INDIAN INSTITUTE OF PUBLIC ADMINISTRATION Consumer … of Consu… · consumer movement to grass root level; and introduce researchers to consumer issues to motivate the academic

Editors Suresh Misra

Sapna Chadah

Reflections on C

onsumer Protection : C

ase Studies

Reflections on Consumer Protection

Case Studies

IIPAINDIAN INSTITUTE OF PUBLIC ADMINISTRATION

NEW DELHI

INDIAN INSTITUTE OF PUBLIC ADMINISTRATION

The Indian Institute of Public Administration, established as an autonomous body under the Registration of Societies Act, was inaugurated on March 29, 1954 by Shri Jawaharlal Nehru who was also the first President of the Society. The basic purpose of establishing this Institute was to undertake such academic activities as would enhance the leadership qualities and managerial capabilities of the executives in the government and other public service organization. The activities of the Institute are organized in four inter-related areas of Research, Training, Advisory and Consultancy Services and Dissemination of Information.

CENTRE FOR CONSUMER STUDIES

CCS is dedicated to consumer studies and is sponsored by DCA, GoI. The objective of the CCS is to perform, facilitate and promote better protection of consumers’ rights and interests with special reference to rural India. The broad areas of focus of the Centre comprise capacity building, advocacy, policy analysis, research, advisory and consultative services, and networking.

The Centre seeks to network with national and international agencies and interface with other stakeholders by serving as a bridging “think tank” with an intensive advocacy role. The Centre provides a forum for creating dialogue among policy-makers, service-providers, representatives of various business establishments and their associations, professional bodies/associations, civil society organizations, educational/research institutions, economic and social development organizations as well as leading NGOs.

Centre for Consumer Studies

Room No.85Indian Institute of Public Administration

I.P. Estate, Ring RoadNew Delhi—110002

Tel: 011-23468347, 23705928 (Fax)Email: [email protected]

Website: www.consumereducation.in

Reflections on Consumer ProtectionCase Studies

EditorsSuresh Misra

Sapna Chadah

Indian Institute of Public AdministrationNew Delhi

2017

Rs.

sponsored by : The Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Government of India.

Published by Indian Institute of Public Administration, New Delhi.

Printed at New United Process, A-26, Naraina Industrial Area, Ph-II, New Delhi 110028, Ph. 9811426024

ii

PRefACe

Globalisation and liberalization have broadened the linkages of national economies into a worldwide market for goods and services. This has widened consumer choices, minimised costs, maximised efficiencies and has provided value for money for the consumers. However, at the same time the quality of goods and services available in the market has become a major area of concern for the consumers. In the present era, the main objective of each trader is to increase the sale of his products and maximize profit. In order to achieve that, they are adopting all sort of unscrupulous and deceptive practices, completely overlooking the interests of consumers leading to exploitation of gullible consumers.

Consumer awareness is a need of present days. A well-functioning market economy needs educated consumers with the power to influence the market through their rational decisions when confronted with choice. An informed consumer will also be protected from trade and business-related exploitation. Empowering consumers means providing a robust framework of principles and tools to ensure their safety, information, education, rights, means of redress and enforcement. Through awareness and education they can actively participate in the market and make it work for them by exercising their power of choice and having their rights properly enforced. There is need for a systematic approach integrating consumer interests into all relevant policies and puts a special emphasis on tackling problems faced by today’s consumers in various sectors.

In a market driven economy there is widespread recognition that knowledge and skills have become the backbone of economic prosperity and social well-being in the 21st century. In contemporary knowledge intensive economies and societies, individual and societal progress is increasingly driven by technological advances and improving the dissemination of knowledge for the benefit of society at large. Teachers who are equipped with the necessary competences form the foundations needed for society. A central feature of higher education is the collaborative relationship between university and student. This relationship enables and challenges students to achieve their learning goals in a supportive academic environment. In this context, higher education represents a critical factor in the success and sustainability of the knowledge economy. Hence, higher education has become increasingly important on national agenda and need to undergo reforms that will help them play a more meaningful role.

The bulk of young consumers are in the institutions of higher education particularly the universities and colleges. Developing and enhancing their knowledge and skills to become an informed consumer is now a priority for the government. Universities and colleges not only need to frame syllabus on consumer affairs but also promote research in the area. The Department of Consumer Affairs, Government of India has undertaken a number of consumer awareness initiatives to create and sustain awareness amongst different categories of consumers with a view of enabling them make informed decisions. The department is involving various stakeholders in consumer movement through various schemes and programmes.

The Department of Consumer Affairs, Government of India launched a scheme on “Promoting Involvement of Universities/Colleges/ Research Institutions in Consumer Protection and Welfare” to promote the academia to take up empirical research in this area and also develop skills to empower the students as consumers. The basic objectives of the project were to: develop a pool of trainers at University and College level who can take the consumer movement to grass root level; and introduce researchers to consumer issues to motivate the academic community to take up research in these areas of consumer interface.

Under the project a number of research studies were undertaken on various consumer issues. Out of these a select few have been brought out in the present form. This book is an outcome of this effort of well-known scholars and provides a deeper insight into various consumer issues in the market economy. The recommendations emerging from the empirical researches act as an input for formulation of better consumer policy keeping in view the Indian scenario. This book will be useful to policy makers, researchers, teachers and students of consumer welfare in understand the market dynamics and the role consumers can play. We would like to thank Dr. T. Chatterjee, Director, IIPA for his encouragement and support. We are also thankful to the Department of Consumer Affairs, Government of India for their help. Thanks are also due to shri Anil Gupta, Publication section, IIPA for bringing out the book in its present form and within time. We would also like to thank shri Raman Malhotra, Consultant, IIPA for his help in Consultancy Project and Ms. Deepa Rawat for providing secretariat assistance during the preparation of the book.

Date: september 15, 2017 Place: New Delhi

suresh Misrasapna Chadah

iv

CONTeNTSS.

No.Title Page

No.

1. Introduction –suresh Misra and sapna Chadah

9

2.

Brand Imitation and Counterfeiting: Need to Protect Consumer–A Case study of Amravati District, Maharashtra-D.Y. Chacharkar

35

3.

Impact of Advertisements on Rural Consumer Case study of Gautam Buddh Nagar and Agra Districts of Uttar Pradesh-Meenu Agrawal

56

4.

Consumer Protection and supply of Essential Commodities in semi Urban and Rural Areas of Tamil Nadu - s.V. srinivasa Vallabhan

79

5.

A study on Consumer Awareness among Arts and science College students in Tamil Nadu with special Reference to Thanjavur District -C. subramanian

107

6.Accountability Consciousness of Consumer ProtectionLegal system in Kerala- P. Gopinadhan Pillai

128

7.Consumption, Education and Exploitation: A Probe into the Consumer Exclusion in Kerala-D. Rajasenan

154

8.

Consumer and Medical Negligence: A Case study of Consumer Redressal Mechanism in the Delivery of Medical services in the Rural Areas- shakti Kumar Pandey

178

9.

Health Insurance – Can it reduce the Vulnerability of the Poor? An Explanatory study with Reference to Rajiv Aarogyasri HealthInsurance scheme of Andhra Pradesh-L. Reddeppa

190

10.Development and Assessment of Technical Back Up for Consumers of Textiles and Household Durables -Neelam Grewal

198

11.

Designing a structural Model for Measurement of service Quality in Railways and Hospitals with special reference to Tamil Nadu and Kerala state-s. Rajaram

211

12.

Working towards a Conscious and Efficacious Citizenry and Responsive and Responsible state and the Market: An Impact Evaluation of the Consumer Protection Act on the Awareness and Attitudes of the Consumers in Delhi-Rajvir sharma

223

13. Medicine Quality: Do the Brand Matters?-Banhi Chakarborty

233

vi

List of Contributors1. Suresh Misra, Chair-Professor (Consumer Affairs) & Coordinator,

Centre for Consumer studies, Institute of Public Administration, I. P. Estate, Ring Road New Delhi-110002Ph: 011-23766136, M: 09312413955, email: [email protected]

2. Sapna Chadah, Ph.D Assistant Professor (Administrative & Constitutional Laws), Centre for Consumer studies, Indian Institute of Public Administration, I. P. Estate, Ring Road New Delhi-110002Ph: 011-23468348, M: 09810657989, email:[email protected]

3. Dipak Y. Chacharkar, Associate Professor, Department of Business Administration and Management, sant Gadge Baba, Amravati University,Amravati-444 602.(Maharashtra) Ph. 0721- 2661213,(M) 9422159818, Email- [email protected]

4. Meenu Aggarwal, Associate Professor , Reader and Head, Department of Economics, Ginni Devi Modi Girls (PG) College, Modi Nagar -201 204. (Uttar Pradesh) Ph:01204297528 (M)-09312350003 Email: [email protected]

5. S.V. Srinivasa Vallabhan, Associate Professor in Commerce, National College, (Autonomous) Tiruchirappalli – 620 001.(Tamil Nadu) Fax- 0431-2481997Ph:04312437340 M: 9443101193 [email protected] [email protected]

6. C. Subramanian, Professor and Head, Department of social sciences, Tamil University Thanjavur-613 010.(Tamil Nadu).(O) 04362 – 226720, (R) 04362 – 227727, (M) 94435 86188 Fax – 04362- 226159Email- [email protected]

7. P. Gopinadhan Pillai, Assistant Director, Centre for Adult Con-tinuing Education and Extension, University of Kerala, Trivan-dram – 695 033 (Tamil Nadu) (O) 0471-2302523 (R) 04701-2622612 (M) 09447727999 Email - [email protected]

8. D. Rajasenan, Director, Centre for study of social Exclusion and Inclusive Policy,Cochin University of science and Technology, Kochi - 682 022, Ph: 91-484-2577566, 2575943, (R) 0484-2541212, (M) 09447790203, Email- [email protected]

9. S. K. Pandey, Associate Professor, M. D. Post Graduate College, Pratapgarh, Uttar Pradesh - 230 001. (O) 05342-220448 (M) 09415266414 Email- [email protected]@rediffmail.com

10. L. Reddeppa, Associate Professor, Council for social Develop-ment, southern Regional Centre, 5-6, 151, Rajendra Nagar, Hy-derabad– 500 030. Ph: 91-40-24016395 (R) 27154111/ (M) 9400356633 Fax- 91-40-24002714 Email- [email protected], [email protected], [email protected]

11. Neelam Grewal, Dean, College of Home science Punjab Agricul-tural University, Ludhiana (Punjab). (O) 0161-2401960-72 (R) 0161-2401561 (M) 9888668186 Fax- 0161-2403179 Email- [email protected], [email protected]

12. S. Rajaram, Assistant Professor, Kalasalingam University, Ka-lasalingam Academy of Research & Education, Anand Nagar, Krishnan Koil- 626 190, Via sriviliputur. (Tamil Nadu)(O) 04563-289042 (R) 04562-274226 (M) 09659797417 Email- [email protected]

13. Rajvir Sharma, Associate Professor, Department of Political sci-ence, Atma Ram sanatan Dharma College, University of Delhi, Dhaula Kuan, New Delhi – 110 021. Ph: 24113436, 24117508 (R) 26681456 Fax- 24111390 (M) [email protected]

14. Banhi Chakraborty, Assistant Professor, Department of Archi-tecture & Regional Planning, Indian Institute of Technology, Kharagpur - 721 302. Ph: 03222-281944 / 45 (M) 09433214945 Fax - 03222-255303, 255896, 282700 Email- [email protected], [email protected]

viii

1INTRODuCTION

CONSuMeR eDuCATION AND CONSuMeR eMPOweRMeNT

Suresh Misra Sapna Chadah

Introduction Consumption has a significant impact on and meaning for

the individual. In modern society it has become a mean by which human beings communicate and interact. Consumers today operate in increasingly complex markets. Globalization, growing amount of information, expanding choice of products and services, and high-pressure selling are making it difficult to make the right choice. Everywhere we hear of and see new things which are superlatively defined. Not only are there more products and services to choose from but they are often more complicated like financial services. With increase in incomes and rapidly expanding field of desires, there is an ever-increasing need for educating the consumers. Efficient functioning of the nation’s economic system and well-being of society depend on consumer savvy. Individuals and families able to handle the complex financial decisions of daily life have better control of their lives. They are less likely to need government assistance such as consumer protection. Making good choices and protecting their interests require a wider range of skills and knowledge.

India is a developing economy and it is becoming more concerned on the way things are being consumed. This is basically due to increasing purchasing powers and consumption of middle

10 Reflections on Consumer Protection

class. There is huge market and development opportunity that’s why more and more Multi-National Corporations are trying to capture Indian market. The era of reduction and shrinkage of government began in 1990s. In this new phase of liberalization and privatization, there has been a lot of shift of power which has brought in involvement and investment from private sector and all sorts of problems for the consumers. With introduction of FDI, the flood gates have been opened for large multinationals to capture Indian markets. Big companies are coming here to get benefit of the huge market base available here. On the other hand it is becoming difficult for the consumers to protect themselves against these large giants. Emergence of e-commerce, plastic money, privacy and data frauds, misleading advertisements are posing further challenges for the consumers. The emergence of regulatory and organizational structure is there but still the consumers are facing problems. The affluence of a particular class of society leading to unsustainable pattern of consumption also needs attention. We Indians do not question many things and accept them as they are.

Consumer Protection Act, 1986- A Milestone With a well organised sector of suppliers of goods and services

on one hand and an unorganized sector of consumers on the other, the Consumer Protection Act, 1986 is landmark legislation for the protection of consumers. The Act is a milestone in the history of socio-economic legislations in the country. It is one of the most progressive and comprehensive pieces of legislation enacted for the protection of consumers. The Consumer Protection Act, 1986 is a unique piece of legislation as it provides a separate three-tier quasi-judicial consumer dispute redressal machinery at the national, state and district level. The Act is intended to provide simple, speedy and inexpensive redressal of the consumers’ grievances.

The Parliament enacted the legislation to provide for better protection of the interests of the consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes. The Consumer Protection Act provides for simple, speedy and less expensive remedy for the redress of consumer grievances in relation to defective goods and deficient services. The Act is a weapon in the hands of consumers to fight against exploitation by traders, manufacturers and sellers on one hand and providers of services

Reflections on Consumer Protection 11

on the other. It gives statutory recognition to six consumer rights, which are right to safety, right to information, right to choose, right to be heard, right to seek redressal and right to consumer education.

The Act also provides for quasi-judicial adjudicatory machinery at three levels i.e. District, state and National. The District Forum is presided over by a person who is or qualified to be a District Judge. Besides President there are two other members, one member is woman. The state Commission is presided over by a sitting or retired High Court Judge and the National Commission by a sitting or retired supreme Court Judge. The pecuniary jurisdiction for these bodies has been prescribed under the Act. The District Forum can adjudicate on matters, where the value of claim is upto rupees twenty lakh, the state Commission where value of claim is more than twenty lakh but upto rupees one crore and the National Commission where the claim is over one crore. These adjudicatory bodies are quasi-judicial bodies and are regulated according to the principles of natural justice. They are required to decide complaint within a period of three months from the date of notice where no testing is required and within a period of five months where testing is required.

The Consumer Protection Act, 1986 has been there for more than three decades but still even those who have the knowledge shy away from complaining. The consumers are not even aware about the various provisions of the Act particularly the rights that they enjoy as consumers. Perhaps lack of education and awareness has been the major hindrance in its effectiveness. If the consumers are empowered, then they will be able to capitalize on the opportunities of globalization. They would be affected differently depending on the level of knowledge and consumer awareness and the aspects of consumer education.

The right to consumer education has been recognised as one of the six rights under the Act but more needs to be done to educate the consumers. Consumer education not only delivers practical skills and knowledge that are relevant to everyone but also promotes critical thinking, problem solving and constructive action. Consumer skills are relevant not just in consumer situations, but in many other areas of people’s lives. Consumer education is in fact multidisciplinary by design. On a national level, consumer education can help make markets work well for consumers and businesses by


driving fair competition and preventing market frauds. It can also help protect vulnerable consumers, prevent consumer detriment and combat social exclusion. Consumer education must also inculcate the responsibilities of consumers. Responsibilities always precede rights. If consumers want their rights recognized, they must first exercise their responsibilities.

We Indians by nature have the attitude to suffer in silence and always think that going to court means a lot of problem, expenditure and waste of time. Today even the food items of daily use are being infected with poison. The consumer can cut down on a lot of items but cannot leave the basic items like food. It is neither the duty of the government alone, nor is it possible for the government to control and stop such unscrupulous activities. The citizens should be aware about these issues. Government is taking a lot of steps to curb the unfair trade practices and generate awareness. However, to make the consumer movement a success there is need for steps on the part of all stakeholders. The business should also take appropriate measures for redressal of consumer grievances at the organizational level and also encourage self-regulation. At present, corporate social responsibility is only a lip service.

Consumer education: Need and Importance Consumer education is critical in this regard; it can be defined

as a process of developing and enhancing skills and knowledge to make informed and well-reasoned choices that take societal values and objectives into account. Consumer education can help develop critical thinking and raise awareness, thereby enabling consumers to become more pro-active. It is also an important vehicle for building the confidence that consumers need to operate in increasingly complex markets. Today consumer education covers more diverse areas than it has in the past. It now covers, for example, consumer rights and obligations, personal finance, sustainable consumption, and digital media and technology. such education should be viewed as a long-term and continuous process that develops better decision making and skills throughout consumers’ lives.

“Consumer education is the process of gaining the knowledge and skills needed in managing consumer resources and taking actions to influence the factors which affect consumer decisions.”1 Critical thinking, understanding processes, insight into consequences of


choices and change management in general, are all necessary skills connected to consumer education.2 Consumer education that helps people to find their inner power and social potential to challenge the status quo, to change the system from a holistic perspective. Some of the principles on which our consumer education pro-grams should concentrate are as follows:3

1. We need a general training for consumers rather than a technical one.

2. Consumers need to be made to recognize existing conditions.

3. Consumers must be helped to understand their rightful place in the economic world.

4. Consumers need to develop standards for wise consumption.5. Consumers should be helped in developing a technique for

buying. 6. Consumers must be made to realize their collective power. 7. Consumers should demand state restrictions of undesirable

practices and laws necessitating standards. 8. Consumers should force the passing of laws making

misrepresentation illegal. 9. If the information possessed by government and government

agencies is made generally public, that information would be invaluable to the consumer.

10. More material on consumer education should be supplied to the consumers.

11. Advertising is both a valuable and important business. Think of what could be done if all of it were directed toward public welfare rather than toward profit. An honest business has no need to fear honest advertising.

Consumer education is neither a science nor a discipline in traditional sense. Nor is it a list of rational principles which will ensure the wisdom of consumer choices and behaviour. It touches on almost all subjects, and when effective, addresses an individual’s needs, goals, concerns and environment. It influences attitudes and behaviour patterns. It is a dynamic, lifelong process of formal and informal learning. The content of consumer education changes


regularly to address the needs and concerns of the moment. But the overall objective of consumer education does not change. It is to help individuals develop a sense of values, to determine what they want most from life, to set their goals and see them in proper proportion, and then to act according to their own principles, whatever they may be.4

Consumer education: Role of Various StakeholdersThe scope of consumer education is almost unlimited; its

possibilities are unbounded; its process of development a slow one. Herein lies a great challenge.5 There is need for harmonization between the legislations, education and consumer movement. Finding a right balance between these elements is certainly a major concern. Government enforcement should involve empowering individual consumers, giving them information and tools to protect themselves. Thus we need to ensure that consumer welfare is central to the policies across the board. There is need to support consumer position in the market from the perspective of businesses, governments and all stakeholders in the market. We also need to define and consider more intensely the concepts of Corporate Social Responsibility and corporate ethics.

Consumer education is often provided by several governmental agencies. However, non-governmental entities, including consumer organisations, teachers, parents and other civil society groups, also play a major role in consumer education. Businesses also need to be encouraged i) to play a consultative role to governments in consumer education, and ii) to develop their own methodologies and guidelines for promoting consumer education in their respective fields. Media (print, radio, TV and social media) could be used more effectively to support consumer education. Multi -stakeholder co-operation and co-ordination both domestically and internationally is needed in consumer empowerment.6

GovernmentThe primary responsibility of consumer protection and

empowerment lies with government and regulatory framework. A lot of money has been spent on consumer awareness. This is achieved through the framework of laws and policies, and implementing these for the benefit of the consumers. There is need to generate awareness among masses about their rights and responsibilities


and to take awareness to the grass root levels. The Department of Consumer Affairs through campaigns like “Jago Grahak Jago” is disseminating information to masses. But to have more impact of the movement and to involve educational institutions and teaching fraternity into it, the department is also involving educational institutions in consumer protection through curriculum development and research. The consumer protection at present does not exist as a separate discipline at the school and college level. It is studied as part of various disciplines like economics, law, sociology etc. and is a multi-disciplinary subject; though the move has started and the universities are now introducing a separate paper on the topic.

The government has recognised the need of training in consumer protection and developing a pool of trainers who are interested and concerned about the problem. Through such training and awareness programmes, it is trying to educate consumers. Consumer education is a life-long process. Adults also have significant consumer education needs, some of which are specific to different societal sub-groups. Therefore, consumer education should be disseminated in a variety of ways. The government should impart consumer education through formal and non-formal settings. Government should developing effective strategies and explore how information and communication technology can be used to impart consumer education. The special needs of consumers who may be particularly vulnerable like women, children, elderly need to be taken into account.7

Recognizing the need of consumers for a Helpline to deal with multitude of problems arising in their day-to-day dealings with business and service providers, the Department of Consumer Affairs, Government of India has established National Consumer Helpline (NCH) which operates under the umbrella of Centre for Consumer studies, Indian Institute of Public Administration. At NCH, the counselors guide consumers on how to get their grievance redressed. They provide information to consumers on products, services, company addresses, ombudsman, regulators and consumer forums. Counselors provide information as per the stage of the complaint. NCH also helps the consumer to approach company's internal mechanism. It has been experienced at the NCH that consumers are willing to complain to the company when dissatisfied. However, most lack the information where to approach. The details regarding the internal grievance redressal mechanism


and the nodal officer of the company are provided to the consumer. The companies’ tries to resolve the consumer dispute as per their policy and many disputes get resolved at the first stage itself.

Besides creating awareness, Government has also tried to encourage researchers to take up research on the consumer issues. The problem with consumer protection is that it has not received the required attention which it should have got even after 30 years of the enactment of the Consumer Protection Act. The government through the Consultancy Project on Consumer Protection and Welfare implemented through Indian Institute of Public Administration has tried to introduce to the researchers certain issues involved in consumer protection and promote them to take up these for research. The basic problem in our country is that researchers follow trends and news. some of the areas are becoming important because of the policy change and consumer protection is one such emerging area.

Business The trade and business also have an important role to play in

consumer protection. Businesses are responsible to their consumers based on the contract implied by trade and potential harm that can be done to the public. The business also has some moral and ethical obligations towards their customers particularly in the areas which affect the consumers. Companies must be honest with customers and sell products that are adequately safe. Every theory of justice will forbid coercive and deceptive trade. Businesses must give us what we pay for and people should not be deceived about what they are buying. Businesses must not harm anyone, including consumers. At one point of time consumers might have been able to assess the quality of products and services they bought on their own, but that is no longer the case. Product safety is an ethical obligation insofar as companies have a duty to provide consumers with whatever they pay for and products are assumed to be safe for ordinary use. Products must either conform to reasonable customer expectations or to the explicit claims made about it.

Customers have a right to know as to what products they are purchasing. Advertising and product labeling are both very important because it is the potential customer’s primary source of information, and companies have responsibilities to everyone that could be harmed by their advertising. Despite a customer’s right to know what they are buying, companies often lie or prefer


for their products to remain a mystery. Advertisements suppress information that customers should know about or pass wrong information to them which is morally wrong. Advertisements that manipulate consumers to buy products aren’t just disrespectful, but could cause materialism or physical harm to the consumers. It’s not entirely clear when advertising is overly deceptive or how much harm manipulative advertising does to people. However, it seems reasonable to think that it is morally preferable for companies to be honest and reject manipulative practices whenever it’s unclear how much harm it could cause. It’s better to be safe while dealing with the well-being of people.

Educational InstitutionsConsumer education should be included at all levels of the official

teaching curriculum. Training programme should be developed for educators, materials on consumer education should be exchanged free of cost between governments and social communication should be used for future consumer education activities.8 The aim of consumer education has been mainly to teach and educate students to act as informed, rational and prudent consumers. The general aim of consumer education at school and colleges should be:

• To develop an understanding of consumption and its role in society based on students’ perception of their role as consumers;

• To analyse alternative forms of human survival including different patterns of consumption;

• To make students aware of their rights and responsibilities as consumers;

• To make teaching and learning processes more dynamic; and

• To develop consumer knowledge, skills and attitudes suitable for promoting citizen activity.9

It has been emphasized that the intention should not be to add new subject to the curriculum, rather to develop the present possibilities of incorporating consumer education into existing programmes.

Consumer education courses should not, in the main, be set up as separate courses, but consumer welfare should be infused through


every course. General competence in buying should be taught first; then help should be given in developing the ability to make specific buying decisions. Study should start with the consumer’s place in the economic order and the nature of the consumer choices. Students need work in the field, need to realize the power of co- operative action, scope of legislation, directed against fraudulent advertising and fraudulent traders. Consumer education courses in high schools might be given credit as college preparatory courses. The analysis and grading of certain frequently purchased articles should be included in a consumer education course. students should learn where and how to find and apply impartial information on various articles.10

Consumer Organizations The utility of Voluntary Consumer Organizations (VCOs) in

the area of consumer protection is second to none by virtue of their operational domain at the grassroots level. They are useful in many ways. They can effectively contribute in promotion and propagation of the programmes and schemes relating to consumer education and awareness especially in rural areas. Thus they can play the role of the catalyst in generating consumer awareness. They can also help the consumers in filing complaints in the consumer foras or can take up the issues which affect the consumers in general. They can be very effective in dealing with the menace of hazardous products, spurious goods and can take up such complaints before the quasi-judicial machinery. These organizations can through specialised activities such as comparative testing of consumer products can disseminate information regarding products and services which can be very helpful for the consumers. However, at present these organizations are riddled with many problems. They lack both functionaries and finances. Further there is need for accreditation and professionalization of VCOs to raise their credibility. These VCOs should attract and involve professionally qualified people retain them and motivate them to work for community. There is also need for creating some mechanism to identify credible VCOs which if supported could effectively contribute toward strengthening the consumer protection.

Training and skill development of those who are working with VCOs will no doubt make them more effective to take up the cause of consumers. For this there is need for capacity building of the


members of VCOs. This can be achieved by having special training programme for consumer organizations and consumer leaders. The objectives of such programmes have been to involve the majority of the organizations in the region by providing them with general knowledge essential for effective consumer action.11

Dr. D. Y. Chacharkar’s research paper on “Brand Imitation and Counterfeiting: Need to Protect Consumer – A Case study of Amravati District, Maharashtra” highlights the problem of counterfeiting and spurious products. The brand imitation is a copy of famous or leading brand, using similar attributes, such as name, shape, logo, and designs. It is a deliberate attempt to deceive consumers by copying and marketing goods bearing well-known trademarks. Counterfeiting has both economic as well as social consequences upon society. The consumer gets less value; feels cheated and could even risk his life by consuming spurious goods. The brand owner loses profits, brand value and customers. The government loses revenue through tax and incurs additional expenditure on enforcement due to the pressure to raid counterfeiters. It also results in deterioration of culture and breeds dishonest behaviour. The objectives of the study were: to explore the imitated brands available in FMCG category in the market; study the role of retailers in pushing imitated brands; and examine the efforts of various organizations against fake and spurious products.

The findings of the study indicate that the retailers have important role to play in sale of imitated products. Almost all the respondents (retailers) are aware about brand imitation proving that, indeed, the retailer have major role to play in pushing imitated brands in the market. Whereas very few customers know that they are purchasing imitated brands and it can be termed as deceptive buying. Majority of the respondents accepted that imitated brands are harmful to consumers. Retailers are also aware of the fact that people who buy counterfeits/imitated brands are committing crime. Majority of the retailers also agreed that customer generally complain about quality of imitated brands.

He has suggested that it is important for the consumers to take precautions during buying process. It is also part of consumer’s responsibility that in case he comes across such fake products, he should report to company or inform authorities. Preferably goods should be purchased from authorized shop and retail outlets to


assure genuineness of products. Consumers should avoid imitating other consumers. Business and marketers provide greater margin to retailers to boost market of branded products. Logo can be designed to differentiate between genuine and imitated products at point of purchase. Masses must be educated about benefits of branded products and ill effects of counterfeits through mass media. Quality and price should be appropriately matched. supply chain must be strengthened further to channelize goods directly to retailers, which in turn would lead to saving. Companies must be vigilant about what is happening in the market through their market intelligence team.

