Consumer Education
To educate the consumer as to what ,
how much , where and how to buy ad
how to use what they have bought
• Understand how the economy functions
• Learn how to make wise purchase in the
• Learn how to guard against: Sales tactics ,
advertising , dishonest selling products.
• To become aware of consumer rights and
• Become aware of redresses mechanism
Need for Consumer Education
• New developments and technology:
Customers are confused as what to buy,
limited knowledge and most of the consumers
are not well informed.
• Lack of awareness.
• Absence of effective consumer organizations
• Programmes will help to develop awareness
abt consumer rights and resp –choice and
Advantages of C Edu
• To develop the ability to decide and select intelligently.
• Demand safe ,reliable and good quality products at
reasonable price.
• Make consumer alert ,well informed and vigilant
against corrupt practices in the market.
• Take suitable actions when faced with problems.
• Make appropriate decisions and not get misled by
• Helps the consumer how to use the product.
• Aware of rights and responsibilities.
Problems faced by consumers
• Adulteration and poor quality-adding
something inferior to the product being sold,
thereby lowers it’s quality.
• Defective weights and measures-Use of false
wt and measures –malpractice which is
adopted by selling the goods. E.g. vegs ,
cereals , sugar, etc. Using false measuring
tapes or sticks having wrong markings.
• Hoardings and black marketing- Any essential
commodity is not made available in open market and
the stock is intentionally held back.
• It creates artificial scarcity , to push the cost.
• Black-marketing: an illegal business of buying and
selling hoarded goods ,secretly at a higher price.
• Unfair Trade Practices: Use of brand names , labels
and packaging similar to good quality products of
low quality products. Dealers also announce-gifts,
lottery ,contest etc
• Misleading advertisement: Falsely represent a
product or service of superior quality .e.g. Scooter
with collaboration with foreign company
• Price Variation While Purchasing: As it is observed that
same products are sold at diff cost in diff shops.
Valid reason or salesmen wants to overcharge you.
• Better quality cost more than lower quality.
• Purchasing power of people varies in diff areas
• Prices in wholesale market is low in retail areas
• Packaging of products cause rise in cost than sold loose.
• MRP printed on label includes commission of the retailer
, if he is ready to forgo a part of it cost can be reduced.
• Other ways : By coping brand names , selling loose
products without label , charging highest MRP –price
varies in different states
• Lack of Information: Consumers rely on the
retailers and manufactures for information
The main problems faced by consumers is
lack of information. The customers even do
not know the sources of getting information.
• Lack of standardized products : Some
products bear standard marks like wool
mark , Agmark , ISI etc. Duplicates goods are
available in the market having such
certification mark to mislead the consumers.
Role of Consumer Education
• Always do market survey and tap all information
• Buy from Big Bazar, authorized company , show rooms , cooperative stores.
• Read the labels carefully for brand names , ingredients, net
weight, expiry date,
• Take bills , receipts and guarantee cards
• Instead of loose items prefer to buy in bulk
• Do not accept irregular weights like bricks and stones.
• Think of alternative items , in place of items which are
• Buy products that guarantee good quality.
• Do not get cheated by sales tricks and talks.
• If any trader uses any unfair means do not remain quiet.
Consumer Behaviour
• Study of when , what ,how , where and why people do
and do not buy products.
• Blend-Psychology , sociology , economics , social
psychology, anthropology.
• Understands buyers decision making processindividual and group.
• Consumer verifies the quality , quantity and correct
price of the product.
• Consumers get attracted towards numerous discount
offers and sales ,but try to know hidden components.
• Are more informed about rights ,duties and resp –more
• Move towards well defined process to make decisions
ie Recognition of their needs,
Types of Market
• Consumer Market- Market for products and
services bought for their own self or family
• Fast moving consumer goods-FMCG’s-High
volume , low unit value , fast repurchase. E.g.
ready meals, baked beans , newspaper.
• Soft goods- similar to consumer durables, except
they wear out quickly and have shorter
replacement cycle. Clothes and shoes.
