Unit 1.pptx

• Unit 1: (4 Hours)
• Introduction to the study of Consumer Behaviour: Meaning &
Definition of Consumer Behaviour,
• Difference between Consumer & Customer, Nature & characteristics
of Indian Consumers, Consumerism:
• meaning, Consumer Movement in India, Rights & Responsibilities of
consumers in India, Benefits of
• consumerism.

Unit One: Meaning and Definition of Consumer Behaviour
Consumer Behaviour is the study of how individual
customers, groups or organizations select, buy, use,
and dispose ideas, goods, and services to satisfy
their needs and wants.
It refers to the actions of the consumers in the
marketplace and the underlying motives for those
actions.

The study of consumer Behaviour assumes that the
consumers are actors in the marketplace.
The perspective of role theory assumes that
consumers play various roles in the marketplace.
Starting from the information provider, from the
user to the payer and to the disposer, consumers
play these roles in the decision process.

The roles also vary in different consumption
situations;
For E.g., a mother plays the role of an
influencer in a child’s purchase process,
whereas she plays the role of a disposer for the
products consumed by the family.

Some selected definitions of consumer Behaviour are as
follows:
1. According to Engel, Blackwell, and Mansard, ‘consumer
Behaviour is the actions and decision processes of people
who purchase goods and services for personal consumption’.
2. According to Louden and Bitta, ‘Consumer Behaviour is the
decision process and physical activity, which individuals engage
in when evaluating, acquiring, using or disposing of goods and
services.

Consumer Behaviour is the study of how individual
make decisions to spend available resources
( time, money, effort).
It includes the study of :
What they buy?
Why they buy it?
when they buy it?
where they buy it?
how often they buy it?
how often they use it ?
Class Discussion

Difference between Consumer/Customer
•The consumer is the one who consumes
the goods, i.e. the user of the goods. It is
commonly misconstrued with the term
customer, which refers to a person who
buys the goods or commodity and pays
the price for it.

Difference between Consumer/Customer
BASIS FOR COMPARISON CUSTOMER CONSUMER
Meaning The purchaser of goods or
services is known as the
Customer.
The end user of goods or
services is known as a
Consumer.
Resell A customer can be a business
entity, who can purchase it for
the purpose of resale.
No
Purchase of goods Yes Not necessary
Purpose Resale or Consumption Consumption
Price of product or
service
Paid by the customer May not be paid by the
consumer
Person Individual or Organization Individual, Family or Group of
people

Nature & Characteristic of
Indian Consumer

Characteristics of consumer India
A Shift From Need Based To Want
Based Consumer……..
India's Transformation from a need based to want based market

• Things are changing :
Attitude shift towards consumerism
Age structure of population
Disposable income
Education level
Gender bias
From Traditional to Modernized traditional…

• Indian consumer is getting more materialistic:
Indian consumer is getting more materialistic Almost 50% of
Indian urban population had adopted work hard and get rich
policy by 1996 and another 9% had done so by 2006 Gallop
Survey:
Indians are more motivated than ever by
personal ambition and a desire for
material success with an average
work-week of 50 hours. India is
the hardest working nation globally.

• Expected Utility from Products/ Services :
From functional to lifestyle

• Consumerism: A way of life :
• A way of life Indians desire to set money aside for electronics
and durables.
• Here and Now attitude increasing
• Travel and entertainment
• Trend applicable to 15 to 55 age group
• All pervasive-urban and rural .
• 1600% growth in usage of mobile phones….
• Advt of designer jewelry, LCD, watches…..
• BPO - first time market entrants

•Comfort with borrowing fund for future consumption :
•Being in debt is no more a discomfort
•EMI is legitimizing borrowing,
•making indebtness more acceptable.
•60% salaries in EMI
•makes a lot of sense in borrowing

Foreign is passé ;India is paramount :
• Made in India has got more credibility
• Faith in domestic companies have grown up
• Consumer wants products that are made for Indian needs

•Eating habits :
Eating habits From traditional meals to Indianized.

•The rise of Women :
• I can and I will!!
• Influencing to Decisive role in buying decision
• More eating out , more phone calls
• Women are changing and reorganizing their
household chores
• Onion paste, ginger paste, etc…
• Ready to eat food

•Comfort level with Technology :
InfoTech awareness
InfoTech driven employment opportunities
Mushrooming of call centers
Washing machines with fuzzy logic….and
much more

CONSUMERS MOVEMENT
IN INDIA, RIGHTS AND
RESPONSIBILITES, AND
LEGISLATIONS

Who is consumer
 Buys goods and services
 To be consumed by himself or
 By someone else on behalf of the buyers

What is consumerism?
Self effort on the part of the consumer for safeguarding
themselves is known as “consumerism”.
Consumerism refers to
a movement by consumer or by consumer association
To ensure fair and honest (ethical) practices on the part
of Manufactures, traders, dealers, services providers in
relation to consumer.