Dr. Meenu Aggarwal in her paper on “Impact of Advertisements on Rural Consumer: Case study of Gautam Buddh Nagar and Agra Districts of Uttar Pradesh” has investigated the rural consumers’ behaviour; analysed the level of education of rural consumers; studied the impact of advertisements on their consumption behaviour; and suggested remedial measures for bringing improvement in rural consumers’ awareness, education and behaviour. The findings of the study indicate that rural consumers are not often aware of their rights and the products available in their market, that’s why they are exploited. They, generally, respond to advertisements, which influence their buying behaviour but the advertisements do not give them all the information that they need. The behaviour of rural consumers is mainly influenced by the personal factors followed by social factors. The effect of information factor is 6.7 percent only.

There are several problems being faced by rural consumers. The traders, to earn high profits, adopt foul means or illegal trading practices such as black marketing, adulteration, short weighting, supply of inferior goods at high prices, sales gimmicks, unfair guarantees and warranties, lack of quality control and safety, massive profiteering etc. Thus, the unaware, ignorant, illiterate and poor rural consumers in the study area are exploited at every stage in the markets. These consumers do not seek the redressal of the grievances on account of their poverty and ignorance. The impact of education on consumer behaviour in respect of buying goods and services has been found to be positive. It has been seen that educated consumers are mostly not guided by other factors except by economic condition. The educated consumers are also not influenced by the gifts, samples etc.

Majority of the consumers who were unskilled or illiterate, had


no inclination to change their buying behaviour. The educational programmes launched by the government and others in the study area had very limited influence on them. In both districts the consumers did not take action for the redressal of their grievances and their bargaining power is very limited. The survey of the study area revealed that many manufacturing firms occasionally advertised their products to influence the rural consumers, they adopted several forms of advertising in the area such as newspapers, publicity vans, demonstrations, decorated bullock- carts, puppet shows and awareness camps. It has been seen in the study area that the general impact of advertisements on consumers has been, to a great extent, positive. The rural consumers have now recognized that the best source of information to them is mass media.

The analysis of responses of the respondents revealed that a few business firms advertised their products in the area but 66 percent of them admitted that these firms distributed samples of their products and other gifts but they did not distribute literature of their products. Further, the advertising firms did not introduce new products and their advertisements were not attractive and convincing. As regards the effect of the advertisements is concerned, the impact of advertisements on rural consumers’ buying behaviour was found to be positive but it was very limited as the purchasing power of most of the consumers in the study area is limited.

The greatest drawback in our rural society is lack of consumers’ education. Well educated consumers cannot be cheated by the sellers as they understand their rights and powers. Thus, all consumers’ education programmes should be effectively enforced by the government and all other agencies including manufacturers and traders who advertise their products in the rural areas. The advertising concerns should launch consumer education programmes separately. Creation of awareness by communication and media should be emphasized. Print media such as newspapers, magazines, posters advertisements etc. should help to create awareness among rural consumers. In rural area under study, awareness camps should be organized by the renowned manufacturers and service providers with the help of Gram Panchayats. The matters of consumers’ exploitation, corruption, frauds etc., if brought to the notice of the media, should be made public through press or by other means so that the culprits may be punished. They should give the true picture


of their products and services to the consumers relating to price, quality, ingredients, availability etc. The misguiding information given by some traders through advertisements leads to monetary loss to the consumers. Thus, very strict laws and rules should be enforced by the government against such traders so that they may not behave irresponsibly. The manufacturing firms and service providers while advertising their products/ services should distribute relevant literature to the consumers, giving full details of the product/ service. It should be made compulsory by the appropriate authority. The advertisements must be attractive and convincing so that the poor and illiterate rural masses may easily understand the purpose behind the advertisements.

The study on “Consumer Protection and supply of Essential Commodities in semi Urban and Rural Areas of Tamil Nadu” by Dr. S. V. Srinivasa Vallabhan identifies the problems and prospects in providing consumer protection with reference supply of essential commodities in rural and semi-urban areas and its impact on the standard of living. The findings suggest that effective steps have been taken by the government by locating fair price shops within a distance of 2 kilometres. However, still frequency of visit for purchase is more than two and this can be reduced by providing all essential commodities on a particular day to the cardholders which will minimize the stress and strain on the part of the seller as well as the consumers. Lack of information on date of supply is the reason for discrepancy or deficiency. Effective remedy is preventing future selling and punishing the erring sellers. Hence modified punishment measures can be imposed to minimize the wrongdoings in relation to supply and distribution of essential commodities in semi urban and rural areas. Display of price and quantity available in all shops should be made mandatory in relation to essential commodities. These measures can be strictly enforced. Computerized bills or printed bills with quantity and rate can be used so that the legibility of bills can be improved.

Quality of products supplied through fair price shops should be improved. Essential commodities are not luxury goods and they are for the basic livelihood of consumers. Deterioration in standards may lead to poor health and there will be overall deterioration in health standards in the state. Weights and measures may have been standardized and supplied to all fair price shops. However,


the weighing and measuring methods are not at satisfactory level. Hence the government can think in terms of supplying items in a pre-packed manner. This will minimize the dissatisfaction due to unethical methods followed in weighing and measuring. The sellers may be given instructions to replace the substandard goods immediately on getting complaints. This should be made mandatory. Rural people may be educated with regard to complaint methods and remedies available so that they can complain in case of wrong doings. Cell phone numbers may be prominently displayed in the premises of shops to prefer complaint to the officials. The meanings for English words such as MRP, LT Extra may be translated and written in local language on information boards in the shops so that the consumer gets knowledge about these terms. The address of the official to whom complaint is to be made and his phone number should be prominently displayed in all shops selling essential commodities so that the consumer can use his right to be heard in case of irregularities. Public sector organizations and educational institutions can be utilized to educate the consumers on consumer rights. A separate paper can be made compulsory in all schools and it should include the portions relating to consumer protection only.

In the paper on “A study on Consumer Awareness among Arts and science College students in Tamil Nadu with special Reference to Thanjavur District,” Dr. C. subramanian has analysed the level of consumer awareness among college students in the age group of 18 to 25 years and studied the current trends among them. It was noted that more than half of the respondents were aware of the consumer rights. A vast majority of the respondents are aware of standardized symbols like IsO, IsI Hallmark, etc. The main source of consumer awareness was the communication devices and the media. A large number of respondents purchased the product based on the advertisements. They also take note of the defects of the products during purchase. The rural students have the habit of reading the cautions mentioned on the products. A vast majority of respondents did not know about the consumer clubs. Female respondents were more cautious in selecting the products than the male respondents. Likewise Arts students were more cautious in selecting the products than the science students.

From the study he has concluded that the consumers must have education and awareness for better implementation of their rights.


Educational institutions have to play an effective role towards creating awareness among students by adopting methodologies such as seminars, workshops, lectures, discussions, essay competitions, quizzes etc. The legal provisions must be effectively implemented so as to ensure that all packages contain the relevant information about the product. The competent authority must ensure that the products are not sold after the date of expiry, especially food and medicine. steps must be taken to identify the unscrupulous traders who are misbranding the products of well-known brands. The Directorate of Civil supplies and Consumer Affairs in every collectorate at the district level must take necessary steps to regulate the supply of food items through licensed shops only. The Consumer Councils must take steps to educate people and initiate protective measures against the malpractices in business. Every business enterprise should accept consumer protection, as their “social Responsibility”. The media can play a vital role to promote general awareness of the rights of the consumers by providing information to them. The general public, as consumers, should be made to realize their rights and exercise them in the case of any act of cheating or exploitation.

Dr. P. Gopinadhan Pillai in his research paper on “Accountability Consciousness of Consumer Protection Legal system in Kerala” has assessed the accountability-consciousness among the key personnel involved in the present consumer protection system in Kerala, envisaged through the Consumer Protection Act, 1986. The purpose of Consumer Forum is to extend a helping hand to a helpless consumer and redress his grievances. since the Presidents and Members are the driving force in the consumer protection set-up, it is expected that they should have a commitment to help the consumer – a commitment born out of a feeling of accountability. For that it is essential that each Forum and Commission should have good team spirit to achieve the common objective of providing a strong protective shield to the consumer against unfair practices. The concept of judicial independence, social justice and accountability should be included in training modules. Ethics and values should get emphasized in day to day work.

He suggested that to achieve performance at district forum new members should be given induction training on their roles and responsibilities and the basics of consumer protection. This can substantially reduce delay in grievance redressal. Training Need


Assessment of the Forums could be undertaken by an expert and on the basis of the recommendations, training programmes may be arranged. The responsibility could be entrusted to the Judicial Academy of the state. It is time that the protection offered by the Forum has to be extended to the consumers in remote rural areas of the districts. Forums could be set up in selected Talukas within the districts taking into consideration their easy accessibility to rural consumers. Thus the system becomes three tiers at the state level. Frequent adjournments of hearings on flimsy excuses should not be allowed. There is need to streamline the functioning of supporting staff, so that delayed communications can be avoided. Official email system could be formally introduced to avoid delay in communication. The Forum shall make such orders as to the costs occasioned by the adjournment as is provided in the regulations made under CPA. The District Collector should ensure his full support to the police for getting the verdict accepted by the opposite party. Lok Adalat and Amicus Curiae have to be strengthened in order to reduce the cost of litigation presently incurred by the complainants.

A good number of complaints registered with the Forums are regarding unfair practices indulged in by public sector organizations. Customer care officers must be appointed in Public Sector Organizations in Kerala, so that every effort should be made to settle the grievances at the institution itself. The state Commission should have a competent, professionally trained Public Relations Officer to establish linkage with media to give wide publicity to socially significant verdicts. He can also liaison with expert, voluntary agencies and provide support to clients. Sufficient infrastructural facilities and budget provisions must be provided to Forums. The Forums need to appoint their own ministerial staff, instead of the current practice of working arrangements or deputation. The present man-power strength designed for forum was done around 1990. But over the years, the number of cases seeking redressal has increased manifold. shortage of manpower is one of the reasons for delay in the disposal of cases. Appropriate steps may be taken to provide adequate staff based on workload and pending cases. A regular monitoring and review system spread over the state is necessary, so that correctives could be worked out by the authorities.


The paper by Prof. D. Rajasenan on “Consumption, Education and Exploitation-A Probe into the Consumer Exclusion in Kerala” is based on study undertaken to: appraise the consumption pattern trends in Kerala; study the dimensions of consumer exploitation and exclusion in Kerala; understand the irony of consumer exclusion despite higher literacy and education; evaluate the existing institutions for consumer protection; and suggest corrective policy measures. It was observed that instances of consumer dissatisfaction/exploitation in the state is high. All felt that they were cheated by sellers at some point of time during their life. Reason for not complaining in most cases was the low value of complaint. They felt that option of filing case is not worthwhile considering the time needed to spend in relation to the product value. This is despite the fact that Kerala is one among the three fastest consumer case disposing states in India. Education level was found to be a determinant factor of consumer exclusion and awareness was found to vary according to education. Overall, the respondents seem to be happy with the functioning of the consumer forums. None of the respondents felt that the forums are inefficient but a small number of respondents want improvements in some areas. The main problems encountered by consumers in approaching forums include limited procedural information and transparency, communication barriers and monetary factors. The analysis indicates high scope of exploitation in sectors like airlines and travel agencies, telecom, public service utilities and chitty/unorganized financial sector. The researcher has suggested programmes for long term consumer awareness with 5 year window to increase awareness. There is need to strengthen consumer education in schools and extending scheme of consumer clubs to all schools. Consumer education must be made compulsory in schools and its continuity must be ensured. steps need to be taken at two stages at pre-purchase and purchase stage. Further visit of students to consumer forum be arranged to make them aware of the procedure.

Paper by Dr. shakti Kumar Pandey “Consumer and Medical Negligence: A Case study of Consumer Redressal Mechanism in the Delivery of Medical services in the Rural Areas” is based on study undertaken to: analyse the available medical facilities at the Village and District Levels; examine the level of consumers’ harassment prevalent in the rural areas of U.P.; evaluate the level of awareness among rural consumers of the legal provisions regarding


medical negligence and suggest appropriate policy measures. On the basis of the survey conducted, the researcher concluded that all the doctors are not properly aware about the provisions of Consumer Protection Act related to medical negligence and its implications. They perhaps need proper and thorough training about the provisions and the procedures of these legal provisions. The patients and their attendants are perhaps more ignorant about Consumer Protection Act and its provisions related to medical negligence. For this, awareness programmes need to be organised at the village, block and district levels to make them aware of these provisions. The patients and attendants should also be made aware about the procedure to file a complaint regarding medical negligence against the doctor, under the provisions of Consumer Protection Act. Most of the consumers filing complaints are taking the help of lawyers, which frustrates the intention of the policy-makers; for that the process should be simplified and made easy. It will also be immensely fruitful to organise common sessions for doctors and patients for developing proper understanding about the Consumer Protection Act and its provisions related to medical negligence. The provisions of Consumer Protection Act should be displayed prominently in all the Clinics, Nursing Homes, Hospitals and Primary Health Centres to increase awareness level of the patients about these. This will make the doctors more careful, and the consumers aware of their rights. There should be stringent laws against the practice of quacks in the rural areas. The unauthorised persons should not be allowed to take up private practice. such illegalities should be strictly banned. Consumer clubs should be constituted at village panchayat level, with special intervention by local educational institutions. The provisions of Consumer Protection Act with reference to medical negligence must be widely publicised through local newspapers and hoarding, so that the rural community may become more and more aware of the provisions and patients and their family members may take appropriate steps as and when needed.

Dr. L. Reddeppa in his study on “Health Insurance – Can it reduce the Vulnerability of the Poor? An Explanatory study with Reference to Rajiv Aarogyasri Health Insurance scheme of Andhra Pradesh” has assessed the awareness, administration, rate of utilization and social, economic and medical impact of the Rajiv Aarogyasri Health Insurance scheme of Andhra Pradesh. Under the scheme about 2.03 crore families, which includes more than 85


percent of total households are covered. All the policy-holders and patients were aware of the diseases eligible for claim; choice in the selection of hospital; cashless treatment procedures; post treatment services and reimbursement of transport cost. Nobody paid any amount for treatment and surgery and it is really cashless transaction. But, patients have incurred Out of Pocket Expenditure (OOPE) on certain head. It is an average of about Rs. 4325. It is relatively low in Aarogyasri when compared to the other government schemes. The results emerging from the study indicate that government-sponsored critical care with private partnership is not a rational choice due to under-utilization of the public sector. Private sector hospitals are growing at the cost of government budget in many respects. There is need to regenerate commitment and responsibility in dealing with critical care through public sector on priority basis. Thus more protection is needed to cover the genuinely poor for all the diseases.

There is a dire need to educate the consumers regarding business malpractices, to enable them to recognize the genuine goods and standardization marks and make them aware of their rights and responsibilities so as to safeguard them from evils of exploitation. This would lead to firm foundation for improving the economy at a micro and macro level. Thus, there is a strong need to study the reasons for such state of affairs and to access the magnitude of problem of malpractices in rural/urban markets, so that suitable strategies can be formulated for protecting consumers. Paper on “Development and Assessment of Technical Back Up for Consumers of Textiles and Household Durables” by Dr. Neelam Grewal is based on an investigation undertaken to: gain an insight into the common business malpractices prevailing in the market with respect of textiles goods and household durables; study the existing buying practices of consumers related to these goods; and develop and administer an intervention package containing technical back-up to empower consumers. For that researcher undertook market survey and household survey to study consumer oriented practices of the respondents; and also developed an intervention package.

From the study the researcher has concluded that sale of substandard, counterfeit equipment and textiles is rampant in small towns and villages of Punjab. The poor villagers are practically fleeced and looted as they do not have sufficient knowledge about wise buying practices, standardization marks and consumer


protection services. Majority of rural people rely on shopkeepers while making purchases and are subjected to cheating/ exploitation. Both urban and rural consumers are at receiving end and at the mercy of suppliers of goods in the market. This is not solely because of manufacturers and marketers, but more so because of their own lack of awareness regarding the rights and responsibilities as consumers.

It is quite disappointing to note that less than 10 percent of total respondents utilized the services of consumer forums for seeking redressal of their grievances. so to educate consumers and bridge the gap between availability and utilization of consumer protection services offered by the government, an intervention package was developed and administered among selected respondents which had significant impact on consumer behaviour and knowledge.

Dr. s. Rajaram in his study on “Designing a structural Model for Measurement of service Quality in Railways and Hospitals with special reference to Tamilnadu and Kerala state” has developed a useful instrument (HOsPQUAL / RAILQUAL) to evaluate service quality by comparing consumer expectations to their perceptions of service delivered in Hospital and Railways sector. In order to survive in the business environment today, most research places emphasis on service quality. Service quality is defined as foundation of a comparison between customers’ expectations and perceived performance of service providers. In this research the inconsistency between customers’ expectations and their perceived service (performance) in specific services like Hospitals and Railways has been analysed. The research was taken up to evaluate perceived level and expectation (desired level) of the customers towards the services rendered by Railways and Hospital sector. The purpose of the research was to address these concerns by focusing and building upon concept of service value through an empirical investigation. The research re-affirms the sequence “Service quality”—“Customer satisfaction”—“Customer loyalty” as best reflecting the causality of relation between its constituent variables.

The findings of research provide an additional support to use of service industry model to explain the process of customer’s evaluation of the offering in a service setting. There are a number of contributions to the knowledge base within the services' marketing context. These include the demonstration that service quality is


a higher order construct and the examination of the relationships among service quality, customer satisfaction and behavioural intention with a service context. In sum, the research contributes to marketing theory to extend the existing conceptualizations of service quality. The findings of the current research should be seen in the light of contributions towards the development of a comprehensive model. It explains the development of richer and more complete conceptualizations of the constructs of service quality.

Dr. Rajvir sharma paper on “Working towards a Conscious and Efficacious Citizenry and Responsive and Responsible State and the Market: An Impact Evaluation of the Consumer Protection Act on the Awareness and Attitudes of the Consumers in Delhi” is based on the study undertaken with the objectives of assessment and evaluation of the levels of awareness among the people of Delhi about consumer rights and redressal mechanism under the Act; analyse the factors of dissatisfaction of the complainants regarding the access and nature of delivery of justice to them; and to suggest measures to improve awareness of the consumers and ways and means to improve the working and performance of the consumer courts.

The research indicates that the level of awareness about the consumer rights, district consumer forum and Consumer Protection Act is higher among the teachers, employees and the self-employed in the descending order. Age is an important factor in awareness in the rural population as the young respondents were found to be more aware than the middle aged or old persons. socio-economic background did not matter in relation to the knowledge about marks of standards like IsO, Hallmark or Agmark. In the opinion of the majority, the efforts made by the government to generate awareness are not adequate. Education is linked with the level of awareness. Majority of consumers tend to get the matter resolved at the source of supply rather than taking to the consumer forum or simply bear with it showing greater degree of tolerance/patience. The reasons for such attitude of the consumers, include low cost of the item, lack of time, cost of litigation being higher than cost of the good purchased etc.

The time limit prescribed under the CPA is hardly observed and the cases remain pending for periods between 6 months to many years. The complainants said that it was so because of


the procedures involved in the hearing of the case or because of the absence of the judicial member of the forum. Resultantly the consumer felt frustrated or at times was forced to leave pursuing the case because of high time and financial cost of such delays. It was also shown in the responses of the complainants that the forums do not observe the punctuality in starting the proceedings of the forum. There is lack of human resources and physical infrastructure in the forums. Therefore, lack of proper record keeping and proper and timely service of information and summons to the party against whom complaint was filed was a feature, rather than an exception. The role of the advocates in consumer forum makes it like any other court of the country.

It is imperative to enhance the level of awareness about not only the consumer rights on a bigger scale but also the place and procedure of grievance redressal. It is needed that the number of members in the forums be raised or should be fixed after the review of the average complaints being filed in the respective forum in a year. Moreover, the forum should come prepared and thorough with the cases to be heard by them on a particular day. The procedure needs to be made more simple and accessible to the consumer/complainant. The physical facilities and manpower need to be strengthened for faster disposal of cases and consumer friendly environment. The role of the educational institutions like the schools and the colleges should be reviewed on regular basis with reference to the outputs of the efforts-financial and others. It would be desirable to examine the feasibility of banning the legal practice by the advocates in the consumer forums, especially at the district level. Presently, lawyer is engaged because the complainant is generally unaware of the legal issues involved, preparation of the complaint and the affidavit. There is a need to restrict the number of adjournments to provide speedy justice to the complainant. It is necessary to provide sufficient, competent and committed staff as well as adequate physical infrastructure at the district forums.

Since consumer education is a very significant part of protection of consumer rights. For that it is required to strengthen the consumer awareness programme. This can be done by involving NGOs and media on a larger scale in the consumer education. This will go a long way in enhancing the levels of knowledge, confidence and efficacy of citizens as a consumer. Further, the organizations like


Nss and the NCC could also be used to take consumer awareness forward. More consumer advisory and mediation centers should be set up with the involvement and training of the resident welfare associations and NGOs as well as the municipal ward committees. Municipal leaders should be also given training in consumer rights and consumer protection. There should be set up local area consumer groups/ associations consisting of the office bearers of the RWAs, the Traders/ Market Associations, the local municipal councilors, the local MLA and other eminent persons of the area. These groups/ associations should become instruments of dissemination of information/ consumer education. Each district consumer forum should be provided with a counselor/ guide to help the needy or illiterate consumer complainant coming to the forum. This would help obviate the need to engage a lawyer and would also spread consumer literacy and competence and efficacy in a long run.

The research paper “Medicine Quality: Do the Brand Matters?” by Dr. Banhi Chakraborty highlighted some of the problems being faced by consumers in sale-purchase of drugs. In size, the Indian Pharmaceutical market ranks 3rd and in value it is 14th in the Global Market (2008-09). It was worth Us $ 10.04 billion during 2010 and witnessing growth at the rate of 15 percent. The sector, however, suffers from a number of complexities like multiplicity of brands, trimming in production of essential drugs, reduction in essential medicines under DPCO by 79 percent, constrained availability, and inclusion of expenditure on health increased poverty count by 3.6 percent (in rural) and 2.9 percent (in urban). The doctors were found to have preference for branded drugs as only 9 percent of doctors prescribed medicines in generic names. Further preference for costly brands for almost all drug types was also found. In some cases even brands of two different industries but of same generic, were also prescribed to one single patient. Patients of better economic status are inclined to move to private practitioners while the opposite is true for those who visit Government hospitals. Doctors are not following “standard Treatment Guidelines”. Visits of Medical Representatives to the doctors indicate close nexus between companies and doctors. It is the pressure of manufacturing houses that compels multiplicity in brands. It was also found that the location of shops matters most with respect to availability of types of brands. strategically the shops located near /opposite to hospitals/clinics were maintaining stocks of selected brands whereas retail shops in District towns like


siliguri were found to have more varieties than those in Kolkata. Results of quality verifications indicate full compliance with standard quality in terms of uniformity in weights, disintegration values, dissolution values and in assay test for all the samples. It was also found that the generic brands showed much higher values than those of branded drugs of reputed manufacturing houses.

It was suggested that there is urgent need to adopt strong measures for in eliminating the problem of brand complexity and related implications on prices. High prices, even for control category of drugs also require immediate attention of all concerned. According to DPCO 1995, all drugs must comply with the standard norms to get approval of Drug Control. Hence, once the drug islaunched in the market, it is to be taken as quality compliant and if so, the price variation does not stand as valid justification for quality adherence. In the given context, price determination in relation to leader’s brand price also does not hold good any more. Considering India’s low HDI, assurance in health security requires to be restored through faster policy reform where “drug” production is to be considered not as industrial sector but as health service sector.

References 1Rosella Bannister and Charles Monsma. (1982). Classification of

Concepts in Consumer Education, Monograph 137, south-Western Publishing Company.

2Victoria W. Thoresen. (2000). Resource Handbook on Consumer Education, Consumer Council of Norway, p. 6

3Mildred Brinkmeier Erickson. (1941). Consumer Education, Pi Lambda Theta Journal, Vol. 19, No. 4, pp. 135-137 http://www.jstor.org/stable/42915657 Accessed: 28-03-2017 11:44 UTC

4Fernstrom, Meredith M. (Jul/Aug 1989). Consumer Education: New Directions- A Bridge Between Consumers and Financial Institutions, Credit World; 77, 6; pp. 18-23 at p. 18

5Mildred Brinkmeier Erickson. (1941). Consumer Education, Pi Lambda Theta Journal, Vol. 19, No. 4 pp. 135-137at p.137 http://www.jstor.org/stable/42915657 Accessed: 28-03-2017 11:44 UTC

6OECD. (2009), Consumer Education- Policy Recommendations of the OECD’s Committee on Consumer Policy, p. 6 http://www.oecd.org/sti/consumer/44110333.pdf

7OECD. (2009), Consumer Education -Policy Recommendations of the OECD’s Committee on Consumer Policy, p. 5 http://www.oecd.org/sti/consumer/44110333.pdf


8Jensen, Hans Rask. (1991). Consumer Education as a Parameter of Consumer Action in Latin America and the Caribbean, Journal of Consumer Policy; 14, 2; pp. 207-228 at p.209

9Ibid at p. 210 10Mildred Brinkmeier Erickson. (1941). Consumer Education, Pi Lambda

Theta Journal, Vol. 19, No. 4 pp. 135-137at p.137 http://www.jstor.org/stable/42915657 Accessed: 28-03-2017 11:44 UTC

11Jensen, Hans Rask. (1991). Consumer Education as a Parameter of Consumer Action in Latin America and the Caribbean, Journal of Consumer Policy; 14, 2; pp. 207-228 at p.212


2BRAND IMITATION AND COuNTeRfeITINg: NeeD TO PROTeCT CONSuMeR–A CASe STuDy Of AMRAVATI DISTRICT, MAhARAShTRA

D. y. Chacharkar

IntroductionThe brand is most important assets owned by a company.

Like any other assets, brands are prone to various forms of attack. Imitation, counterfeiting, duplication, over-runs, alteration, misuse, tampering or diversions are some of the known and repeated forms of brand attack prevalent all over the world. Imitation is a fundamental part of biological and social life. It has been essential for human evolution as it facilitates the diffusion of new ideas and technologies. The economist defines imitation as, “something that is forged or imitated without the perpetrator having the right to do it, and with the purpose of deceiving or defrauding.”

It is estimated that the value of counterfeit goods in the global market grew by 1100 percent between 1984 and 1994 (Carty, 1994; Blatt, 1993). International Chamber of Commerce states that counterfeits account for 8 percent of world trade (Freedman, 1999). Globally, the sales of counterfeit products are estimated to be about $300 billion (Gentry et al., 2006). A recent survey from the US has come out with the finding that worldwide 10 percent of perfumes and cosmetics, 11 percent of clothing and footwear and around 6 percent of drugs bought by consumers are fake. The figure rises to a staggering 80 percent in some developing countries. Anti- counterfeiting group (ACG) organizer of a pan –European survey, put total loss to EU economy from counterfeiting and piracy at Rs. 20,00,000 crore per year which is lost in taxes and excise.


While India is not lagging behind the rest of the pack – mostly developing countries- it is China that is ahead of others in this category. China is the biggest source of counterfeit goods in Asia and piracy rate in China is more than 90 percent. As much as 30 percent of counterfeit products worldwide is being made in China. China's spurious goods are sold all over the world including India, counterfeit goods are easily accessible in Indian markets. Countries like singapore and Hong Kong which are regarded as shoppers’ paradise are also den for counterfeit goods.

Consequences of Counterfeiting on Society

The economic and social consequences of counterfeiting can be very damaging. Neither the Government nor the industry has carried out much research to test and publicize its harmful effects. Most counterfeit products- including fake medicines-are not poisonous, but simply ineffective and unhygienic. A recent lab test conducted by Pepsi India of 67 fake and regional soft drinks brands in Rajasthan found bacteria, yeast and coli in most bottles. Harm Matrix, a useful explanatory tool for understanding the various nuances of counterfeiting, tells a different story in the interaction between the counterfeiter and the customer and points to the many nuances of counterfeiting in the market today. fig. 1: Quality and functionality of the Counterfeit Product Quality

DECEPTION

High

Cheap toy purchased in belief that it is genuine

High quality counterfeits purchased by customers believing they are buying a genuine article

Low

Fake product purchased with knowledge it is fake

Overruns or very high quality counterfeits deliberately purchased with fake

Low High

Source: Hopkins D.M., Kotnik L.T., Turnage M.T. (2003), Counterfeiting exposed protecting your brand and customers, John Wiley & sons, Inc., New Jersey.


Lower-left corner customer may not be disappointed; brand name is also not damaged. The upper right corner company loses sales, customer watches a real brand but does not get it, and it is damaging company as well as customer. The lower right quadrant is also very damaging. Like the upper right quadrant, the producer of the genuine part is damaged by virtue of lost sale. In all likelihood, the customer would have purchased a genuine product had the counterfeit not been available. Finally the upper left quadrant describes an uninformed buyer who purchases a substandard counterfeit, in belief that it is real.

