MODULE [PRICIPLES OF MARKETING]

Chapter 7: CONSUMER EDUCATION WITHIN THE PHILIPPINE CONTEXT

OBJECTIVES:
1. To adopt the proper education of consumer within
the Philippines
2. To implement the guidelines for consumer and
companies to protect themselves

Consumerism
It is a social phenomenon that empowers the buyers and consumers. Its effects
are visible in the laws, regulations and also the marketing practices.
It keeps a check on the companies and ensures that the consumers get quality
products which are safe for them at the correct price. It also ensures that the consumers
are provided with the correct information about the products. Also Consumerism forces
the companies to operate and produce goods and services according to the consumer’s
needs. It plays a very important role in every stage of marketing starting from new
product design to communication through advertisements.
Objectives of Consumerism
1. To educate the consumers about their rights.
2. To ensure fair trade practices and provide complete information to the
consumers.
3. To build the confidence of Multinational companies for investing in developing
countries.
4. To ensure cooperation between government and producers.
5. To enforce the rights of people as consumers against exploitation like poor
quality, over charging etc.
Positive Responses of Companies to Consumerism
1. Better communication with consumers. Many companies are now responding
to the consumer’s “right to be heard” regarding the product, services, company or
personnel.
2. More and better information for consumers. Many manufacturers publish
institutional materials, booklets or brochures on the use and care of their
products. This also includes point-of-sale information, descriptive labels on
product use, care and performance and unit pricing.
3. Product improvements. Adaptation of safety measures including product
warranties for technical and durable goods and nutritional elements data on food
products.
 MODULE [PRICIPLES OF MARKETING]

4. More carefully prepared advertising. Advertising industry is doing a more

effective self-regulation job by truthful and honest advertising claims.
Consideration in Growing needs for Consumer Education
1. Frauds are committed against consumers like adulteration, misbranding,
deceptive labeling and untruthful advertising.
2. Business organizations, on the majority, ignore consumer interests.
3. Selling and advertising appeals are too emotional.
4. Buying process is very complex with the availability of too many brands to
choose from.
5. The existence of communication gap between manufacturers and consumers on
the use, care, performance and quality of the product.
Forms of Consumer Education
1. Formal consumer education. This information dissemination to consumers
takes place in schools. Presidential Decree No. 6-A formally integrated in school
curriculum consumer education courses under family planning, taxation and
nutrition.
2. Non-formal consumer education. This uses mass media, social institutions,
consumer unions and organizations. Tools used are:
a. Literature in the form of catalogues, pamphlets, leaflets and posters
disseminated by manufacturers.
b. Public service releases consist of news and feature article. These are publicities
on tips and information of interest to consumers.
c. Special exhibits and open house where consumers are invited to see for
themselves products on display like cars or houses and lots, where products are
non-movable or too bulky.
d. Tests are undertaken by government or private groups to find out quality or
reliability of advertising claims of manufacturers about the product.
Guidelines for Companies in Response to Consumer Education
1. Establish a separate corporate division for consumer affairs. This division shall
be involved in research and design, advertising, credit, pricing and other
corporate division.
2. Change corporate practices perceived as deceptive. Practices should be
reviewed and solutions to deceptive practices should be developed.
3. Educate channel members towards consumerism for better consumer
satisfaction.
4. Incorporate the increased costs of consumerism efforts into corporate operating
budget used to carry out the program missions.
 MODULE [PRICIPLES OF MARKETING]

