Consumer Awareness

Note: Consumer is the person who 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. But Consumer exploitation is very rampant these days.
Consumers get exploited in many ways through the more dominating and
knowledgeable sources. On the other hand, consumers have to be aware not only of
the commercial aspects of sale and purchase of goods but also of the health and
security aspect. Besides this, they should be aware of their rights and duties being as
rational human beings viz., price and quality of products used by them, about Fair Price
Shops, standardization of products, about Consumer Forums etc. Therefore, Consumer
exploitation should be bought down with proper awareness to the consumers on their
rights and how they could go about with things, if they feel they have been cheated.

1.

Introduction

1.1 Rise Of Consumer Awareness

In the globalization, liberalization and privatization era, most of the economic decisions
are taken by the market. Though, the government has withdrawn itself from many
economic activities, it interferes very often when the market mechanism fails due to
structural rigidities in the economy and other factors, to provide goods and services
to the people. Consumption is one of the important economic activities, which
requires regular government intervention, as market is unable to promote security
and welfare aspects of the consumers. On the other hand, consumers have to be aware
not only of the commercial aspects of sale and purchase of goods but also of the health
and security aspect also. Besides this, they should be aware of their rights and duties
being as rational human beings.
Though, the first consumer movement began in England after the Second World
War, a modern declaration about the consumers rights was first made in USA in

the

year 1962, where four basic consumer rights i.e. Choice, information, safety and right to
be heard were recognized. Ralph Nadar, a consumer activist is considered as the

father of ConsumerMovement. 15th March is now celebrated as the World

Consumer Rights Day. The U.N.O. Also adopted in the year 1985, certain guidelines
to achieve the objectives of maintaining protection for consumers and to establish high
level ethical conduct for those engaged in production and distribution of goods and
services. In India, 24th December is celebrated as Consumers Day every year.

1.2. Objectives of the Study

The Study based on following objectives:
1. To study the level of consumer awareness of the consumers in the study area
2. To make the students habituated about the survey work.
3. To make the students acquainted how different statistical tools can be applied in
different socio-economic problems.

1.3 Meaning of Consumer Awareness

Consumer awareness means awareness of consumers in different aspects of
consumption activities. Consumer awareness is a broader and wider concept. It covers
the followings:
a) Consumer awareness about Maximum Retail Price (MRP).
b) Consumer awareness about Fair Price Shop.
c) Consumer awareness about price, quality and expiry date of the product.
d) Consumer awareness about their rights and duties.
e) Consumer awareness about the certified products like ISI, Agmark, ISO-2000

1.4. Forms of Consumer Exploitation

Consumer exploitation is a type of exploitation in which the consumers are exploited or

cheated by the business community in terms of poor quality of product, underweight,
under-measurement, duplicate articles etc
Some of the common ways by which the consumers are exploited by the business
community are as follows:
1. Underweight and under-measurement
2. Sub-standard quality
3. High prices
4. Duplicate articles
5. Adulteration and impurity
6. Lack of safety devices
7. Artificial scarcity
8. False and incomplete information
9. Unsatisfactory after sale services
10. Rough behavior

1.5. Factors causing exploitation of the Consumers

The following are the factors that cause exploitation of consumers:
1. Limited information
2. Limited supply
3. Limited competition

4. Low literacy

2. Rights and
Consumers

Duties

of

The

2.1 Rights of the Consumers

The following are the rights of the consumers as coded in the Indian laws, which the
business community has to keep in mind:
1. Right to safety
2. Right to choose
3. Right to seek redressal
4. Right to consumer education
5. Right to be heard
6. Right to be informed.

2.2 Duties of the Consumers

In order to secure rights, the consumers have to fulfill the following duties:
1. While purchasing goods, consumers should look at the quality of the products as
well as on the warranty of the product.
2. They should ask for Cash Memo for the item purchased.
3. They should form consumer awareness organizations.
4. They must complain for their genuine grievances.
5. The must know their rights and duties.