Ministry Of Consumer Affairs, Foods And
Public Distribution

Ministry of
consumer
Affairs
Department
of consumer
affairs
Department
of food and
PDS

NATIONAL CONSUMER DAY
24th of December is celebrated as
National Consumer Day commemorating
the coming into effect of the Consumer
Protection Act, 1986.

WHY CONSUMERISM?
•Empower consumers to have access to the basic
needs of life.
•Protect consumers from hazards to their life and safety
•Enhance the access of consumers to adequate
information to enable them to make informed and
environmentally benign choices according to individual
as well as societal needs.
•Promote consumer education through formal as well as
non-formal education systems so as to help consumers
in their decision making.

•Promote accountability and transparency through adoption of
Citizens’Agreements.
•Promote an independent consumer movement in the country by
providing assistance to consumer and other relevant groups to
form their organisations and giving them the opportunity to
present their views in the decision-making process.
•Initiate and implement appropriate mechanisms for exchange of
information on measures of consumer protection, nationally,
regionally and internationally.

Six rights of consumers
 Right to Safety
1. Means right to be protected against the marketing of goods
and services, which are hazardous to life and property. The
purchased goods and services availed of should not only
meet their immediate needs, but also fulfill long term
interests.
2. Before purchasing, consumers should insist on the quality
of the products as well as on the guarantee of the products
and services.

Right to be Informed
1. Means right to be informed about the quality, quantity,
potency, purity, standard and price of goods so as to protect
the consumer against unfair trade practices.
2. Consumer should insist on getting all the information about
the product or service before making a choice or a decision.
This will enable him to act wisely and responsibly and also
enable him to desist from falling prey to high pressure selling
techniques.

 Right to Choose
 Means right to be assured, wherever possible of access to variety of goods
and services at competitive price.
 It means right to be assured of satisfactory quality and service at a fair price.
 It also includes right to basic goods and services. This is because unrestricted
right of the minority to choose can mean a denial for the majority of its fair
share.
 This right can be better exercised in a competitive market where a variety of
goods are available at competitive prices

 Right to be heard
 Means that consumer's interests will receive due consideration at
appropriate forums.
 It also includes right to be represented in various forums formed
to consider the consumer's welfare.
 The Consumers should form non-political and non-commercial
consumer organizations which can be given representation in
various committees formed by the Government and other bodies
in matters relating to consumers.

 Right to Seek redressal
 Means right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers.
 It also includes right to fair settlement of the genuine grievances of the
consumer.
 Consumers must make complaint for their genuine grievances.
 Many a times their complaint may be of small value but its impact on
the society as a whole may be very large.
 They can also take the help of consumer organisations in seeking
redressal of their grievances.

Right to Consumer Education
 Means the right to acquire the knowledge and skill to be
an informed consumer throughout life.
 Ignorance of consumers, particularly of rural consumers, is
mainly responsible for their exploitation.
 They should know their rights and must exercise them.
Only then real consumer protection can be achieved with
success.

CONSUMER DUTIES
• Insist on receipts or bill without fail, on all the purchases
made.
• Read information carefully on the packets before purchase.
• Do not feel tempted on misleading advertisements.
• Buy standardized products only i.e. of ISI. AGMARK BRANDS
• File consumer complaints against default in goods deficiency
in services, or unfair trade practice.

CONSUMER RESPONSIBILITIES
•Responsibility of self help.
•Proof of transactions.
•Proper claim.
•Proper use of product/ services.

Responsibility of self help
• It is always desirable that the consumer should not depend on
the seller for information and choice as far as possible .

Proof of transactions.
• The proof of purchase and documents related to purchase of
durable goods should be invariable obtained and preserved.

Proper claim
•Consumers are expected to bear in mind
that while making complaints and claiming
compensation for loss or injury they should
not make unreasonably large claims

Proper use of Products/ Services
• Some consumers, especially during the guarantee
period,
• make rough use of the product, thinking that it will be
replaced during the guarantee period.
• This is not fair on their part. They should always use
the products properly.

President of NCDRC Rajesh kumar Agrawa;
NATIONAL CONSUMER DISPUTES REDRESSAL
COMMISSION

‘CONFONET’ SCHEME
The scheme of ‘Computerization and Computer
Networking of Consumer Fora in the country,
(CONFONET)’ was Launched during the 10th
Plan period in March, 2005 at a cost of `
48.64 crores.

SAVERA
 Society For Advancement Of Villages Empowerment
And Rehabilitation Of All (SAVERA)
 The project proposal for organizing information and
education and communication (IEC) programme in
katihar and kishangarh district of bihar
 For strengthening consumer movement at grassroots level
and to set up a consumer counseling committees at
village and block level
 Has been sanctioned at a cost of ` 52.02 lakhs.

•Benefits of Consumerism
• Consumer Education
• Consumer Groups can liaison between
Government & Industry
• Product Research & Information to
Consumer
• Inculcate Honesty, Responsiveness &
Responsibility on to Manufacturers &
Marketers.
• Move towards Societal Concept of
Marketing

Unit 1.pptx

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