Guidelines for Consumers in Order to Protect Themselves

The Consumers Federated Groups of the Philippines enumerated the following
guidelines for consumers:
1. Canvass of prices before buying.
2. Buy from outlets whose integrity are beyond reproach.
3. Buy only quality goods, if you can afford them. They are cheaper in the long run.
Avoid impulse buying.
4. Be sure to get the right quality and quantity of product for your money. Read
labels carefully and verify what they say.
5. Be especially careful in buying goods that are offered at a big discount. Some
bargain sales are deceptive.
6. When buying on credit, find out the exact interest you have to pay.
Common Frauds Committed Against the Consumer
1. Adulteration. An adulterant is a substance found within other substances such
as food, cosmetics, pharmaceuticals, fuel or other chemicals that compromises
the safety or effectiveness of said substance. It will not normally be present in
any specification or declared contents of the substance, and may not be legally
allowed.
2. Misbranding. To brand (as a food item or drug) falsely or in a misleading way
specifically: to label in violation of statutory requirements.
3. Shortweighing or short-contents. This involves manipulation of scales for
weighing. Scales are made to register one kilo for only nine-hundred grams.
4. Short-numbering. Sellers may cheat consumers by giving him less than the
number asked and paid for.
5. Short-changing. This is commonly resorted to by unscrupulous merchants and
their sales personnel.
6. Untruthful or fraudulent advertising. This is misrepresentation of the character,
value, properties or conditions of the product.
The Law on Fraudulent Advertising, Mislabeling or Misbranding
ACT NO. 3740
ACT NO. 3740 - ACT TO PENALIZE FRAUDULENT ADVERTISING, MISLABELING
OR MISBRANDING OF ANY PRODUCT, STOCK BOND, ETC.
Section 1. It shall be unlawful for any person, firm or corporation, either as principal or
agent, to display, sell, barter, or exchange, or to offer to expose for display, sale, barter,
or exchange in the Philippines; or to possess with intent to sell; or to cause to be sent,
carried, or brought for display, sale, barter, or exchange from any foreign country into
the Philippines, or from the Philippines into any foreign country, any article which is
falsely packed, labeled, marked, or branded, or is packed, labeled, marked or branded
 MODULE [PRICIPLES OF MARKETING]

in such a way as to misrepresent the character, amount value, contents, properties, or

condition of the article contained or of the materials of which the article is composed; or
any article which is accompanied by advertising matter which misrepresents the
character, amount, value, contents, properties or condition of the article advertised, or of
the materials of which it is composed whether or not the article or the container thereof
is mislabeled, misrepresented, or misbranded.

The possession of any of the article herein mentioned in quantities in excess of the
reasonable needs of the possessor shall constitute prima facie evidence of the
possession with intent to sell. (As amended by Com. Act. No. 46.)
Sec. 2. It shall be unlawful for any person, firm, or corporation, either as principal or
agent, to insert or cause to be inserted in any newspaper, book or periodical printed in
the Philippines any advertising which misrepresents the character, value, properties or,
condition of the article advertised or of the materials of which it is composed.
Sec. 3. It shall be unlawful for any person, firm or corporation, either as principal or
agent, in any handbill, billboard, sign, pamphlet, circular, projected lantern slides, or any
other form of advertising whatsoever printed, displayed, or circulated in the Philippines
to misrepresent the character, value, properties or condition of any article offered or
exposed for sale, barter, or exchange or of the materials of which said article is
composed.
Sec. 4. It shall be unlawful for any person, firm or corporation, either as principal or
agent, in any prospectus, handbill, billboard, sign, pamphlet, circular, projected lantern
slides, or any other form of advertising whatsoever printed, displayed, or circulated in
the Philippines, to misrepresent the character or value of any stocks, bonds, or shares
of any firm or corporation or of the properties or prospectus of any firm or corporation.
Sec. 5. It will be unlawful for any person, or corporation, whether as principal or agent,
to use the mails of the Philippines for the circulation of any advertising matter prohibited
by this Act; but nothing in this Act shall be interpreted as prohibiting the sale or delivery
through the mails in the Philippines of standard books, magazines or periodicals,
published in the United States or foreign countries, but all the provisions of this Act shall
apply to all classes of publications issued by persons, firms or corporations, either as
principal or agent, for the advertisement or the promotion of the sale of their own
merchandise, stocks, bonds, shares, etc.
Sec. 6. Any person who shall violate any provisions of this Act shall, upon conviction, be
penalized by a fine of not less than two hundred pesos and not more than five thousand
pesos or by imprisonment for not less than one month nor in excess of six months, or
both such fine and imprisonment in the discretion of the Court. (As amended by Com.
Act No. 46.)
 MODULE [PRICIPLES OF MARKETING]