Organized Criminal Involvement in Counterfeiting Organized criminal elements are deeply involved in

counterfeiting and piracy. Profits from counterfeiting and piracy are often used to fund other criminal activities; and unfortunately, the criminal enforcement infrastructure, as well as the public, does not always view counterfeiting and piracy as the serious crimes that they are.

Brand Attacks: Indian ScenarioDelhi is the hub of counterfeit products. In India nearly 70

percent counterfeit originate there. The number of counterfeit and look alike products in India has increased so much that popular brands covering a wide range of product categories have been losing 10-30 percent of their business to them. Fake brands flood India- India has 60 ‘Nikes,’ 65 ‘Rolexs’ and 217 ‘Intels’. such is the impact of counterfeiting and piracy that over 400 companies begin with the word ‘Reliance’, an industry chamber said. An ORG retail audit revealed that for every 100 strips of genuine Action 500, there were 54 look-alikes. Vicks Vaporub and inhaler have around 20 clones. Ten to-30 percent of cosmetics, toiletries, packaged food are counterfeit, 10 percent of soft drinks sold every year are spurious, 61 percent of computer software and 40 percent of music sold are pirated.

Also according to one estimate at least Rs. 20 crore worth of fake currency in the denomination of 500 and 1000 was in circulation. A sample study of 30 FMCG companies undertaken by A C Neilson estimated that they lose Rs. 1,600 crore every year in their sales turn over due to brand piracy. According to an AC Neilsen FICCI study, the fast moving consumer goods sector loses Rs. 2,600 crore every


year owing to counterfeiting, while the government loses Rs. 900 crore in a year in the process. Enforcement of laws in India against counterfeiting is tedious. Lengthy legal proceedings often yield no results.

how Does the fake Network Run? The counterfeiting works on trust and secrecy bonded by liberal

doses of cash. The network of fake product runs as follows: (ex. – Fake Talcum Powder)

fig. 2: fake Network

Counterfeiter buys cheap variety of powder in wholesale and adds some mixtures to get smell like talcum powder.

Counterfeiter orders laminated container identical to those of any popular talcum powder brand. In some cases, even the supplier is the

same, no invoice is raised and payment is made in cash.

Containers are filled with fake talcum powder and sealed using a rudimentary machine in a makeshift factory.

Containers of fake talcum powder are sold to trusted wholesalers who may also deal in genuine brands.

Orders are dispatched to stock points across the district by salesman of a particular brand.

Retailers pick up container of fake talcum powder that is cheaper and sell it at original product’s cost.

Source: Rohit saran, “Fake Flood” India Today, september 2, 2011

fake Cosmetic Products unearthed in Raids on Retail Shops in Amravati

Amravati Police carried out raid in July 2011 at many retail shops of Amravati, where in retailers were found involved in sale


of fake products of P & G Olay Cream, shampoo, Face Cream, Head and shoulders shampoo, and other products. Investigations revealed that all the products collected in the raids were fake and routed from Delhi and Mumbai to Amravati. The police team seized cosmetics products worth over Rs. 4,50,000 in the raid. Products costing Rs. 700 are sold at Rs. 200 and product costing Rs. 200 sold at Rs.75. Chemical test conducted on seized products proved that these products are hazardous to health.

One such research study was conducted to assess situation of brand attacks in Amravati City and rural part of Amravati district.

Research frame

Research ObjectivesThe objectives of the study were to:

1. study the concept of brand imitation;2. explore the imitated brands available in FMCG category in the

market;3. know about the market of imitated brands;4. examine the role of retailers in pushing imitated brands; and5. study the efforts of various organizations against fake and

spurious products.

Data Sources Two principle sources of information, i.e. primary and

secondary sources were used.

Primary DataInvestigation for the study was based on systematic survey

of retailers within the boundaries of Amravati. The structured questionnaire was used for the purpose. Considering in-depth information needed to meet the objectives of proposed study, a representative sample of 300 retailers was chosen. Non-Probability Convenience sampling Technique was used for sample selection.

Sample Collection of Imitated/Counterfeited Productssimilarly, samples of imitated and counterfeited products mostly

from FMCG category were collected during the market survey.


Survey Plansurvey began by indentifying shops and shop owners who

satisfied study’s requirements, using the snow ball method. Owing to the sensitivity of the topic it was not easy to identify respondents, even though researcher assured them that their anonymity would be preserved. During the survey out of number of shops approached, roughly 20 percent of shop owners agreed to take part in the survey.

Data Analysis and Interpretation

Respondents' Profile150 (50 percent) samples were selected from both urban and

rural regions. The shops selected for the study included 169 (56 percent) from general stores segment, 40 (13 percent) from medical retail stores, 34 (11 percent) pan centers, 28 (9 percent) mobile shops, and 29 (10 percent) shops from other segments.

Market Scenario of Imitated Brands Almost all the respondents (retailers) were aware about brand

imitation proving that, indeed, the retailer have major role to play in pushing imitated brands in the market. Out of 300 respondents, 271 retailers admitted that imitated products are dissimilar (qualitatively inferior) to genuine brands.

Table 1: Selling Percentage of Imitated Brands

Percentage sale

frequency Percent Valid percent Cumulative percent

1-25 287 95.7 95.7 95.7

26-50 13 4.3 4.3 100.0

Total 300 100.0 100.0

Majority (66 percent) of consumers were partly aware about imitated brands, as explained by retailers. 44 respondents (14 percent) were of opinion that consumers have complete knowledge about it, together, they constituted a total of almost 81 percent of sample.

Figure clearly indicates that very few customers knew that they are purchasing imitated brands, retailers opined. It can be termed as deceptive buying.


Retailer’s Opinion on Imitation

Are Imitated Products harmful to Consumers? Majority 242 (81 percent) respondents accepted that imitated

brands are harmful to consumers to some extent, while 7 percent said it is harmful to great extent, and 30 (10 percent) respondents said it is not at all harmful.

Since the significance value is less than .05 the null hypothesis is rejected i.e. there is an association between the variables i.e. place and opinion on harmfulness of imitated products.

Deceptive selling of imitated brands is a fact, as majority 164 (55 percent) admitted, they occasionally share this details about

Table 2: Consumer Awareness about Imitated Brand in Retailers’ Opinion

frequency Percent Valid percent Cumulative percent

fully Aware

44 14.7 14.7 14.7

Partly Aware

199 66.3 66.3 81.0

No Knowledge

49 16.3 16.3 97.3

Can’t Say 8 2.7 2.7 100.0Total 300 100.0 100.0

figure 3: Do Customers Recognize that they are Buying Imitated Brand while Purchasing?

- 11 -

frequency percent Valid percent Cumulative percent fully Aware 44 14.7 14.7 14.7 Partly Aware 199 66.3 66.3 81.0 No Knowledge 49 16.3 16.3 97.3 Can’t Say 8 2.7 2.7 100.0 Total 300 100.0 100.0

Majority (66 percent) of consumers are partly aware about imitated brands, as explained by retailers. 44 respondents (14 percent) are of opinion that consumers have complete knowledge about it, together, they constituted a total of almost 81 percent of sample.

figure 3: Do Customers Recognize that they are Buying Imitated Brand while Purchasing?

Figure clearly indicates that very few customers know about that they are purchasing imitated brands, retailers opined. It can be termed as deceptive buying. Retailer’s Opinion on Imitation Are Imitated Products harmful To Consumers? Majority 242 (81 percent) respondents accepted that imitated brands are harmful to consumers to some extent, while 7 percent said it is harmful to great extent, and 30 (10 percent) respondents said it is not at all harmful.

Table 3: Chi-Square Test

since

the significance value is less than .05 the null hypothesis is rejected i.e. there is an association between the variables i.e. place and opinion on harmfulness of imitated products.

figure 4: Do Retailers Provide Information of Imitated Brands to Customers?

020406080

100120140

All the customers

knows about it

Majority customers

knows about it

Very few customers

knows about it

No customers knows about

it

Freq

uenc

y

R

U

Value df Asymp. Sig. (2-sided) Pearson Chi-Square 10.599a 3 .014

Likelihood Ratio 10.988 3 .012

N of Valid Cases 300


imitated products with customer, and 132 (44 percent) said that they do not at all share details about imitated brands with the customers. Chi square Test proves that there is an association between variables i.e. place and sharing details of imitated brands with consumers.

Counterfeits are marketed by same dealers. Half of the respondents (52.8 percent) replied that imitated brands are marketed by the same dealer of original brand, followed by 26 percent said ‘no’ and 21 percent retailers reported ‘can’t say’.

Retailers Opinion about Ill effects of Imitated Brands People who Buy and sell Counterfeit Products, are

Committing a Crime? Majority (63 percent) agreed with the statement that “people who buy counterfeits/imitated brands are committing crime”. Also majority (63 percent) agreed with the

Table 3: Chi-Square Test

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 10.599a 3 .014

Likelihood Ratio 10.988 3 .012

N of Valid Cases 300

figure 4: Do Retailers Provide Information of Imitated Brands to Customers?

- 12 -

Deceptive selling of imitated brands is a fact, as majority 164 (55 percent) admitted, they occasionally share this details about imitated products with customer, and 132 (44 percent) said that they do not at all share details about imitated brands with the customers. Chi square Test proves that there is an association between variables i.e. place and sharing details of imitated brands with consumers. Counterfeits are marketed by same dealers. Half of the respondents (52.8 percent) replied that imitated brands are marketed by the same dealer of original brand, followed by 26 percent said „no‟ and 21 percent retailers reported „can‟t say‟. Retailers Opinion About Ill effects Of Imitated Brands: People who Buy and sell Counterfeit Products, are Committing a Crime? Majority (63 percent) agreed with the statement that “people who buy counterfeits/imitated brands are committing crime”. Also majority (63 percent) agreed with the statement that “people who sell counterfeits/imitated brands are committing crime”. Retailer’s Opinion on Consumer’s Reaction to Brand Imitation Customers have Doubts about Quality and Complains Half of the retailers (57 percent) agreed with the statement “Customers have doubts about quality of imitated brands”. Majority of the retailers (73 percent) agreed with the statement “Customer generally complains about quality of imitated brands”. Smart Consumer Index: Brand Imitation Sensitivity Index The data was collected using questionnaire questions. A section was especially designed to know more about perception of retailers towards counterfeiters and counterfeited goods. Based on overall score of section four of the questionnaire, Brand Imitation sensitivity Index is prepared. Index was formulated based on the weighted score.

Table 4

Sr. No. Option

weightage

for Positive Question for Negative Question 1 strongly Agree 5 1 2 Agree 4 2 3 Can‟t Say 3 3 4 Disagree 2 4 5 strongly Disagree 1 5

Index was prepared to rate attitude of customer towards counterfeited goods based on opinion of retailers. Table 5

Area Total Cumulative percent Valid percent

Cumulative percent R u percent

Q5

19.00 1 0 1 1 .3 .3 .3 23.00 3 0 3 4 1.0 1.0 1.3 24.00 4 3 7 11 2.3 2.3 3.7 25.00 5 6 11 22 3.7 3.7 7.3 26.00 4 4 8 30 2.7 2.7 10.0 27.00 5 4 9 39 3.0 3.0 13.0 28.00 9 9 18 57 6.0 6.0 19.0 29.00 19 14 33 90 11.0 11.0 30.0 30.00 28 19 47 137 15.7 15.7 45.7

0

50

100

Always Occasionally Not at all

Freq

uenc

y

R

U


statement that “people who sell counterfeits/imitated brands are committing crime”.

Retailer’s Opinion on Consumer’s Reaction to Brand Imitation

Customers have Doubts about Quality and ComplainHalf of the retailers (57 percent) agreed with the statement

“Customers have doubts about quality of imitated brands”. Majority of the retailers (73 percent) agreed with the statement “Customer generally complain about quality of imitated brands”.

Smart Consumer Index: Brand Imitation Sensitivity Index The data was collected using questionnaire. A section was

especially designed to know more about perception of retailers towards counterfeiters and counterfeited goods. Based on overall score of section four of the questionnaire, Brand Imitation sensitivity Index was prepared. Index was formulated based on the weighted score.

Table 4

Sr. No. Optionweightage

for Positive Question

for Negative Question

1 strongly Agree 5 1

2 Agree 4 2

3 Can’t say 3 3

4 Disagree 2 4

5 strongly Disagree 1 5

Index was prepared to rate attitude of customer towards counterfeit goods based on opinion of retailers.

The scores of 20 percent of respondents rated was low, and rest 80 percent rated as moderate. It indicates consumers mostly rated moderate on sCI. statistically speaking there is no association between variables i.e. location (urban/rural) and score on sCI.

Inter-relationships between Brand Imitation Sensitivity Index, education and SCI: statistics related to regression of Brand


Tabl

e 5

RA

rea

Tota

lC

umul

ativ

e p

erce

ntVa

lid p

erce

ntC

umul

ativ

e pe

rcen

tu

per

cent

Q5

19.0

01

01

1.3

.3.3

23.0

03

03

41.

01.

01.

324

.00

43

711

2.3

2.3

3.7

25.0

05

611

223.

73.

77.

326

.00

44

830

2.7

2.7

10.0

27.0

05

49

393.

03.

013

.028

.00

99

1857

6.0

6.0

19.0

29.0

019

1433

9011

.011

.030

.030

.00

2819

4713

715

.715

.745

.731

.00

2722

4918

616

.316

.362

.032

.00

1827

4523

115

.015

.077

.033

.00

1313

2625

78.

78.

785

.734

.00

97

1627

35.

35.

391

.035

.00

37

1028

33.

33.

394

.336

.00

26

829

12.

72.

797

.037

.00

06

629

72.

02.

099

.038

.00

03

330

01.

01.

010

0.0

Tota

l15

015

030

010

0.0

100.

0


Imitation sensitivity Index on education of respondents and score on smart Consumer Index is given in the following. ANOVA (b) Standardized coefficients Y= α + β X1+β X2

Section 4= (.240) Education + 0.223 (section 5 score)

BRAND IMITATION SeNSITIVITy INDeX= (0.240) eDuCATION Of The ReSPONDeNTS + (0.223) SMART CONSuMeR INDeX

In the regression analysis, it is found that P < 0.05 means it show the significant difference between dependent variable Brand Imitation sensitivity Index and in dependent variable education of the respondent and smart Consumer Index.

Suggestions offered by Retailers to Counteract MenaceTo Marketers- Certain strategic initiatives like greater margin

to retailers, sale promotion tactics, and more importantly sensitizing about ill effects of imitated brands will be able to put breaks on sale of imitated brands. Logo designed to differentiate between genuine and imitated, control supply chain links of products can boost sale of genuine products. Marketers should be always vigilant about what is happening in the market.

To government- The government should take this issue seriously and initiate to identify and ban counterfeits. Concerned officer from enforcement agencies should visit market to identify illicit trade and sale of counterfeit. Brand Protection Committee can be formed at local level i.e. by Chamber of Commerce of district to identify and eliminate counterfeits for market. Local government should put entry barriers to counterfeits at entry point.

Conclusions and SuggestionsEveryone gets affected when brand is attacked: Consumers- Get

less value, feels cheated and could even risk his life. Brand owner- Loses profits, rand value and customers. Government- Loses tax revenue and incurs additional expenditure on enforcement due to the pressure to raid counterfeiters. society- the resultant deterioration of culture, breeds dishonest behaviour.

Value for money: Price is unquestionably one of the most important marketplace cues in this context. It is seen that most


purchasers of imitation luxury brands pursue value for brand and prestige, but may be unwilling to pay high price for it.

Low purchase risk and novelty seeking: Customer seeks variety and difference out of curiosity and novelty seeking. Consumers who are inclined to try out new products would probably have positive attitude towards counterfeits of luxury brands.

Consumers of imitated brands perceived same benefits as of genuine: Consumers likely purchase imitations knowingly, positively related to the expected performance. Appearance and visibilities are more significant for fashion and symbolic products. Product attributes for buying imitations would be based on appearance and visibility. Limited awareness and willingness are both enablers of imitated products sale.

Consumers are duped: Consumers may acquire imitated brands either by not being aware (Deceptive selling) or knowing full well the illicit nature of the product (Non-Decptive selling).

Tarnish image of original products: Imitation tarnishes the image of genuine manufacturer, as its brand is a promise of quality and value. The Brand - a company’s most valuable asset can be destroyed when a trademark is imposed on counterfeit products of inferior quality. When a brand loses value, legitimate business loses sales and this can pose a long-term threat to profitability.

Difficulty in evaluation of the Illicit Trade of the imitated/ counterfeits: Estimating the extent of illicit trade and market of imitated brands appears to be major challenge. Present study restricted to Amravati district even had limitations to estimate figures of imitated / counterfeits and illicit trade. However, AC Nielsen study estimates loss to the Indian government on account of tax evasions by unauthorized manufacturers to be around Rs. 15,000 crores.

future competitor: More important side-effects of imitated product production, is the possibility that these producers may turn into illicit competitors in the future.

Involvement of criminal element: Because of high-profit potential and relatively low risk, organized criminal elements are deeply involved.

Sample analysis: After examining products collected through


survey, it is observed that small size packaging is most vulnerable for counterfeiting. In most cases the ‘me-too’ products are slightly different. Medicinal Products are usually sold in the form of a strip. When the retailer cuts out one from a strip from ‘me-too’ make, the consumer may not be able to tell the difference since the packaging colours are identical to the original one.

Supply chain: The survey revealed same facts in this context. Because of high-profit potential and relatively low risk, organized criminal elements are deeply involved in counterfeiting and piracy, pushing these products to end customers.

Slow pace of legal system: In most cases, due to an antique and archaic law and judicial system taking its own slow pace, the marketers of these products keep resurfacing; once nabbed, they walk away again, scot-free. Raids are conducted only after pleading and pressure from companies and the conviction rate is less than 1 percent.

Strategies to Counter Imitation and Counterfeiting

1. Be Proactive than Reactive Employing local agents who can keep a watch on product and

market behaviour makes a sense. Large field force of independent invigilators can be employed to combat the counterfeiting problem.

2. empowering Customers with Verification Ability Authentication of the product at the moment when it is most

important i.e. point of sale at the retail level. Consumers should be empowered with verification ability. Company for example, ‘Hawkins’ attaches a distinctive hologram to its packaging. To quote many liquor companies develop a new bottle cap. Though idea is simple, the cap had a bulge in its design which made it extremely difficult to replicate cheaply.

3. Advertising Messages to Reinforce the Quality and Value of the Brands

Educate consumers to differentiate between original and counterfeits in terms of quality, functionality and reliability. Aware them about quality and safety standards of imitated/


counterfeit products. One way to combat this behaviour is to use repetition of advertising messages to reinforce quality and value of original brands.

4. Improve Distribution Network survey reveals more number of fake products is being sold

in rural market and to tackle this kind of problem, company needs to improve their distribution network and to reach market including haats. Also, communicating list of authorized retailers is very important. Regular comprehensive trade visits by marketing and sales department to the bottom end of the trade seeking cooperation and also ghost shopper can unearth unfair practices in general and imitation menace in specific.

5. Value Add features The research study advocates anti- counterfeiting technologies

that provide additional valuable features, for ex. Track and Trace Technology. supply chain management tools can be used at the discretion of the brand owner to track the movement of goods, to maintain inventory, to keep tabs on any diversions in certain product segments like mobile accessories, etc. Emerging trade regulations will soon mandate a Track and Trace requirement for product importation in various countries.

6. Don’t do it Alone Help is available from many sources. The initiative like FICCI

Brand Protection Committee can strengthen armour against the counterfeiting. Corporate in India should have joined together to wage a war against counterfeiting under the aegis of FICCI-BPC. An initiative like a portal fake-busters.com is important for counteraction.

7. System Approach and Strengthening Laws To crack down on growing menace of spurious drugs the

government should introduce measures including, roping private detective agencies, setting up separate intelligence network and reward to informers. It should set up products and drugs testing centers at various places, proactively. For all imported products, products and drugs testing centers can be set up at various ports. Police, judges, and custom officials need to be trained


for enforcement against imitations. Issue of absence of safety standards shall be taken on priority. A campaign like “Fakes Cost More” should also be launched in India for the cause.

The Moment of Truth: The facts quoted here will certainly relieve marketers from growing pressure of counterfeiters. The findings of one of the research study indicates that buyers of imitations of luxury brands might not be those who buy original brand anyway. Therefore, these findings imply that luxury brand owners should not unnecessarily worry about their product being imitated.

Schools as a Centre of education: school as a Centre of consumer education is widely accepted all over the world. Hence imparting the education about consumerism in school is a good idea.

Corporates and government has a Responsibility of educating Consumers: Government bodies have greater role to play, governmental bodies should educate consumers about the negative impacts of counterfeits. Certain forms of endorsement by celebrities would project credibility. Advertisements on Counterfeiting showing negative economic impacts and long-term repercussions of counterfeiting activities can be used for this purpose. similarly corporates may aid consumers, through education of the consumer i.e. providing them with greater knowledge.

Anti-Counterfeiting Buying Behaviour ModelModifying behaviour of consumers to reject counterfeits and

imitation occurs over time. Consumers usually pass through a multi-stage process; which includes knowledge, persuasion, decision, implementation and confirmation. The model and variables associated with movement through the process is shown in Figure 5.

Stages of Change Knowledge Awareness: The process stage begins when a

consumer receives physical and social stimuli that give exposure and attention to the branded goods and also expose to ill effects of counterfeits/imitation.

Persuasion: It is for formation of favourable or unfavourable attitude towards the counterfeiting. The consumer in this stage reduces risk in decision-making by acquiring additional information.


Hence, data/information on negative/ill effects of counterfeits reduces chances of acquiring it.

Decision: It involves activities that lead to choice regarding adopting or rejecting the counterfeits. Rejection is a decision not to adopt counterfeits. Active rejection consists of considering product even for a trial, but then deciding not to adopt it. Passive rejection consists of never really considering using it.

Implementation: It occurs when a consumer takes this decision in real life situation. Process has been strictly mental exercise, but now behavioural change is required. Proper use of marketing mix elements makes favourable behavioural change easy. It requires careful coordination of channel of distribution and communication process.

Confirmation: It refers to the process through which consumers seek or reinforce the changed behaviour. Discontinuance is a serious problem at this stage, people who adopt the changed behaviour at later stage appear to be more likely to discontinue.

Prior Conditions to Induce Change in Behaviour: Prior conditions in order to diffuse adoption of changed behaviour need to be developed on three fronts: I. Market: Commercials / promotion campaign; Risk involved in terms economics; Coordinating mass media communication; and Education and awareness of consumers on the related issues. II. Legal: Existence of Legal framework and Pro-activeness of regulatory enforcement agencies. III.

figure 5


Supply Chain: Availability of genuine brands; Moral values of intermediaries; Partnering approach.

Characteristics Supporting Changed Behaviour: similarly characteristics supporting this changed behaviour includes: Socio-Economic Characteristics: Geographic location-urbanites are more prone to this adoption, Higher educational and social status and upward social mobility. On personality characteristics, characteristics such as: favourable attitudes towards education, Intelligence, Favourable attitude towards change. Communication Behaviour: social participation, Change agent contact, Mass media exposure, Communication regarding safety standard and quality stands.

Products most Likely to Succeed: Product with high involvement, preferably small price differentiation, Functional utility difference of genuine and imitated/counterfeits is vast and observable, Price difference is perceived by consumer as justified. similarly education and awareness of consumers at different stages of the process is responsibility of marketers, government, and others agencies. They need to develop different education and awareness campaigns for consumers at different stage of readiness of adoption.

Scope for future ResearchPresent research study constitutes a very young research stream.

Knowledge on mechanisms and structure of trade of these products is limited. Also diversity of the trade phenomenon need for further research in this area; this research may serve as a starting point for a future research agenda.

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3IMPACT Of ADVeRTISeMeNTS ON RuRAL CONSuMeR:CASe STuDy Of gAuTAM BuDDh NAgAR AND AgRA DISTRICTS Of uTTAR PRADeSh

Meenu Agrawal

The present age is the age of advertisements. The main aim of these advertisements is to attract the consumers towards their products or services. This is the way to capture the rural and urban markets, to create positive interest of maximum consumers and to remove the competing firms or producers from the field. These advertisements attack the feelings of consumers and try to leave a permanent impression in their minds. A rural consumer participates actively in the economy from the day he spends his first paisa, be it for candy or lemon or salt. As rural consumer plays an important role in the economy, the way he performs in turn affects the performance of the economy. However, due to lack of awareness it is very difficult for the rural consumers to decide what to purchase to satisfy their needs. Rural consumers are often not aware of their rights and the products available in the market.

Rural consumers are, generally, exploited in the market because advertisements do not give clear picture about the products. In India rural consumers’ behaviour is not rational on account of their illiteracy, ignorance, lack of awareness and poverty. While buying goods and services they are influenced mostly by personal, traditional and psychological factors. Their standard of living does not improve even after increased expenditure on consumable items. Only education and awareness can remove this drawback. That’s why rural consumer’s education is necessary for survival in the


rural society and it is directly connected with the skills needed to manage everyday life.

But in recent years the behaviour of the rural consumers’ has changed. The rural consumer, a few decades ago, was a silent person who purchased the goods from any place without any complaint whatsoever. But things have changed now. The consumer is now, the choice empowered consumer who decides the fate of the product with his rising income. Thus, the producers/manufacturers are continuously engaged to understand the complex behaviour of the consumer, particularly of the rural consumer.

The choice of the rural consumer is influenced mainly by the two factors, (a) purpose, need or desire of the consumer and (b) behavioural pattern. It is known to everybody that people react to the same situation or environment in different ways at different times because our behaviour and attitude depend upon a number of factors such as habits, recognition, price, impulse, emotion and unpredictability.

Advertisements about drugs, cosmetics and food items etc. frequently misrepresent their products by clever advertising literature containing vague words. Clever advertising is especially aimed to promote purchasing through non-rational and impulsive logics instead of rational and logical approaches. The advertising has become a professional persuasion to manipulate the consumers’ buying attitude. Advertisers reap rich dividend from the knowledge that the consumers on the whole are gullible.

Undoubtedly, the advertisements have played an important role in educating the rural and urban consumers, which in its turn has changed their behaviour. The advertisement, which gives the true picture of the product, the details of which are advertised, is a boon to the consumers.

Education of rural consumer is necessary for his survival in the society and it is directly connected to the skills needed to manage everyday life. The consumer education should support consumers in their attempts to organise their every-day life in a sustainable way and to manage efficiently and fairly the resources available. The welfare of the rural consumers depends upon their right type of education about the products that they consume even on special occasions such as festivals, marriages, birthdays etc.


Consumer education provides training so that behaviour chosen follows individual and collective consumption interests and it is connected with skills, attitudes and knowledge required for living in a consumer society. The rural consumer is illiterate in respect of legal provisions of the Consumer Protection Act. Rural consumer’s bargaining power is limited and thus, he is unable to fight against the wholesalers/manufacturers. Consumers are not united to fight legal cases against the manufacturers in the court of law. He is mostly impressed by false and repetitive advertisements about the products.

Government and private agencies in India offer rural consumers’ education programmes and widely disseminate consumer information system. some of the reputed private companies have involved themselves with rural consumers’ education giving high emphasis to the motto- “Educated consumers make better consumers” along with their selling portfolio. However, in India consumer education is still, practically not widely recognised.

Objectives of the Study

The main objectives of the study are as follows:

1. To investigate the main characteristics of rural consumers’ behaviour in Gautam Buddh Nagar and Agra Districts.

2. To analyse the level of education of rural consumers in the study area.

3. To study the impact of advertisements on rural consumers education and behaviour.

4. To study factors responsible for success/failure in selling of goods and services to the consumers.

5. To examine the rural consumer’s current knowledge, attitude and practices regarding quality of goods, brands and prices etc.

6. To examine marketing strategy and delivery system according to needs of the rural consumers in the district.

7. To draw conclusions and suggest remedial measures for bringing improvement in awareness, education and behaviour of rural consumers in the districts to make them more aware about their rights.


MethodologyThis study was mainly based on the primary data, collected

personally through field survey with the help of questionnaires cum schedules. In order to select samples for intensive study, Purposive Stratified Sampling Technique has been used. For this study 300 respondents from the selected villages in Gautam Buddh Nagar District and 300 respondents from the selected villages in Agra district were proportionately chosen randomly. Thus, the study is mainly based on the responses of 600 respondents, who were selected through Multi-stage Random sampling Method. Personal interviews with the respondents and with some other households were held and their views were noted.

secondary data was collected from various sources such as Census Reports, Research Reports and related documents on the subject. statistical Abstracts, Five Year Plans, Periodicals, Journals, Magazines, “India 2009 and 2010" (Reference Annual), published by the Ministry of Information and Broadcasting, Government of India, Reports of Ministry of Consumer Affairs and standard books etc. were also referred to. The secondary data as published by the non-government organizations (NGOs) and other private agencies were also consulted, analysed and classified for the purpose of this study. Data and information were collected from the published and unpublished literature and analysed by application of appropriate statistical methods and techniques etc. The collected data were classified and analysed with the help of computer.

