LAW OF TORTS-II (CONSUMER PROTECTION) PROJECT

“CONCEPT OF CONSUMERISM AND ITS RELEVANCE”

[Submitted as a partial fulfilment of the requirements for BALLB (Hons.) 5 Year Course]
Session: – 2022 - 2027

Submission on: [16th May 2023]

Submitted by: Under Supervision of:

Yashu Mathur Mr Balkesh Yadav
Semester- II, Sec.-B Faculty
Roll no.-121 Five Year Law College
University of Rajasthan,
Jaipur

DEPARTMENT OF LAW
UNIVERSITY OF RAJASTHAN
JAIPUR

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 CERTIFICATE

Mr. Balkesh Yadav Date: 16-05-2023

Faculty

University Five Year Law College

This is to certify that Yashu Mathur, student of II Semester of University Five Year Law
College, University of Rajasthan has carried out the project entitled “Concept Of
Consumerism And Its Relevance” under my supervision and guidance. It is an investigation
report of a minor project. The student has completed research work in my stipulated time and
according to the norms prescribed for the purpose.

SUPERVISOR
Mr. Balkesh Yadav

(Faculty)

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 DECLARATION

I, Yashu Mathur, hereby declare that this Project titled “Concept Of Consumerism And Its
Relevance” is based on the original research work carried out by me under the guidance &
supervision of Mr. Balkesh Yadav.

The interpretations put forth are based on my reading & understanding of the original texts.
The books, articles & websites etc. which have been relied upon by me have been duly
acknowledged at the respective places in the text.

For the present project which I am submitting to the University, no Degree or Diploma has
been conferred on me before, either in this or in any other University.

Date: 16-05-2023 Yashu Mathur

Place: Jaipur Roll no. -121
Semester – II [B]

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 ACKNOWLEDGEMENT

The present study relates to a comprehensive analysis of “Concept Of Consumerism And

Its Relevance” to give clear underrating of the subject in broader perspective.

I am heartily grateful to, Mr. Balkesh Yadav , Faculty, University five year law college,
University of Rajasthan, Jaipur, for having guided me through this long & difficult journey that
culminated in the present Project without whose co-operation, stimulating inspiration, constant
help, able guidance, innovative deliberations & continuous supervision this work could not
have seen the light of the day. Hence, I sincerely want to express my deep sense of honour &
gratitude towards him.
I shall be failing in my duty if I do not express my debt of gratitude to Dr. Akhil Kumar,
Director, Deputy-director Dr. Ghan Shyam Bera and Deputy-director Dr. Sandeep Sharma,
University five-year law college, University of Rajasthan, Jaipur, for extending his co-operation
in the completion of this work

I would also like to thank to all library staff & the remaining staff members of the Department
of Law, University of Rajasthan, Jaipur who have always extended an h& of co-operation
throughout the course of the research work.

Date: 16-05-2023 [ Yashu Mathur ]

University five-year law college,
University of Rajasthan,
Jaipur

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 TABLE OF CONTENT

CERTIFICATE 2

DECLARATION 3

ACKNOWLEDGEMENT 4

CHAPTER-1

Introduction 6-7

1.1 What Is Consumerism? 6

1.2 Understanding Consumerism 6-7

CHAPTER- 2

History of Consumerism 8-9

CHAPTER-3

Consumerism in India 10-11

3.1 Need for Consumer Protection 10-11

3.2 Consumer Protection 11

CHAPTER- 4

Relevance of Consumerism 12-13

CONCLUSION 14
BIBLIOGRAPHY 15

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 CHAPTER-1

INTRODUCTION

1.1 What Is Consumerism?

Consumerism is the idea that increasing consumption of goods and services purchased in the
market is always a desirable goal and that a person's wellbeing and happiness depends
fundamentally on obtaining consumer goods and material possessions. In an economic sense,
it is related to the predominantly Keynesian idea that consumer spending is the key driver of
the economy and that encouraging consumers to spend is a major policy goal. From this point
of view, consumerism is a positive phenomenon that fuels economic growth.

In common use, consumerism refers to a tendency of people living in a capitalist economy to

engage in a lifestyle of excessive materialism that revolves around reflexive, wasteful, or
conspicuous overconsumption. In this sense, consumerism is widely understood to contribute
to the destruction of traditional values and ways of life, exploitation of consumers by big
business, environmental degradation, and negative psychological effects. Early uses of the term
in the mid-20th century were intended to have a positive connotation, which would emphasize
the benefits that capitalism had to offer consumers in improving standards of living and an
economic policy that would prioritize the interests of consumers, but these meanings have
fallen out of general use.

