Consumerism refers to the activities of voluntary organizations and others designed to protect the rights of consumers. It implies the organized efforts of consumers seeking redress, restitution and remedy for dissatisfaction caused by policies and practices of business.
Evolution of Consumerism
The marketers’ slogan that “customer is the king” remains very often as a vocal pledge. ‘Caveat emptor’ (let the buyer watch out) is still the motto of many marketers. Consumer sovereignty exists largely on paper. Therefore, the need felt to protect the pursuits of customers. The consumer movement started for this purpose. The movement started within the West as a consequence of put-up-business traits. It rose against risky products and fake claims of manufacturers.
As customer movement gained momentum, other industries and customer offerings were quick to undertake safety standards for their merchandise. The American Government allocates more than a hundred million dollars per annum for improving product quality and protection. In 1962, President John F. Kennedy authorized the ‘Consumer Bill of Rights’.
Rights of Consumers
According to this Bill, the consumer has the following rights.
1. The Right to Safety
It covers the advertising of goods which might be dangerous to health or life.
2. Right to be Informed
It includes the opposition to fraudulent, deceitful or grossly misleading information, advertising and marketing labelling and other practices, and to receive the records, he needs to make an informed choice.
3. Right to Pick Out
It includes confidence, wherever possible, of access to a number of services and products at competitive prices.
4. Right to be Heard
It assures that client interests will receive full and sympathetic attention in the formulation of governmental policy.
But consumerism in India is based totally on an entirely distinctive footing. Indian clients felt that in spite of political freedom, they might be robbed of their monetary liberties in matters of consumption, desire and delight. The reasons for the Indian consumer movement can be said as follows:
- Shortage in supply is frequently an introduction of producers and investors.
- High expenses
- Dishonest methods, viz., overcharging, adulteration, duplicate merchandise, and underweight.
- Illiteracy
- Lethargic attitudes of clients.
Thus, the thrust of the consumer movement in India has been on shortages, purity and spiraling expenses of important articles. Therefore, it is remarked that consumerism must be customary as a long-lasting phenomenon in our country.
The consumer movement in India was gaining momentum in 1965 when housewives of Mumbai gave form to a voluntary company, AWARE (Association of Women Against Rising Expenses). It turned into the Consumer Guidance Society of India. They deal in 3 areas: Consumer education, safety and illustration. Some other voluntary companies working within the discipline are the Indian Federation of Consumer Organizations, Consumer Education and Research Centre, National Consumer Protection Council, and many others.
A Fair Trade Practices Association was also shaped in 1966 as a voluntary association of trade with the subsequent aims: to charge fair and reasonable rates, not to hold stocks, not to degrade and to keep accuracy in weights. Consumerism gained momentum due to the subsequent motives:
(a) Spread of education, making humans aware of their rights.
(b) Rising earning and increasing purchasing power of humans.
(c) Rise in charges and expectancies of better quality.
(d) Growing variety and complexity of products.
(e) Legislation for consumer protection growing and focusing amongst consumers.
Some believe that the consumer movement, prima facie, is against the producer. Let this be a wrong notion. Sound marketing practices and consumerism have identical objectives. Therefore, the response of the industry to consumerism should be positive. Further, in terms of practical marketing, one must recognize the traitic nature of social evolution and optimize the performance of business within such a dynamic situation.
There is a feeling among business circles that consumerism leads to government intervention, which ultimately affects the freedom of enterprise. This is only partly true. In the wake of the organized consumer movement, firms will lose their ground unless they are capable of converting threats into opportunities. “If business reacts slowly and grudgingly to consumer demands and fails to live up to consumer expectations, the call for far-reaching changes in the management and regulation of business may become irresistible. The organizational change needed may be:
- Changes in top management attitudes and perceptions based on better information about consumer needs, attitudes and expectations.
- Specific improvements, including safer products, better quality, better service, more reliable products, better warranties and guarantees, and better complaint handling.
- Better communications with the public and explaining to them about the problem of business in meeting consumer demands.
Two alternative marketing strategies available are: “Consumer protection via increased information” and “Consumer protection via self-regulation”. Many firms have started consumer education programmes through their public relations activities. Firms should also consider having a marketing social audit to assess how well their firm is meeting consumer needs. Marketers who ignore consumer demands do so at the cost of their survival.
Efficient Significance of Consumerism
Consumerism is a movement to protect and promote the interests of consumers. Its importance car, be explained as under:
1. To Awaken and Unite Consumers
Consumerism awakens the consumers of their rights, unites them and organizes them.
2. To Discourage Unfair Trade Practices
If the consumers are united and organized, the producers and sellers cannot adopt unfair trade practices.
3. To Protect Against Exploitation
Consumerism protects consumers against exploitation by producers and sellers.
4. To Awaken the Government
Consumerism persuades the government to pass the necessary laws and implement them for the protection of the interests of consumers.
5. Effective Implementation of Consumer Protection Laws
Consumerism gears up the government machinery to implement the laws and acts to protect the interests of consumers.
6. To Provide Complete and Latest Information
The movement of consumerism provides complete and latest information to the consumers about the goods and services available in the market and their rights.
7. To Discourage Anti-Social Activities
If consumers are well-organized, the producers and sellers cannot adopt anti-social practices like black marketing, hoarding, adulteration, etc.