Characteristics of Consumers' Buying Behaviour The characteristic of buying behaviour of the consumers is

reflected in many ways, which play an important role. After buying the product the consumer may feel that other brands, which he did not buy, would have been better. This is a part of normal behaviour of the consumers. This position makes him uncomfortable and therefore, he recovers his conviction about the product that was purchased and confirms his earlier decision. He may again try to see the advertisements of that product to assess his earlier decision.

factors affecting Consumer’s BehaviourThe consumer’s behaviour is influenced or affected by many

factors, which play an important part in his buying decision. These


factors are: Personal factors, Attitudnal factors, Cultural and Religious factors, social factors, Information factors, Marketing and Advertisement factors.

Not only the above factors, which deeply affect the consumers behaviour, but there are other factors also, which to some extent affect the consumers’ behaviour. These are:• Geographical factors;• Place or purchase point factor; and• Mood of the consumer at the time of purchase factor.

However, these factors are not significant.

Table- 1: factors affecting the Consumers’ Behaviour in Rural Areas of gautam Buddh Nagar and Agra Districts

(No. of Respondents = 600)

Factors affecting Consumers’ Behaviour

No.of Respondents

Percentage of Respondents to Total Respondents

Personal Factors 400 66.6

Psychological Factors 30 05.0Cultural & Religious Factors

60 10.0

social Factors 70 11.7Information Factors 40 06.7Total Respondents 600 100

Note: Information factors include advertisement and marketing factors.source: survey of the study Area and responses of the respondents was collected through questionnaire

During survey of the area, discussions with 600 respondents were held and efforts were made to know the comparative influence of various factors on their behaviour as consumers. The information about the influence of these factors on their buying behaviour was also collected through questionnaire and face to face discussions. The same has been reflected in the Table 1.

The above analysis reveals that in rural areas of both the districts the consumers’ behaviour is mainly influenced by personal factors (66.6 percent). social factors affect their behaviour by 11.7


percent and cultural and religious factors by 10 percent. The effect of information factor is only 6.7 percent. The influence of the psychological factors is the least (5 percent).

Problems of ConsumersIn both the urban and rural markets consumers are confronted

with several problems related to quality, price, weight of goods etc. The traders to earn high profits adopt foul means or illegal trading practices such as black marketing, manufacture of imitation, unfair guarantees and warranties, sale gimmicks, adulteration, short weighting and measuring, lack of quality control and safety, massive profiteering, supply of inferior goods at high prices etc. These unfair practices are harmful not only for the consumers but to the whole society. The unaware, illiterate, ignorant and poor rural consumers are exploited at every stage in the markets. These consumers do not seek redressal of their grievances on account of their poverty, ignorance and unawareness.

Impact of education on Consumer BehaviourThe education influences the behaviour of the consumers in

respect of buying various goods, commodities and services that fulfil their needs. The consumer behaviour in absence of education is, generally irrational. The consumers are usually guided by various considerations before buying goods and commodities for consumption. They are mostly influenced by their personal feelings and whims, which may not be educationally sound. As a matter of fact, consumer education is required to make them rational and responsible consumers. Education not only improves the buying behaviour of the consumers but makes them confident consumers.

The behaviour of the consumers who have knowledge about buying goods for their consumption is not influenced by their image and status in the society. They also do not show any inclination to buy such products, which are not within their reach. They are, however, guided by their economic condition, which compels them to buy better goods and commodities, which are, economically, within their reach. They exclude costly commodities from their consumption list.

Educated consumers with requisite skill and knowledge normally are not influenced by psychology, faiths and beliefs etc. The cultural


and religious factors also do not guide their buying behaviour unless some goods or commodities are particularly required for cultural and religious purposes. Moreover, social, political and professional organisations influence their buying behaviour only to the extent it is rational and sound. Close groups and social class do not influence their outlook, thinking and decisions in respect of buying goods and commodities. However, information factor influences their buying behaviour, if it adds something new to their knowledge.

The advertisements do not influence the skilled consumers, unless they give sufficient ground in favour of the products, which they advertise. The skilled or educated consumers study the advertisements keenly and form the opinion after close observation and taking knowledge from other sources about such goods and commodities. These consumers have the power to well understand the misleading advertisements. They are not attracted by such advertisements.

The skilled and literate consumers are also not influenced by the samples or gifts, which are given by the traders on behalf of the manufactures. However, if the samples tried by such consumers prove their worth, they become successful in changing the buying behaviour of the skilled consumers.

Even the salesmen, who face to face narrate the merits of certain goods and commodities, do not influence the buying behaviour of the skilled consumers unless they faithfully give the true picture of the commodity and give the answers to the queries, raised by such consumers, faithfully.

some minor factors such as geographical factors, place or purchase points, mood etc. have no significance for the skilled consumers. Thus, it is very difficult to persuade such consumers as they consider reasoning and justification before taking a buying decision. They are mainly guided by knowledge, which sets their buying behaviour. It is, therefore, clear that the education deeply affects the buying behaviour of the consumers.

findings and ObservationsDuring survey of the area, information was collected from

600 respondents, through questionnaire, to know as to how far literacy has affected their buying behaviour, As 75 percent of the


respondents were illiterate or semi literate, the result drawn on the basis of their responses is as follows:

i. There is no place for argument and reasoning in their buying behaviour;

ii. Their buying behaviour is mostly influenced by their personal factors. The role of other factors is negligible;

iii. Their behaviour in buying goods and commodities is, generally, traditional;

iv. As these consumers are poor and backward, they behave accordingly;

v. The buying behaviour of these consumers is irrational;

vi. These consumers have no inclination to change their buying behaviour as they have firm conviction about certain brands or unbranded goods and commodities;

vii. The consumer awareness and educational programmes launched by the government and non-government organisations (NGOs) in the area have influenced a very small number of them;

viii. Commodity price is their main consideration, which can change their buying behaviour from highly priced commodity to low priced commodity. It is not material for them whether the low priced commodity is of inferior quality;

ix. These consumers do not take action for the redressal of their grievances although they are cheated several times by the sellers;

x. The bargaining power of these consumers is very limited;

xi. some of these consumers are impressed by the false and repetitive advertisements of various products; and

xii. The responses of these consumers reveal that these consumers are not confident and responsible consumers.

However, the buying behaviour of 25 percent of the respondents who are literate is influenced by their literacy level. These respondents narrated that:

i. They purchased goods and commodities after closely examining merits and demerits of different brands;


ii. They purchased standard quality goods;

iii. They were not influenced by the false advertisements and the samples and gifts given by the sellers or manufacturers to attract them towards their products;

iv. Their economic position influenced their buying behaviour;

v. Their outlook towards the commodities was not traditional;

vi. The buying behaviour of these consumers was rational as they had no firm conviction about certain brands of goods and commodities;

vii. Price of the commodity was not their main consideration;

viii. Out of these consumers, five filed complaint against the sellers in the District Consumer Forum for the redressal of their grievances;

ix. General faiths and beliefs, social and political considerations and relatives and friends could not influence their buying behaviour; and

x. These consumers learn from their experience from the goods and commodities that they have consumed in the near past. This experience helps them while making purchases of household goods.

The responses of the 25 percent of respondents (liberate/ educated) revealed that they are alert and responsible consumers.

History of markets tells us that there was a time when market was the place to fulfil day-to-day requirements but the scene has changed now. Today markets rule the life of the consumers. Markets guide the consumers as to how to celebrate festivals. But an alert and responsible consumer does not buy a commodity in hurry. He demands full information when he buys and he is not misguided by the misleading advertisements and does not compromise on the quality of goods.

An educated consumer insists on IsI or Agmark goods. He always obtains the guarantee/ warranty card duly signed and stamped receipt of the payment made to the seller or the shopkeeper. However, the illiterate and unaware consumers do not behave like this.


The above discussion reveals that the consumers’ behaviour is deeply influenced by the level of education of consumers. The education makes them rational and enlightened consumers. In India, the education of rural consumers should be given greater emphasis so that these consumers may take value of the money they spend to fulfil their needs. This will save them from exploitation.

Barriers in education of Rural ConsumersThe study area is mostly composed of ignorant, illiterate,

poor and unaware consumers. Even after very comprehensive programmes launched by the government and private agencies to educate them, the results have not been encouraging. As there are some very acute problems in the area, the aim of educating these consumers cannot be achieved unless very sincere efforts are made in this direction. Before suggesting the ways and means to educate the rural consumers of the area, it is desirable to know the barriers in their education. There are several barriers, which have restricted the education of these consumers.

The survey of the study area, which comprised of the selected villages in Guatam Buddh Nagar and Agra districts revealed that poverty, lack of inclination, lack of initiative, lack of facilities, lack of proper planning are some of the barriers in education of rural consumers.

Means of Advertising in the Study AreaThe survey of the study area revealed that many manufacturing

companies occasionally advertised their products to influence the rural consumers. The following forms of advertisements were adopted in the area:i. Newspapers;ii. Publicity vans;iii. Demonstrations;iv. Decorated bullock carts, carrying advertisement panels;v. Puppet shows; andvi. Awareness camps.

Other means of advertisements were not known in the area. A few manufacturing concerns and traders managed to distribute


pamphlets, giving the name of the product, price, uses, sources of availability, name of the distributor etc. with renowned daily newspapers, which have wide circulation in the area. Television and radio as means of product advertisements were popular only in rich households of the area, which consisted of big farmers, a few small farmers, owners of small village industries, money lenders etc. as these households have TVs and radios.

These days advertisement is a very powerful mean of mass communication therefore, the traders and producers are using advertisements in various ways even in the remote areas to create demand for their products.

Impact on Rural Consumers • The impact of advertisements on rural consumers has been to a

very limited extent.

• Advertisements have provided useful information to rural consumers about various products and their uses. It has also helped to some of them to develop better habits and thereby improve their life style.

• Advertisements have positively affected the buying behaviour of the rural consumers towards products to some extent.

• Advertisements have increased awareness of few rural households about the new products, which they purchase from the neighbouring urban markets.

• The information given to the rural consumers through advertisements has saved their time and effort. It was brought to notice at the time of survey that even illiterate people see the advertisements and gain some knowledge about the products.

• The rural consumers have recognised that the best source of information to them is mass media.

However, the standard of living of these households in the study area has not changed much on account of the following reasons:

• Low level of their earnings and poverty;

• Unemployment and seasonal employment of large number of farm labourers;


• Adequate data on prices of the commodities is not available to them;

• Rural markets have not developed upto the desired level in the area. These markets are very small;

• Rural traders and shopkeepers mislead the consumers. Most of them have established shops in their houses from where they sell the goods. Thus, these consumers purchase the product of that brand, which the local traders emphasize.

• The literacy level in the study area is very low. Most of the older people are illiterate. This is the greatest drawback, as it compels them to believe in traditional way of life.

• Most of the rural consumers in the study area are unaware about the quality of the products, which are offered to them by the sellers. The knowledge of these consumers about various brands of the products is very limited. Thus, they are exploited by the sellers in the rural markets.

• The reach of mass media in rural areas under study is very poor. As approach to the area is relatively costly; traders do not go there to advertise their products.

• Rural people in the area do not have the capacity to analyse the purpose behind advertisements and other means of communication targeted to these consumers. The bargaining power of consumers is also very weak.

• Rural masses in the study area are generally ignorant about the behaviour of the markets and therefore, their attitude regarding merits and uses of various kinds of new products is indifferent.

The above drawbacks reflected from the information collected from the respondents clearly show that the impact of advertisements on rural consumers in the study area has been nominal.

During survey several questions about the advertisements by the business firms for their products in the area were asked from the respondents and their replies were recorded. Table 2 shows the position in this respect.


Table 2: Replies of Respondents about the Advertisements made in the Area

s.No Questions AnswerYes/No

No. of Respondents

percentage

1 Whether the business firms advertised their products in the area?

YesNot

420180

70%30%

2 Whether these firms distributed samples of their products or other gifts?

YesNot

400200

66%33%

3 Whether these firms distributed literature about their products?

No 600 100%

4 Whether the information about the products was given verbally?

Yes 600 100%

5 Whether the new products were introduced by these firms at the time of advertisements?

YesNo

200400

33%66%

6 Whether the advertisements of these firms were attractive and convincing?

YesNo

240360

40%60%

7 Are you satisfied with, behaviour of advertisers during advertisements?

YesNo

200400

33%66%

8 Are you satisfied with the reach of the mass media in your area?

YesNo

100500

17%83%


9 Do you feel that the advertisements, if are organised sincerely can be beneficial for you?

Yes 600 100%

10 Whether any survey was conducted by the business firms in the area before advertisement?

No 600 100%

Total No. of Respondents 600

Table 2 reveals that 70 percent of the respondents admitted that a few business firms advertised their products in the area. However, only 66 percent of them admitted that these firms distributed samples of their products and other gifts. 100 percent respondents said that these firms did not distribute literature about their products, which they advertised. Only verbal information was give by them about their products. As per 66 percent of the respondents the advertising firms did not introduce new products at the time of advertisements of their products whereas 60 percent of the respondents admitted that the advertisements of the business firms were not attractive and convincing.

The behaviour of the advertisers was not satisfactory according to 66 percent of the respondents. The respondents also felt that the reach of the media in the area was not satisfactory. All the respondents feel that if advertisements are made sincerely they can be beneficial for them. The respondents also said that no survey in the area was conducted by the advertising firms. Thus, on the basis of the responses given by the respondents, it may be concluded that the advertisements in the area were not sincere and effective and therefore, their effect on rural consumers was neither convincing nor impressive.

Responses of Rural Consumers after Advertisements by Various Manufacturers and Producers in the Study Area

The survey of the study area disclosed that a few manufacturing and producing firms advertised their branded products there. A


particular mention of firms and companies, which intensively advertised their products in the area under study, will reflect as to how far they succeeded in their mission and what was the response of rural consumers after their advertisement campaigns. Table 3 shows the position in this respect.

Table 3: National Level Manufacturing and Producing Companies which Advertised their Products (branded) in the Study Area

Field of specialisation and

products (Branded)(1)

Manufacturing/ Producing Company/ Distribution Company

(2)

Type of Advertisement

(3) (A) MedicinesDisprin(for pain relief)

Reckilt Benckiser India Ltd.

Pamphlets in Newspapers, Distribution of free samples

1. Anacin (For Pain relief)

Wyeth Ltd. -do-

Vicks vaporub(ointment for cold)

Proctor and GambleHygiene and Health care Ltd.

Newspaper Advertisement and Demonstrations

Vicks Action 500 (for Cold and Cough)

Do Newspaper Advertisement, Demonstration and distribution of free samples

Crocin (for Fever and Cold)

Glaxo smith Kline Asia Pvt. Ltd.

Newspaper advertisement and pamphlets distribution

(B) Phone

1. Mobile Bharti Airtel Newspaper Advertisement and Announcement on Myke

2. Do Nokia Newspaper advertisements and Announcement on Myke


(C) food ItemsBiscuitsPriya Gold(Butter and Bite)

surya Foods and Agro Limited

Free sample packets to children and Music show

Monaco Parle Biscuits Pvt. Ltd. Free small sample Packets distributedand newspaper advertisement

(c)Chaco-Chips Cookies (Chocolate Chips)

Britannia International Ltd.

Free sample distribution and gifts to children

(D) Tea1.Today Premium Today Tea Ltd. Newspaper

advertisement and Pamphlets distribution

2. Tata-tea Tata Global Beverages Ltd.

Newspaper advertisement and Demonstration

(e)Detergents (for washing clothes)1.Ghari Powder R. surfactants Pvt. Ltd. small sample

packs distribution and newspaper advertisement

2.Nirma Powder surat Enterprises Pvt. Ltd. for Nirma Ltd.

Demonstration in the gathering of rural masses (men, women and children)

3.Tide Powder Procter and Gamble Home Products Ltd.

Demonstration and sample Packets distribution

Note: Other products are rarely known to the rural consumers in the Area.

Response of Rural Consumers after AdvertisementsThe advertisements made by various manufacturing,

production or distribution companies, as given above, influenced


the rural consumers in the study area. In the field of medicines, Anacin and Vicks-500 influenced more consumers as compared to other such products. In case of mobile phones, Bharti Airtel became more popular in the area. After advertisement, Priya Gold and Monaco biscuits are favoured by the rural consumers in the area. The manufacturing company- ‘Today Tea Ltd’ has advertised its product-‘Today Tea’ heavily in recent years in the area and thus, gained favour among the rural consumers. It has defeated the preference for ‘Tata Tea’ in the study area. As regards detergents (cloth washing powders) Nirma and Tide have become more popular among the rural consumers of the area.

This study based on the responses of the respondents clearly reflects that the impact of advertisements by various manufacturing, production or distribution companies was positive but it was limited to a very extent as the purchasing power of most of the consumers in the study area is very limited and thus, they purchase unbranded (local) products, which are much cheaper as compared to branded products. The village shopkeepers mostly advice the consumers to purchase local (unbranded) products as they give them more profit. These businessmen take the advantage of financial limitations of the consumers. However, rural consumers who have better earnings can afford more expensive household goods, always prefer branded goods, which they think are more safe. These rural consumers mostly decide their preferences on the basis of advertisements, which they see in daily newspapers and after using the samples, which are distributed by the manufacturing companies at the time of advertisements in their villages.

But in general the rural consumers in the study area do not give much attention towards advertisements as they cannot purchase the branded products which are costly.

findingsIn the area rural consumers are often not aware of their

rights and the products available in their market; that’s why they are exploited. They generally respond to advertisements, which influence their buying behaviour but the advertisements do not give them all the information that they need. There were certain limitations in conducting this study such as the precise and reliable information was not be available on the way rural consumers behave


in the study area and the extent of knowledge these consumers have about the consumer protection measures. As respondents were mostly illiterate, ignorant and poor, they could not give their exact position as consumers.

Consumers’ buying behaviour in the study area is influenced by many factors such as personal factors, psychological factor, cultural and religious factors, social factors, information factors etc.

The survey of the study area and face to face discussions with the 600 respondents and information collected through questionnaire reflected that in both the districts, the behaviour of rural consumers is mainly influenced by the personal factors (66.6 percent) followed by social factors (11.7 percent). The effect of information factor is only 06.7 percent. There are several problems the urban and rural consumers face related to price, weight of goods, quality etc. The traders to earn higher profits adopt foul means or illegal trading practices such as black marketing, adulteration, short weighting, supply of inferior goods at high prices, sales gimmicks, unfair guarantees and warranties, lack of quality control and safety, massive profiteering etc. Thus, the unaware, ignorant, illiterate and poor rural consumers in the study area are exploited at every stage in the markets. These consumers do not seek the redressal of the grievances on account of their poverty and ignorance.

The impact of education on consumer behaviour in respect of buying goods and services has been found to be positive as education makes them rational and responsible consumers. It has been seen that educated consumers are generally not guided by factors other than economic condition. The educated consumers are also not influenced by the gifts, samples etc. The survey of the study area where 80 percent of consumers were unskilled or illiterate showed that there was no place of argument and reasoning in their buying behaviour. Their buying behaviour was mostly influenced by their personal factors and that they were mostly traditional consumers. Their buying behaviour was irrational and they had no inclination to change their buying behaviour. The educational programmes launched by the government and others in the study area had influenced very limited number of them. For them commodity price was their main consideration. These consumers did not take action for the redressal of their grievances. Their bargaining power is very limited and some of the consumers were influenced by false


advertisements. However, the buying behaviour of the remaining respondents (20 percent) who were literate/ educated was influenced by their literacy/ education level. Their outlook was not traditional and their buying behaviour was rational. Five out of these consumers filed complaint against the sellers in the district consumer forum.

There are a number of barriers to consumer education in the study area. The survey of the area exhibited that poverty was the main hurdle in their education. Further, lack of inclination is also an important barrier as their wants and needs are limited. These consumers also suffer from lack of initiative as there is no organization or association to acquaint them to awareness and education programmes launched by various agencies. The financially well to do households discouraged the illiterate and poor consumers. Moreover, in the study area there are almost no facilities for the awareness and education of consumers. Even facilities for general education are deficient there. There are several villages where even the primary education schools have not been established. How the children of these villages can be expected to become responsible consumers when they assume the family responsibility? Lack of planning is also a barrier in the education of rural consumers in the area. The future of these consumes is dismal unless planned efforts are made in this direction.

The survey of the study area revealed that many manufacturing companies occasionally advertised their products to influence the rural consumers, which adopted several forms of advertising such as newspapers, publicity vans, demonstrations, decorated bullock- carts, puppet shows and awareness camps. Other forms of advertisements were not known in the area. A few traders used pamphlets, which they circulated with the daily newspapers that had wider circulation in the study area. Television and radio as means of product advertisements were popular only for rich households as they had these means in their houses.

It has also been observed that the general impact of advertisements on consumers has been to a great extent positive. Through repeated advertisements consumers remember the product and ultimately buy it. Interesting and attractive advertisements have created a psychological effect, increased demand and have impressed the desires of the consumers. Advertisements expose the consumers to the different brands of a product available.


In both districts rural consumers have now recognized that the best source of information for them is mass media. However, the standard of living of most of them has not changed much on account of several reasons such as low level of living and poverty, unemployment, inadequate information on prices of commodities, undeveloped rural markets, exploitation by rural sellers, low literacy level or illiteracy, lack of awareness and ignorance, poor reach of mass media and weak bargaining power. Thus, the impact of advertisements on rural consumers’ behaviour in the area has been nominal.

The analysis of responses of the respondents revealed that a few business firms advertised their products in the area but 66 percent of them admitted that these firms distributed samples of their products and other gifts but they did not distribute literature of their products. Further, the advertisements by the advertising firms were not attractive and convincing. As per 66 percent of the respondents the behaviour of the advertisers was not satisfactory. All the respondents, however, felt that if the advertisements were made seriously, they could have been beneficial for them. Thus, the advertisements were not made sincerely and effectively; therefore, their effect was not impressive.

Responses of the respondents regarding after effect of the advertisements made by certain manufacturing and producing firms in the area were also collected. In the field of medicine, the advertisements of Anacin and Vicks-500 influenced more consumers as compared to other products. In case of mobile phones, Bharati Airtel got more popularity. After advertisements, Priya Gold and Monaco Biscuits were favoured by the rural consumers. The manufacturing company: Today Tea Ltd. advertised its product “Today Tea” heavily and thus, gained favour among the consumers. As regards Detergent Powder, Nirma and Tide became more popular in the area due to intensive advertisements made by the respective manufacturing companies.

It is also found on the basis of the above analysis that the impact of advertisements on rural consumers’ buying behaviour was positive but it was very limited as the purchasing power of most of the consumers in the study area is limited and thus, they mostly purchase unbranded (local) products. However, rich consumers prefer branded products, about which they decide after seeing the advertisements in newspapers.


Suggestions1. The greatest drawback in our rural society is lack of consumer

education. Well educated consumers cannot be cheated by the sellers as they understand their rights and powers. Thus, all consumers’ education programmes should be effectively enforced by the government and all other agencies including manufacturers and traders who advertise their products in the rural areas.

2. The advertising and manufacturing concerns should also launch consumer education programmes separately as part of their corporate social responsibility. such programmes should also be included in co-academic activities, held in schools, colleges and universities such as seminars, workshops, conferences, debates, elocution, contests, lectures etc.

3. The consumers’ movement to develop awareness, vigilance, alertness etc. should be strengthened by the advertising firms/ companies because it is their responsibility and it is also in their interest. Such firms and companies will win the confidence of the consumers, which will help them in increasing the sale of their products and services.

4. The manufacturing concerns which advertise their products to boost sales should provide help in constituting consumers’ organizations. These organizations will always favour the honest manufacturers, sellers and service providers. These organizations will tackle the problem of malpractices. such organizations will also discourage the misleading advertisements, which exploit the consumers, particularly the rural consumers.

5. Creation of awareness through mass media should be emphasized. Print media such as newspapers, magazines, posters advertisements etc. should help to create awareness particularly among rural consumers.

6. In rural areas awareness camps should be organized by the renowned manufacturers and service providers with the help of Gram Panchayats. Such firms should distribute booklets free of charge for educating the rural consumers, , at the village level. This step will definitely improve the buying behaviour of the rural consumers.


7. The matter of consumers’ exploitation, corruption, frauds etc., if brought to the notice of the media, should be made public through press or by other means so that the culprits may be punished.

8. The traders and manufacturers should give true picture of their products and services to the consumers relating to price, quality, ingredients, availability, etc.

9. Misguiding information given by some traders through advertisements leads to monetary loss to the consumers. Thus, laws and rules should be enforced strictly by the government against such traders so that they may not behave irresponsibly.

10. In rural areas where illiterate, unaware, ignorant, poor and backward people reside in vast majority, the state government, local authorities, NGOs, and the traders and manufacturing companies which advertise their products, should understand their problems as consumers and take effective measures to educate and aware these rural masses so that their harassment and exploitation at the hands of the undesirable traders, sellers or manufacturers is prevented.

11. No planned efforts have been made in the area to educate the consumers. The government should therefore, make sincere planned efforts to educate the rural consumers.

12. The manufacturing firms and service providers while advertising their products/ services should distribute relevant literature to the consumers, giving full details of the product/ service. It should be made compulsory by the appropriate authority.

13. The advertisements must be attractive and convincing so that the poor and illiterate rural masses may easily understand the purpose behind the advertisements.

Conclusion The suggestions given in the preceding pages can be

conveniently implemented by the manufacturing companies and service providers, who initiate advertisements and the concerned authorities of the government. The ultimate aim of the whole exercise is to improve the awareness level and buying behaviour of the consumers and therefore, concerted efforts must be made by all concerned in this direction.


The Government of India and the state governments have throughout been empowering consumers. The government has played a significant role in promoting consumer education, awareness and welfare. The government has emphasized that consumer education to literates as against illiterates can be imparted easily. Thus, literacy of both rural and urban people is the first step towards consumer education. The National Policy of Education, 1986 (revised in 1992) has laid emphasis on value education.

To educate the consumers a number of booklets and brochures have been brought by the Ministry of Consumer Affairs, Food and Public Distribution, Government of India. Various other programmes such as Audio-video programmes, National Youth Award, encouragement to Consumer Organizations etc. have also been started by the government.

The government has also taken very serious steps to safeguard and protect the interests of the consumers by enacting several Acts including the Consumer Protection Act, 1986.


4CONSuMeR PROTeCTION AND SuPPLy Of eSSeNTIAL COMMODITIeS IN SeMI uRBAN AND RuRAL AReAS Of TAMIL NADu

S. V. Srinivasa Vallabhan

IntroductionConsumer is ‘declared’ to be a ‘king’ and now also he is treated

as a ‘king in a democratic country’. However, actually he is always at the receiving end of all the transactions, be it a purchase or service. The innocent consumer has to tolerate the heat of all losses and has to convince himself with the available product or service or remedy. He is mostly bound by some ethical qualities which require him to accept what he gets. He lacks the capacity to fight with the irregularities and has to accept what he is given. He is deceived by public sector, private sector and some times even by the government. He has to face problems from getting his birth certificate to degree certificate, for getting admission in Kinder Garden to government hospitals; while travelling in a bus to travelling in the sky. The trader or service provider acts as if he is the ruler and dictates terms and conditions to the consumer who pays for the goods or services. The case of uneducated consumer is still worse and he has to bestow all his rights to the semi-skilled authorities and empowered intermediaries or self-styled ‘employees’. Irrespective of his status in the society, the consumer is treated with unscrupulous practices and even has to face adamant arguments of those people in authority.

Consumer Protection is as old as consumer exploitation. It can be traced even from the days of Arthasastra1. The weights and measures were standardized even at that time. In ‘Protection


against merchants'2, it is stated that the superintendent of Commerce shall allow the sale or mortgage of any old commodity only when the seller or mortgager of such article proves his ownership of the same.

Aim The aim of this research project was to analyze the level of

consumer protection in supply of essential commodities in semi urban and rural areas. The study aims to analyze the level of satisfaction on the delivery of essential commodities among semi-urban and rural consumers. This project also aims to identify ways and means to frame policies and strategies to minimize the problems of semi urban and rural poor including women with reference to different types of essential commodities.

Magnitude of the StudyIt is the duty of the government to provide essential commodities

and services to all citizens, especially those living below the poverty line. Many governments supply essential commodities to all ration card holders and minimize the problems of citizen in relation to supply of essential commodities. Many strategies and policies have been framed by the governments to ensure that there is uninterrupted supply to essential commodities. Even drastic measures at times have been taken to supply the required commodities on war footing. The process and policies are well defined and codified.

The policies and practices may not be same and at times differ significantly. Policy may have been framed with very good intentions but the practices may differ according to the situation. Therefore, the problems faced by rural and semi-urban population in relation supply aspects of essential commodities requires an investigation at this stage. The standard of living of the rural and semi-urban people depends on their earnings through their agricultural employment or through their small business earnings. Hence any change in the economic policy affecting their food availability aspects may change their standard of living and life style.