3. Consumer Protection Measures

3.1. Introduction
In order to protect the interest of the consumers, government has adopted three
strategies:
1. Administrative measures
1. Technical measures
1. Legislative measures

3.2. Administrative Measures

Administrative measures of the government include the distribution of essential
commodities through Public Distribution System (PDS). PDS is a system through
which the government distributes some

essential commodities at a reasonable price

through Fair Price Shop. In a free market economy, price of a commodity is determined
in the market through the free play of demand and supply. Equilibrium price is that
price at which demand and supply of the commodity are equal to each other i.e. there is
zero excess demand and excess supply. But sometimes government interferes in the
market systems by fixing the price lower than the equilibrium price, to protect the interest
of the consumers belonging to the lower strata of the society. This price is known
as Control Price. When government fixes price lower than the equilibrium price,
demand exceeds supply, which leads to black-marketing and hoarding. To check this
government sales different commodities at different FPS at control price.

3.3. Technical Measures

Technical measures consist of Standardization of the product. One of the important
measures taken by the government to protect the consumers is the

creation of

institutions for setting up the standards for making and producing various products and
enforcing them. In India, this has been achieved through Bureau of Indian Standards

(BIS), and Agmark. While BIS caters to the industrial and consumer goods while
Agmark is meant for the agricultural products.
The Bureau of Indian Standards, earlier known as the Indian Standards Institution (ISI),
whose headquarter is located at Delhi, has the responsibility of lying down the
standards for industrial and consumer goods on a scientific basis and certifying the
goods that meet the standards and the prescribed quality.
The Agmark is implemented under the Agricultural Produce (Grading and Marketing)
Act of 1937, as amended in 1986. This scheme is run by the Directorate of
Marketing and Intelligence (DMI) in the Ministry of Agriculture, Government of India.
Products such honey, masala etc, carry such marks.
At

international

level,

an

institution

called International

Organization

for

Standardization (ISI), established in 1947 locate at Geneva, serves to provide such a

common reference standard. All the international Companies, goods produced by them,
and institutions are certified as ISO 6000, ISO 14000 etc.
For setting international food standards, there is a similar body called Codex
Alimentaries Commission (CAC). This was formed in 1963 by the Food and
Agricultural Organization (FAO) and World Health Organization(WHO), located at
Rome, Italy. It develops food standards, guidelines and codes for production and
international trade in food products like milk, fish etc.

3.4. Legislative Measures

Legislative measures include enactment of Consumer Protection Act, 1986. The
Government enacted a specific law called the Consumer Protection Act, 1986. The Act
provides for the establishment of consumer disputes redressal agencies at District,
State and National level for the protection of consumer interests and to redress their
grievances in speedy, simple and inexpensive manner. The Act has led to the setting up
separateDepartment of Consumer Affairs in Central and State Government, which
focus exclusively on the rights of the consumers, as enshrined in the Act.
CONSUMER COURTS

NATIONAL CONSUMER COMMISSION

STATE CONSUMER COMMISSION
DISTRIST CONSUMER FORUM

(National Level)
(State Level)
(District Level)

4. Consumer Protection Act of 1986

And Case Studies
4.1. Consumer Protection Act of 1986
The industrial revolution and the development in the international trade and commerce
has led to the vast expansion of business and trade, as a result of which variety of
consumer goods have appeared in the market to cater the needs of the consumers and
a host of services have been made available to the consumers like insurance, transport
etc. The advertisement of goods and services in T.V and other media influence the
demand of same by the consumers, though there may be manufacturing defects or
shortcomings in quality and purity of products or deficiency in services rendered. In
spite of various provisions made providing protection to the consumers against
adulterated and sub-standard articles in different enactments like Code of Civil
Procedure, 1908, MRTP ACT, 1969, IPC, 1960 etc., very little could be achieved in the
field of consumer protection.
In order to provide for the better protection of the interest of the consumers, Consumer
Protection Bill 1986 was introduced in Lok Sabha in 5th December 1986. The Bill was
passed by both Houses of Parliament and got the assent of the President on 24
December 1986, popularly known as the Consumer Protection Act of 1986.
The Act of 1986, seeks to provide better protection to the interests of the consumers and
for the purpose that there is Consumer Councils and other authorities for the settlement
of consumer disputes and for matter connected therewith. To provide quick redressal of

consumer disputes, a quasi-judicial institution is set up at all the three levels. These
bodies have been empowered to give relief of a specific nature and to award, wherever
appropriate, compensation to the consumers. Penalties of non-compliance of the orders
given by the quasi-judicial bodies have also been provided.

