which brand of toothpaste do you use regularly ?
Aquafresh___ Cibaka____ Anchor_______
Close-up____Promise_____Pepsodent_____
Oral B_____ Furhans_____Any Other____
8. The price for 100 gram pack of the toothpaste (used by them).
Price_______(actual)
Price________(approx.)
Do not know______.

9. Do you find the product costly?

10. Do you check MRP, date of manufacturing and date of expiry?
11. Do you check standardization of product like ISI, Agmark, ISO 2000 ?
12. Do you check ingredients used in the product ?
13. Are you satisfied with the quality of the product ?
14. Are you aware about the Fair Price Shop ?
15. Do you find the availability of product at FPS ?
16. Do you complain the shopkeeper in case of dissatisfaction ?
17. Has your complain been timely attended ?
18. Was your complain attended to your satisfaction ?
19. Are you aware about Consumer Courts ?
20. Have you ever gone to a Consumer Court in case of any dissatisfaction ?
21. Do you insist Cash Memo at the time of purchase to ensure genuine
purchase and tax revenue to government ?
22. Do you insist Cash Memo for other commodities at the time of purchase ?
23. How do you come to know about the product ?
Advertisement
Family influenced
_______________________________________________
TV
_______
Newspaper
_______
Magazine
_______
Cinema
_______
Sales Representatives
_______
Exhibits Stall
_______
Radio
________
Any other
________
_____________________________________________________
24. Are you attracted by promotional offers like rebates, free toothbrush,
buy one get one free ?
25. Do the Children influence purchase of particular toothpaste ?
26. If a new toothpaste brand is launched in the market will you buy it ?
If yes, then what consideration ?
Price of the Product________
Quality of the product______
Promotional offer_______
Any Other______

Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No

Yes/No
Yes/No
Yes/No

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