A welfare state has to provide strong support to wide range of supply aspects relating to essential commodities and has to protect social spending on basic services, strengthen safety nets and put in place reforms. However, the process of globalization has created


a sort of stress on many people engaged in supply of essential commodities especially in rural and semi-urban areas.

In Tamil Nadu, the essential commodities are sold at fair price shops as well as general stores. The general stores are run by various types of organizations and individuals and the fair price shops are run predominantly by the cooperatives and in a limited number by the Tamil Nadu Civil supplies Corporation.

Statement of the ProblemIndia being one of the developing nations is constantly involved

in the process of growth and expansion. There is rising demand from growing population, which causes high strains on economic front. The nation has to ensure social protection to address re-emerging poverty, widening inequality and welfare losses especially with reference to providing essential commodities. Indian economy was facing economic crisis and the World Bank insisted on reforms in economic policies as condition for extending help to India to come out of crisis.

Rising prices particularly of essential commodities is a matter of great concern for the government. But, as the economy is growing rapidly, the commodity prices can’t be insulated completely from inflationary effects. On one side farmers are demanding remunerative prices and on the other side consumers’ interest need to be protected. Thus, government has to do the balancing act and protect the interest of both the sides. Further, government cannot keep prices of agricultural commodities artificially at low level for long time, especially when the market forces operate freely to determine the prices, both at national and international level. However, the government has taken all efforts to protect poor and the middle class families from the impact of price rise.

supply of essential commodities is one of vital sectors directly involving the consumers and it has many factors like manufacturers, wholesalers, retailers, government, and consumers. The provisions of the Essential Commodities Act deal with quality of essential commodities, their marketing and related matters. It also provides for the duties and powers of officials. Poor and substandard 1Fleet, J.F., Kautilya’s Arthasastra, Mysore Printing and Publishing House, Mysore, Eighth Edition, 1967, p.1172Ibid., p.134


commodities tend to impair rather than improve health. Many of these commodities have clear disadvantages compared with alternatives. This shows that there is an urgent need to protect the interest of consumers in the field of essential commodities especially after globalization. There is always a tendency to over simplify the matters relating to health and food by some political and social groups. A service organization, which does not behave in accordance with the ethical code of morality may not only lose its social and ethical values, but also its right to exist.

The cut-throat competition from global giants, decreased welfare spending of the states, economy measures undertaken by the governments, low money circulation among the people due to curtailed spending of the states may have higher impact on supply aspects of essential commodities in rural and semi-urban areas. Pragmatic and feasible policies and practices may provide a consistent solution to the problem of providing essential commodities to the people. The study investigates the problems and perceptions of various categories of people with respect to supply of essential commodities and analyses ways to improve the quality of service in providing essential commodities to the people especially in semi urban and rural areas.

The general problems faced by the consumers in relation to essential commodities are quality of the product, quantity supplied, time of supply, improper information relating to the product, method of preservation, higher prices, unfair trade practices, unauthorized use of weights and measures, refusal to accept complaints, no proper remedy etc. These problems are to be analyzed from the cognitive province of officials, sellers and consumers to bring out the reality and the gravity of the situation in a pragmatic manner.

ObjectivesThe main objectives of the research project were as follows:

1. To assess the impact of Liberalization, Privatization and Globalization and social stability with reference to supply of essential commodities;

2. To identify the problems and prospects in providing consumer protection with reference to supply of essential commodities in rural and semi-urban areas;


3. To analyze the perception of rural and semi-urban people on the impact of globalization on essential commodities' supply; and

4. To suggest measures to minimize the problems, if any, of service organizations in providing essential commodities to poor and weaker sections of the society and the measures to improve standard of living in the changing economic scenario.

hypothesesThe following hypotheses were framed and tested in this study:

a) The problems and prospects in ensuring consumer protection in essential commodities' supply aspects due to new economic policies do not significantly differ in rural and semi-urban areas;

b) The perceptions of rural and semi-urban population regarding service providers of essential commodities in the new economic scenario do not significantly differ.

Research Methodology

Coverage and SamplingThe universe for the purpose of analysis was the state of

Tamilnadu. Out of the 30 districts in the state 10 districts were selected by stratified random sampling. First the state was stratified as North, East, south, West and Central with six districts in each segment. Then out of the six, two districts from each segment were selected on random basis. Thus the area was stratified and districts were selected in random for the purpose of collection of data. From each sample districts 5 panchayats and 5 villages were selected on random basis.

Thus the sample for the purpose of study consisted of 100 officials, 200 retail units supplying essential commodities and 300 consumers from the rural and semi-urban areas.

Data CollectionThe study required both secondary and primary data. secondary

data was collected from the books, periodicals, research publications, websites and official publications of government and other agencies. Primary data was collected from the sample officials, sellers and consumers with the help of well-structured interview schedule.


Category I: Officials: 100

32

b) The perceptions of rural and semi-urban population regarding service providers of essential commodities in the new economic scenario do not significantly differ.

Research Methodology Coverage and Sampling The universe for the purpose of analysis was the state of Tamilnadu. Out of the 30 districts in the state 10 districts were selected by stratified random sampling. First the state was stratified as North, East, south, West and Central with six districts in each segment. Then out of the six, two districts from each segment were selected on random basis. Thus the area was stratified and districts were selected in random for the purpose of collection of data. From each sample districts 5 panchayats and 5 villages were selected on random basis.

Thus the sample for the purpose of study consisted of 100 officials, 200 retail units supplying essential commodities and 300 consumers from the rural and semi-urban areas. Data Collection The study required both secondary and primary data. secondary data was collected from the books, periodicals, research publications, web sites and official publications of government and other agencies. Primary data was collected from the sample officials, sellers and consumers with the help of well-structured interview schedule. A pilot study was conducted in selected districts in rural and semi-urban areas with interview schedule with the help of research scholars. Officials in Government, Non-Government Organizations, Traders’

DISTRICTS IN THE STATE OF TAMIL NADU

30 DISTRICTSSAMPLE 10 DISTICTS

100 Officials

SEMI URBAN OFFICIALS10 X 5 = 50

RURAL OFFICIALS10 X 5 = 50



200 sellers

SEMI URBAN SELLERS10 X10 = 100

RURAL SELLERS10 X 10 - 100



300 Consumers

SEMI URBAN CONSUMERS10 X15 = 150

RURAL CONSUMERS10 X 15 = 150

Category II: Sellers: 200

Category III: Consumers: 300


A pilot study to test the interview schedule was conducted in selected districts in rural and semi-urban areas. Officials in Government, Non-Government Organizations, Traders’ Associations and employees were contacted to collect the data. Then the interview schedule was modified and restructured to collect accurate data from the sample respondents.

Implications of the StudyIn this study, focus was on interrelatedness of structural policies

and people. Developmental aspects were studied with an integrated approach to the areas that required immediate attention especially with reference to supply of essential commodities in relation to protection of consumer rights. Efforts were to expose weaknesses in essential commodities' supply and service sectors and make an unambiguous and compelling case for providing protection to rural and semi-urban consumers. The study may provide yardsticks for providing better standard of living and quality of life for rural and semi-urban people in general and women and children, in particular. In many states, the economic crisis rally around a wider and deeper agenda and it has called for attention to the sobering fact that the number of people in poverty is rising. However, the fight against poverty has gained momentum, life expectancy has risen, infant mortality has dropped and there are more schools for girls and rural children than before. The present study may help the governments to formulate policies for minimizing the problems of women and children in rural and semi-urban areas in this new economic environment.

findings

I Reponses from Officials1. As regards the level of knowledge in relation to various Acts is

concerned, it was noted that all the respondent officials were having good understanding of the processes and procedures in discharging their official duties. It was found that there is overall lesser knowledge about the Essential Commodities Act and Drugs Control Act. However, there is higher knowledge in relation to Consumer Protection Act and standards of Weights and Measures Act. The knowledge of Essential Commodities Act and Consumer Protection Act was lesser in rural areas than


semi-urban areas. There is negative correlation among semi-urban and rural sample officials. The semi-urban and rural officials do not differ in their knowledge about standards of Weights and Measures Act but they do differ in respect of other aspects.

2. The prices charged in fair price shops were highly reasonable. The time of supply was highly improper both in semi urban and rural areas. The quality was poor and the margin to sellers was very less. Display of goods was poor and least information is provided by the fair price shop sellers. The bills were illegible and weights and measures were poor. The packaging aspect was also poor. Usage details are not mentioned. There is lesser differential price in fair price shops. Correlation analysis reveals that there is positive correlation between the opinion of semi urban and rural sample officials.

3. Coefficient analysis revealed that the quality of essential commodities, display details, weights and measures and packaging are either poor or very poor in rural areas. Differential pricing is higher in semi-urban areas. However, it is to be noted that price is reasonable in semi-urban areas. Quality, information and weights were reasonable in semi-urban areas. The correlation coefficient is -0.177 and this traces that there is negative relationship between the opinion of general shops in semi urban and rural areas.

4. As regards the existence of Right to safety viz-a viz quality aspects is concerned, 30 percent said it is well existing or existing and 37 percent said as not existing or not at all existing. For the time of usage, 55 percent said well existing and 12 percent said not existing or not at all existing. For the preservation aspect, 29 percent said well existing and 55 percent said not existing or not at all existing. Regarding provisions for the checking adulteration, 32 percent said well existing and 39 percent said not existing or not at all existing.

5. The methods of checking quality and adulteration do not exist in rural areas. However, the people know about the time of usage of products. standardized method of preservation does not exist in both areas. There is positive correlation between the opinion of semi urban and rural sample officials.


6. As regards information on quantity, 16 percent said good or very good and 58 percent said poor or very poor. For display aspects, 27 percent said very good or good and 48 percent responded as poor or very poor. For knowledge about MRP, 22 percent said very good or good and 72 percent said poor or very poor. For knowledge about the terms and conditions and LT Extra, 8 percent said good and 20 percent said very poor. Analysis demonstrates that the information relating to quantity,

display of prices in the shops does not exist in both areas. Further the knowledge about the terms and conditions, MRP and LT extra is lacking in both areas. This may be due to poor information provided by the sellers about the quantity of products available in the shop with price details. The ignorance on the Terms, MRP and LT Extra may be attributed to their lack of knowledge in English.

II Opinion of Sellers1. On the existence of various consumer related aspects in fair

price shops, it was opined by 16 percent of semi urban and 22 percent of rural sellers that it is not existing or not at all existing. For time of supply, 31 percent of semi urban and 50 percent of rural sellers said that it is not existing or not at all existing. For quality, 31 percent of semi urban and 44 percent of rural sellers said that it is not existing or not at all existing. On margin to sellers, 39 percent of semi urban and 29 percent of rural sellers said that it is not existing or not at all existing.

2. Regarding display of goods in fair price shops, 61 percent of semi urban and 47 percent of rural sellers said that it is not existing or not at all existing. Regarding information provided to the buyers, 59 percent of semi urban and 50 percent of rural sellers said that it is not existing or not at all existing. For bills, 53 percent of semi urban and 47 percent of rural sellers said that it is not existing or not at all existing. For weights and measures, 69 percent of semi urban and 42 percent of rural sellers said that it is not existing or not at all existing.

3. The prices are perceived to be reasonable in fair price shops. However, time of supply and quality is stated to be poor in rural areas. Other aspects such as display, providing information, legible bills, correct weights and measures, package, usage information and differential prices do not exist in both areas.


There is less positive correlation between the opinions of sellers in semi urban and rural sellers.

4. As regards price, in general shops, it was found that 44 percent of semi urban sellers and 38 percent rural sellers felt that it is either reasonable or highly reasonable. Only 42.5 percent of sellers felt that it is unfair. It was found that majority of sample sellers were of the opinion that time of supply of essential commodities is reasonable. It was found that 47 percent of semi urban sellers and 39 percent rural sellers felt that the time of supply is well existing. However, 34.5 percent of sample sellers were not happy about the time of supply.

5. For weights and measures, 56 percent of semi urban sellers and 48 percent rural sellers felt that the weights and measures are well existing. However, 21 percent sample sellers were not happy about the weights of general shops. 41 percent of semi urban sellers and 28 percent rural sellers felt that the packaging is well existing. However, 42.5 percent of sample sellers were not happy about the packaging of general shops.

6. 43 percent of semi urban sellers and 21 percent of rural sellers felt that the consumers always or usually check prices and only 53 percent of sellers in rural area felt that the consumers either rarely or never check prices. On the whole, 26.5 percent do not check prices or rarely check prices. It is to be noted that habit of checking price is higher in semi urban areas than in rural areas.

7. For the details of existence of right to be heard, 25.5 percent said access method are very well known and 74.5 percent said not known or not at all known. As regards ‘access whom’, 17 percent said very well-known and 68 percent said not known or not at all known. As regards registering complaints, 24 percent said highly reasonable or reasonable and 49.5 percent said as not reasonable or not at all reasonable. As regards hearing by sellers, 17 percent said highly reasonable or reasonable and 61.5 percent said not reasonable or not at all reasonable. As regards hearing by officials, 33.5 percent said highly reasonable or reasonable and 41.5 percent said not reasonable or not at all reasonable.

8. For educational measures through government, 49 percent said existing or well existing; for educational measures


through public sector undertakings, 51 percent said existing or well existing. For measures through NGOs, 44.5 percent said existing or well existing; for consumer organizations, 39.5 percent said existing or well existing. For measures through educational institutions, 44 percent said existing or well existing. For measures through others, 45.5 percent said existing or well existing. As per the opinion of sellers, public sector organizations are educating consumers to the highest extent, then comes the non-governmental organizations. The third is educational institutions, the fourth is government, the fifth is by others and the last one is consumer organizations. It is inferred that the sample respondents recognize the role of public sector undertakings and non-governmental organizations in educating consumers. They are not accepting the measures taken by consumer organizations. There is negative correlation among the opinions of sample sellers of semi urban and rural areas.

9. For redress through consumer forums, 20.5 percent said that redress exists and 60 percent said that redress does not exist. For redressal through consumer organizations, 20.5 percent felt that redress exists and 57 percent did not feel so. On redressal by self-initiative, 29 percent felt that they can get redress and 43.5 percent felt that they cannot get redress. The sellers felt that redress measures through Consumer Forums or Consumer Organizations and self-initiative are less. However, the concept of court of law exists in rural areas. It is to be noted that there is negative correlation in this regard between sample semi urban and rural sellers.

10. The respondents were of the opinion that educational institutions can be more effective than NGOs in generating awareness about legal measures and giving impetus to consumer movement.

Response of Consumers 1. As regards consumers, the mean age of semi urban consumers

was 38.67 years; standard deviation is 12.26 years and coefficient of variation is 31.70 percent. The mean age of rural consumers was 34.33 years; standard deviation is 13.54 years and coefficient of variation is 39.43 percent. The overall mean age of consumers was 36.50 years; standard deviation


is 13.09 years and coefficient of variations 35.87 percent. It is inferred that standard deviation and coefficient of variation of age are higher among rural consumers than that of semi urban consumers. The age of sample consumers significantly differs with regard to the area.

2. In semi urban areas 74.7 percent of consumers were married and 25.3 percent were unmarried. In the rural areas 61.3 percent were married and 38.7 percent were unmarried. The mean income of semi urban consumers is Rs. 5586.67 per month and coefficient of variation is 41.25 percent. The mean income of rural consumers is Rs. 3760 per month and coefficient of variation is 61.3 percent. The overall mean income is Rs. 4673 and coefficient of variations is 53.05 percent. It is inferred that mean income of semi urban consumers is more than that of rural consumers and coefficient of variation is higher in the case of rural consumers. The income of sample consumers significantly differs with regard to area.

3. As regards occupation pattern of consumers in the semi urban area, 36.7 percent were engaged in agriculture; 20.7 percent were agricultural labour; 19.3 percent were employed; 11.3 percent were doing business and 12 percent belonged to the other category. In the rural areas, 45.3 percent were engaged agriculture; 24.7 percent were agricultural labour; 11.3 percent were employed; and 9.3 percent each belonged to the business and others category. It is inferred that the majority of respondents in entire areas i.e., semi urban and rural areas are engaged in agriculture. The occupation of sample consumers does not significantly differ with their area.

4. Among semi urban consumers, 74 percent were having less than 5 members in the family and only 26 percent were having more than 5 members in the family. Among rural consumers, 71.3 percent have were having less than 5 members in the family and only 28.7 percent were having more than 5 members in the family. It is inferred that the majority of the consumers in the entire areas i.e., semi urban and rural areas are having family size of 5 members or below. The number of family members in the family of sample consumers does not significantly differ with their area.

5. It was found that among the consumers in semi urban areas 60.7 percent visited general shop once or twice and only 39.3 percent


visited more than twice. In the rural areas 73.3 percent visited once or twice and only 26.7 percent visited general shops more than twice for essential commodities. It is inferred that 67 percent of sample consumers visit general shops for essential commodities either once or twice in a month. The periodicity of visiting general shops differs with reference to area.

6. In semi urban areas 32.67 percent visited fair price shops once or twice and 67.33 percent visited more than twice. In the rural areas 72.00 percent visited once or twice and only 10.67 percent visited fair price shops more than twice for essential commodities. It is inferred that 52.33 percent of sample consumers visit fair price shops for essential commodities either once or twice in a month. The periodicity of visiting fair price shops differs with reference to area.

7. In urban areas, 68 percent have spent Rs. 3000 and only 32 percent have spent above Rs. 3000 in general shop. Among rural area consumers 86 percent have spent below Rs. 3000 and only 14 percent have spent above Rs. 3000 in expenditure. It is inferred that majority of the consumers in the entire area spend Rs. 3000 or below in general shops as opined by the sample consumers. The expenditure in general shop by sample consumers significantly differs with their area.

8. As regards the commodity in which consumers faced maximum deficiency in semi urban areas, 5.3 percent said rice; 32.7 percent said kerosene; 29.3 percent said sugar; 18 percent opined medicine and 14.7 percent said others. In the rural areas, 7.3 percent said rice; 24.7 percent said kerosene; 26.7 percent said sugar; 25.3 percent opined medicine and 16 percent said others. The opinion of sample consumers on maximum deficient commodity does not significantly differ as per the area.

9. On point of deficiency in essential services, in semi urban areas 5.3 percent said electricity; 31.3 percent said bus transport; 26.7 percent each said train and health and 10.00 percent said telephone. In the rural areas, 2.7 percent said electricity; 24 percent said bus transport; 38 percent said train; 23.3 percent said health and 12 percent said telephone. The opinion of sample consumers on maximum deficient service does not significantly differ with the area.

10. On the question of deficiency in other services, in semi urban


areas 14 percent said its banking; 39.3 percent said insurance; 12.7 percent said water supply; 26 percent said postal and 8 percent said housing. In the rural areas, 12 percent said banking and housing; 36 percent said insurance; 15.3 percent said water supply; 24.7 percent said postal. The opinions of sample consumers on maximum deficient services do not significantly differ with the area.

11. On choice of remedies for complaints, in semi urban areas 16.7 percent wanted removal of defects; 16 percent asked for replacement; 18 percent wanted cost to be returned; 29.3 percent said prevent seller from selling and 20 percent said punish. In the rural areas, 18 percent said removal of defect; 20.7 percent said replacement; 14 percent said return cost; 31.3 percent said prevent from selling and 16 percent said punish.

12. As regards the satisfaction with activities of officers in relation to supply and distribution of essential commodities, it was found that in semi urban area 41.3 percent consumers were either highly satisfied or satisfied and 36 percent consumers were not satisfied or not at all satisfied. In the rural area 48.7 percent consumers were either highly satisfied or satisfied and 24 percent consumers were not satisfied or not at all satisfied. On the whole 45 percent are either highly satisfied or satisfied and 30 percent are not satisfied or not at all satisfied. The level of satisfaction of consumers in semi urban area is higher in the case of seller activities and in rural areas it is higher in the case of official activities. There is significant difference in level of satisfaction with the official activities though no such difference on sellers’ activities in relation to the area of sample consumers.

13. As regards knowledge of the Essential Commodities Act is concerned, 23.33 percent said well known and 8.33 percent said not at all known. On knowledge about the Consumer Protection Act, 11.67 percent said well known and 8.67 percent said not at all known. On knowledge about the Weights and Measures Act, 11.00 percent said well known and 16.00 percent said not at all known. On knowledge of the Drugs Act, 9.67 percent said well known and 21.67 percent said not at all known.

14. As regards prices in fair price shops, 52.7 percent of semi urban consumers and 52.6 percent of rural consumers felt that it is


either reasonable or highly reasonable and only 24 percent of consumers in rural felt that it is unfair. For time of supply, 45.3 percent of semi urban consumers and 13.3 percent rural consumers opined that the time of supply is well existing. On quality aspects, 28.7 percent of semi urban consumers and 22 percent of rural consumers felt that the quality is well existing. For margin of profit in fair price shop, 44 percent of semi urban consumers and 26 percent of rural consumers felt that it is either reasonable or highly reasonable and only 47.4 consumers in rural felt that it is unfair.

15. On display of goods in fair price shops, 34.7 percent of semi urban consumers and 10.7 percent of rural consumers felt that the display is well existing. However, majority of sample consumers 54.7 percent were not happy about the display of goods in fair price shop. For information provided, 39.3 percent consumers of semi urban and rural 13.4 percent consumers opined that the information provided is well existing. However, the majority of sample (62.7 percent) consumers were not happy about the information provided.

16. For legibility in bills provided, 34.6 percent of semi urban consumers and 26 percent rural consumers felt that the bills are well existing. However, the majority of sample rural consumers i.e. 56 percent were not happy about the issue of bills/ cash memo. For weights and measurement, 39.4 percent of semi urban consumers and 22 percent rural consumers felt that the weights and measures is well existing. However, the majority of sample rural consumers (64.7 percent) were not happy about the weights and measures in fair price shops. On packing aspects, 30 percent of semi urban consumers and 34.7 percent rural consumers felt that the packing is well existing. However, the majority of sample rural consumers were not happy about the packing in fair price shops.

17. There is fairness in price and differential pricing in fair price shop. However, there is no fairness with regard to time of supply, quality, margin, display, information, bills, weights, package and usage aspects. The semi urban and rural consumers differ significantly in relation to their opinion on various aspects of Fair Price shops.


18. For prices in general shops, 38 percent of semi urban consumers and 33.3 percent rural consumers felt that it is either reasonable or highly reasonable. Only 36 percent of consumers in rural area felt that it is unfair. For time of supply, 21.3 percent of semi urban consumers and 33.3 percent rural consumers felt that the time of supply is well existing. For quality, 27.3 percent of semi urban consumer and 20.7 percent of rural consumers felt that the quality is well existing. However, 43.3 percent were not happy about the quality of general shops.

19. On margin of profit in general shops, 30 percent of semi urban consumers and 35.4 percent of rural consumers felt that it is either reasonable or highly reasonable and only 29.3 percent of consumers in rural felt that it is unfair. For display details, 40.7 percent of semi urban consumers and 37.4 percent of rural consumers opined that the display is well existing. However, majority of sample rural consumers are not happy about the display in general shop. For information provided, 44.7 percent of semi urban consumers and 39.3 percent of rural consumers felt that the information is well existing. For legibility of bills etc., 58.7 percent of semi urban consumers and 64.6 percent rural consumers felt that the bills is well existing.

20. For correct weights and measures, 34.7 percent of semi urban consumers and 47.3 percent of rural consumers felt that the weights and measurement is well existing. For package, it was found that 16.7 percent of semi urban consumers and 16 per cent rural consumers felt that the packing is well existing. However, the majority of sample semi urban consumers are not happy about the packing of general shops. For usage, 40.7 percent of semi urban consumers and 16.7 percent rural consumers felt that the usage is well existing. For differential prices, 30 percent of semi urban consumers and 32.6 percent rural consumers felt that it is either reasonable or highly reasonable. Only 48 percent of consumers in entire area felt that it is unfair.

21. For the number of times the consumers are sold substandard goods in semi urban areas, 27.33 percent said it was sold once; 24.67 percent said twice; 11.33 percent said thrice and 5.33 percent were sold more than three times. In rural areas, 33.33 percent were sold substandard goods once; 7.33 percent said


twice; 4.67 percent said thrice and 9.33 percent said more than three times. On the whole 34.33 percent were sold substandard goods once; 14.33 percent twice; 8.00 percent thrice and 7.33 percent were sold more than three times. On the whole, 38.33 percent said that they were not sold substandard goods. The sale of substandard goods to consumers does not differ in relation to area.

22. Among the consumers in semi urban area 35.33 percent have made complaint to the seller once; 21.33 percent complained twice and 10.57 percent thrice. Among the consumers in rural area 33.33 percent have lodged complaint once; 7.33 percent complained twice, and 6.67 percent thrice. It was found that 42.67 percent have not lodged any such complaint with the sellers. The complaining to seller significantly differs in relation to area.

On making complaint, in semi-urban areas 26.00 percent consumers got replacement of goods; 25.33 percent cases there was no action; 7.33 percent received refusal; 8.67 percent had to face enmity. In the rural areas, 23.33 percent got replacement; in 5.33 percent there was no action; 12 percent received refusal; 6.67 percent had to face enmity. It is to be noted that 42.67 percent on the whole had not preferred any complaint. The consequences of complaints differ in relation to area.

23. It is found that 40.7 percent of semi urban consumers and 22.6 percent of rural consumers either always or usually check prices. Fifty percent of rural sample consumers either rarely or never check the prices. On the whole, 12 percent always check the price; 19.7 percent usually check the price; 32.3 percent normally check the price; 29.3 percent rarely check and 6.7 percent do not check the price. Checking prices by consumers differs significantly in relation to area.

Among the consumers in semi urban area 9.33 percent have never been charged higher and 6.67 percent have been charged higher price more than three times. In rural area, 9.33 percent have not been charged higher and 24.67 percent have been charged higher price more than three times. Charging higher price by seller differs in relation to area.

24. For the existence of right to safety aspects in various activities,


42.7 percent of semi urban consumers and 10.7 percent rural consumers felt that the quality is existing or well existing. However, majority of sample rural consumers i.e. 62.7 percent were not happy about safety. On time of usage, 49.3 percent of semi urban consumers and 52.6 per cent of rural consumers felt that the time of usage is existing or well existing. However, the majority of 14.6 percent of rural consumers were not happy about the time of usage. For preservation, 45.3 percent of semi urban consumers and 13.3 percent of rural consumers felt that the preservation is existing or well existing. However, the majority of rural consumers i.e. 68 percent were not happy about the preservation aspects. For method of checking adulteration, 45.3 percent of semi urban consumers and 18.7 percent of rural consumers felt that the method to check adulteration is well existing. However, majority of rural consumers (63.3 percent) were not happy about the method of checking adulteration as part of right to safety. It is inferred that quality, preservation and method of checking adulteration do not exist in rural areas. There is some knowledge about time of usage. There is high positive correlation between the opinion of semi urban and rural areas.

The semi urban and rural consumers differ in their opinion on the existence of quality, preservation and checking adulteration. However, they do not significantly differ in their opinion on time of usage.

25. 28.7 percent of semi urban consumers and 22 percent of rural consumers said that information relating to quantity is well existing. However, 43.67 percent of sample consumers were not happy about information supplied on quantity. For display aspects, 42.6 percent of semi urban consumers and 26 percent of rural consumers felt that the display is either reasonable or highly reasonable. Only 35.0 percent of consumers in both felt that it is unfair. As regards the knowledge about the terms and MRP is concerned, 42.7 percent of semi urban consumers and 10.7 percent of rural consumers said that the terms and MRP are known. However, majority of sample consumers 55.33 percent did not know about the terms and MRP. 37.3 percent of semi urban consumers and 13.4 percent of rural consumers felt the LT Extra is well known. However, 45 percent did not


know about the terms and LT extra. The information relating to quantity does not exist in both areas and information is not properly displayed in rural areas. Further the knowledge about the terms, MRP and LT Extra does not exist among the consumers of rural areas.

The right to information relating to quantity, display aspects, knowledge about the Terms, MRP and LT extra differ significantly among the semi urban and rural consumers.

26. For the right to be heard and access methods,32 percent of semi urban consumers and 26 percent of rural consumers opined that access method is well known. However, 44.33 percent did not know about the access method. For knowledge about whom to approach, it was found that 36 percent of semi urban consumers and 22 percent of rural consumers knew whom to access. However, majority of sample consumers did not know about whom to access.

On method of registering complaints, 30 percent of semi urban consumers and 34.7 percent of rural consumers said that they know the method of registering complaints. However, 39 percent did not know how to register complaints. For hearing by sellers, 32.7 percent semi urban consumers and 26 percent rural consumers felt that it is either reasonable or highly reasonable. Only 37.33 consumers felt that it is unfair. As regards hearing by officials, 35.4 percent semi urban consumers and 42 percent felt that it is either reasonable or highly reasonable. Only 28.33 percent of consumers felt that is unfair.