4.2 Case Studies

1. S.L.Pati VS. Postmaster, Aligarh, Orissa(1993)
Money order not delivered in time to the concerned person, is a case f deficiency in
service of worst category. If this would be the normal act of the Post Office and the
office, which belong to the Union Government, no one would have faith in services
rendered by them. As a result, an amount of Rs250/- plus the money order amount of
Rs.1000/- along with interest @ 18% was the compensation awarded to the deprived
person.

2. K.C. Panda
Orissa(1994)

VS

SDO,Telecom

Department,

Berhampur,

Telephone line was disconnected even if bill was paid. Proceeding before District
Forum, Telecom Department made an apology for the mistake occurred inadvertently.
But, in spite of apology, an amount of Rs. 2000/- was the compensation awarded to the
person concerned by the Telecom Department.

5.

Data Base and Methodology

5.1 Collection of Data

The project report is based on primary data collected by the students of Class 11th
Commerce, KV No. 2, CRPF, BBSR. Data collected by the investigator for his own
purpose, for the first time, from beginning to end is called primary data. According
to Wessel, Data originally collected for the purpose of the investigator are known as
primary data. When data collected by the others are used by others for their use or
investigation then it is known as secondary data.

5.2 Sampling Technique Used

Total number of households selected for the project is 80. These household has been
selected by sampling method. There are two statistical enquiry methods:
1. Census Method
2. Sampling Method
Census method is that method is that method in which data are collected covering every
item of the universe or population relating to problem under investigation. Sampling
method is that method in which data are collected about samples or a group of items
taken from the population. There are different types of sampling techniques such as:
random sampling, quota sampling, stratified sampling, deliberate sampling etc. But for
the project concerned deliberate sampling method is used. This is also called judgment
sampling. According to this method, for selecting a sample no specific procedure is
used, rather the investigator, according to his own desire selects those households
which represent the universe fully.

5.3. Statistical Tools Used

For analysis of data simple percentage method and arithmetic average is used.

Percentage:
Gt-Gt-1
Percentage increase/decrease=

_________ X 100
Gt-1

Gt= Value of the Variable in time period t

Gt-1= Value of the Variable in time period t-1

Arithmetic Average (Mean):

Sum of all the values of different items in the series
Arithmetic Mean= ____________________________________________
Total number of items
X1+ X2++Xn
=

_____________________________
N

N = Xi

i = 1, 2, 3.n

i=1
Besides mean and percentage, different types of diagrams like bar diagram, piediagram etc. has been used to represent data in a simple and systematic manner.

Pie Diagram:
Pie diagram is a circle divided into various segments showing the values of a series.
Degree measure of an item= % value of an item X 3.6 0
5. 4

Limitations of the Study

The study is based on primary data, collected by the Students 11th Commerce,
K.V.No.2, CRPF, Campus ,BBSR. Each Student of the Class interviewed two
consumers, one representing his/her father/mother and the other representing his
neighbor. The study area of the project is limited to Bhubaneswar city only. The sample
size of the project is 80 only. So, the sample of the project is very small.
Since the study is limited to Bhubaneswar city only, all the respondents are of urban
background.

