Under the modern concept of marketing consumer is treated as the king as all the activities of business circulates around one of the major aim i.e. to provide maximum satisfaction to consumers. But in reality consumes are often exploited and ignored.
Misleading advertisements, adulterated products, under-weighing, overcharging, are some of the examples of exploitation of consumers. As a result consumers are deprived to their rights.
Importance
Protection of consumer is important due to the following reasons:
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1. Business exists to satisfy the needs and desires of consumers being the source of income for business. The aim of every business is to earn maximum profits which can be attained only by providing maximum satisfaction to consumers. According to Peter F. Drucker, “There is only one valid definition of business purpose: to create a customer. It is the customer who determines what a business is. The customer is the foundation of business and keeps it in existence and it is to satisfy the customer that society entrusts wealth producing resources to a business enterprise.”
2. Businessmen are trustees of the society’s wealth for the benefit of people. It is thus the moral responsibility ! of business to protect and promote the : interests of consumers.
3. Consumers have been granted some rights under law. Government of India is committed to consumer welfare.
4. Consumers are becoming increasingly aware of their rights. Print and electronic media is increasingly highlighting unethical business practices. For the purpose the consumer forum is also been established.
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5. It is ultimately in the interest of business community to protect and serve consumers. In India business firms should adopt the strategy of consumer oriented so as to survive in the competition from multinationals.
In order to protect the rights of consumers a movement is started. This movement is known as consumerism. It is a social force designed to protect consumer interests in the market place. Consumerism is a try to rectify the imbalance created between sellers and buyers, to protect consumers against unfair practices on the part of manufacturer. It has the ability to make! marketing practices more informative more transparent, more truthful and] more responsive to consumers.