The consumers in semi urban and rural areas lack knowledge about whom to access and the method of registering complaints. The knowledge about access methods and hearing by officials does not exist in rural areas. However, they knew that the sellers are hearing the complaints to some extent. The semi urban and rural consumers significantly differ in relation to their opinion on access methods, whom to approach, registering complaints, hearing by sellers and hearing by officials.

27. On consumer education initiatives by various agencies, it was found that 28 percent of semi urban consumers and 42.7 percent of rural consumers felt that the government measures exist. 28.6 percent of semi urban consumers and 35.3 percent of rural consumers felt that public sector measures exist. 33.3 percent


of semi urban consumers and 34 percent of rural consumers felt that the measures by NGOs exist. 49.4 percent of semi urban consumers and 35.3 percent of rural consumers said that measures taken by consumer organizations are more. 45.33 per cent of semi urban and 27.00 percent of rural consumers said that measures taken by educational institutions exist. 44 percent of semi urban consumers and 34 percent of rural consumers were happy about the role of others in consumer education.

The existing method of promoting consumer awareness on essential commodities is through educational institutions, and then comes consumer organizations. The third is through non-governmental organizations and the fourth is through others. The role of government is considered least by the sample consumers. The opinion about the existence of consumer education by government, public sector, consumer organizations, educational institutions and others significantly differ among semi urban and rural consumers. However, their opinion on the effectiveness of NGOs does not differ among semi urban and rural areas.

28. In the semi urban areas, 22.00 percent felt that redress measures through court of law are either existing or well existing and 53.33 percent felt that redress measures are either not existing or not at all existing. In the rural areas, 27.33 percent felt that redress measures are either existing or well existing, and 50.67 percent felt that redress measures are either not existing or not at all existing. On the whole, 24.67 percent felt that redress measures are either existing or well existing and 52.00 percent felt that redress measures are either not existing or not at all existing.

For redress through consumer forums, on the whole, 27.33 percent opined that redress measures are either existing or well existing and 53.33 percent said that redress measures are either not existing or not at all existing. For redress through consumer organizations, 26.67 percent felt that redress measures are either existing or well existing and 56.67 percent felt that redress measures are either not existing or not at all existing. For redress through self-initiative, 32.67 percent felt that redress measures are either existing or well existing and 34.33 percent felt that redress measures are either not existing or not at all existing. The


redress measures do not seem to exist in both areas as opined by the sample consumers.

The semi urban and rural consumers do not differ in their perception on redress aspects by court of law and consumer forums but they significantly differ on redress aspects by consumer organizations and self-initiative.

29. According to the sample consumers the best method to improve consumer rights in supply and distribution of essential commodities is educating through educational institutions. Then comes the consumer movement. The third is the steps taken by NGOs. Then comes strict legal measures and government rules. There is positive correlation between the opinions of semi urban and rural consumers. The suggested measures for improving consumer rights in essential commodities supply and distribution significantly differ regarding educational institutions and consumer movement. However, the suggested measures do not significantly differ for government rules, strict legal measures and steps taken by non-governmental organizations.

IV Impact of Liberalization, Privatization and globalization

A Opinion of Officials Impact of liberalization in relation to higher production,

competitive prices, awareness and remedy is less in rural areas. The impact is less in both areas as regards higher quality. However, there is negative correlation between the opinions of semi urban and rural sample officials. As regards the impact of privatization on quantity aspect is concerned, it was found that 30 percent in semi urban area and 28 percent in rural area felt that change in quantity is higher. 28 percent in semi urban area and 38 percent in rural areas felt change in awareness is higher. 30 percent in semi urban and 48 percent in rural area felt that change in remedial measures has increased. However, 37 percent of sample officials felt that remedy aspects due to privatization have not changed significantly. The impact of privatization in relation to production and competitive prices are seen in semi urban areas. The impact is felt in production and quick remedy in rural areas. There is positive correlation between the opinions of semi urban and rural sample officials.


There is negative change in social participation, i.e. the time to take part in social events has decreased in semi urban and rural areas. Educational spending, health spending, awareness on rights etc. have increased. There is overall change in women empowerment but is least in semi urban and rural areas. There is negative change in standard of living in semi urban areas and overall change in entertainment and housing type. There is positive correlation between the opinions of semi urban and rural sample officials in this regard. The officials were not in favour of specific government rules or strict legal measures for consumer education. They suggested that steps may be taken by non-governmental organizations and educational institutions to enforce consumer movement. There is positive correlation between the sample officials of semi-urban and rural areas.

B. Opinion of Sellers On impact of liberalization, privatization and globalization on

consumer rights, 55 percent of semi urban sellers and 54 percent of rural sellers felt that the right to safety is at high change. 52 percent of semi urban sellers and 38 percent of rural sellers felt that the right to information is at high change. 31 percent of semi urban sellers and 37 percent of rural sellers felt that the right to select is at high change. It was found that 30 percent of semi urban sellers and 35 percent of rural sellers felt that the right to be heard is at high change. 30 percent of semi urban sellers and 31 percent of rural sellers felt that the right against exploitation is high at change. It is found that 31 percent of semi urban sellers and 38 percent of rural sellers felt that the right to redress is at high change. 39 percent of semi urban sellers and 37 percent of rural sellers felt that the consumer education is at high change.

The impact of LPG on consumer rights is highest on right to safety, next comes right to information. The third is right to select and the fourth is right against exploitation. Consumer education and redress gets equal ranks i.e. 5.5. The next is the right to be heard. It is to be noted that there is positive correlation between the opinion of sample semi-urban and rural respondents.

C. Opinion of Consumers For improved quality, 34.00 percent of semi urban and 27.33

percent of rural consumers felt the change is either high or very


high. But on the whole, 46.00 percent felt that the change is less or very less. For awareness, 51.33 percent of semi urban and 41.33 percent of rural consumers felt the change is either high or very high. But on the whole, 40.00 percent felt that the change is less or very less. For remedy, 62.00 percent of semi urban and 46.00 percent of rural consumers opined that the change is either high or very high. But on the whole, 28.00 percent felt that the change is less or very less.

The highest change due to liberalization is seen in remedy, and then comes awareness, the third is quality. Less change is seen in competitive prices and least change is noted in production aspect. However, there is positive correlation in this aspect. The semi urban and rural consumers do not significantly differ in their perception on impact of liberalization on competitive prices and quality. However, they differ in their perception on production, awareness and remedy aspects.

For change in quantity, 20.33 percent said that there is change or high change and 43.67 percent felt that there is less change or least change. For increase in awareness, 26.00 percent felt that there is change or high change and 35.00 percent felt that there is less change or least change. For quick remedy, 29 percent said that there is change or high change and 45.00 percent felt that there is less change or least change.

On the impact of Liberalization, Privatization and Globalization for social participation, 68.00 percent of semi urban and 45.33 percent of rural consumers perceived change or higher change. But on the whole 31.00 percent perceived less or least change. For educational spending, 67.33 percent of semi urban and 56.00 percent of rural consumers perceived change or higher change. On the whole 25.67 percent perceived less or least change. For health spending, 58.67 percent of semi urban and 43.33 percent of rural consumers perceived change or higher change. But on the whole 24.67 percent perceived less or least change. For awareness on rights, 51.33 percent of semi urban and 34.67 percent of rural consumers perceived change or higher change. But on the whole 34.33 percent perceived less or least change.

For women empowerment, 39.33 percent of semi urban and 24.67 percent of rural consumers perceived change or higher change. But on the whole 45.67 percent perceived less or least change. For


standard of living, 36.00 percent of semi urban and 24.00 percent of rural consumers perceived change or higher change. But on the whole 34.33 percent perceived less or least change. For entertainment, 38.00 percent of semi urban and 25.33 percent of rural consumers perceived change or higher change. But on the whole 41.00 percent perceived less or least change. For housing type, 40.67 percent of semi urban and 30.67 percent of rural consumers perceived change or higher change. But on the whole 35.67 percent perceived less or least change.

On the impact of LPG on consumer rights, for Right to safety, 40.00 percent either agreed or strongly agreed with impact and 40.00 percent disagrees or strongly disagreed with the change. For Right to Information, 46.67 percent either agreed or strongly agreed with impact and 41.33 percent disagreed or strongly disagreed with the change. For Right to Choose 31.00 percent either agreed or strongly agreed with impact and 32.00 percent disagreed or strongly disagreed with the change.

For Right to be heard, 35.33, percent either agreed or strongly agreed with impact and 38.67 percent disagreed or strongly disagreed with the change. For Right to Redress, 48.00 percent either agreed or strongly agreed with impact and 30.00 percent disagreed or strongly disagreed with the change. For Right to consumer education, 52.67 percent either agreed or strongly agreed with impact and 29.00 percent disagreed or strongly disagreed with the change.

As regards impact of LPG, it is inferred that there is highest change in right to consumer education, then comes right to redress. The third is right to safety. Least change is in right to information as opined by the sample consumers. There is positive correlation among the opinions of sample semi urban and rural consumers.

The impact of LPG on right to safety and right to consumer education do not significantly differ in semi urban and rural areas. However the opinion differs for rights to information, select, to be heard, and redress.

Suggestions• Consumer Price Index in some cities of Tamil Nadu such as

Chennai, Tiruchirappalli etc is higher than that of All India Index. steps may be taken to minimize the price level in those specific cities by devising target oriented programmes.


• On an average 1187 ration cards are attached to each shop in the state of Tamil Nadu. Even if a consumer has to visit a shop at least thrice in a month, the shops serve an average of 141 (1187 cards x 3 times / 25 days) cards per day. This can be minimized by providing all ration items on a single day to consumers. Otherwise the distribution burden of the seller and frequency of visit of card holder multiplies.

• Effective steps have been taken by the Government to locate fair price shops within a distance of 2 kilo metres. This step is highly commendable and this model can be followed by other states.

• Discrepancy in supply of sugar seems to be higher in semi urban and rural areas. Discrepancy is higher for kerosene in rural areas. This can be corrected by supplying fixed quantity to cardholders on specific days. Lack of information on date of supply of sugar is the reason for such discrepancy or deficiency.

• Health services seem to be poor in semi urban and rural areas. Modern information technology improvements such as video conferencing and online health checkups can improve the situations to a greater extent.

• Insurance and banking services are poor in semi urban and rural areas. Installing ATMs and online information centres may minimize the sense of deficiency in service in these areas.

• Effective remedy is a cognitive aspect and be ensured only through preventing future selling and punishing the erring sellers. Hence modified punishment measures can be imposed to minimize the wrongdoings in relation to supply of essential commodities.

• Prices are reasonable in fair price shops; rice is supplied at Rs.2 per Kg. This system can be well adopted in other states to improve satisfaction level of consumers.

• Display of price and quantity available in all shops should be made mandatory in relation to essential commodities. These measures should be strictly enforced.

• Computerized bills or printed bills with quantity and rate can be used so that the legibility of bills can be improved in both semi urban and rural areas.


• Differential prices i.e. subsidized prices to a section improve the utility of fair price shops. Differential prices are not a problem to consumers in general. Poor, old and orphans can be provided essential commodities even at a lower cost with special type of cards.

• Quality of products supplied through fair price shops should be improved. Essential commodities are not luxury goods; they are for the basic livelihood of consumers. Deterioration in standards may lead to health problems and there will be overall deterioration in health standards in the state.

• Weights and measures may have been standardized and supplied to all fair price shops. But the weighing and measuring methods are not at all satisfactory. Hence the government can think in terms of supplying items in a pre-packed manner. For example, sugar can be supplied in packs of one kg or two kg. This will minimize the dissatisfaction due to unethical methods followed in weights and measures.

• The sellers may be given instructions to replace the substandard goods immediately on getting complaints. This should be made mandatory.

• Rural people may be educated with regard to complaint methods and remedies available so that they can complain in case of wrong doings. Cell phone numbers through which complaint can be made to the officials may be prominently displayed in the premises of shops.

• Meaning for English words such as MRP, LT Extra may be translated and written in local language on information boards in the shops so that the consumer gets knowledge about these terms.

• The address and phone number of the official to whom complaint can be made should be prominently displayed in all shops selling essential commodities so that the consumer can use his right to be heard in case of irregularities.

• Public sector organizations and educational institutions can be utilized to educate the consumers on consumer rights. A separate paper on consumers’ rights can be made compulsory in all schools.


• Redressal measures are not satisfactory. Redressal aspects can be improved only if the consumer is given the right to get replacement for the substandard products. Hence right to get replacement may improve the concept of redressal.

• Liberalization has paved ways for improved information aspects but this awareness is less in rural areas. Merits of liberalization and privatization may be published in leading journals so that even the rural consumer gets knowledge about liberalization and privatization.

• social participation may increase the knowledge about the environmental aspects. Periodic social gathering may empower the consumer and encourage him to make reasonable claims of his rights in the society.

• Expenditure on sugar and kerosene seem to be higher and steps may be taken to supply sugar and kerosene at reasonable rates to those who are living below poverty line. Differential price for kerosene can be followed.

• Lack of knowledge about a product or service may create confusion and the consumer may think that the commodity is substandard in nature. Providing reasonable knowledge about various essential commodities may minimize the false notions in the mind of the customer.

• Cost of medicines has affected the consumers to a higher extent. Pricing of drugs on the basis of generic names may definitely reduce the price. Government can go in for life saving drugs and drugs meant for elders. This problem can surely explode if strict drug price control measures are not taken by the government. Hence drugs prices should be controlled within a reasonable time.

ConclusionCommon consumer in India pays for the commodity and service

from his hard earned income but is mostly treated unethically in most of the organizations. From the womb to the tomb, consumers are prejudiced by plethora of institutions, may be in public sector or private sector or individual businessman, where each promise to provide or deliver something or quality services such as essential goods or services, but fails in reality. Legislations, self-regulations


and social responsibility are the need of the hour and therefore, not only the states but also private individuals should come forward to realize the situation and move forward to take note of the development in the modern society, especially the aspects of excessive commercialization, aggressive marketing and unethical advertisement which are exploiting the consumers. survival of the consumers’ rights and their prosperity depend on the activities of social, political and economic groups which play their part in promoting rights and interests of the common man in the society. The governments are taking considerable steps to protect the consumer rights and welfare but their future continuance cannot be assured due to globalization, growth of cross culture, excessive generalization and unethical political directions. Hence integrated steps are to be taken by the individuals, groups, consumer organizations and government to protect the interests of the consumers especially in supply and distribution of essential commodities.


5 A STuDy ON CONSuMeR AwAReNeSS AMONg ARTS AND SCIeNCe COLLege STuDeNTS IN TAMIL NADu wITh SPeCIAL RefeReNCe TO ThANjAVuR DISTRICT

C. Subramanian

IntroductionThe consumer is a person who receives goods or services in

return for a payment. “Consumer is one who consumes or uses something”. Thus a person consumes foods, cloth, medicines and a host of other articles. A machine also consumes energy or air while working. But the words ‘consumer’ and ‘consume’ are used in a restricted sense. In the present context, the term ‘consumer’ includes only human beings and not animals or machines. The term ‘consume’ relates only to articles purchased and not obtained freely like air, water etc. The Latin term ‘Consumo’ means, “eat up completely” which understandably led to the current use of the term ‘consumer’. Any person who buys goods and services for personal consumption and not for commercial purpose or resale is called a consumer.

Consumers form the largest economic group in any country. They are the pivots of all economic activities. The concept of consumerism is almost new in India. Various scholars and consumerist define it variously. But strictly speaking the concept has wider connotations. In fact, consumerism refers to the activities of several individuals and organized groups for asserting their rights as consumers. Consumerism is defined by Richard H. Buskirk and James and Rothe (1970) as "organized efforts of consumers


seeking redress, restitution and remedy for dissatisfaction they have accumulated in the acquisition of their standard of living”.

The advancement of technology and the aggressive marketing strategies in the era of globalization have not only thrown open a wide choice for the consumers but also rendered the consumer vulnerable to a plethora of problems associated with such rapid changes. Today’s youth are the pillars of the nation. They are going to be the future leaders, administrators, managers, bureaucrats and policy-makers. Consumer awareness among the youth is defining factor for economic growth and well-being. The vast Indian population, which has the highest percentage of youth among the growing economy, makes it imperative to undertake this study on consumer awareness among the youth.

Consumer BehaviourAccording to Webster, “consumer behaviour is all psychological,

social and physical behaviour of potential customers. They become aware of, the value of the purchase, and after consuming they tell other people about product and services.” Consumer behaviour “is the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and service.”

Consumer buying behaviour refers to the buying behaviour of final consumers-individuals and households who buy goods and services for personal consumption. Buyer's behaviour on the other hand leads to an end in the process of purchasing and in this process, two activities take place on the part of the buyer. i) The thought process that analyses and decides what to buy,

when to buy, how to buy etc., and ii) The resultant activity viz., accepting or rejecting a product.

fig. 1: factors Influencing Consumer Behaviourfigure 1: factors Influencing Consumer Behaviour

Cultural

o Motivation o Perception o Beliefs and

attitudes

o Culture o Sub Culture o Social class

o Reference groups o Family o Roles and Status

o Age and Life Cycle Stage

o Occupation

Social Personal Psychological


A buyer’s purchase decisions are influenced primarily by cultural, social, personal and psychological factors. The markets do not control these factors, but they cannot ignore their effects on the consumer behaviour.

world Consumer MovementThe consumer movement as a countervailing defensive force

to safeguard the interest of the consumers from the abuses of economically powerful sellers originated in the United states and it spread gradually to many other countries in the world. In some countries it became a deep-rooted movement and in other highly competitive. The nations where the consumer movement has shown much strength are United states of America, Britain, Germany, New Zealand, France and Japan. Besides this, there have been found signs of new efforts in a number of other countries. Developments and methods of coping with it differed from country to country and consumer awareness also varied from one country to another. It was neither exclusive to any specific country, nor was it confined to any particular continent.

Development of Consumer Movement in India Prior to 1950, Consumer Protection Council was established

in Madras under the guidance of shri Rajagopalachari. After a decade or two, consumer groups started sprouting in various parts of India, most of them dealing with local issues. In 1956, nine housewives and social workers joined together to form the Consumer Guidance society of India in Bombay. It was only in mid-sixties, the consumer movement gained momentum in India. In 1971, the Indian Consumers’ Union was registered in New Delhi, with the aim of fighting against the spiraling prices of essential commodities. In 1978, the Consumer Education and Research Centre was formed in Ahmadabad. since then there has been no looking back. The number of registered consumer groups in India is constantly increasing. Most of the consumer groups have been started and carried on by the members of the educated middle class.

Voluntary Organizations for Consumers in IndiaBy observing the objectives of consumerism, one can

understand that mere government support and legislation may not be able to accomplish the objectives. As the basic issue is concerned


with the welfare of people they have to take the initiative to fight against unscrupulous businessmen. The success of the movement very much depends upon the concerted efforts of groups of people. As a natural outcome of frustrations, the consumer movement has taken the shape of consumer organizations speaking for them. Now- a-days, the government also provides financial aid and other sorts of encouragement for the establishment of consumer organizations.

The following are some of the voluntary organizations formed to protect the interests of consumers:

1. Voluntary Organization in the interest of Consumer Education, New Delhi. (VOICE)

2. Indian Federation of Consumer Organizations, New Delhi (IFCO).

3. The Consumer Guidance society of India, Bombay (CGsI).

4. Consumer Education and Research Centre, Ahmedabad (CERC).

5. Voluntary Health Association of India, New Delhi (VHAI).

6. All-India Drug Action Network (AIDAN).

7. Consumer Council of India, Madras.

8. Akhil Bharatiya Grahak Panchayat, Pune (ABGP).

9. All-India Consumer Council, Hyderabad.

10. Karnataka Consumers' service society, Bangalore.

11. Consumer Action Forum, Calcutta.

12. National Consumers’ Co-operative Federation, Delhi.

13. save the consumers Movement of India, Madras.

14. Federation of Consumers Organizations: Tamil Nadu and Puducherry (FEDCOT).

Consumer Organizations in Tamil NaduConsumer Organizations have resulted as a consequence of

the frustrated psyche of the common man, who faces all kinds of inequalities and injustices in the hands of the businessmen. The earliest efforts to organize consumers in India were in 1949 – 50. shri R.R. Dalavai, a sprightly old Gandhian in Madras, started the


first formal consumer movement in 1949. The Consumer Protection Council established in Madras under the patronage of shri C. Rajagopalachari confined its work only to the people of Tamilnadu. In Tamilnadu alone there are over 300 voluntary consumer organizations. They have achieved a legal status by formally registering themselves as a society under the state’s societies Registration Act or under the Indian Trusts Act, as Public Trusts. some are letter-head organizations, which function only on paper. There is no concrete activity. Many consumer groups have joined together to form federations.

The Federation of the Consumer Organizations of Tamilnadu has consumer councils as its members. The federation involves itself in training and advocacy activities. The little known consumer councils have gained ascendancy after becoming members of the federation and they get an opportunity to represent their views in large forums, at the national and international levels. About 250 voluntary consumer organizations, spread all over Tamilnadu, are affiliated to FEDCOT and it has been able to spread the consumer movement in all the districts of Tamilnadu. It has been able to create greater awareness among consumers of their rights.

The Consumer Protection Act, 1986The sole object of the Consumer Protection Act, 1986 is to

provide consumer protection and consumer education. The Indian Parliament enacted the Consumer Protection Act, 1986 which received the assent of the President of India on 24.12.1986. The Act, except Chapter-III, came into force with effect from April 15, 1987. Chapter-III, which deals with the establishment of Consumer Dispute Redressal Agencies, came into force from July 1, 1987. The Act gives six important rights to the consumers as explained in section 6. These are: A. Right to safety; B. Right to information; C. Right to choose; D. Right to be heard; E. Right to seek redressal; and F. Right to consumer education.


Right to SafetyArticle 21 of the Constitution gives an important right of

protection of life and personal liberty. It provides that no person shall be deprived of his life or personal liberty except according to procedure established by law. Except the courts, no person or government can do injury to any person. When the Government is also not competent to cause harm or injury to any person, shall a seller or trader be allowed to do so? No. Hence the Act stresses on “Right to safety”. No manufacturer or seller is entitled or authorized to sell goods or provide services, which are hazardous, and dangerous to the life and health of the human beings.

“Right to safety” means “the consumer has the right to be protected against the marketing of goods and services which are hazardous to life and property, due to the defective design, poor workmanship, negligence, defective ingredients, etc. The goods or services may cause serious injury to the consumer’s property or to body or to his near ones or to his guests. sometimes, it may lead to incidence of the death. Hence the Consumer has the right to have good quality and defect-free goods or services. The greedy manufacturers may manufacture the defective goods and release them in the market. For example, if a toy manufacturer makes certain toys for children below 10 years; the toy should not hurt the child and also other persons surrounding him. If the toy is defective, and that toy injures the child, then the manufacturers and service providers is held responsible. It is the legal duty of the manufacturers and service providers that goods or services should not cause injury or harm to the consumers.

Right to InformationIt is the second right afforded to the consumers by the Act.

“Right to Information” means “the consumer has the right to be informed about the quality, quantity, potency, purity, standard, model, price of goods or services so as to protect him against the restrictive and unfair trade practices. The consumers need to be informed about products and services so that they can make better consumption decisions.”

“Caveat emptor” (Let the buyer beware) was an old philosophy of law. Now the philosophy of “Caveat venditor” (Let the seller beware) has occupied the place of the old principle of “Let


buyer beware.” The seller has to render to the consumers all the information about the goods or services, which he is going to sell. In our country, consumers do not ask for the required information. They solely depend upon the sellers. This leads to exploitation. “Information” about the goods or services is an important thing in sale of goods or services. Information gives merits and demerits, uses and difficulties, prices, standards, variety of goods, etc. It is the responsibility of the manufacturers and sellers to ensure that goods meet reasonable demands of durability, suitability, utility and reliability. The present day tendency of consumerism is: “the seller should not sell goods what he has, but the consumer should get goods what he needs.” They should give fair treatment to the consumers. If there is lack of sufficient information, the consumer is put to heavy loss. Lack of information leads the consumer to take in correct decision, particularly in shopping. The Act envisages this important right to the consumers.

Right to ChooseThe third important right is that the consumer should have the

right of choice. “Right to Choose” means, “the consumer should have chances of choosing his required goods from a variety of goods and services at competitive and reasonable rates.” The sellers should not enjoy monopoly in the market, and should not adopt restrictive trade practices. The sellers should sell variety of goods with good standards in fair and effective manner. There must be a healthy competition among the traders/manufacturers. All the sellers should aim to win the consumer by rendering good services and selling good quality goods with lowest cost. There must be greatest range of choice available among the products at reasonable and competitive prices. The manufacturers and distributors should provide after-sales service centers and see that the spare parts of the goods should be available in the market in abundance.

Right to be heardPrevious to the Consumer Protection Act, 1986, the aggrieved

consumer has to seek his remedies under the other Acts, such as the Civil Procedure Code, 1908, the Code of Criminal Procedure, 1973, the Indian Contract Act, 1872, Monopolies and Restrictive Trade Practices Act, 1969, etc. All these Acts provide exhaustive and complicated legal procedures. Consumers are in crores. Their


consumption capacity of goods and services is limited, ranging from rupees one to 1,00,000/-. The consumers are untrained. They are busy in their day-to-day activities and livelihood and they can not concentrate on the disputes pertaining to small items such as food, clothes, entertainments, etc. Moreover, the Indian people are most tolerant persons; they neglect their right's. Besides this, there are several other problems in approaching the civil courts for the redressal of small consumer disputes. These courts are already overburdened with the large number of pending cases and cannot concentrate on the smaller disputes such as consumer disputes. If a consumer filed a case in the ordinary civil court, it took years to finalize. Further, the consumer was compelled to pay court-fee, advocate’s fee, etc. That is why the consumers were not in favour of filing case in civil court against the manufacturers. Taking advantage of this, the manufacturers, traders, sellers began to exploit and rob crores of rupees from the consumers.

Right to Seek RedressalThe fifth consumer right is the right to seek redressal. The

consumer has the right to seek redressal against defective goods, deficient services, and restrictive and unfair trade practices, irrespective of quantum of money. The Act enables the Central and state Governments to establish the consumer disputes redressal agencies at three levels. The aggrieved consumer can file appeals before sate Commission and National Commission. If he is not satisfied with decision of National Commission, he can also file an appeal before the supreme Court, the highest judicial authority in India. The Act explains the procedure and provisions for early disposal of the cases. It imposes the limitation on the redressal agencies to dispose the cases within the prescribed time limit. The Act provides simple, speedy, inexpensive and accurate justice to the consumers.

Right to Consumer educationAn important right provided by the Act is “right to consumer

education”. The object of inclusion of this right is to promote consumer education. For this purpose, the Act also provides the provisions for the establishment of “Consumer Councils”- National Council at National level, state Councils at state level and District Councils in the District. The functions and objects of these councils


are to protect the consumers, promote the awareness amongst them and search ways and means for consumer protection and education. The Government has taken many initiatives to educate consumers. The books and pamphlets are printed on consumer rights and distributed among the consumers. Video spots on consumer issues are screened and released in theatres or TVs. Articles are also published in newspapers to educate consumers. The Government of India and state Governments screen advertisements in the theatres explaining the injury and harm caused by consuming pan masalas, gutkas and cigarettes. The governments also advertise very extensively about AIDs, malaria, cholera, etc. They urge the two-wheeler drivers to wear helmets for the consumers’ safety.

Consumer Disputes Redressal Agencies

section 9 to 27 of the Consumer Protection Act, 1986 explains the detailed and necessary provisions about the “Consumer Disputes Redressal Agencies”. section 9 lays down the provisions about the establishment of consumer disputes redressal agencies.

sec. 9. Establishment of Consumer Disputes Redressal Agencies. There shall be established for the purposes of this Act, the following Agencies, namely:

(a) A Consumer Disputes Redressal Forum to be known as the “District Forum” established by the state Government in each district of the State by notification;

Provided that the State Government may, if it deems fit, establish more than one District Forum in a District.

(b) A Consumer Disputes Redressal Commission to be known as the “state Commission” established by the state Government in the State by notification; and

(c) A National Consumer Disputes Redressal Commission established by the Central Government by notification.

The Act empowers the Central Government to establish three tier Consumer Redressal Agencies, viz. the National Commission for entire India; the state Commission for every state and the District Consumer Forum for every District. The District Consumer Forum has the jurisdiction to entertain complaints not exceeding rupees twenty lakhs. The state Commission has the jurisdiction to entertain


the complaints exceeding twenty lakhs but not exceeding one crore, besides the appellate power over District Forums. The National Commission can hear the complaints exceeding one crore. It has appellate powers over the state Commission. sections 9 to 15 explain the provisions about the District Consumer Fora. sections 16 to 19 explain the provisions about the state Commission. sections 20 to 23 explain the provisions about the National Commission. sections 24 to 27 explain finality of orders, limitations, enforcement, dismissal of frivolous or vexatious complaints, penalties, etc. applicable to all Consumer Redressal Agencies.

section10 (1) lays down that each District Forum shall consist of a person who is, or has been, or is qualified to be a District Judge, who shall be its President; and two other members, one of whom shall be a woman. The state Commission is headed by a retired High Court judge. Besides this, it shall have not less than two and not more than such number of members as may be prescribed, and one of whom shall be a woman.