KEY TAKEAWAYS

 Consumerism is the theory that states people consuming goods and services in large
quantities will be better off.
 Some economists believe that consumer spending leads to an increase in production
and economic growth.
 However, consumerism has been widely criticized for its economic, social,
environmental, and psychological consequences.

1.2 Understanding Consumerism

As consumers spend, economists presume that consumers benefit from the utility of the
consumer goods that they purchase, but businesses also benefit from increased sales, revenue,

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and profit. For example, if car sales are increasing, auto manufacturers will see a boost in
profits. Additionally, the companies that make the steel, tires, and upholstery for cars also see
increased sales. In other words, spending by the consumer can benefit the economy, and the
business sector in particular. Because of this, businesses (and some economists) have come to
view increasing consumption as a critical goal in building and maintaining a strong economy,
irrespective of the benefit to the consumer or society as a whole.

In Keynesian macroeconomics, boosting consumer spending through fiscal and monetary

policy is a primary target for economic policy makers. Consumer spending makes up the lion's
share of aggregate demand and Gross Domestic Product, so boosting consumer spending is
seen as the most effective way to steer the economy toward growth. Saving can even be seen
as harmful to the economy because it comes at the expense of immediate consumption
spending.

Consumerism also helps shape some business practices. Planned obsolescence of consumer
goods can displace competition among producers to make more durable products. Marketing
and advertising can become focused on creating consumer demand for new products rather
than informing consumers.

Beyond these effects, consumerism involves on the impact that increasing consumption in
itself, and the view of the consumer as target of economic policy and a cash cow for the
business sector, has on the consumer and the society within which the economy operates.
Economist Thorstein Veblen developed the concept of conspicuous consumption, where
consumers purchase, own, and use products not for their direct use value but as a way of
signaling social and economic status. As standards of living rose subsequent to the Industrial
Revolution, conspicuous consumption grew. High rates of conspicuous consumption can end
up being a wasteful zero-sum or even negative-sum activity as real resources are used up to
produce goods that are not valued for their use. This can be analogous to the phenomenon of
rent seeking, including associated deadweight loss, but with social status as the objective rather
than political influence.

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 CHAPTER-2
HISTORY OF CONSUMERISM

Consumerism is an economic and societal way of viewing and understanding the economy,
which focuses on the idea of the consumption of a steady supply of goods and services by the
citizens of a given country. The consumption of goods and services by individual consumers
helps drive the economic engine of a consumerist society in that it creates jobs for workers and
wealth for businesses owners. While consumerism as an ideology can be present in several
different types of economic systems, it is most often associated with capitalism. In particular,
consumerism plays an important role in modern democratic countries with mixed economies
such as: the United States, England, France, Canada, etc. Furthermore, consumerism is an
important component of the concept of supply and demand because it involves the supply of
goods and services and the demand (consumption) of goods and services by individual
consumers. To fully understand the significance of consumerism as an ideology it’s also
important to understand its development throughout history.

While people across many different civilizations and time periods have always purchased and
consumed goods, the modern concept of consumerism is best understood to have begun in the
late 1600s in Europe. From that point, consumerism intensified throughout the 1700s and
1800s and became a major societal phenomenon in which the consumption of products became
a vitally important task for most people in society. As stated above, consumerism is generally
associated with the economic system of capitalism. During the early years of the development
of consumerism, two major historical events came to play an important role, which included:
Industrial Revolution and the Age of Imperialism.

During the Age of Exploration, which occurred from the 15th to the 18th century, European
explorers ‘discovered’ large sections of previously unknown (to Europeans) land, such as: the
Americas, Africa, Australia, and parts of Asia to the far east. This exploration by the main
European nations of the time eventually led to widespread colonialism throughout the newly
explored regions. The European nations (especially England, France, Spain and Portugal)
established colonies throughout these regions, which is often referred to as the Age of
Imperialism..

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The Industrial Revolution also played a major role in the spread of consumerism. It first began
in the 1700s in England and soon spread to many other countries in Europe and North America.
At its heart, industrialization centered on the use of capitalist economic policies that led to the
emergence of many different factories and mines. As a result of the economic freedom of the
time period, these factories were able to produce countless number of inventions and products
on a mass-scale. Before the start of the Industrial Revolution, goods were produced in a system
referred to as the ‘cottage industry’. This means that the goods were created on a small scale
often in people’s homes. As a result of this method, goods were often unique in nature and
were not produced in large numbers. The Industrial Revolution fundamentally changed this
and instead caused factories to be located in cities and towns where goods could instead be
produced on a mass scale. This abundance of new and cheap goods meant that there were
many different and affordable products for people to buy. This led to consumerism because it
created the system in which people could reasonably afford a variety of goods. As well, the
wealth accumulated by the business owners of the time period allowed them the ability to afford
many more goods and helped intensify the consumerist societies of the time.

