Download VTU MBA 3rd Sem 16MBAMM301-Consumer Behaviour CB Chapter 1 -Important Notes

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Consumer Behaviour

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Chapter 1

Course Outcomes

• Meaning and Definition
• Difference between consumer and customer

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• Nature and characteristics of INDIAN consumers
• Consumer movement in India
• Rights and Responsibilities of consumers
• Consumerism

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Meaning and Definition:

• Consumer behaviour is the study of how individuals or organizations select, buy, use, and dispose of services to satisfy their needs and wants.
• It refers to the actions of the consumers in underlying motives for those actions.

According to Engel, Blackwell, and Mansard, the actions and decision processes of people with services for personal consumption'.

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According to Louden and Bitta, 'consumer behaviour process and physical activity, which individuals evaluating, acquiring, using or disposing of goods.

Difference between Customer

Nature and characteristics of Consumers

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• Young Demographics
• Aspirational
• Value consciousness
• Networked
• Consumers

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• Brand switchers
• Social conscious
• Religious diversity
• Rising purchase power

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CONSUMER MOVEMENT IN INDIA

• History:

The consumer movement in India is as old as trade. Even in Kautilya's Arthshastra, there are references to protection of consumers against the exploitation of short weighment and measurements, adulteration, and punishment for these offences.

There was, however, no organized and systematic safeguarding the interests of the consumers. The consumer interests were considered mainly under Penal Code, Agricultural Production Grading and Drugs and Cosmetics Act, 1940.

It is generally believed that the consumer movement today is quite strong when it is compared to other countries in Asia, Africa and Latin America. India has a very large population of which a sizeable percentage is below poverty line.

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• India's history reveals that in various periods kings and dynasties prior to the British rule to punish the dishonest and unfair traders are.
• The laws of Manu and Chanakya's 'Arthashastra' punishments to be awarded to dishonest traders.
• The British introduced in India laws such as Weights and Measurements Act which was in England.
• Some organized effort to protect consumers was made in the 1940s by eminent freedom fighters like Prakasam, Sri C. Rajagopalachari, etc. in South.
• They started consumer co-operative stores commodities.

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• This became a social movement and the co-operatives spread to different parts of the country.
• The origin and growth of the consumer movement many similarities to the movements elsewhere three significant stages-
• The first stage constitutes the 1960s in which the Consumer Guidance Society of India (B inform and educate consumers on the quality and to conduct simple tests on goods of daily.
• During the second phase, 1970-1980, shortages of commodities and the unsatisfactory functioning System (PDS) led activists to form consumer o and localities to ventilate their grievances to the.
• Several such organizations which were formed were primarily concerned with the problems of and the Public Distribution System.

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• These organizations served a very useful purpose groups in the market place.
• The third phase of growth covering the period 1 expansion and consolidation of the consumer move 1986.
• With the enactment of the Consumer Protection spurt in the number of new organizations in the cou.
• We can certainly say that the consumer movement.
• Beginning with less than 10 organizations in 1965, over 900 consumer organizations across the country.

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• This is the largest number of consumer organization.
• The basic idea behind the consumer protection of the right of consumers.
• It was President Kennedy who declared the first time in his message to the American Co.
• They were the right to information, the right to be heard.
• Later, International Organisation of Consu more rights, viz,

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• the right to redress, the right to consumer healthy environment and the right to basic.
• These rights were incorporated in the Un Human Rights. The Government of India als later.10

Features of Consumer Movement

1. It is basically a protest movement.

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2. It is a mass movement in the sense that mass of consumers.
3. It is generally a non-official movement. Public consumers, organizations initiate the moveme.
4. Though it is not a government-sponsored m and backed up by the Government.

• 15 March as the National Consumer's Day

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Consumer Groups in India

• Consumer Forum(CF)
• Consumer Education Centre (CEC)
• Indian Association of Consumer (IAC)

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• Bombay Civil Trust (BCT)
• Consumer Guidance Society of India (CGSI)
• Baroda Citizen Council (BCC)
• Surat Consumer Association (SCA)
• Karnataka Consumer Services Society (KCSS)

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• Visaka Consumer Council (VCC)
• Trichy District Consumer Council (TDCC) Consur

Rights of Consumers

• Right to be informed

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• Right to choose
• Right to be heard
• Right to be educated
• Right to be healthy Environment
• Right to redress

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• Right to healthy environment and the right to
• Right to Safety

Responsibilities of Consumers

• Responsibility of Self-help

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• Proof of Transaction
• Proper claim
• Proper use of product/Services

Consumerism

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• The belief that it is good for people to spend a money on goods and services
• The actions of people who spend a lot of mon and services
• It is a social movement seeking to augment the and powers of the buyers in relation to seller.
• Caveat Emptor

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Benefits of Consumerism

• No unfair Trade-Practices.
• Better relation with Consumer
• Educating customer
• Product rating

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• Value for money

Assignment No 1

• Write a note on Consumer moment in India.
• What is consumerism? What are the advanta

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• Write a note on Nature and Characteristics C
• How you will develop research objectives an secondary data?
• How will you design primary research, data consumer behaviour.