1.1.

CONSUMERISM
1.1.1. Introduction
The consumer is one who has purchased goods or who has availed of or hired services. In the Consumer Protection Act, the word Consumer has been defined separately for the purpose of goods and services. A consumer should necessarily constitute the end terminal in the line of trade. He who buys the goods for resale purposes or for commercial purposes forms only the intermediate function in the line of trade. The Act aims to secure the full satisfaction of the consumer in his purchase of goods or services if he is the ultimate buyer. Consumerism is an organised movement of citizens and government to strengthen the rights and power of buyers in relation to sellers. It is the ideology and a concept which has come to stay in business literature. The consumer is exposed to many hazardous-physical, environmental, and exploitation due to unfair trade practices. He needs protection, e.g., against products which are unsafe for consumption such as drugs and adulterated food products and products which may cause bad injury such as defective electrical appliances. He needs protection against malpractices and deceit by sellers. He should have adequate rights and duties to redressal measures against defaulting businessmen. He needs protected against environmental pollution of air, water, and noise and effective measures should be devised to keep the surroundings neat and clean. According to Cravens and Hills, Consumerism is a social force within the environment designed to aid and protects the consumers by exerting legal, moral and economic pressures on business. According to Philip Kotler, Consumerism is a social movement seeking to augment the rights and powers of the buyers in relation to sellers. Consumerism is a movement or policies aimed at regulating the products or services, methods or standards of manufacturers, sellers and advertisers in the interest of buyers, such regulation may be institutional, statutory or embodied in a voluntary code occupied by a particular industry or it may result more indirectly from the influence of consumers organisations. Consumerism promotes the concept of Let the seller beware or Caveat Venditor in comparison to the old age Caveat Emptor or Let the buyer beware. Now in age of consumerism the principle of Caveat Venditor forced the seller for the obligation to make disclosure about the quality of the product. Indias large youth population is driving the consumerism trend in the country. For the youth shopping is just not a necessity but a leisure activity. Also more disposable income and more number of persons working in families have also contributed to this trend. The good news is that Indian consumerism is yet to attain maturity. But the catch here is society as a whole believes in saving rather than spending. A liberalised economy has open doors to MNCs and all the companies have successfully adapted their products or their marketing communication or in some cases both to the local conditions and preferences. Like McDonalds, Pizza Hut, Maggi the noodles tastes different in every country.

1.1.2.

Need for Consumerism

To prevent ruthless exploitation, we need a forceful, well-organised consumerism of consumer movement coupled with government support and patronage in the form of special legislation. In a country like India, there is a very great need for consumer protection for a variety of reasons. Some of the important ones may be highlighted here:
Need for Consumerism Less Literate and Aware Population Vast Variety of Goods and Services Needed Support for Customers Minimising Imperfections

Economically Weak Consumers Deceptive Advertising Feedback for Business Responsive Environment

1) Less Literate and Aware Population: A majority of the population is illiterate, ignorant, and ill informed. In a vast country like India, it is very difficult to organise the consumer. The people are not only backward but also have linguistic, cultural, and religious difference which makes the problem still more intricate. 2) Economically Weak Consumers: The consumer is economically weak if compared with the producer or the seller. The producer is able to manipulate the price, quality, size, weight, etc., of the product. He has to depend upon the trade practice of the seller. If the seller indulges in unfair trade practice, then the consumer needs protection against such malpractices. 3) Vast Variety of Goods and Services: The advance of science and technology enables the manufacturers to produce myriad types of goods. There are varieties of same type of goods produced by different manufacturers. Though they provide a choice of selection to the buyer still they have made the goods more complex and complicated making selection difficult. In such a situation the consumer needs guidance which can be provided by consumer organisations. 4) Deceptive Advertising: Advertising is a potent device for sales promotion. But advertising today is highly deceptive. A consumer does not know the real qualities of the advertised goods. For example, he would not know how processed butter is better than another processed butter. He feels confused and hence needs to be guided and protected. 5) Needed Support for Customers: Producers and sellers will not take the consumer for granted. When consumers are strong enough to protect their rights, the business will be compelled to close unfair trade practices. 6) Feedback for Business: Consumerism will provide feedback for the business. It will enable the producers to understand consumer grievances, needs, and wants. This will assist in the more effective implementation of the marketing concept or the societal marketing concept, depending upon the nature of consumerism. 7) Minimising Imperfections: Producers will be able to enlist the support of consumers to minimise the imperfections on the distribution front. Several times the supply position is made worse by hoarding and black-marketing by traders. Further, many sellers have a tendency to charge a price which is higher than the actual by giving one or other reason. There is no reason, why the consumer and producer should not cooperate to get rid of the unscrupulous traders. 8) Responsive Environment: Consumerism will make the government more responsive to consumer interests, prompt it to take necessary statutory measures, and make the required institutional arrangements to safeguard consumer rights.

