UNIT V

ADDITIONAL DIMENSIONS

CONSUMERISM:
Definition:
Consumerism is defined as social force designed to protect consumers interests in the
marketplace by organizing and exerting consumer pressure on business.

Roots of consumerism/ problems that underlie consumer moments:

Disillusionment with the system: consumers feel their bargaining position is weakening.
Dissatisfaction with the quality of goods and services: the quality of the product is below their
expected level.
Consumer information gap: because of time pressure consumers are not able to collect
information so they fail to consume the best.
Anti-advertisement attitude: Ads are sometimes the source of unrealistic information, irrational
facts or brain washing.
Fall in standard of living: the real purchasing power of the consumers is getting eroded.
Uncooperative marketing institution: withholding of information from consumers and dealing in
impersonal way results in the feeling that marketers are uncooperative.

Motive of consumerism:
To make the consumers aware of their rights and unite them into one force.
To check unfair trade practices like monopoly power and fight against exploitation.
To effectively implement consumer protection law.

To educate the consumers with latest and complete information.

To fight against anti-social practice like black market, hoarding, adulteration, etc.

Rights of consumers:
The right of safety
The right to be informed
The right to choose
The right to be heard
The right to seek redressal
The right to basic needs
The right to consumer education

CONSUMER PROTECTION:
Consumer protection is the core of consumerism.
Consumer protection means protecting the consumers from the evils of marketing.
It strike a balance in the buyer-seller relation.

Need for consumer protection:

Some products are short in supply when the demands are high so producers try to exploit the
consumers in that situation.
Sometimes producers increase the demand by restricting the supply so they are able to push up
the price.
The producers exploit ignorant and uneducated consumers.
Consumers sometimes will not exercise their rights because of their fear in legal proceedings.
Since most of the people in India are middle class and poor they consider raising voice against
injustice is time wasting activity.

Parties in consumer protection:

Three parties in consumer protection are:
Business
Government
Consumers
Business:
Business comprises of the producers and the distribution channels.
Producers should pay attention to consumer rights and they should supply quality product at
reasonable price.

Government:
Government protects the consumer against exploitation through its interventions.

Consumers:
Consumers should be aware of their rights and should raise voice against illegal practices.

Consumer protection act 1986:

This act was enacted to promote and protect the rights of the consumers.
It provides for simple, speedy and inexpensive redressal of grievances.

Extend and coverage of the act:

The act applies to all goods and services whether in private, public or cooperative sectors.

Who can file a complaint?

A consumer or any voluntary organization or the government.

What constitutes a complaint?

A complaint in writing should state whether one have suffered a loss due to unfair trade
practices.

Where to file a complaint?

District forum: compensation < 5 lakhs
State commission: 5 lakhs to 20 lakhs
National commission: > 20 lakhs

How to file a complaint?

Complaint can be made in person or by post or through authorized agents.

Relief available to consumers:

The redressal forum may gives order for removal of defects from goods, replacement of goods
or refund the price.

Time limit for deciding the case:

The redressal foreum should address the issue within the period of 3 months from the date of
notice received by the opposite party.

The features of the act are:

Social welfare legislation
Effective provisions and safeguards
Special consumer courts
Simple, speedy and inexpensive redressal machinery
Convenient procedure
Covers goods and services

Time-limits
Class action
Check on unfair practices
Price
Consumer councils

ORGANIZATIONAL BUYER BEHAVIOUR:

Definition:
Organizational buying is the process by which a company/organization establishes a need for
purchasing products and choose among competing brands and suppliers.

Decision making unit[buying center]:

Buying center is an informal, cross department decision unit in which the primary objective is
the acquisition, impartation and processing of relevant purchasing related information.

Buying center roles:

Primary roles deciders and influencers
Secondary roles users, buyers and gatekeepers

Different departments role in business buying:

Marketing: purchasing decision has an effect on marketability of product so they are active
influencers in purchase decision process.
Manufacturing: responsible for determining the feasibility and economic consideration of
producing end products.
R & D: initial development of product and set board specification for components.
Purchasing: they are negotiable experts dominant in straight rebuy.

Buying situation:
3 types of situation are:
Straight rebuy:
Straight rebuy is a repetitive or routine buying order placed by the buyer to the supplier.
Modified rebuy:
This situation occurs when buyer wants to modify any purchase ie improvement in product
specification and this poses a threat and opportunity to suppliers.
New task:
This is most risky decision of buyer. Buyer goes for first time purchase so take lot of time to
decide about the purchase.

Model of industrial buyer behaviour:

The different aspects of this model are:
Difference between individuals involved and psychological make up
Joint decision making
Product specific factors
Organization factors affecting purchase
Situational factors
Ways of information search
Conflict resolution among individuals
Industrial buying behaviour is affected by the background of the individuals involved in the
purchase. The factors are:
Specialized education
Roles and status
Lifestyle
Expectation from the product