Among the consumer redressal agencies, the National Commission is the apex body at the Centre. It is headed by a President who, shall be a person who is or has been a Judge of the supreme Court. He shall be appointed by the Central Government after consultation with the Chief Justice of India. In addition it shall have not less than four and not more than such number of members, as may be prescribed, and one of whom shall be woman. This condition is imposed by the Consumer Protection (Amendment) Act, 1993 with an object to safeguard the “Independence of National Commission”.

The Present StudyIn India Consumer behaviour has changed now. They are

purchasing goods from big shopping mall or online. This study mainly focuses on students, because they are compulsive buyers and get more attracted to different kind of products, branded or local. Hence the study consists of knowledge and awareness of consumerism among students and how much they are practically applying it. The present study also tries to examine awareness on consumer rights, consumer behaviour, participation in consumer clubs and knowledge on consumer council and Consumer Protection Act, 1986.


Statement of the ProblemConsumerism now a day includes many things within its

compass. This term means different things to different people. The most common understanding of consumerism is in reference to protection of consumers against abuses by the manufacturers and sellers. This includes cheating and other malpractices in the market as well as dangers to health and safety of individual from various types of products. There can be no two opinions that the consumer needs to be protected against some glaring exploitation by the businessmen. Thus consumerism is also considered to include protection of consumers.

Consumerism is a fundamental aspect of national progress. Enlightened consumers are very essential for any nation to protect and safeguard against environmental pollution and pollution of physical environment. Aware people are greatly concerned with the maintenance of ecological balance and conservation of natural resources. One need not be surprised, if in future the emphasis of consumerism moves from industry towards ending human hunger and malnutrition; alleviation of pollution of air, water and soil; and educating and training the disadvantaged towards solving these and other problems of society.

For the good of the human beings, consumer education is an inevitable aspect for rural as well as urban people, both buyers and sellers. There is need to analyse how much the youth especially students are aware of consumerism. The recent developments due to globalization and the factors that drive markets need to be studied to create awareness for optimum consumer satisfaction. This is the prime aim and objective of this study. The vast Indian population, which has the highest percentage of youth among the growing economy, makes it imperative to undertake this study to determine consumer awareness among the youth. Consumer awareness among the youth is defining factor for economic growth and well-being. The target group of the college students in the age group of 18 to 25 years was chosen to make the study meaningful and viable for other related relevant studies that will contribute to studying the patterns that will emerge in the near future. This study is imperative to analyse the current trends among the prime youth target group i.e. the Arts and science College students who act as the peer or role models to other youth in consumer behaviour. This study mainly


covers awareness on consumer rights, knowledge on functioning of consumer councils, participation in consumer clubs and consumer movement, consumer behaviour and involvement in selecting products.

Objectives of the StudyvTo find out awareness about the consumers’ rights;vTo investigate consumer behaviour in selecting products;vTo study the level of consumer knowledge on functioning of

consumer councils;vTo examine the participation of the respondents in consumer

clubs and consumer movement; andvTo analyse the association if any between selected socio-

economic variables with the dependent variables.

Research MethodologyThe descriptive cum diagnostic design was adopted in the study.

The students those who were studying in final year UG Courses in the Arts and science colleges (Government colleges: 6, Government Aided colleges: 5 and Private self-financed colleges:18) of Thanjavur district were the universe of the study (total = 9857, male 4482, female 5375). It was decided to have minimum 1000 samples for this study. Further it was decided to select 40 samples from each college and hence by using Stratified Disproportionate Random Sampling Technique. 40 samples were selected from each college. For boys’ colleges (1 College) all the samples were male and girls’ colleges (5 Colleges) all the samples were girls. From every co-educational college (23 Colleges), which has sufficient student strength in the 3rd year, 20 boys and 20 girls were selected as respondents. In few colleges as the 3rd year students were less, all of them were selected as respondents. Altogether the sample strength was 1040. The researcher generated self-prepared questionnaire concentrating on the aspects of socio-economic data, awareness about consumer rights, consumer behaviour, participation in consumer clubs, knowledge about consumer council, etc. The questionnaire that was used for the students consisted of 55 questions. The primary data required for the study were collected in the period from November 2007 to January 2008.

The sample selection details are given in Table 1.


Tabl

e 1:

Sam

ple

Dis

trib

uttio

n

Lis

t of C

olle

ges

Nam

e an

d A

ddre

ss

Tota

l No.

of S

tude

nts

u.g

. fin

al y

ear

stud

ents

(uni

vers

e)

Sam

ple

Mal

efe

mal

eTo

tal

Mal

efe

mal

eTo

tal

Mal

efe

mal

eTo

tal

1A

bi &

Abi

Col

lege

, Tha

njav

ur

(Co-

ed)

320

261

581

7511

218

720

2040

2A

daik

alam

atha

Col

lege

, Tha

nja-

vur.

(C

o-ed

)90

152

014

2117

310

828

120

2040

3AV

VM

sri

Push

pam

Col

lege

of

Arts

& s

cien

ce, T

hanj

avur

(Co-

ed)

4170

1789

5959

1132

320

1452

2020

40

4B

hara

th C

olle

ge o

f Arts

& s

ci-

ence

, Tha

njav

ur (C

o-ed

) 16

1993

425

5339

715

254

920

2040

5B

on s

ecou

rs C

olle

ge o

f Arts

&

scie

nce

for W

omen

, Tha

njav

ur0

1018

1018

017

217

20

4040

6K

unth

avai

Nac

hiar

Gov

t. A

rts

& s

cien

ce C

olle

ge fo

r Wom

en,

Than

javu

r

033

6333

630

950

950

040

40

7M

arut

hu P

andi

ar C

olle

ge o

f Arts

&

sci

ence

(Co-

ed),

Than

javu

r47

060

010

7050

7312

320

2040

8N

. M. V

enka

dasa

my

Nat

tar C

ol-

lege

of A

rts &

sci

ence

(Co-

ed),

Than

javu

r

2515

217

712

2032

1220

32


9N

alli

Kup

pusa

my

Col

lege

of A

rts

& s

cien

ce fo

r Wom

en, T

hanj

avur

030

030

00

100

100

040

40

10.

PRIs

T U

nive

rsity

(Co-

ed),

Than

-ja

vur

1527

1250

2777

327

200

527

2020

40

11.

Raj

ah s

arfo

ji G

ovt.

Arts

Col

lege

, Th

anja

vur (

Co-

ed)

1674

754

2428

421

202

623

2020

40

12.

swam

i Viv

ekan

anda

Col

lege

of

Arts

& s

cien

ce, T

hanj

avur

(Co-

ed)

7512

520

012

2032

1220

32

13.

T.U

.K A

rts C

olle

ge, T

hanj

avur

(C

o-ed

)96

811

2620

9421

026

047

020

2040

14.

Raj

ah’s

Col

lege

, Thi

ruva

iyar

u (C

o-ed

)26

366

392

2817

520

320

2040

15.

Mus

ic C

olle

ge, T

hiru

vaiy

aru(

-C

o-ed

)64

5612

00

1212

012

12

16.

R.D

.B C

olle

ge o

f Arts

& s

cien

ce

Col

lege

, Pap

anas

am (C

o-ed

)56

236

292

487

8116

820

2040

17.

Ann

ai C

olle

ge o

f Arts

& s

cien

ce

Col

lege

, Kum

bako

nam

(Co-

ed)

1000

800

1800

200

235

435

2020

40

18.

Gov

t. B

oy’s

Colle

ge, K

umba

kona

m31

0018

0049

0042

017

559

520

2040

19.

Gov

t. W

omen

’s C

olle

ge, K

umba

-ko

nam

030

6730

6773

173

10

4040

20.

Iday

a C

olle

ge o

f Arts

& s

cien

ce

for w

omen

, Kum

bako

nam

0

1022

1022

022

222

20

4040

21.

shan

mug

a C

olle

ge o

f Arts

& s

ci-

ence

, Kum

bako

nam

Not

Coo

per-

ated

for

this

Re-

sear

ch


22.

s.K

.s.D

.s A

rts &

sci

ence

Col

lege

, Th

irupp

anan

dal

(Co-

ed)

1305

230

1535

415

365

780

2020

40

23.

Mas

s Col

lege

of A

rts &

sci

ence

, K

umba

kona

m (C

o-ed

)72

230

110

237

07

07

7

24.

shan

kara

Arts

& s

cien

ce C

olle

ge,

Kum

bako

nam

(Co-

ed)

6779

146

1711

2817

1128

25.

Gov

t. Fi

ne A

rts C

olle

ge, K

umba

-ko

nam

(Co-

ed)

257

3529

220

929

209

29

26.

Dha

rmam

bal R

amas

amy

Col

lege

of

Arts

& s

cien

ce, O

rath

anad

u (C

o-ed

)

1440

5411

920

119

20

27.

Enat

hi R

ajap

pa C

olle

ge o

f Arts

&

scie

nce,

Pat

tukk

otta

i (C

o-ed

)45

236

781

911

212

023

220

2040

28.

Mee

naks

hi C

hand

rase

kara

n A

rts

& s

cien

ce C

olle

ge fo

r Wom

en,

Pattu

kkot

tai (

Co-

ed)

010

2510

250

280

280

040

40

29.

Kat

har M

oihd

een

Col

lege

of A

rts

& s

cien

ce, (

Co-

ed) A

thira

m-

patin

am

1191

628

1819

249

168

417

2020

40

30.

sri V

enka

tesw

ara

Col

lege

of A

rts

& s

cien

ce, P

erav

uran

i (C

o-ed

)24

641

065

610

793

200

2020

40

Tota

l20

755

2278

043

535

4482

5375

9857

392

648

1040


The data collected from the selected respondents was scrutinized and transcribed before the commencement of tabulation. While preparing the tables the master cards were used to easily sort out the information collected from the respondents. The frequency distribution was used by the researcher to arrive at percentage figures. Diagrams were also used in the study. In order to analyze the association between some of the independent and dependent variables, the statistical analysis namely ‘chi-square test’ was applied in this study.

Limitations of the StudyThe study was undertaken to study the consumer awareness

among students who belonged to the Arts and science Colleges in Thanjavur District. Hence this study was limited to the section of youth, which comprises of college students. This study varies from earlier studies which were limited to certain specific products but here general trends and consumer behaviour on whole range of consumer products that are accessible to the students has been studied. The awareness and knowledge base has been probed mainly through closed ended questionnaires.

This study was limited to Thanjavur district because it is one of the most important districts in Tamilnadu for various reasons. It is the rice bowl of this state. It has the large number of hectares under irrigated cultivation fed by the River Cauvery and its tributaries. This district is the cradle of Carnatic music and Bharathanatyam dance. The rich cultural heritage is manifest in the ancient temples all over the district.

Major findings of the StudyØ The findings reveal that most of the respondents hail from rural

areas. They live below the poverty line. Half of them are aware of the Consumer Protection Act, 1986. It was recorded that more than half of the respondents were aware of the consumer rights that they enjoyed. The random sampling also established the fact that majority of the respondents were aware of their right to safety i.e. 74.27 percent, the right to be informed (78.04 percent), the right to choose (81.65 percent), right to be heard (62.95 percent), right to redressal (62.61 percent) and the right to consumer education (71.36 percent). A majority of the respondents have stated that they were aware of the standardized


symbols (IsO, IsI, Hallmark). Most of the respondents perceive the Government to be protecting the rights of the consumers against adulteration through the Consumer Protection Council. Almost all consumers interviewed believed that the main source of consumer awareness was through the communication devices and the media.

ØA vast majority of the respondents have reported that they notice the cautions mentioned on the products while purchasing. On comparing the male and female respondents on this issue, it was found that the female respondents were more cautious than the male respondents. While comparing the arts and science students, it was found that arts students have inculcated the habit of reading the cautions on the products before purchasing the same. While analyzing the attitudes of the rural, urban and semi-urban students, it was found that the rural students have the habit of reading the cautions mentioned on the products.

ØA vast majority of the respondents have stated that they judge the products based on the information printed on the wrapper of the products. Both the male and female consumers rely on the details printed on the packaging of the products rather than believing the statements of the shopkeepers before the purchase is made. While comparing the rural, urban and semi urban students in the matter of reading the information given on the product, it was found that the rural students assess the quality of the product by reading the information on the wrapper, whereas the urban and semi-urban students did not care much about the information on the wrapper of the products. Between the arts and science students, a larger number of arts students were keen on judging the quality of the product based on the information on the wrapper.

ØA large number of respondents were of the opinion that they purchase the products based on the advertisements.

ØA large number of respondents also stated that they purchase the product based on the standard of the product. It was found that the arts students were keen on verifying the standard of the produce before purchasing the same as compared to the science students who did not show much interest in the standard of the product. When a comparison between the rural, urban and semi-urban students was made, it was found that the rural students


had inculcated the habit of selecting and purchasing a product based on the standard, while the semi-urban and urban students did not give any importance to the standard of the product.

ØMost of the respondents said they notice the defects of the products during purchase. In this study it was observed that the arts students were quick in noticing the defects of the products when compared to the science students. The rural students when compared with the urban and semi-urban students easily identified defects in products.

ØA vast majority of the respondents agreed that they returned the product if they were not satisfied and they also claimed a refund. The arts students were particular about returning the product when they were not satisfied and claimed a refund or replacement of defective product. The rural students were more focused on returning the defective products than the urban or semi-urban students and claim a replacement or get a refund.

ØA large number of respondents reported that they gather knowledge about the product before purchasing the same. They also check the price list of the products displayed in front of the shops before purchasing. The respondents also verified the weighing machine used to weigh the products they purchase. Majority of the respondents were against purchasing goods from the black market.

ØMost of the respondents were particular about collecting the bills from the vendors before leaving the shops. The arts students regularly collected the bills for all purchases while the science students did not care much for the collection of the bill after the purchase. Most of the rural students insisted on the bill while the urban and semi-urban students did not demand a bill for every purchase.

ØA majority of the respondents felt that the existing consumer protection laws were not adequate to safeguard the consumer. Most of the respondents claimed their rights as consumers when the shopkeepers denied them the same. Most of them also verified the ‘Date of Expiry’ of the product before purchase was made.

ØMost of the respondents were not members of the consumers'


clubs, however they were aware of their rights, and did claim the same in their way, without using the machinery of consumer redressal forums or consumer councils.

SuggestionsThe consumers must have education and awareness for better

implementation of their rights. “Consumer education is the process by which consumers: a) develop skills to make informed decisions in the purchase of goods and services in the light of personal values, maximum utilization of resources, available alternatives, ecological considerations and changing economic conditions. b) become knowledgeable about the law, their rights and methods of recourse, in order to participate effectively and self-confidently in the market place and take appropriate action to seek consumer redress. c) develop an understanding of the citizen’s role in the economic, social and government systems and how to influence those systems to make them responsive to consumer needs.” [Us Department of Education, 1980]

Educational institutions have to play an effective role towards creating awareness among students by adopting methodologies such as organizing seminars, workshops, lectures, discussions, essay competitions, quizzes etc. with regard to consumer rights, protection and welfare. Consumer clubs should be formed in each school and college with the support of local consumer organization. Material on consumer education should be made available in school and college libraries. Frequent exhibitions and demonstrations must be organized in public places and in educational institutions focusing on various abuses and unscrupulous market practices. Consumer education programmes should be made mandatory in the school system. Consumer behaviour researches can make a substantive contribution to the field of consumer education by designing appropriate curriculum for such programmes.

The legal provisions must be effectively implemented so as to ensure that all products' packages have the relevant details like the date of manufacture and date of expiry. The competent authority must ensure by frequent checking that the products are not sold after the date of expiry, especially articles that are categorized as food and medicine. The government must take effective steps to prohibit the use of unfair weighs and measures such as the use of round


beam scale, spring balance and stones. The scales and measures that are prohibited by the government should be published to enable the public to be aware of such prohibited scale and measures.

steps must be taken to identify the unscrupulous traders who are misbranding the products of well-known brands. The established brands should be conscious of the misbranding of their products to safeguard the interest of consumers. The existing laws to protect consumers should be effectively implemented. Any loophole found in the legislations should be plugged. The Department of Civil supplies and Consumer Affairs in every collectorate at the district level must take necessary steps to regulate the supply of food items through licensed shops only. Every manufacturer of food items must be asked to produce items only with permitted colours and contents. Also, the government needs to take initiative to establish consumer forums at Taluk level in order to make easy access of justice for needy people.

The Consumer Councils must take steps to educate people on their consumer rights and the malpractices in business. The address and phone numbers of consumer forums need to be displayed at sale outlets and prominent public places in order to ensure the awareness and enforce consumer vigilance. The details of consumer forum should be printed on backside of every bill and displayed in all trading concerns. Every business enterprise should accept consumer protection as their “social Responsibility.” Consumer satisfaction is our goal – should not only be a slogan for businessmen, but it must be put in practice. The businessmen must welcome the complaints of the consumers and also take steps to redress the complaints.

The media can play a vital role to promote general awareness of the rights of the consumers by providing information to them. The campaign through the media should be enhanced to reach the people at all levels. The general public, as consumers, should be made to realize their rights and exercise them in the case of any act of cheating or exploitation. simultaneously attempts should be made by the state and Central Governments with the aid of local welfare associations and bodies to increase people’s active participation in consumer movement in India.

ConclusionThe findings revealed that students are aware of consumer


rights. However, they do not exercise their rights. The reasons are not difficult to understand. They are apathetic and rather indifferent. When it is a personal problem, they act. However, they do not when it concerns the society at large. As most of the students interviewed are under the control of the parents or dependent on the elders, their potentials have not come out.

They will be able to act as a true consumer when they come out of the ‘shell” and become independent. Therefore, efforts should be taken to make the youngsters as proactive consumers. They have to be actively involved in the activities of consumer clubs and voluntary consumer organizations in their respective areas. Above all, consumer education should be part of curriculum for students at college level. This will promote their involvement and participation in consumer cause.

References1. Anitha, H.s. (1999). Marketing in 21stCentury, Mangal Deep Publications,

Jaipur, p. 103

2. Basrur K. (1974). The Consumer in India, Leslie Programme of Training for Democracy, Bombay, p.15.

3. Bhagwati, P.N. (1976). The Consumer in India. Third Conference on Consumer Protection in India, surat, p.2.

4. Gyan Pandit, Fostering Consumer Activism, Consumers Forum (Regd), New Delhi, p. 3

5. Padma, G. (1990). Media and Consumer Protection - A Manual, CERC, Ahmedabad, p. 62

6. Philip Kotter, Gari Armstrong (1996). Principles of Marketing, Prentice Hall of India Ltd., New Delhi.

7. . . . . (1999). ‘The Consumer’, The Hindu, p.32.


6ACCOuNTABILITy CONSCIOuSNeSS Of CONSuMeR PROTeCTION LegAL SySTeM IN KeRALA

P. gopinadhan Pillai

Kerala, a small state in south India has achieved exemplary development levels. Keralites, in general, are literate, remarkably healthy, enjoy fairly good standard of living; thanks to easy availability and accessibility of facilities and amenities. The state depends mainly on incomes generated through plantation crops, coconuts and tapioca, tourism and remittances from its people working abroad. The state’s GDP is at $ 48.630 billion. Keralites form only 2.76 percent of India’s population – 33.3 million (2011 Census). But the state consumes about 15 percent of the retail goods produced in India. That is the power of the Kerala retail market, one that totals up to Rs. 36,000 crore. In the Economic Review of the state Planning Board, it is estimated that about 22 percent of the state’s Gross Domestic Product comes from the commercial sector, a major chunk of which is from the retail industry. Not surprisingly, Kerala tops in per capita consumption. A National sample survey shows that Kerala overtook Punjab in this respect in 1999 and it has stayed there since.

It is estimated that the textile retail in Kerala is around Rs. 5,000 crore per year, of which roughly 40 percent of sale takes place during Onam festival. However, the fastest growing retail sector, with an average 25 percent increase annually, is gold. It is estimated that close to 800 tonnes of gold is annually sold in India and about 15 percent of this takes place in Kerala. There are about 8000 registered gold shops dotting the length and breadth of the state and


they sell more than Rs. 15,000 crore worth of gold every year. There are other figures that make Kerala the favourite of

breweries in India. The per capita liquor consumption of the state is 8.3 litres which is equal to that of the United states and higher than that of Poland (8.1 litres) and Italy (8 litres). According to a report in the Hindu, Kerala tops the list of states with the highest rate of per capita consumption of alcohol. In the first financial quarter of 2010, Keralites spent Rs. 2019.38 crore on liquor. The amount spent on spurious liquor is unknown.

Another indicator of Keralite’s conspicuous consumption is the highest individual ownership of vehicles in India after Delhi. About 4 lakh vehicles including more than 100 Mercedes Benz cars are sold here every year. Even where fast moving consumer goods are concerned, the figures are staggering. About 15 percent of Hindustan Lever’s sale is in Kerala. Because of such success, many products are actually test-marketed in the state before distribution elsewhere in the country. (stark World: Kerala, 2005). The oft repeated theory is: “if it is a success in Kerala, it will be so all over India”. (stark World: Kerala, 2005)

Since Kerala is a confirmed consumer state, goods are brought here from other states in India and from foreign countries. Hence, the people of the state are vulnerable to exploitation: adulteration of food, spurious drugs, dubious hire-purchase plans, high prices, poor quality, deficient after-sale services, deceptive advertisements, hazardous products, black marketing and many more. The adage, “Consumer is sovereign” and “Customer is the king” are nothing more than myths in the present scenario of market-driven economy.

Consumerism in KeralaInspite of these developments, consumerism is still in its infancy

in our country. Consumer awareness of their rights is low due to the apathy and lack of education among the masses. The consumers are unaware of their rights – to be informed about product quality, price, protection against unsafe products, access to variety of goods at competitive prices etc. The consumer is the focal point of any business. But these consumers are under constant threat of being exploited by the manufacturer, middlemen and the seller. There are various forms of exploitation and some of the most common ones are:• Not getting money’s worth of goods or services


• Poor quality – less than the standard quality prescribed• Underweight• Lack of durability• Outdated products (eg: medicines, food products)• Products in disrepair• Duplicate products• Adulteration• If a complaint is raised, the trader/company does not replace it

saying, “Goods once sold will not be taken back".

Accountability-consciousness of the Business CommunityBulk quantity of goods and services are produced for the

use of customers. While the purpose of any business is to serve society, activities that are harmful to any part of society cannot be tolerated. Therefore, the business community should not ignore their social responsibility which “means intelligent and objective concern for the welfare of society that restrains individual and corporate behaviour from ultimately destructive activities….” (Kenneth Andrews). In the words of Milton Friedman, “there is one and only social responsibility of business. To use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engage in open and free competition, without deception and fraud.” This means, they must charge reasonable price that is consistent with quality and quantity, conducting the sale through courteous and friendly customer service. After the sale is completed, channels must be laid for enabling customer feedback and effective complaint redressal mechanism.

Business should give importance to ethics while serving the customers. Ethics implies a set of generally accepted and practiced standards of personal conduct. It is something more than the requirement of law. It is self-imposed and calls for voluntary actions which emphasize fairness with the stakeholders – customers, employees, shareholders, government, competitors, suppliers, creditors and society at large and finally to themselves as owners. Unfair trade practices ignore all forms of ethics, social and human values and therefore, must be avoided.


Most often, among the business community, personal interests take precedence over business interests, leading to strong focus on profit-making rather than the welfare of the consumers and the society at large. This has its implications on the economy of the nation. Even when flaws in the business system are detected, the scattered and unorganized consumers are generally incapable of taking any fruitful action against the well-organized and powerful business community.

In this context, consumer protection has assumed greater importance and relevance. Consumers’ satisfaction will benefit business. Hence, consumer protection measures should not be considered as consumers’ “war against business”. It is a collective-consciousness on the part of consumers, business, government and the civil society to enhance consumers’ satisfaction and social welfare, which will, in turn, benefit all of them and finally make society a better place to live in.

Role of the government

Obviously, the government has a primary responsibility to protect consumers’ interests and rights through appropriate policy measures, legal structure and administrative framework. Accordingly, the Government of India brought out the Consumer Protection Act in 1986 which is a milestone in the history of socio-economic legislation in India. It aims at providing an informal, inexpensive and expeditious justice to the consumers who are aggrieved by defects in goods or deficiency in services.

As per the provisions of the Act, the state of Kerala has established Consumer Forums in all the 14 districts and a state level Commission in Trivandrum. It is a well-established set-up and is active. Among the key personnel active in the legal process namely, the judicial officers, advocates, traders, manufacturers, service providers and the complainant /customers, it is the President and the Members of the Commission/Forums (C/F) who analyse the facts and figures presented by both the parties and their counsels, lead the judicial process and finally bring out the verdict. And, as we know, the verdict is expected to reveal the sense of justice and the accountability-consciousness of the judicial officer.


Objectives and Design of the StudyIn any project management, especially by governmental

organizations, responsibilities of the officers concerned are more or less clearly defined and provided with adequate resources – human, material, financial and infrastructural facilities so that their performance would be satisfactory. But there won’t be any reference to their accountability to the stakeholders or to the government or to the funding agency. Here lies the lacuna. Responsibility and authority minus accountability is a sure step towards mismanagement or non-management and failures. This is true of a large number of the schemes currently in operation in our country.

The Overall ObjectiveOn the basis of this premise, the overall objective of this study is

to assess the accountability-consciousness among the key personnel involved in the present consumer protection system in Kerala, envisaged through the Consumer Protection Act, 1986.

The key personnel include:1. President and Members at the state level, 2. Presidents and Members of the District Forums, 3. Advocates who practice at these institutions,4. Consumer Complainants (CC), and 5. Community of manufacturers, traders and service providers

(MTsP).

Specific Objectives1. To understand the dynamics of the functioning of the state

Commission and the District Forums in respect of their declared vision and mission;

2. To critically examine the roles played by advocates in the consumer protection set-up in Kerala and their accountability-consciousness;

3. To know the view-points of consumer complainants and their opposite parties regarding the services rendered by the Commission and the Forums; and

4. To formulate an action-plan to strengthen further service-delivery capacity of these institutions.


Sampling DesignThe overall design was stratified simple random sampling.

Respondents were selected according to their work experience with state Commission/Consumer Dispute Redressal Forums and their availability and accessibility. Those who were reluctant to open up and communicate freely with investigators and those who were too much preoccupied with their official work were left out.

fig. 1: District forum: Structure

District Forum

(President+2 Members)

Advocates Customer /complainant Traders/service providers

(8-10) (5-7) (5-7)

Selection of Samples

The universe (or population) selected for the study is heterogeneous: there are four categories of samples and hence, stratification is based on each category as shown below:

The study team could collect data through interactive sessions and questionnaires from 14 Members and 7 Presiding Officers of the 7/14 District Forums of Trivandrum, Kollam, Kottayam, Ernakulam, Palakkad, Thrissur and Kozhikkode (Census method) and 4 more from other districts (25), selected purposively on account of their subject knowledge and work experience in judiciary.

150 questionnaires were distributed among the advocates who regularly practice at the 7 District Forums and the state Commission in Trivandrum. Inspite of several visits, our study team could collect only 68 filled-up questionnaires. Out of this 8 were found to be incomplete and defective. Hence, the remaining 60 were accepted for analysis. It was simple, random sampling based on their availability and willingness to fill up the questionnaires.

Thirty respondents from among the complainants at the 7 District Forums were randomly selected on the basis of their experiences in the conduct of the cases at the Forums and their willingness to respond to the questions. An Interview Guide was


used in order to make the data collection process descriptive and interactive. More numbers were not required because the analysis of their responses is purely qualitative.

The number of traders and service providers (who were involved in disputes as “opposite parties” at the Forums) contacted was 30 by simple random sampling, depending upon their willingness to co-operate. Here, again the sessions were interactive, based on an Interview Guide.

The Unit of study is the grievance or a complaint of a consumer registered as a legally valid case at a District Forum or at the state Commission. 29 cases of different types of complaints/unfair practices were selected purposively. Analysis of the Orders (verdicts) can help the investigators to assess the level of the accountability-consciousness of the Presiding Officers and the Members.

Tools of Data Collection1. Questionnaire for the Presidents and Members of the state

Commission and the District Forums-Content validation of the questionnaire was done by a group of Judicial Officers and senior advocates.

2. Questionnaire for the advocates who practice at the state Commission and the District Forums-Content validation of the questionnaire was done by a group of Judicial Officers and senior advocates.