1.1.3.

Utility of Consumerism

Consumerism has over the time developed into a sound force designed to aid and protect the consumer by exerting legal, moral, and economic pressure on producers and providers in some of the developed countries. Consumerism is supposed to bring following relative importance in India: 1) Improvement in Supply: Hoarding and black marketing by traders results in shortage of supply. With the help of support of consumers the producers will be able to minimise the imperfections on the distribution front. 2) No Unfair Trade Practices: When consumers are strong enough to protect their rights, the producers will any take consumers for granted which will compel producers to shun unfair trade practice.

3) Better Relation with Consumers: Producers can understand consumer needs and wants better as consumerism will provide feedback for the business which ultimately leads to cordial relations between producer and consumer. 4) Better Support of Government: Consumerism will make government more quick and responsive to consumer interest and thus will take statutory measures and both legal redressal machinery will be provided to protect Consumer rights. 5) Educating Consumer: A well organised consumerism helps in giving information about various goods and services like prices, what the consumer can expect, etc., to consumer. 6) Liaison with Government and Producers: As government is the key factor in meeting most consumer needs in India, the consumer organisations try to maintain liaison with producers on one hand and Government authorities on the other hand, which ultimately benefits consumer as well. 7) Producer Rating: Industry in the date of today is investing more on testing the safety of products. Consumer movements tend to focus on questions with regard to safety, comparative cost effectiveness, etc. In order to guide the consumer in his choice of products some of agencies carry out tests and submit reports on them. 8) Consumer Education: The consumer is given information about various consumer goods and services. This relates to prices, what the consumer can expect, standard trade practices, etc. 9) Product Rating: In order to guide the consumer in his choice of products, some of the agencies carry out tests and submit reports on them. 10) Liaison with Government and with Producers: Consumerism will make the government more responsive to consumer interests, prompt it to take necessary statutory measures, and make the required institutional arrangements to safeguard consumer rights. 11) Provides Feedback: Consumerism will provide feedback for the business. It will enable the producers to understand consumer needs and wants. This will assist in the more effective implementation of the marketing concept or the societal marketing concept, depending upon the nature of consumerism.

1.1.4.

Problems in Growth of Consumerism

There are many hindrances to the growth of a strong consumer movement in India. There are so many hindrances, but the following deserve special mention: 1) Lack of Leadership: It is the important hurdle which has seriously affected the growth of the consumer movement in India. 2) Illiteracy: Most of the Indian consumers are illiterate. They lack consumer education. They do not know their rights. 3) Difficulty in Disseminating Consumer Education: India is a vast country; it is very difficult to disseminate consumer education, throughout the country. Further, different languages and customs also affect the growth of the consumer movement. 4) Cumbersome Legal Process: It is said that the legal process in India is time-consuming and cumbersome. Due to the reason, many consumers do not come forward to seek legal remedies. 5) Lack of Effective Implementation of Legislative Measures: The government has enacted numerous legislative measures to protect the interests of consumers. However, they are not effectively implemented to achieve the basic objective.