• Consumer durables: low volume but high unit
value. White goods-fridge , cookers, dishwashers
Brown goods- DVD players , computers.
Services: hairdressing , dentist ,childcare
• Industrial Market-sale of goods between
businesses. Not directly for consumers.
• Selling finished goods- office furniture , comp
• Selling raw materials-steel , coal , gas, timber
• Selling services to business- waste disposal ,
security , accounting & legal services.
• Reseller’s Market- Wholesalers and retailers who
buy finished goods and resell or rent them to
make profit . Instead of producing the utility ,
they produce time, place and possession utility.
Types of goods
• Shopping goods-2 types fashion + service.
Need time to purchase and not urgent. E.g.
furniture , jewelery.
• Specialty goods- Goods are unique and need
shopping efforts. Special shops- TV ,laptops
• Convenience goods- bought in small
quantities ,easily reachable. E.g. washing
materials, soaps , detergents.
Wise Buying Decisions
Consumers are faced with complex situations.
Decide on what to buy.
Planning skills help to avoid unnecessary items
Decide on the quantity to avoid wastage.
Check the plan of realism
Evaluate by seeing the price , brand, label,
quality marks , net weight ,
What to buy?
• Family to decide of its needs and buy
• Size of the family
• Family budget
• Standard of family members.
• Storage facility ,spoilage of perishable food
,wastage due to poor storage condn that
results to increased cost.
When to buy
• Time of buying based on work habits of different
• What is to be bought.
• Vegs and Fruits are fresh in the morning.
• Perishable foods only in seasons
• Durables Refrigerators ,AC –off seasons.
• Woolen clothes in winter & cotton in summer- no
of variety is available
• Grains in particular seasons.
• Buy when is less crowded . Do not be rushed.
Where to buy
• Decision about the market or shop of purchase.
• Keep to one store –food stuffs
• Daily use items –cooperatives /nearby stores as
the items are cheap & good quality.
• Large quantity –whole sale market –cheap &
good quality.
• Shop at stores that are reliable/licensed shop
only .
• Shop policy on replacing faulty goods.
How to buy
• Payment mode: cash or cheque
• Cash is better than credit
• Credit is better for purchasing expensive items
like TV ,car etc.-monthly or yearly payment.
• Use of credit should be minimum.
• Read the information: date of manufacture,
ingredients, precaution, dt of expiry , how to
How much to buy?
• Amount of items to be purchased.
• Buy fresh foods as per the quantity reqd.
• Dry provisions can be bought and stored for
month .
• If there is good storage facility – can store for
6 to 8 mths –non-perishable food items.
• Garments- occasional and season wise
Consumer Guidance
• Make people aware of their rights and
• Develop person’s ability to choose goods and
• Provide info about existing laws and stds to
benefit the consumers
• Help a person to become a discriminate buyer
who can differentiate between want and need.
• Prepare consumer to demand safe , reliable,
quality products and service at fair price
Faces Problem
knowledge of
rights and resp
consumer laws
consumer aids
leads to
Consumer Education
Consumer Rights
• Preserving bills, receipts , records, guarantee
• Ask for bills and receipts/guarantee card –check
before leaving the shop.
• Freedom to choose should not harm or interfere
with others.
• To remember he is the member of the society
and citizen of the country- in case of scarcity of
any product he can buy less
• Not remain silent when a salesman cheats him –
should complain to the consumer association.
Methods of Consumer Protection
• Self Regulation by business- Business
community have high ethical standards.
• Consumer self help- consumers should know
about their own rights.
• Legislative Regulations- Consumer
associations , consumer rights, consumer
protection act , consumer protection councils
are the bodies which help to regulate
consumer protections
Law for Consumer Protection
• Agricultural Produce Act –Agmark , standarization , ISI
mark is given by the government to agriculture or farm
produce eg wheat flour, gram flour, ghee etc.
• It ensures purity, graded according to their quality and
packed suitable
• Drugs and Cosmetics Act: It regulates and ensures that only
standard quality medicines and cosmetics are sold – proper
cash memo /bill.
• Prevention of Food Adulteration Act: It protects the
consumer against adulterated and spoilt food items.