6. Analysis
Data

and

Interpretation

Of

Socio-economic conditions of the Households

a) Tabular presentation of Data
Total number of households surveyed for the purpose is 80. Each student of 11th
Commerce conducted survey work. Each student interviewed to the head of the family
relating to different aspects of consumer awareness mentioned in the questionnaire.
Table No. 1 represents total family members of the surveyed households. Table No.2
represents the occupational status of the head of the household. Table No.3 represents
educational qualifications of the head of the household. Table No.4 represents
educational status of total households surveyed. Table No.5 represents income level of
surveyed households.
Total family members of the surveyed households are 420, out of which 220 are female
and 200 are male. The average family size of the household 5.35. Total number of
persons interviewed is 80, out of which 68 belong to service class. Out of these 68
families, 3 female members are interviewed for the purpose as male members are
staying outside the station. Two families are from big business class whereas 10 are
from small business family out of 12 business family interviewed.
Out of total 80 of the families interviewed 55 are highly qualified. They are Graduate,
Post Graduate and even some posses Professional and Technical qualifications. Out of
total, 23 are at Primary and Secondary level, whereas 2 are illiterate. Out total family
members 190 are Graduate, Post Graduate,

and Professionally and Technically

qualified. Again, 170 members are at Primary and Secondary or Higher Secondary
level, whereas 10 are illiterates. Rest 20 belong to below 5 years and hence are not
mentioned in the educational status. Table No. 5 represents the distribution of income
levels of surveyed households. Out of total 80 families 10, 60, 10 belong to low income,
medium income and high income group respectively.

Table No. 1
Sex-wise Family Members of the Households
Sex(M/F)
Male
Female
Total

Family Members
200
220
420

Average family Size

2.5
2.75
5.25

Table No.2
Occupational Status of the Head of Households
Occupation
Services
Big Business
Small Business
Total

No. of Households
68
02
10
80

Percentage (%)
85
2.5
12.5
100

Table No. 3
Educational Level of Head of families
Qualification
Illiterate
Primary
Secondary
Tertiary
Total

No. of Households
02
13
10
55
80

Percentage (%)
2.5
16.25
12.5
68.75
100

Table No.4
Educational Status of Family Members

Qualifications
Illiterate
Primary

No. of Persons
10
30

Percentage (%)
2.5
7.5

Secondary
Tertiary
Total

170
190
400

42.5
47.5
100

Table No.5
Income Level of the Households

Income level
Below 5000(Low)
5000-20000(Medium)
20000-and above(High)
Total

No. of Households
10
60
10
80

Percentage(%)
12.5
75
12.5
100

b) Diagrammatic Presentation of Data

Different type of diagrams are used to represent the data. Diagram No. 1, a Bar
Diagram represents sex-wise family members of the households. Diagram No.2, a Pie
Chart represents occupational structure of the head of the households. Diagram No.3
and 4 are the Pie Charts represents income level of head of households and
educational status of head of households respectively. Diagram No.5 and 6 are the Bar
diagrams represents educational status of whole family and income level of head of
households.
Diagram No.1

Diagram

No.2
Sex-wise Family Members
Structure

Occupation

Diagram No.3
Income Level of Head of Households

Diagram No. 4
Educational Status of Head of

Households

Table No.5

Table No.6

Educational status whole family

Income of head of

Households

6.2. Consumer Awareness of the Households

1. Tabular Presentation of Data
Table No. 6 represents the preferred use of toothpaste, Table No. 7 represents the
influence of different agencies on families while purchasing different brand of
toothpastes used by the surveyed households and Table No.8 represents different
aspects of consumer awareness in day to day life of the surveyed households.
Table No.6
Preferred use of Toothpaste
Brand
Close-up
Colgate
Pepsodent
Anchor
Others
Total

No. of Households
30
22
12
06
08
80

Percentage(%)
37.5
27.5
15
7.5
10
100

Table No.7
Source of influence on the Purchase of different Brand of Toothpaste

Sources
TV
Newspaper
Magazine
Others
Total

No. of Households
56
06
10
08
80

Percentage(%)
70
7.5
12.5
10
100

Table No. 8
Different aspects of Consumer Awareness
Consumer Awareness
Knowledge about Certified

Yes

No

65(81.25%)