Consumerism further developed in the 20th century. For example, some people consider the
1950s and 1960s as the ‘golden age of consumerism’. During this time period, goods became
much less expensive and some products were able to sell on a very large scale due to effective
marketing campaigns. In general, marketing refers to the advertisements that companies
produce to sell their products to a large audience. Marketing had always been a popular method
of selling a good but the marketing campaigns of the 20th century became much more
sophisticated. This caused an explosion in modern consumption rates, as marketing is still an
important consumerist tool in the 21st century.

Another important aspect of consumerism in recent years has been the concept of outsourcing.
In general, outsourcing is when companies in western countries such as the United States and
Canada send their manufacturing to other countries such as Mexico and China. Companies do
this to lower the overall cost of wages when developing a product because workers in countries
like China and Mexico will work for much smaller wages than similar workers in the United
States and Canada. Outsourcing as a concept became popular throughout North America and
Europe throughout the 1980s and continues still today..

Today, consumerism continues to intensify with influential marketing campaigns, outsourcing,

and a cheap and steady supply of both resources and goods.

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 CHAPTER-3
CONSUMERISM IN INDIA

3.1 Need for Consumer Protection

Consumer choice is influenced by mass advertising using highly developed arts of persuasion.
The consumer typically cannot know whether drug preparations meet minimum standards of
safety, quality and efficacy. He usually does not know whether one prepared food has more
nutritional value than others; whether the performance of a product will in fact meet his needs
and expectations; or whether the “large economy size” is really a bargain. Hence, we need
consumer protection.

1. Physical protection of the consumer, for instance, protection against products that are unsafe
or endanger health and welfare of consumer.

2. Protection of the consumer against deceptive and unfair trade practices. Consumer must have
adequate rights and means of redress against business malpractices and frauds.

3. Ecological and environmental effects of chemical, fertiliser or refinery complexes will have
to be seriously considered because they pollute water, air and food and endanger human life.
Consumer wants due protection against all types of pollution; he wants enriched quality of life
— a beautiful, healthy, and peaceful environment free from pollution.

4. Adequate protection of consumer public against the abuse of monopoly position and/or
restrictive trade practices. Protection delayed is protection denied.

Greater and free competition in the market is of definite advantage to the consumer.
Competition can reduce prices, enhance quality and stimulate innovation in product-mix and
marketing-mix. Innovation means progress and progress means life, a prosperous life.
Competition is the dispenser of justice to the consumer and producer.

Consumer seeks protection, advice and information when his rights are adversely affected. The
shift from buyer beware to seller beware has increased the role of Government in promoting
the consumer’s right to safety, the right to be informed, the right to choose, the right to be
heard, the right to redress and right to represent.

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These consumer rights constitute Consumer Bill of Rights. In 1962, President John F. Kennedy,
in his consumer message, summed up these rights of consumers and paved the way for
organised consumerism in the U.S.A. and all over the world.

3.2 Consumer Protection

The root-cause of consumer movement or consumerism is ‘consumer dissonance’, as it has

been so nicely termed. Dissonance means after purchase doubts, dissatisfaction, disillusion,
disappointment. These are the sentiments of all dethroned sovereigns. But the consumer
protection (the core of consumerism) is essential for a healthy economy.
The apparatus of consumer protection alone can give necessary strength to consumers in the
market and restore the balance in the buyer-seller relationship. Basically, consumers are
demanding four ‘rights’ from the company- Safety of products, full and accurate information
about products and services (without which some articles may not be usable and may produce
sales-resistance), a choice and a voice (redress).
Growth of consumer movement was a proof that business had not been practising the marketing
concept but merely paying it lip sympathy. Drucker revealed that consumerism is “product-
oriented marketing.” Consumer protection or consumerism will be redundant if business
sincerely practices marketing concept, viz. customer-oriented marketing philosophy.
Kotler is one of the few marketing theorists to see that consumerism is the ultimate expression
of the marketing concept because it forces product managers and marketers to look at things
from consumer’s point of view. In other words the pressure of consumer protection really
presents opportunities not challenges which, if seized upon by the marketers, can provide
additional strength to their marketing effort.
Marketers should realise that only satisfied customers are the best business assets and they
should not spare any efforts in obtaining as many as possible. This is the underlying spirit of
marketing concept and if such a policy is executed not only in letter but also in spirit, there is
no reason to have any additional constraint like consumerism or legislation.

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 CHAPTER-4
RELEVANCE OF CONSUMERISM

I believe that relevance is the single biggest determining factor for a brand’s long-term success.
Yet healthcare companies have struggled to maintain relevance in the face of changing
government regulations, mounting consolidations pressures, and most importantly, the rise of
consumerism. The same revolution that has reshaped the way people buy groceries, music and
airline tickets is now underway in healthcare.

