Consumerism

Consumer : The consumer is a person who Ultimately consumes a product to Get utility from that
product. A consumer is different from a customer. Where as a customer purchases a good or a
commodity either to consume or for some other consumer. For example A person who use to buy
vegetables from a store is not only to consume but also for his other family members is known as the
customer of that store. A consumer becomes a customer to a particular seller or a company by seeing
the quality and utility of the products and services provided by them.

The term "consumerism" came into existence in early 1960's.

As commonly understood consumerism is refers to wide range of government activities, independent

organisations designed to protect the rights of consumers.

consumerism is an organized movement of citizens and government to strengthen the rights and power
of buyers in relation to sellers.

Consumerism is collective consciousness on the part of consumers, government and civil society to
enhance consumer satisfaction and social welfare which will in turn benefit all of them and finally make
the society a better place to live in.

The term consumerism is also used to refer to the consumerist movement, consumer protection or
consumer activism which seeks to inform and protect by requiring such practices as honest packing and
advertising product guarantees and improved safety standards

How did consumerism originate:

1.In the existing market the producers try to sell more and more to gain from economy of scale.

2. It costs less to retain a customer than to capture a new one.

3. Some products in the market are run in shortage, so the producers sell them at a higher
prices.

4. The malpractices by the sellers such as false weights and improper packaging etc.,

5. The false advertisements to attract the customers are existed in the market.

6. Some producers and sellers are creating artificial demand in the market

7. The producers are ignoring the quality and standards of the products.

8. Some companies will give warranty at the time of purchase but will not provide services
to the customers.

9.The profit making attitude of business failed to discharge social responsibilities.

10. Apart from all the above the consumers has no way to question the producers about the
product quality.

Then the consumers and the government recognized the need for adequate rights to
redressal measures against defaulting businessmen. Then the government, consumers and
independent organisations came together and laid a movement called consumerism to protect
the interest of consumers.

Rights of consumers :

The consumerism brought some rights for the consumers to raise voice against the unfair
practices of the businessmen through which the consumer protection will possible.

1. Right to be informed

2. Right to safety

3. Freedom of choice

4. Right to consumer education

5. Right to claim against the seller

6. Right to secure ecological balance and pollution-free environment

Through these rights the consumer is able to know about the product before he
purchases. The consumer can know the process of making and complementories of the
products. The quality check up mark will be given to the products which indicates the safety of
the products to consume. The consumers can claim against the producer for false
advertisements and less quality of the products. Apart from these consumer groups and
independent organisations the main outcome of the consumerism in India is the Consumer
Protection Act in India which came into existence in 1986. This act protects the consumers
through the following rights

1. Replacement of defective good

2. Repair or removal of defects

3. Repayment of price

4. Compensation for loss

Consumer groups in India :

1. CGSI - Consumer Group society of India

2. MGP - Mumbai Grahak Panchayat

3. CUTS - Consumer unity and trust society

4. VOICE - Voluntary organization in the interest of consumer education

5.CGSI - Consumer guidance society of India

In India to prevent consumer from exploitation, our government has passed many laws time to
time.

Some of them are as follows

1. Drug and cosmetics act - 1940

2. Prevention of food adulteration Act 1954

3. Essential commodity Act 1954

4. Monopolies restrictive trade practices Act 1965

5. Standard of Weights and measures Act 1976

6. Consumer protection act 1986

Impotence of consumerism :

The consumerism has a great importance in India. Consumerism changed the fate of both the
producers and consumers. The new era of production and business started with the
consumerism in India.

1. Stop unfair trade practices

2. Provide latest and Complete information

3. Discourage anti - social activities

4. Implementation of consumer protection laws

5. Protection against exploitation

Advantages of consumerism :

1. Low cost of living:

The whole world operated on the idea of consumerism. The cost of living in different countries
decreased this is because the manufacturers and companies would price their products at a
lower cost to encourage consumers to act and purchase in order to increase the consumption
of goods and services.

2. More jobs :

For companies to increase their output and production, they would need more staff and
workers to answer for greater consumer demand. This would generate more employment.

3. Better for Business:

Whichever way you look at it, consumerism will always benefit business owners and
companies. Even if they place their goods and services at the lowest prices they can be sure to
make a profit as long as increased consumption is encouraged.

4. Consumer education :

The consumers are becoming educated about their rights through which they can know about
the products, they can question the producers and they can claim against the producer for the
better quality of products and services.

5. Standard of living :

Through the consumerism the consumers have the opportunity to be motivated to consume
better products at lower prices to improve their social standards as well as their standard of
living also improves.

6. Research and development :

After the consumerism the products started spending more on research and development to
improve the new methods of production and marketing to increase the quality of the products
by introducing the innovations in the production.

7. Social responsibility:

Consumerism inculcated the social responsibility in the businessmen through the consumer
rights by which the proper quality and fair prices of the products came into existence.

Disadvantages of consumerism:
1. Low quality products:

The problem with consumerism is that it will force manufacturers to use low end materials to
create more goods. This also helps them to drive down costs but ultimately reduces the quality
of the products and services leading to wide spread consumer dissatisfaction.

2. Moral implications :

When society is encouraged and driven to make purchases in larger and larger amounts, they
might be driven to faulty moral reasoning. People become more inclined to think that material
possessions are more impotent and are essential to the true happiness, rather than intrinsic
motivators.

3. Poor work environments and terms:

Companies would be hired less, produce more, Sell more for less the cost. The one group of the
people who will take the burnt will have to be the workers, who will be compensated poorly
and who will have to work in poor employment environments and under unreasonable terms.

4. Increasing Inequalities:

The consumerism is more beneficial to the richer class of the society. It excluding the people
from their social status. The richer people of the society will be concentrated in the production
part of the economy where they can get profits which makes them more richer.

5. Environmental imbalance:

Consumerism little by little destroying our environment. The over production and the new
production methods are creating global warming and ozone depletion. This also has a great
effect on the natural resources and causing the ecological imbalance.