15

68(85%)
Manufacturing date
Knowledge about Fair Price Shop 60(75%)
Check ingredients used
35(43.75%)
Knowledge about Consumer
77(96.25%)
Courts
Ever gone to Consumer Court
10(12.5%)
Insist cash Memo for Consumable
57(71.25%)
goods purchased

08

Products
Check MRP, Expiry and

20
45
03
70
23

From table No.6, it is evident that highest percentage of families i.e. 37.5% prefer
Close-up followed by Colgate with 27.5%. Income and occupation factor did not
influence the purchase or consumption of toothpaste of Close-up or Colgate. However,
in case of lower income group, out of 10, 6 families use either Anchor or Promise and
they prefer to it as it cost less than other brand of toothpastes. On the other hand,
quality of product is important for high and medium income group, using Close-up and
Colgate. Besides, quality of product and price, choice of children also taken into account
while using the Colgate or Close-up for about 20% of the households. Majority people

come to know about the product through advertisement on TV, followed by magazine,
newspaper and other agencies as evident from Table No.7.
Table No.8 depicts different aspects of consumer awareness i.e. about standardization,
MRP, date of manufacturing and expiry, knowledge about Consumer Courts, rights and
duties of the consumers etc. Out of total families, 81.25% of families check MRP, date of
manufacturing and expiry. However, 56.25% of people interviewed, check the
ingredients used in the product. As far as Consumer Court is concerned, majority of
them (96.25%) have knowledge about it but only 10 out of total respondents have gone
to the Consumer Court to redress their problems on different occasions.. Lastly, it is
clear from Table No. 8 that majority of households(71.25%) surveyed, insist for Cash
Memo at the time of purchase. However, it is limited to non-consumable durable items
and some consumable items when large quantity is purchased.

2. Diagrammatic Presentation of Data

Use of different brand of toothpaste used by the surveyed households depicted in
Diagram No.7 and source of influence on the purchase of different brand of toothpaste
is depicted in Diagram No.8. in the form of a Pie-Chart.
Diagram No. 7

Diagram No.8

Use of different Brand of toothpaste

Source of influence on

different brand of Toothpaste

7.

Summary and Conclusion

The objective of this project is to assess the people of different class in the society
about different aspects of consumer awareness viz., price and quality of products used
by them, about Fair Price Shop, standardization of products, about Consumer Forum,
about theirRights and Duties etc. Consumers will lead a happy, healthy and prosper life
if they fully aware about the above mentioned aspects.
For the project report, total number head of households interviewed is 80 and all
belong to urban area. Out of total head of family interviewed, 78 are literate whereas
only 2 are illiterate. All belong to different income

group i.e. high, medium and low

income group. However, majority of them belong to medium income group(75%).

Again, on the basis of occupation, 85% of respondents are government servants

whereas other are businessmen.
Close-up

is

the

most

preferred

brand(37.5%)

of

toothpaste

followed

by

Colgate(27.5%) among the surveyed households. Households from medium and high
income group prefer respective brand of toothpaste taking into account the quality of
the product and wishes of their children also. On the other hand, for the low income
group, the most important factor that determines the use of toothpaste is the price of the
product. Again, majority of respondent(70%) are influenced by the advertisement about
the product and the important media is Television.
As far as consumer awareness is concerned, majority of respondents have
knowledge about certified products, check MRP, date of manufacturing and expiry at
the time of purchase. However majority of them do not check about the ingredients used
in the product. On the other hand, majority of them have the knowledge of Consumer
Courts, but out of total respondents only 10 have

ever gone to the Consumer

Courts for complaining about different commodities they purchased and consumed.
Lastly, it is evident from the study that, majority of them insist for Cash Memo at
the time of purchase, but, it is limited to consumer durable goods and for consumer
non-durable goods when large quantities of goods is purchased.
To

conclude,

awareness

i.e.

people
their

are

concerned

rights and

about

duties,

different

certified

aspects of consumer

products, MRP, date

of

manufacturing and expiry of the products they used, Consumer Courts etc as far as
urban area is concerned.
Educational implications of the study is that every students as well as parents should
be aware about different aspects of different commodities they consume in day-to-day
life. They should have knowledge about certified products, Check MRP, date of
manufacturing, and expiry at the time of purchase of a commodity. They must have
awareness about their rights and duties. This project report will give a preliminary idea
about survey work to the students. Lastly, students will get an idea about how
statistical techniques can be used in different socio-economic problems.

