Question

( Please answer 1 to 23 in your own word respectively)

HOW ARE INDIAN CONSUMERS EXPLOITED-

1. SUPPLY OF ADULTERATED AND SUBSTANDARD PRODUCTS

2. CHEATING CONSUMERS BY GIVING LESSER QUANTITY FOR THE PRICE,

3.DISHONOURED GUARANTEES AND WARRANTIES,

4.POOR REDRESSAL OF CUSTOMERS' GENUINE GRIEVANCES,

5.MAKING CONSUMER BUY UNWANTED GOODS, CREATING A SCARE OUT OF SCARCITY,

6.MISLEADING REPRESÈNTATION ON UTILITY OF PRODUCTS,

7.MANIPULATING CONDMONS OF DELIVERY,

8.CUSTOMERS PAY FOR NUMEROUS INTERMEDIARIES,

9. FALL IN PRICES -NEVER PASSED TO CONSUMERS,

10.BUYING UNAFFORDABLE GOODS,

11.ADVERTISEMENT COST,

12. COUNTERFEITS CONSTITUTE SUBSTANTIAL QUANTITY OF GOODS IN STORE SHELVES,

13.TIE-IN-SALES,

14.GIFTS FOR PRODUCTS/SERVICES

Explain this factor in your own word

Answer 1

1. Indian goods mostly food items are found to be adulterated like poor quality, mixing in food items such as mixing in pulses, rice etc which may be cause of health problems.

2. Giving lower quantity for the same price is a market trend in Indian market in which manufacturer reduces the quantity but keep the price same like in potato wafers the pack price is at 10/- but quantity has been reduced from 100 to 60grams.

3. The guarantee and warranty are Dishonored as the retailer misguide the consumer regarding the warranty and when the consumer claims any service the manufacturer Dishonor the warranty keeping many condition it happens specially in online sales and purchase.

4. When consumer are not satisfied with good purchase they put complaint but our system provide poor redressal of consumer grievance and consumer have to wait for a longer period to get redressed.

5. Sometimes manufacturer or retailer creates scarcity like during lockdown the retailer creates scarcity of groceries items and increase price.

6. Advertising is a medium which is used by producer giving misleading representation and information about the utility of product like fairness creams promise to give fairness and misguide consumer.

7. Manufacturer manipulate condition of delivery so that they can charge higher prices, it occurs in market where Economic factors like transportation costs which makes it inefficient to return excessive delivery to original owners.

8. There is a wide gap between the goods where it is produced and where it is sold and manufacturer uses long channels to sell the goods like wholesalers , agents etc are used to sell , this increases the costs and prices because these agents hike prices and create scarcity.

9. Sometimes the manufacturer reduces the price for goods but the agent and intermediary don't reduce their prices to earn more profits , and consumer have lesser knowledge and pay higher prices.

10. Advertising promotes materialism which compels consumer to buy the goods which they don't require but due to status related to the good like luxurious goods consumer are willing to pay higher prices. even same utility products are available at lower prices.

11. It is said that advertisement adds to social costs as hiring Brand ambassador, aggressive promotional techniques used adds to costs and increase prices.

12. Imitation of product cause losses to both industry and consumer because they involve social costs , consumer receive poor quality goods at higher prices and are exposed to safety and health dangers.

13. Tie in sales Forces the consumer to buy product that they don't require as in this sale of one product is sold at a condition that second products has to be purchywhich increases Costs of consumer purcht.

14.gifts is an attempt to persuade consumer to buy the goods in order to get the gifts associated with the goods , this help the seller to increase the sales of low quality goods like offering holiday package with purchase of 5009/-