RNS FIRST GRADE COLLEGE

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 (often abbreviated as CSAT, more correctly CSat) is a term frequently used

in marketing. It is a measure of how products and services supplied by a company meet or
surpass customer expectation.

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.

Causes/ Sources of Consumer dissatisfaction

1. Not Keeping Promises
2. Poor Customer Service
3. Transferring From One CSR to Another
4. Rude Staff
5. No Omni-channel Customer Service
6. Not Listening to Customers
7. Hidden Information and Costs
8. Low Quality of Products or Services
9. Keeping an Issue Unresolved
10. Inaccessibility

Importance/ advantages of customer satisfaction survey

 Up-to-date feedback: Gather current customer feedback on various aspects of your company.
You can stay on top of customer trends through regularly scheduled online surveys or email
surveys, and receive instant customer feedback.  It is always useful to acquire insight into how
your customers are currently reacting to all aspects of your business.
 Benchmark results: You can administer the same survey every so often to customers to gain
continued insight into your customers. Surveys can have the same questions, which will allow
you to compare data over time and benchmark survey data across previous years to determine if
any changes need to be made.

 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.

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Disadvantages of customer satisfaction survey

 Too many surveys, so little time: Your customers are bombarded with online surveys. Surveys
may be simple to complete, however, some people simply don’t like to complete them.  Sending
surveys too often can irritate customers and lead to customer burnout. Customer burnout can
result in low response rates or result in lower satisfaction scores, despite your reputation for
providing excellent products or services.
 Privacy Issues:  We live in a high-tech environment filled with daily doses of unwanted junk
email, email solicitations, and sales calls. When taking an online survey or a phone survey (or
any type of survey), it is hard for your customers to believe that they aren’t being tracked.
Because of insecurities of releasing private information, customers today are hesitant in giving
out information that may lead to more junk email and unwanted calls.  Make certain to assure
customers that the information they provide in response to your customer satisfaction surveys
will not be used. Without this disclaimer, it may be difficult to receive a good response rate.

Enhancing customer satisfaction

 Develop customer service communities
 Treat customers like you would want to be treated
 Make employee satisfaction a priority
 Turn customer survey data into action
 Figure out what really customer wants
 Focus on company culture
 Stay current on customer reviews
 Offer proactive customer service
 Personalize
 Put a social media plans in place
 Rethink the approach to doing business and building relationships
 Demonstrate product knowledge
 Benchmark customer satisfaction
 Set clear expectations and exceed them
 Study complaints and compliments
 Ask how your clients would like to be responded to
 Provide additional benefits
 Offer free product and training
 Ask for more feedback
 Empower your agents

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CONSUMER PROTECTION ACT, 1986

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.

Objects of the Act

1. Promoting and protecting the rights of consumers.
2. Providing for the establishment of consumer councils and other authorities.
3. Providing speedy and simple redressal machinery at district, state and central levels for settling
consumer disputes and matters connected therewith.

Salient Features of the Act

1. The Act applies to all goods and services unless specifically exempted by the Central
Government.
2. It covers all the sectors whether private, public or cooperative.
3. The Act envisages the establishment of the Consumer Protection Councils at the central and
state levels, whose main objects will be to promote and protect the rights of the consumers.
4. The Consumer Protection Act extends to whole of India except the State of Jammu and Kashmir
and applies to all the goods and services unless otherwise notified by the Central Government.
5. The provisions of this act are in addition to and not in derogation of the provisions of any other
law for the time being in force.
6. The provisions of the Act are compensatory in nature.

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.

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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.

 2. Consumer Disputes

According to Section 2(1) (e )
Consumer Dispute means a dispute where the person against whom a complaint has been made, denies
or disputes the allegations contained in the compliant.

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

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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 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.

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.

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Redressal Machinery Under the Act

To provide simple, speedy and inexpensive redressal of consumer grievances, the Act envisages three
tier quasijudicial machinery at the National, State and District levels.

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

iii. The cause of action arises wholly or in part.

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.

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Powers of the Dispute Redressal Agencies

The District Forum, the State Commission and the National Commission are vested with the powers of
a civil court under the Code of Civil Procedure while trying a suit in respect of the following matters :
1. The summoning and enforcing attendance of any defendant or witness, examining the witness
on oath.
2. The discovery and production of any document or other material producible as evidence.
3. The reception of evidence on affidavits.
4. The requisitioning of the report of the concerned analysis or test from the appropriate laboratory
or from any other relevant source.
5. Issuing of any commission for the examination of any witness.
6. Any other matter which may be prescribed.
7. To issue remedial orders against the opposite party.
8. To dismiss frivolous and vexations complaints and to order the complainant to make payment of
cost, not exceeding Rs. 10,000 to the opposite party.

Who can file complaint against the issues as per COPRA

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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