Bibiliography
1. Prof. S.P. Gupta, Statistical Methods, S.Chand and Company Ltd, 1994, New
Delhi.

2. S.Mishra and V.K.Puri, Indian Economy, Himalaya Publishing House,

Mumbai,2000

4. Ruddar Dutt and K.P.M. Sundharam, Indian Economy, S. Chand and Company
Ltd., 1994.

5. Statistics for Economics, Textbook for Class XI, NCERT, New Delhi, 2005.

6. Indian Economic Development, Textbook for Class XI, NCERT, New Delhi,2005.

7. The Consumer Protection Act 1986, the Law House, New Delhi.

8. Contemporary India, A Social Science Textbook for Class X, NCERT, New

Delhi,2003.

9. Economic Survey, Directorate of Economics and Statistics, Planning and Coordination Department, Government of Orissa, 2006-07.

APPENDIX
Questionnaire
1. Name of the head of family:__________________________
Education:________ Occupation:_______
Age:_________ Sex(M/F):_______
2. Residential Address:_____________________________________________

_____________________________________________

3. Age (In years)

No. of Persons

________________________
Male
Total

________________________________________________________

Below 5

5-14

Female

15-64

65 and above

_________________________________________________________
Total:
4. Level of Education
No. Of Persons
________________________________________________________
Illiterate
Primary
Secondary
Graduation
Others

__________________________________________________________
Total

5. Monthly Income
( In Rs/-)
_________________________________________________________
Up to 1000

1000-5000
5000-20000
20000-50000
50000 and above

__________________________________________________________
6. What do you use to clean your teeth ?
Toothpaste_____ Tooth Powder_____ Any Other______

7. Which brand of toothpaste do you use regularly ?

Aquafresh___ Cibaka____ Anchor_______

Close-up____Promise_____Pepsodent_____
Oral B_____ Furhans_____Any Other____

8. The price for 100 gram pack of the toothpaste (used by them).
Price_______(actual)
Price________(approx.)
Do not know______.

______________________________________________________________________
___

1. Do you find the product costly?

Yes/No

2. Do you check MRP, date of manufacturing and date of expiry? Yes/No

3. Do you check standardization of product like ISI, Agmark, ISO 2000 ?
Yes/No
4. Do you check ingredients used in the product ? Yes/No
5. Are you satisfied with the quality of the product ? Yes/No
6. Are you aware about the Fair Price Shop ? Yes/No
7. Do you find the availability of product at FPS ? Yes/No
8. Do you complain the shopkeeper in case of dissatisfaction ? Yes/No
9. Has your complain been timely attended ? Yes/No
10. Was your complain attended to your satisfaction ? Yes/No
11. Are you aware about Consumer Courts ? Yes/No
12. Have you ever gone to a Consumer Court in case of any dissatisfaction ?
Yes/No
13. Do you insist Cash Memo at the time of purchase to ensure genuine
purchase and tax revenue to government ? Yes/No
14. Do you insist Cash Memo for other commodities at the time of purchase ?
Yes/No

15. How do you come to know about the product ?

Yes/No
Advertisement

Family influenced

_______________________________________________
TV

_______

Newspaper

_______

Magazine

_______

Cinema

_______

Sales Representatives

_______

Exhibits Stall

_______

Radio

________

Any other

________

_____________________________________________________
16. Are you attracted by promotional offers like rebates, free toothbrush, buy one
get one free ?Yes/No
17. Do the Children influence purchase of particular toothpaste ? Yes/No
18. If a new toothpaste brand is launched in the market will you buy it ?
If yes, then what
consideration ?

Yes/No

Price of the Product________

Quality of the

Promotional offer_______

Any Other______

product______

http://www.lawctopus.com/academike/consumer-awareness/