Name: Consumer Awareness in India
Uploaded: 2019-07-19
Duration: 4 min 32 s
Description: How Companies and Sellers exploit unaware and vulnerable consumers and what steps the government has taken to prevent such exploitation.

Question

Describe the reasons for consumer exploitation.

Accepted Answer

Besides the selfish attitude of the manufacturers and traders to exploit the customers to earn extra profit, the following factors are also responsible for the exploitation of the consumers:

Consumers- Many consumers are ignorant about the prevailing market conditions. They are not aware of their rights and are unwilling to organise themselves to fight against exploitation.

Limited information- The consumers have very little information about goods and their quality and utility. They are unaware of the guarantee and warranty. The salesman also does not provide such information.

Limited supply- The traders create an artificial shortage of popular products. They take undue advantage of scarcity.

Limited Competition- The traders/ manufacturers form cartels and create monopolistic situations. The consumers find themselves in that market where it is limited or nil competition and get exploited.

Describe the reasons for consumer exploitation.

Important Questions on Price Rise and Consumer Awareness

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