This rise of global consumerism has shifted the healthcare landscape tremendously. People
around the world are now defining personal health in terms of wellness, not illness. They’re
joining in more conversations about diet, exercise and stress reduction. But perhaps even more
importantly, people are demanding more from brands. Thanks to great experiences with
companies like Netflix and Amazon, people expect sophisticated levels of transparency and
digital engagement from ALL brands.

Consumers today don’t understand why they are not able to schedule appointments via email
or access medical records online. That’s why millennials, in particular, are flocking to start-up
companies like Oscar, ZocDoc, and PillPack, which provide health-related solutions to
consumers on their own terms. In a recent survey conducted by Prophet and GE Healthcare
Camden Group, 73 percent of millennials said they are willing to use on-demand medical
centers, while 64 percent would try retail clinics and 52 percent want telemedicine options.
With so many consumers open to alternative sources of care, healthcare companies need to find
a way to adapt and remain relevant in people’s lives.

A few years ago, a global pharmaceutical company, learned an important lesson in

consumerism when it spun off part of its business, including its best-selling drug. The
remaining company was left with a mix of nutrition products, medical devices, and diagnostic
products, but no overarching brand story.

However, its situation was not unique. Most of its competitors were in the same position. For
decades, pharmaceutical marketers were trained to talk about the features and benefits of a
given drug, not how the company as a whole could help consumers live richer, fuller lives.

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They set out to discover what consumers want from healthcare companies today. The
breakthrough insight – that people no longer see health as a single event. Sure, when they’re
sick, they want to get better and are grateful for any medication or treatment that helps them.
But they see their health as a much bigger story, encompassing diet and exercise as much as
medication. They don’t think about what could go wrong. Consumers think about what they
can do to make things go right.

It was also discovered that most people don’t think about their health selfishly. They see it in
terms of the people they love. Wanting to be able to play with their kids or not wanting to
burden their spouse were prime motivations we heard over and over.

For this pharmaceutical company, it was realized the key to maintaining relevance was
recognizing two very important truths. The first is that people don’t view health as episodic but
as a continuous journey. So it must think holistically about preventative health. The second is
the incredible importance of family in healthcare. People want to feel healthcare companies are
helping them care for themselves and their families. They want to see the brand working
alongside them to keep them and their family well.

The rise of consumerism is also disrupting the health insurance industry. In Prophet’s Brand
Relevance Index, Oscar, a four-year-old company, earned a higher brand relevance ranking
than industry giants Blue Cross Blue Shield, Humana, UnitedHealthcare, and Cigna. Why?
Because consumers are drawn to Oscar’s brand promise – “smart, simple insurance.” Most
people hate shopping for insurance and are turned off by the unfamiliar language and formal
disclosures. But Oscar is easy to use, upbeat and even fun. Instead of endless scrolling through
small print, Oscar treats consumers to an animated video on its website. It uses technology to
alleviate customer pain points, much in the same way Amazon and Spotify have done.

All companies, from healthcare providers to big box retailers to financial services companies,
need to understand how the rise of global consumerism has changed people’s expectations. It’s
not enough anymore to simply provide a service. Consumers want to know what a company
stands for. How does it help them achieve their goals? The companies that are able to embrace
consumerism as a transformative force will earn and re-earn loyalty at every point in the
customer journey, achieve relentless relevance, and enjoy success for many, many years to
come.

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 CONCLUSION

In conclusion, Consumer culture has been incredibly successful. Not only has it been successful
in satisfying our needs and desires, but it also has been successful in redefining what are needs
are and expanding our desires. If we accept these desires as natural or inevitable, then consumer
society seems natural and inevitable as well.

Consumerism on the other hand does not only feed our desires but has left this earth with
beyond reconcilable damages. Today are demand for goods is increasing beyond the capability
of what our earth can come up with it. If our greed for consumption keeps increasing we will
have to very soon give up our basic needs because our demands cannot be kept up with.

Consumerism is not just an issue that has come about in this new age and modern time it has
been around for decades. For the most part, we only become aware of consumption when it is
a problem, when there is environmental degradation caused by the production of goods in
excess and more than we can consume. To understand this social phenomenon we must first
understand the social and historical context of a consumer society.

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 BIBLIOGRAPHY
Websites:
 https://www.ukessays.com/essays/cultural.../about-consumer-culture.php
 https://www.investopedia.com/terms/c/consumerism.asp
 http://www.brandquarterly.com/maintaining-relevance-age-consumerism-lessons-
healthcare-industry
Books Referred:
 Law Of Torts, by Dr. R.K. Bangia
 Law of CONSUMER PROTECTION, by V.K. Agarwal

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