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withdrawn itself from many economic activities, it interferes very often when the market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 have 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 consumer’s 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 “Consumer’s
Day” every year.
1.2. Objectives of the Study
The Study based on following objectives:
To study the level of consumer awareness of the consumers in the study area
To make the students habituated about the survey work.
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
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
Some of the common ways by which the consumers are exploited by the business community
are as follows:
Underweight and under-measurement
Sub-standard quality
 High prices
Duplicate articles
Adulteration and impurity
Lack of safety devices
Artificial scarcity
False and incomplete information
Unsatisfactory after sale services
Rough behavior
1.5. Factors causing exploitation of the Consumers
The following are the factors that cause exploitation of consumers:
Limited information
Limited supply
Limited competition
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:
Right to safety
Right to choose
Right to seek redressal
Right to consumer education
Right to be heard
Right to be informed.
2.2 Duties of the Consumers
In order to secure rights, the consumers have to fulfill the following duties:
While purchasing goods, consumers should look at the quality of the products as well as on the
warranty of the product.
They should ask for Cash Memo for the item purchased.
They should form consumer awareness organizations.
They must complain for their genuine grievances.
The must know their rights and duties.

3. Consumer Protection Measures

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

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
quasi-judicial 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 non-compliance of the orders given by the quasi-judicial bodies have also been
provided.
4.2 Case Studies
S.L.Pati VS. Postmaster, Aligarh, 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.
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.
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:
Census Method
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
N = å 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.
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. 4
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 Interpretation 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.
Table No. 1
Sex-wise Family Members of the Households
Sex(M/F) Family Members Average family Size

Male 200 2.5

Female 220 2.75

Total 420 5.25

Table No.2
Occupational Status of the Head of Households
Occupation No. of Households Percentage (%)
Services 68 85

Big Business 02 2.5

Small Business 10 12.5

Total 80 100
Table No. 3
Educational Level of Head of families
Qualification No. of Households Percentage (%)

Illiterate 02 2.5

Primary 13 16.25

Secondary 10 12.5

Tertiary 55 68.75

Total 80 100
Table No.4
Educational Status of Family Members

Qualifications No. of Persons Percentage (%)

Illiterate 10 2.5

Primary 30 7.5

Secondary 170 42.5

Tertiary 190 47.5

Total 400 100

Table No.5
Income Level of the Households

Income level No. of Households Percentage(%)

Below 5000(Low) 10 12.5

5000-20000(Medium) 60 75
 20000-and above(High) 10 12.5

Total 80 100
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 Diagram No.2
Sex-wise Family Members Occupation Structure

Diagram No.3 Diagram No. 4

Income Level of Head of Households Educational Status of Head of
Households
 Table No.5 Table No.6
Educational status whole family Income of head of Households

6.2. Consumer Awareness of the Households

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 No. of Households Percentage(%)

Close-up 30 37.5

Colgate 22 27.5

Pepsodent 12 15
 Anchor 06 7.5

Others 08 10

Total 80 100
Table No.7
Source of influence on the Purchase of different Brand of Toothpaste
Sources No. of Households Percentage(%)

TV 56 70

Newspaper 06 7.5

Magazine 10 12.5

Others 08 10

Total 80 100

Table No. 8
Different aspects of Consumer Awareness
Consumer Awareness Yes No

Knowledge about Certified

65(81.25%) 15
Products

Check MRP, Expiry and

68(85%) 08
Manufacturing date

Knowledge about Fair Price Shop 60(75%) 20

Check ingredients used 35(43.75%) 45

Knowledge about Consumer Courts 77(96.25%) 03

Ever gone to Consumer Court 10(12.5%) 70

Insist cash Memo for Consumable

57(71.25%) 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.
2. 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
 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