Sec. 7. This Act shall take effect six months after approval.
The Law on Weights and Measures
ENACTING A LOCAL TAX CODE FOR PROVINCES, CITIES, MUNICIPALITIES AND
BARRIOS
WHEREAS, the Constitution under Section 5, Article XI, enjoins that “Each local
government unit shall have the power to create its own sources of revenue and levy
taxes, subject to such limitations as may be provided by law”;
WHEREAS, the Constitution under Section 2, Article XI, also enjoins the allocation
among the different local government units of their powers and resources;
WHEREAS, the Constitution provides that the State shall guarantee and promote the
autonomy of local government units to ensure their fullest development as self-reliant
communities and local autonomy can be guaranteed and enhanced only by enabling the
local government units to exploit fully their taxing and other revenue-raising powers;
WHEREAS, there is an urgent and compelling need to codify all existing tax laws
scattered in a welter of various Acts, Commonwealth Acts and Republic Acts, as well as
in a number of Supreme Court decisions, for a more efficient system of local tax
administration that will work to the benefit of both the government and the taxpayer;
WHEREAS, a local tax code delineating the taxing powers of the different local
government units and limiting the same powers conformably to the provisions of the
Constitution will ensure uniformity in local taxation, obviate multiple and competitive
local impositions and general adequate resources for the local government units without
over-burdening the taxpayers; and
WHEREAS, a local tax code insuring adequate resources will also transform the local
government units into effective instruments of national development and progress;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the
Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated
September 21, 1972, and General Order No. 1 dated September 22, 1972, as amended,
in compliance with the pertinent mandates of the Constitution and to provide the local
government units with adequate sources of revenue that will make them viable, self-
sufficient and effective instruments of national development and progress, without over-
burdening the taxpayers, hereby adopt, promulgate and decree, as it is hereby adopted,
promulgated, and decreed as part of the law of the land and attached Local Tax Code
for implementation.
 MODULE [PRICIPLES OF MARKETING]

Product Standards
Product Standards: Its Objectives
1. To upgrade the quality of Philippine products to enable them to qualify and be
competitive in both the domestic and foreign markets.
2. To protect and safeguard the interest of consumers and the public, especially in
matters of health and safety.
3. To promote and improve manufacturing efficiencies for better product quality and
higher productivity.
4. To instill standards and quality consciousness among the Filipino people.
Benefits of Standardization
1. Defines fitness for use.
2. Enhances product competitiveness.
3. Increases domestic and export trade.
4. Protects consumers and environment.
5. Promotes product interchangeability.
6. Simplifies communications.
7. Promotes economy in use of resources.
8. Facilitates transfer of technology.
Products Required to have Philippine Standard Mark
1. Electrical supplies
2. Fire extinguishers
3. Tires and tubes
4. Batteries
5. Cement
6. Reinforcement bars
7. LPG Cylinders
8. Concrete and wood nails
9. Medical grade oxygen
Products Screened by Bureau of Product Standards Before Selling
1. Toilet soap
2. Detergent bars
3. Toothpaste
4. Facial and toilet tissue
5. Bananas
6. Pineapples
7. Papers
Basic Consumer Responsibilities
 MODULE [PRICIPLES OF MARKETING]

1. Critical awareness. Which is an active, persistent and careful consideration of a

belief or supposed form of knowledge in light of the grounds that support it, and
the further conclusions to which it tends.
2. Action. The responsibility to be assertive.
3. Social concern. The responsibility to be aware of the impact of consumption to
other citizens.
4. Environmental awareness. Being aware of the natural environment and making
choices that benefit the earth, rather than hurt it. Some of the ways to practice
environmental awareness include: using safe and non-toxic building supplies,
conserving energy and water, recycling, activism, and others.
5. Solidarity. The responsibility to organize as consumers to develop strength and
influence.
Basic Consumer Rights
1. Right to Basic Needs, which guarantees survival, adequate food, clothing,
shelter, health care, education and sanitation. With this right, consumers can look
forward to the availability of basic and prime commodities at affordable prices
and good quality.
2. Right to Safety—the consumer should be protected against the marketing of
goods or the provision of services that are hazardous to health and life.
3. Right to Information—the consumer should be protected against dishonest or
misleading advertising or labeling and has the right to be given the facts and
information needed to make an informed choice.
4. Right to Choose—the consumer has the right to choose from among various
products at competitive prices with an assurance of satisfactory quality.
5. Right to Representation—the right to express consumer interests in the
making and execution of government policies.
6. Right to Redress— the right to be compensated for misrepresentation, shoddy
goods or unsatisfactory services.
7. Right to Consumer Education, which is the right to acquire knowledge and
skills necessary to be an informed customer.
8. Right to a Healthy Environment—the right to live and work in an environment
which is neither threatening nor dangerous and which permits a life of dignity and
well-being.

Activity:
Give three (3) examples each:
1. Adulteration
2. misbranding
 MODULE [PRICIPLES OF MARKETING]

Reference:
https://www.forbes.com/sites/steveolenski/2015/12/03/5-ways-to-implement-education-based-
marketing/#1f4a24fb4aa1