Rns First Grade College: Unit 5
Rns First Grade College: Unit 5
Channasandra, Bengaluru-98
DEPARTMENT OF BBA
V SEMESTER
CONSUMER BEHAVIOUR
UNIT 5
Madhusudhan T K
Asst. Professor
RNS First Grade College
Name: ………………………………………………
Class: ……………………………………………….
CONSUMER BEHAVIOUR UNIT 5 5 SEM BBA
UNIT 5
CONSUMER SATISFACTION & CONSUMERISM 10Hrs
Concept of Consumer Satisfaction; Working towards enhancing consumer satisfaction; sources of
consumer dissatisfaction; dealing with consumer complaint. Concept of consumerism; consumerism in
India; The Indian consumer; Reasons for growth of consumerism in India; Consumer protection Act
1986.
CONSUMER SATISFACTION
Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals.
Show that you care: Customers like to be asked for their feedback. It gives the customer the
perception that your company values them; is committed to keeping them as a long-term
customer; and bases business decisions on their feedback.
Consumer Protection Act has been implemented (1986) or we can bring into existence to protect the rights
of a consumer. It protects the consumer from exploitation that business practice to make profits which in
turn harm the well being of the consumer and society.
This right help to educate the consumer on the right and responsibilities of being a consumer and how to
seek help or justice when faced exploitation as a consumer. It teaches the consumer to make right choices
and know what is right and what is wrong.
Definitions
1.Consumer
According to Sec. 2(1)(d) : Consumer means any person, who :
i. Buys any goods for a consideration :
Which has been paid or promised or partly paid promised, or
Under any system of deferred payment.
‘Consumer’ also includes any user of such goods other than the buyer himself. The use of such goods
must be with approval of the buyer for consideration paid or promised or partly paid or partly promised,
or under any system of deferred payment. But consumer does not include a person a person who
obtains goods for resale or for any commercial purpose.
Commercial purpose does not include use by a consumer of goods bought and used by him exclusively
for the purpose of earning his livelihood, by means of self-employment.
ii. Hires or avails of any services for a consideration which has been paid or promised or partly paid
and partly promised, or under any system of deferred payment. Consumer also includes any beneficiary
of such services other than the person who hires or avails of such services. The beneficiary must
acquire the use of such services with the approval of the hirer for consideration paid or promised, or
partly paid and partly promised, or under any system of deferred payment. A patient hiring services of
doctor for consideration has been held to be consumer.
3. Defect
According to Section 2(1) (f)
A defect mean any fault, imperfection, or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time being in force, or under
any contract, express or implied, or as is claimed by the trader in any manner whatsoever, in relation to
any goods.
4. Deficiency
According to Section 2 (1) (g)
Deficiency means any fault, imperfection or shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be maintained by or under any law for the time being in
force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in
relation to any service.
CONSUMER RIGHTS
Right to safety
Right to choose
Right to be informed
Right to consumer education
Right to be heard
Right to Seek redressal
Consumer Protection Act
Right to safety
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 fulfil long term interests. Before purchasing, consumers should insist on the quality of the
products as well as on the guarantee of the products and services. They should preferably purchase
quality marked products such as ISI,AGMARK, etc
Right to choose
Means right to be assured, wherever possible of access to variety of goods and services at competitive
price. In case of monopolies, 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 informed
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. 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 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.
1. District Forum
It consists of a president and two members. The president has to be qualified to be a district judge,
while the others are eminent persons from various fields.Under Consumer Protection Act, the State
Government has to set up a District forum in each district of the state. The district forum has the power
to take up cases where the value of the goods and services and the compensation demanded are upto Rs.
20 Lakh.
The complaint shall be instituted in the District Forum within the local limits of :
i. The opposite party or the defendant actually and voluntarily resides or carries on the business or has a
branch office or personally works for gain at the time of institution of the complaint; or
ii. Any one of the opposite parties (where there are more than one )actually and voluntarily resides or
carries on business or has a branch office or personally works for gain at the time of institution of the
complaint provided that the other opposite party/parties acquiescence in such institution or the
permission of the Forum is obtained in respect of such opposite parties; or
2. State Commission
The state commission, like the district forum has a qualified legal person as the president and two
eminent members one of whom shall be a women. Judge of the high court shall be appointed as its
president. A person can go to the state level body in appeal from the district forum. Also, if the value of
the goods, services and damages is between Rs 20 lakh and Rs. 1 crore, the consumer can go directly
to the forum. Any aggrieved party who is dissatisfied with the decision of the state commission may
appeal against such order to the national commission within a period of 30 days from the date of the
order.
3. National Commission
Supreme Court judge can be appointed by the Central Government as its president. At least 4 members
shall be appointed, and one of whom shall be a women. Every member of the National Commission
shall hold office for a term of five years upto 70 years of age whichever is earlier and shall not be
eligible for reappointment. A consumer can go to the national forum in appeal from the state
commission, or if the value of the goods, services and damages is more than Rs. One crore.
Under the Consumer Protection Act, 1986, the following can file a complaint:
(i) A consumer.
(ii) Any voluntary consumer association registered under the Companies Act, 1956 or any other law.
for the time being enforced.
(iii) The Central Government.
(iv) Any State Government.
(v) A legal heir or representative of a deceased consumer.
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