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NCB 16 Consumerism

NCB 16 Consumerism

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Published by Sachin Taneja

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Published by: Sachin Taneja on Sep 11, 2012
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business. independent organizations and concerned consumers that are designed to protect the rights of consumers.  Consumer movement/consumer activism seeking to inform and protect consumers .CONSUMERISM  Consumerism:    The protection of consumers‟ interest (Oxford Dictionary) A social movement seeking to augment the rights and powers of buyers in relation to sellers (Philip Kotler) The set of activities of government.

right to be heard .PHASES IN THE DEVELOPMENT OF CONSUMER MOVEMENT    1900s – Pure Food & Drug Act. right to choose. creation of Federal Trade Commission 1930s – Triggered by Great Depression. right to be informed. Demand for right to information about products 1960s – Proclamation of Consumer Rights – right to safety. Meat Inspection Act.

wherever possible Right to be heard – Full and sympathetic consideration of consumer interests in the formation of government policy .CONSUMER RIGHTS     Right to safety – Protection from offerings that might be hazardous to health & safety Right to be informed – Protection from fraudulent or misleading advertising. and access to information needed to make an informed choice Right to choose – Access to a variety of offerings at competitive prices.

CONSUMER RIGHTS (ADDITIONAL)    Right to consumer education – Access to knowledge about the offerings acquired and consumed Right to recourse & redress – Right to a fair settlement of problems encountered Right to an environment that enhances the quality of life – Right to live in an environment that is not threatened by pollution and hazardous waste .

PRODUCT & PRICING ISSUES)    Misleading ads Surrogate advertising when advertising is banned Values portrayed through marketing       Promoting materialism Associating aspirational images with negative products Undue emphasis on youth & beauty Instant gratification Family structure/relationships Individual vs group orientation    Marketing of harmful products Required disclosure Anti-competitive activity .MARKETING TO ADULTS – CONCERNS (ADVERTISING.

CONCERNS  Children do not understand intention to sell.MARKETING TO CHILDREN .   Children cannot understand “fine print” Advertisements can influence children negatively Advertising tends to bring about a rift in parent-child relationship   Advertising in school television programs & classrooms. etc. Online privacy issues  .

CARU = Children’s Advertising Review Unit  .CARU‟s GUIDELINES   Should not exploit a child‟s imagination Product‟s performance & use should be shown in a way that can be duplicated by the child Do not use price minimizations such as „only‟ or „just‟   Program personalities or characters. focus should be primarily on the product and not towards the premium. in or adjacent to programs in which they appear If product advertising contains a premium message. should not promote products.

.g. Operational Efficiency (economies of scale) Preempting Consumer Default Choices (e.MARKETING HARMFUL PRODUCTS      Nutritional supplements Easy credit High fat foods Weight loss supplements Gambling ANTI-COMPETITIVE BEHAVIOR  Market Concentration (unacceptable mergers) vs. Web browsers)  .

1976 The Packaged Commodities Rules. 1955 The Standards of Weights & Measurements Act. 1986 .GOVERNMENT REGULATIONS FOR CONSUMER PROTECTION     Essential Commodities Act. 1977 Bureau of Indian Standards Act (BIS). 1986  Consumer Protection Act (COPRA).

award of cost to affected party). replacement. refund. 1986   Applies to all goods & services (unless specifically exempted). covers private. compensation for loss suffered.CONSUMER PROTECTION ACT. . public & cooperative sectors. in addition to any other provisions under the law Three-tier quasi-judicial system – district. state and national consumer disputes redressal commissions. provisions are compensatory in nature (removal of defect.

DECEPTIVE ADVERTISING  False or exaggerated/controversial claim Puffery    Missing information Allowing incorrect inferences to be made .

REDRESSAL/REGULATION AGAINST DECEPTIVE ADVERTISING     Substantiation Cease-and-desist order Affirmative disclosure Corrective advertising  Industry self-regulation by Advertising Standards Council of India (ASCI) .

Delhi Consumer Coordination Council (CCC) Consumer Education & Research Center (CERC).Indian  Voluntary Organization in Interest of Consumer Education (VOICE). Ahmedabad    Centre for Science & Environment (CSE).CONSUMER GROUPS  Consumer Action Groups . Delhi Adbusters (social issues and menace of advertisements) Friends of Earth International (environmental issues) CorpWatch (corporate ethics & responsibility)  Consumer Action Groups – International    .

returning used merchandise Consumer Terrorism – making noise and money at the cost of a marketer who has made a small mistake rather unintentionally Anti-Consumption – „Buy Nothing Day‟ .CONCERNS OF THE MARKETERS    Consumer Fraud – shop lifting.

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