• Essential Commodities Act: All goods are available at
reasonable price. It includes cereals, pulses, sugar, cotton,
textiles, medicines ,paper , coal, petrol, iron , steel , etc.
Monopolies and Restrictive Trade Practices
ACT(MRTP): It protects consumers from being
exploited by unfair means like giving false or misleading
statement and advertisements.
Standards of weight and Measure Act: This prevents
the use of non standard weighs and measures. A
detailed label is needed to avoid and misled to
Fruit Product Order(FPO) : All the fruit and veg
manufacturers have to maintain a certain standard with
respect to quality , packaging , storage and sale. All
products following FPO are given FPO standardized
• Consumer Protection ACT: (COPRA-1986)
Majority people are poor in our country and most
of them are ignorant and can be fooled easily.
They need more protection and support. They all
need quick action .
The Central Govt legislated a law in the year 1986
known as Consumer Protection Act: This act –
Magna Carta of Consumer . This Act recognized
consumer rights and also established redressal
sys through out the world.
The aim of this act was to provide better protection
of consumer and establish consumer council in
each state by the resp state govt.
Rights of COPRA (Consumer Protection Act)
• Right to be protected against market goods –
harmful to life and property.
• Right to be informed –quality , quantity, purity ,
standard, price etc
• Right to be assured – access of variety of goods at
competitive prices.
• Right to be heard –Consumers interest to receive
consideration at appropriate forums
• Right to redressal mechanism- unfair means
• Right to Consumer education
• This act provided a more accessible and speedy
legal avenue for consumers. No fees , no lawyers
and judgment to be delivered in 90 days. It is
throughout India except Jammu and Kashmir
Bureau of India Standard Act (BIS)
• The quality certification mark ISI is given to the
product which will meet the specification and
standards set by the Govt.
• It gives std in terms of material used, method of
production, labeling, packing , storage and sale.
• For quality control BIS gives a surprise visit , if and
improper use or mispresentation is done they
may prohibit the product.
• E.g. ghee, biscuits, geyser, detergents, LPG
• Anything that helps and guides a consumer in
selecting the product he wants to buy –consumer
• Standardization Mark –ISI , Agmark , FPO ,
Woolmark,Eco mark.
• Labels and catalogue
• Packages
• Advertisements
• Legislation
• Consumer associations and co-operatives
Standardization Mark
• ISI (Indian Standard Institute)- biscuits,
pressure cooker
• It is mark that indicates that the product is
tested and is good quality.
• The product that has ISI mark contains right
amount of ingredients , correct weight , not
adulterated and prepared under hygiene
• Agricultural , horticultural , forest and
livestock products.
• To prevent poor quality , duplicate and unsafe
products from coming into the market.
• It saves time, energy and money.
• E.g. wheat flour, gram flour, rice , pulses ,
jaggery, honey , eggs.
ECO and FPO Mark
• Launched by BIS
• Given to products who meet ISI stds and save
energy – environment and friendly
• Eg edible oil , tea , coffee , textiles, food , food
additives soaps , batteries , electrical goods .
• FPO: Fruits and Vegs products to acquire licence
of their production and sale
• E.g. jam, pickles , squashes , frozen and canned
• It informs the consumer about the availability
, use and specialty about the product.
• T.V , Radio, newspaper, magazines
• It gives you correct information about a
product and not mislead you.
• Be a conscious and alert consumer – judge a
particular product by examining it and not on
the basis of advertisements.
• Containers and wrappers – products are kept.
• Good packaging- Protects the goods from
damage, breakage and spoilage.
• Easy to handle , transport, and store
• Prevents from adulteration
• Attractive package invites you to pick the
product. Properly packed product will cost
• A piece of paper of information or attached on
the package
• Following information: Name of the product
• Brand Name, Manufacturer's Name and
address, Content/ingredients, Warning and
precautions, Date of manufacture and expiry
date, Dose in case of medicines, net
wt/volume/length , max retail price, use of the
product, guarantee period, direction of use ,
care and maintenance.

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