3. Interview Guide for interactive sessions with the complainant consumers.

4. Interview Guide for interactive sessions with the Traders/service providers who stood as accused.

Theoretical Background of the Study “The nation expects from the superior judicial officers, the wisdom

of solomon, the courage of David, the strength of samson, the patience of Job, the leadership of Moses, the kindness of Good samaritan, the strategic training of Alexander, the diplomacy of Lincoln and the tolerance of the Carpenter of Nazareth and the intimate knowledge of every branch of natural, biological and social sciences”…

-justice A. Pasayat


The three major concepts of administration are: Responsibility in respect of a task, Authority - that is, functional autonomy (independence) and the legal power to get things done through others and Accountability- an obligation and commitment to the primary stakeholders. All these are governed by the co-equal principle i.e. the quantum of authority and accountability should be sufficient and proportionate to the responsibility entrusted. As far as judiciary is concerned, the Constitution has guaranteed this co-equal status.

The judicial officer is the kingpin of the operation of the system of delivering justice. The success or failure of the system primarily depends upon him. Dispensation of justice is an onerous task and it is often distorted by a host of personal, familial, socio-economic, administrative and political factors. still, justice for all has to be ensured, more so in a pluralistic, democratic society. According to Justice Michael Kirby of the High Court of Australia, “In a pluralistic society, judges are the essential equalizers. They serve neither majority nor minority. Their duty is to the law and to justice. They do not bend the knee to governments, to particular religions, to the military, to money, to tabloid media or the screaming mob. In upholding law and justice, judges have a vital function in a pluralist society to make sure that diversity is respected and the rights of all protected.”

judicial Independence – Views emerging from Supreme Court judgments

The supreme Court has constantly reminded us the importance of the concept of independence of judiciary. Justice V.R. Krishna Iyer characterized this concept as a “constitutional religion”. Justice Chandrachud said that the independence of judiciary is the “cardinal feature” and observed that the “judiciary” which is to act as a bastion of the rights and freedom of the people is given certain constitutional guarantees to safeguard the independence of judiciary.”(UOI v. H. seth 1978 1 sCR 423). Justice Bhagwati in the same judgment observed that the independence of judiciary is a fighting faith of our Constitution (Ibid at 433).

In s.P. Gupta v UOI, Justice Bhagwati observed:“The concept of independence of judiciary is a noble concept

which inspires the constitutional scheme and constitutes the foundation on which rests the edifice of our democratic polity. If


there is one principle which runs through the entire fabric of the Constitution, it is the principle of the Rule of Law and under the Constitution, it is the judiciary which is entrusted with the task of keeping every organ of the state within the limits of the law and thereby, making the Rule of Law meaningful and effective. But it is necessary to remind ourselves that the concept of independence of the judiciary is not limited only to independence from executive pressure or influence and that it is a much wider concept which takes within its sweep, independence from many other pressures and prejudices.”

Furthermore, he has observed that, “Judges should be of stern stuff and tough fibre, unbending before power, economic or political, and they must uphold the core principle of the Rule of Law which says, “Be you be ever so high, the law is above you”. This is the principle of independence of the judiciary, which is vital for the establishment of real participatory democracy, maintenance of the Rule of Law as a dynamic concept and delivery of social justice to the vulnerable sections of the community. It is this principle of independence of the judiciary which we must keep in mind while interpreting the relevant provisions of the Constitution". (AIR 1982 sC 149,198)

Justice Fazil Ali in his judgment in Gupta’s case held that the independence of judiciary is doubtless a basic structure of the Constitution, but the said concept of independence has to be confined within the four corners of the Constitution and cannot go beyond the Constitution (Ibid at 199).

The Question of AccountabilityThe concept, “Accountable” is defined in the Oxford Dictionary

as “responsible for your own decisions or actions and expected to explain them when you are asked”. In everyday terms, accountability is simply the ability to hold an individual or institution responsible for its actions. Accountability must be comprehensive to include not only the politicians, but also bureaucrats, judges and everyone invested with power. Power and position in a democracy is depicted as attendant with responsibility and every incumbent of a public office must remain constantly accountable to the people who are the repository of political sovereignty. Accountability means the state of being responsible or answerable (Blacks Law Dictionary 18


(5th ed., 1979). It also means to be subjected to having report, (Websters Encyclopedic Unabridged Dictionary of the English language, Grammercy Publication, 1994), explain or justify its actions (The Law Lexican, 18, Wadhwa and Company, 1987).

judicial AccountabilityAccording to Justice A. Pasayat, “I always feel (that) the

accountability concept has three stages. First, each member of the judiciary has the accountability to himself. He has to do a soul searching and self-introspection. He has to convince himself that what he has done is morally and more importantly, legally correct, and his decision is not dictated by any extraneous consideration”. As Lord Donaldson, the former English Master of Rolls has said, “Judges are without constituency and answerable to no one except to their conscience and the law”. The second stage of accountability is the accountability of the individual to the institution. Here again, self-introspection and soul–searching plays a vital role. The individual has to ensure that what he has done would not bring disrespect or disrepute to the institution. On the contrary, even if it may not increase the respectability and credibility of the institution, it shall not diminish it. The institution cannot be segregated from the individuals. The credibility or lack of it would depend to a complete measure on the individuals. The third stage is the most important one. It is the accountability of the institution to the larger society. Indeed, judging is no longer an easy task.

To fulfil the various obligations of the judiciary, it is enabled to derive power from various sources. Many of the powers are derived from the basic document i.e. the Constitution itself, as much of the obligations are constitutional in nature. some of the powers are assumed by the judiciary in order to realize multifarious social obligations and such usurpation is by and large has been acknowledged and accepted by society since the other limbs of the state especially the Executive have miserably failed to discharge their social obligations. Whatever may be the reason, whatever may be the source of power, the inescapable truth is that the judiciary, at present, enjoys wider and varied powers. Apart from its usual judicial power, every now and then, the judiciary exercises executive as well as legislative powers. such powers are given to the judiciary not for personal aggrandizement of the judges but to sub-serve the constitutional purpose and to uphold the majesty of democracy.


Obviously, in this context, the need for judicial accountability is felt more now than ever before, as the judiciary enjoys much power now than ever before.

The term “judicial accountability” is used to denote the manner in which judiciary justifies its decision making and it is not synonymous of control of power. Accountability of a judge is primary as he is the custodian of justice and has to justify his actions. He cannot escape by saying that he is a mere interpreter of legislation as the Judge himself sometimes legislates. Primary accountability has to be discharged either through structural or logical accountability.

According to Benjamin N. Cardoza, “It is true that the Judges use methods of reasoning which are distinctive and provide a fuller explanation for what they do than the decision-makers. But their decisions are invariably influenced by factors like inherited instincts, traditional beliefs, acquired convictions and resultant outlook of life which do not emanate from the process of reasoning itself”.

The concept of independence of judiciary does not mean absolute rigid separation and the concept of accountability does not mean judicial subordination. Accountability implies a controlled system. Accountability and Independence must complement and supplement and sustain each other and are inseparable. Judicial Accountability and Independence limit harmonize and legitimize each other, balancing power with responsibility. In the era of transparency and accountability, the conceptual argument that judiciary should not be accountable because of its independence cannot stand. Constitutional democracy implies that the ultimate interpreter of the Constitution is not an autonomous one but an interactive one with understanding of the people, their representatives and Judges together. Judicial power and judicial pronouncement should be subjected to active but respectful scrutiny for their legitimacy as actions of political branch are subjected to. To have better understanding of accountability of judiciary, it is necessary to consider the international practices relating to judicial Independence and Accountability.

The scope of the Consumer Protection Act is widening in the society which is pro to globalization, industrialization and privatization. so the Legislature has taken all possible steps by


making timely amendments to the Act in accordance with the needs of the time. In fact, all the amendments made to the Consumer Protection Act by the 2002 Amendments aim at furthering the efficiency of the Act and doing away with procedural delays which render the consumers disillusioned and dissatisfied. These Amendments have been fruitful in providing protection to the consumers in the real sense of the term and serves the purpose of the Act. It is hoped that further amendments would aim at even more efficiency and render the position of the consumers much stronger in this era of globalization and privatization where the sudden unchecked advent of Multi-National Companies has to be balanced with the protection of the rights of the consumers by the legislature and the judiciary.

Table 1: Details of Cases Pending in the Kerala State Commission/District fora for the Month of April 2012

Office/District Cases Pending(at the

beginning of the

month)

Cases filed

(during the

month)

Cases disposed

of(during

the month)

No. of working

days (during

the month)

Arrears(at the

end of the

month)

CDRCOP 198 04 06 21 196

Appeal 764 75 85 754Total 962 79 91 950

CDRf

Trivandrum 867 36 40 21 863Kollam 570 41 33 22 578Pathanamthitta 149 19 20 “ 148Alappuzha 185 30 27 “ 188Kottayam 445 32 28 “ 449Idukki 78 35 25 “ 88Ernakulam 735 49 67 “ 717Thrissur 2642 39 80 “ 2601Palakkad 135 25 21 “ 139Malappuram 227 22 13 “ 236Kozhikod 589 40 35 “ 594Wayanad 123 27 24 “ 126Kannur 345 39 31 “ 353Kasargod 278 35 25 “ 288

Total 7368 469 469 7368grand Total 8330 548 560 8318

source: secretary & Registrar, Kerala CDRC


.Tabl

e 2:

Con

solid

ated

Rep

ort o

n D

ispo

sal o

f Dis

tric

t Con

sum

er D

ispu

tes R

edre

ssal

for

a fo

r th

e M

onth

of M

ay 2

012

Sl. No.

District forum

filed since inception

till the end of previous

monthDisposed of since

inception till the end of previous

monthPending at

the beginning of the month

(3-4)

filed during the month

Disposed during the

monthfiled since inception

(3+6)Disposed of since

inception (4+7)

Balance pending at

the end of the month(8-9)

percentage of disposals

(8&9)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

1Tr

ivan

drum

1308

512

222

863

3139

1311

612

261

855

932

Kol

lam

1486

914

291

578

3243

1490

114

334

567

963

Path

anam

thitt

a70

8269

3414

814

2970

9669

6313

398

4A

lapp

uzha

1038

810

200

188

6729

1045

510

229

226

985

Kot

taya

m16

968

1651

944

930

2616

998

1654

545

397

6Id

ukki

7851

7763

8818

2178

6977

8485

997

Erna

kula

m23

447

2273

071

764

6523

511

2279

571

697

8Th

rissu

r23

562

2096

126

0140

8123

602

2104

225

6089

9Pa

lakk

ad93

2391

8413

915

1993

3892

0313

599

10M

alap

pura

m91

7489

3823

624

1791

9889

5524

397

11K

ozhi

kkod

1686

316

269

594

4830

1691

116

299

612

9612

Way

anad

5924

5798

126

1717

5941

5815

126

9813

Kan

nur

1151

511

162

353

2333

1153

811

195

343

9714

Kas

argo

d65

1062

2228

858

5365

6862

7529

396

Tota

l16

9193

1691

9373

6848

150

217

7042

1696

9573

4796

sour

ce:

Ker

ala

sCD

RC


Results and DiscussionThe major results (findings) of analysis are listed and their

implications for the functioning of the consumer protection institutions in the state are examined.

Accountability-consciousness of President and Membersstatistical assessment of Accountability-consciousness of

President and Members is found to be high in the case of 9 and average in the case of 16/25. None in the “low” level category. There is clarity about their mission namely, to protect the interests of genuine complainants. An analysis of 29 Orders (judgments) of Consumer Fora bear testimony to this observation. It is true that the President and Members enjoy “independence” – freedom from external pressures. And transparency enhances accountability.

Accountability-consciousness of AdvocatesIn the case of advocates, the Accountability-consciousness

score is low for 34 respondents and average for the rest, out of 60. In what way can we explain this finding? Perhaps Advocate Shri CK. Mohandas of Kodungallur has an explanation: “Training is imperative but lawyers are a special category of professionals, unable to render service, based on high ideals.” If one accepts this premise, practicing law is a profession sans ethical values and considerations. One argument put forward by Justice shri Udayabhanu is that there is an element of uncertainty and insecurity in respect of incomes and prosperity in a highly competitive court setting. In other words, one is compelled to take cases irrespective of their merits or demerits. Advocate shri Boris Paul more or less holds the same view when he said, “In general, it is the tendency of advocates to accept clients who approach them first and pays what they demand. Generally, they do not bother much about the merit or demerit – justice or injustice of the case in question. Furthermore, they feel accountable to the client and not to anything else. Obviously, one cannot blame them for their professional integrity and commitment.” We cannot compel them to be faithful and accountable to the aggrieved consumer, in preference to the “accused” trader or service provider especially when the latter becomes a client.

Perhaps, this is the basic difference between the two roles of the profession of law – one is to be faithful to one’s client irrespective


of ethics or not and the other is expected to be impartial, justice-oriented and conscious of his accountability to the genuine complainants. some of the advocates seem to be not accountable even to their clients which are evident from frequent requests for adjournment of cases without any valid reasons.

Recruitment of MembersRegarding the present practice of recruitment of the Members

of the Forums, there are complaints. CP Act section 10 (b) stipulates that Members shall be “persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration.” Yet, the political executives of the government invariably select them on the basis of political considerations. As a result, persons who are misfit for the state Commission or the District Forums get appointments. They lack knowledge and experience in judicial work, relevant laws and judgments related to consumer protection and the complex dynamics of the judicial process so much so that some of them are found to be passive witnesses of the proceedings of the Forums without any knowledge-based contributions to the framing of the Orders. Of course, there are exceptions.

Delay Delay in giving the verdict is one of the complaints frequently

mentioned by the consumers. It causes frequent travels, payments to the advocate, loss of leave days (if the complainant is employed) and increase in the cost of litigation. Partly, the advocates are responsible; they request for frequent adjournments and the Presiding Officers often take a lenient attitude. Furthermore, some of the Members lack competency in framing appropriate verdicts. Consequently, the President has to spend time in guiding them.

Lack of PublicityConsumer Forum is presently playing a very subdued, minimal

role in promoting consumer education in the state. In fact, the common man including the traders and service providers at the lower level, do not have any inkling of the good work done by Consumer Forums partly due to lack of adequate publicity. A little bit of image-building is necessary. At present, Orders of Consumer


Forums are available in the internet but, not easily accessible to the common man.

Power vested in Consumer forumsA few Presidents and senior advocates feel that the legal

power, presently vested in district forums is not enough to carry out its responsibilities efficiently and effectively. They experience difficulty in getting their verdict accepted by some recalcitrant opposite parties and consequently, the consumers are compelled to file execution petition and are kept waiting. The President and Members are busy with day-to-day “hearings” and writing Orders. Among the ministerial staff, no one is specifically designated as a functionary responsible for getting the verdicts executed promptly. In fact, this is one of the administrative defects of the consumer protection set-up in the state and not due to any lacuna in the CP Act. The Act vests adequate legal powers for handling effectively the “disobedient” opposite parties.

Burden of TransfersOne of the functional difficulties experienced by consumer

forum is the inappropriateness of the ministerial staff. As indicated earlier, they are on transfer from the Department of Civil supplies of the state Government and novices in respect of judicial matters and its style of functioning. They remain untrained throughout their postings in consumer forum, until they return to the parent department. This is another congenital defect of consumer forum administration. The present man-power in terms of numbers and structure designed for Consumer Forum was done around 1990. But over the years, the number of cases seeking redressal has increased manifold resulting in huge backlog (8318 cases pending disposal at the end of April 2012)

Meanwhile, it is found, as on date (May 2012) that in several Forums at the post of Members remained vacant – (Trivandrum, Pathanamthitta, Alappuzha and Wayanad).

Deterrent effect The consumer protection set-up in Kerala has been activated

since 1990 and has a good track record of performance during the past twenty years, receiving and handling 176,561 complaints, which is really impressive. In this context, one pertinent question


is whether the verdicts of most of these cases have any deterrent effect on the unfair business practices among manufacturers and service providers. Nobody has any dependable answer except mere assumptions. In fact, this knowledge-gap warrants a detailed investigation.

Role of AdvocatesIt is absolutely necessary to keep the Commission and the

Forums open to the complainants to argue their cases by themselves. But, the importance of the role played by advocates cannot be viewed any less. some complainants,while presenting their cases have a tendency to cast unnecessary doubts on the integrity of the Forums. This creates much difficulty for the President in explaining to them everything in detail. It is very time-consuming. still, some of the complainants do not get convinced. On the other hand, if lawyers are appearing, this aspect is very smooth and without any hassles. Further, in complicated issues especially in medical negligence cases, where the Hon’ble supreme Court has opined to have oral evidence, (for) examination and cross-examination, the assistance of lawyers is absolutely necessary (smt. Cs. sulekha Beevi, President of CDRF Malappuram and sri. siva Prasad, President of CDRF Trivandrum). some consumers who conduct cross-examination by themselves ask very irrelevant and irritating questions and it becomes a strenuous task for the Presiding Officer to manage the time and the proceedings. Lawyers can and do sometimes make settlement of cases very easy. When parties appear directly, and in conflict with each other, the chances of settlement take several rounds of talks. In general, the complainants expect inflated compensation. In sum, it is concluded that the advocates are an integral part of the dispute redressal system and their roles barring a few, is key to ensure the equity and accountability of the verdicts.

As per the provisions of CP Act, verdicts have to be arrived at within 90 days from the date of registration of the complaints (non-technical cases) and within 150 days where lab testing has to be sought. The opposite party has to be given 30-days’ time for responding to the complaint notice sent to it. The consumer forum has to give additional time for adducing evidences, if required by the parties. Also, in several cases, examination and cross-examination


exercises have to be undertaken for generating the truth about the issues involved in the dispute. It is obvious that all these activities are time-consuming and one has to concede to the contention that the President or the Members cannot be blamed for any delay in framing the verdict.

However, there is a tendency among a section of the advocates to seek frequent adjournments of the hearings and some of the Presidents are lenient towards such requests. Furthermore, the ministerial staff is also partly responsible in delays caused in their communication with the advocates and parties to the dispute. The fact of the matter is, there is delay.

Amicus-curiaeThis is only an aid (legal) provided to the complainant who does

not know the complex legal aspects of his/her complaint and hence, not in a position to effectively defend the case. In other words, he/she needs the assistance of a lawyer but financially not in a position to engage one. In such deserving cases, this facility is provided by the Commission. A legal aid fund is set-up specifically for this purpose from which the Commission provides the services of an advocate. It is found that this type of aid is provided only in a few cases.

CDRf and CDRC: whether Informal or formalThis issue was objectively examined by the study team and the

view-points of Presidents and Members were solicited. As per CP Act, consumer forum and the Commissions

including the state and the National are different from a civil court. But, by day-to-day decisions of the National Commission and the Hon’ble supreme Court, consumer forums and Commissions are nothing but “courts”. It is necessary to give natural justice to both parties. In order to ensure this, the consumer forum is “compelled” to adopt more or less the procedures of the civil courts. Moreover, by the amendment of the CP Act in 2002, consumer forum have lost the jurisdiction to execute its own orders and judgments. The only available remedy at present is section 25 and section 27 of the Act. As per Section 25, if the complainant can produce certificates from the Village Officer and the Tahasildar concerned, giving the details of the properties of the opposite party, then consumer forum can pass orders for revenue recovery. The District Collector can be


requested to initiate procedures in this respect.As per section 27, consumer forum has the power of the Judicial

First class Magistrate and are empowered to convict and impose fine (upto 3 years imprisonment and a fine upto Rs. 10,000/-) for the “disobedience” of the Order. All these unequivocally confirm that Consumer Forums have intentionally or otherwise acquired the powers and the rigorousness and formality of a typical Civil Court. (Advocate shri M K Abdulla sona, Acting President of Kerala state Commission as on July 2012).

However, it is found that consumer forums have consciously retained the informality and the consumer- friendliness expected of them by CP Act. The study team testifies the truth of this statement through direct observations of the proceedings of Consumer Forums several times, including the gestures, behaviour, attitude and language of Presidents, Members, Advocates and the ministerial staff. In other words, the disputants are deliberately put at ease and given “a feeling of importance.”

In other words, structurally and functionally consumer forum is conceived as quasi-judicial. Going through the preamble and the various provisions of CP Act, one gets an impression that the Act is heavily biased in favour of the genuine consumer, and rightly so. sections 13, 24, 25, and 27 make consumer forum judicial with adequate legal power and formalities while key terms such as Commission, Forum, President, Members, Orders, complainant, opposite party and the right to present ones’ grievance directly before the Forum without the assistance of an advocate etc. make it informal, consumer-friendly and cost-effective. The onerous responsibility of optimally exploiting the potentiality of the Act for the protection of genuine consumers against “business greed” vests with the key players of the redressal machinery, especially the President and the Members who have to arrive at the judgment. The state government should provide strong support, ensuring its judicial independence, empowering the judicial team with training and education and enriching its infrastructure facilities.

Conclusions and Recommendations The “chemistry” of the judicial process in a court of law/

Forum is obvious. In one sense, it is a dispute between truth and false. In another sense, in the setting of the Consumer Forums, it


is a dispute between two un-equals, where the manufacturers and service providers are the powerful ones with money power, asset power, man power and who could engage reputed lawyers to defend their interests and reputation. Obviously, the individual consumer-complainants are comparatively weak and “alone” and therefore, need the special care and attention of the President and Members to get justice. The concept “protection” included in the title of CP Act is the basic objective and responsibility of the key personnel in charge of Commissions and Forums.

Hence, the study focuses on the actual roles played by the two key personnel in the protection system namely, the President and Members and the advocates. An attempt is made to understand how these two perform in respect of the complainant. The inquiry is to find out to what extent they exercise their consciousness of social justice, equity and accountability in an environment that has given them functional freedom, power and resources.

The level of accountability found among the “judges” (President and Members) is fairly satisfactory while the community of advocates need a little more consciousness of their accountability instead of being a partisan to their clients. A little bit of discretion between what is right and what is wrong, what is ethical and what is unethical is needed.

RecommendationsRecommendations are framed strictly on the basis of the data

collected, analysed and the results obtained. A few are concerned with amendments to the provisions of CP Act, some are in respect of the second stage of expansion of the present Dispute Redressal Institutions to the Taluk level and others in respect of de-linking the Consumer Forums from the Department of Civil supplies for more administrative freedom. And the rest are about better infrastructural facilities, induction training for the Members, refresher programs for the seniors, techniques for the speedy disposal of complaints etc.

1. Accountability – Consciousness of Presidents and Membersstatistical assessment of accountability consciousness of of

Presidents and Members is high in the case of 9 and average in the case of 16/25. Those with average score could be elevated through mentoring by senior Presiding Officers slowly and steadily. For this


to succeed, each Forum should have good team spirit with esprit de corps and work in tandem towards the common objective of providing a strong protective shield to the consumer against unfair practices whenever he buys something. The concepts of judicial independence, social justice and accountability should be included in the training modules. Ethics and values and humanitarianism should get emphasized in day-to-day work.

2. Accountability-consciousness of Advocates

Computation of the level of accountability-consciousness among the 60 advocates reveals that it is average among 26 (43.3 percent) and low among 34 (56.7 percent). None with a high level score. The judges have to be objective, impartial and not committed to any one party, but the advocate cannot be impartial; has to be committed to his clients irrespective of the merit or demerit of the case. This is the nature of their profession.

The ideal role expected of an advocate is to help the judicial officers in understanding the basic issues involved in a dispute and the appropriate legal framework. He must help the jury dispense justice. In fact, a lawyer is not an agent of a client; but he is an officer of the court, to assist the court to arrive at the discharge of justice.

3. Induction Training

New Member recruits should be given induction training on their roles and responsibilities and the basics of consumer protection and its philosophy. Otherwise, they would remain passive witnesses of the proceedings of the consumer forum and may not be able to contribute anything to the formulation of the Orders. In fact, they are expected to be on their own, handling cases independently and efficiently and frame Orders with the approval of the President. Obviously, this can substantially reduce delay in grievance redressal. Both the complainant and the opposite party will be happy.

since the tenure of service of the Members is 5 years, Training Need Assessment exercise (TNA) could be undertaken by an expert and on the basis of his recommendations, refresher programmes may be arranged. The responsibility could be entrusted to the Judicial Academy in the state. The assumption is that more competent the


personnel in the consumer forums are, more confidence the consumer will have on the quality and justice of the services rendered.

Delay in giving VerdictAs indicated earlier, there is delay in giving the verdict in

several cases. The suggestions to reduce delay are:• The workload of the President and the Members are on the

increase, thanks to the good image and goodwill of the Commission and Forums among the consumer public. This workload has to be considerably reduced. One suggestion is that the Members should equip themselves with adequate knowledge and skills in handling the judicial process and write legally correct judgments so that they can considerably lessen the burden of the Presidents.

• On the basis of a study by an expert team, Taluk Forums could be set up in several districts with competent Members and handle cases of lower money value, thereby reducing the flow of cases to the Forums.

• Frequent adjournments of hearings on flimsy excuses should not be allowed.

• streamline the functioning of the supporting staff so that delayed communications between the consumer forums and the advocates as well as the disputants can be avoided.

• The Presidents have to be strict with the subject experts on medical and technical matters, so that they submit their reports without causing undue delay.

• According to Presidents, Members and advocates, there is delay in communication between consumer forums and the opposite parties, advocates, subject experts and the clients due to normal postal delays. The suggestion is that this delay could be considerably reduced if the e-mail system is formally introduced. The initial communication difficulties with complainants without e-mail facilities could be easily overcome through their advocates. As per the provision in the CP Act, every complaint shall be

heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not


require analysis or testing of commodities and within five months if it requires analysis or testing of commodities. Provided that no adjournment shall ordinarily be granted by the District Forum unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the Forum. Provided further that the District Forum shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act.

4. execution of Verdict If the party to the dispute, especially the consumer-complainant

cannot get the Order executed without much delay and without any hassles, there is no point in filing complaints with the Commission or the Forum. The provisions for issuing arrest warrant under Cr.P.C. have to be boldly invoked in the case of “delinquent” opposite parties. The power vested by sections 25 and 27 should be optimally utilized with discretion.

The Information Officer at the Forums should help the complainant in preparing the affidavit at the initial stage itself with the correct name and address of the opposite party who has the legal obligation to settle the grievance of the customer. Merely describing the opposite party as Manager, Proprietor, Principal or Messrs X & Y Company Ltd. in the complaint petition will provide the loop-hole for the accused to escape the warrant.

Furthermore, the District Collector should ensure his full support to the police for getting the verdict accepted by the opposite party. From among the ministerial staff, a senior officer could be entrusted with the full responsibility of getting the Order executed at the earliest. In this context, the advocate concerned should also evince keen interest in the matter. Incidentally, it will be good, if the President/Member evinces interest in tracking the “fate” of his/her Order, which could be counted as his/her accountability to the complainant.

5. Adalat and Amicus CuriaeThese have to be strengthened in order to reduce the cost of

litigation, presently incurred by the complainants. The present policy seems to be that a day in a week is to be especially set apart for adalat. But, this is not being strictly adhered to in the Forums at present.


The state Commission occasionally provides amicus-curiae to deserving complainants but the number of such beneficiaries is very low. The suggestion is that these facilities have to be deliberately and optimally utilized both by the Commission and the District Forums so that burden of cost, duration of litigation and all the attendant difficulties could be reduced to the genuine but hapless complainants.

6. Consumer educationThe voluntary agencies and the school clubs focus, in general,

on the rights of the consumers and how they are being exploited by the manufacturers and service providers. They will also mention that the Forums are there to redress the grievances in case the consumer is cheated. But they spare the erring manufacturers and service providers who knowingly or unknowingly generate the grievances of their customers. The problem has to be tackled by addressing the manufacturers and service providers. They should be advised/compelled to adhere to the ethics and values of honest business. The message that “the seller should be accountable to the buyer” should be emphasized. In this context, it is suggested that the associations of manufacturers and traders such as the Chamber of Commerce, Vyapari Vyavasayi Ekopana samithis, All India Manufacturers' Association, the local Management Associations, and the schools of Business Management should educate their members on the objectives and provisions of the CP Act, 1986 and their accountability to the consumers who really sustain their business.

7. InfrastructureOne of the topics for discussion raised by the Presiding Officers,

Members, Advocates, ministerial staff and complainants is the deficiency felt in respect of the present infrastructural facilities in most of the Forums. The Hon’ble Minister in charge of Consumer Affairs in the state may appoint an expert committee to assess the deficiencies and initiate appropriate measures. This is absolutely necessary for the effective functioning of the institutions. Adequate budgetary provision to meet the costs is necessary.

8. No TransfersThis has been mentioned again and again by several key

personnel of consumer forums. Those who get transferred to


consumer forumsfrom the state Department of Civil supplies are found to be keen on returning to the parent department, the moment they perceive promotion chances or opportunities for transfer to their home town or village. Furthermore, they do not have any work experience in a court set-up and its style of functioning. Added to this, they are posted without any induction training on the subject of consumer protection and the modus operandi of consumer forums. In other words, they start working as novices and more or less continue to be so until they get transferred to the parent department. Hence, the general dissatisfaction about this transfer system among the Presidents, Members and Advocates. They insist on having their own staff, who are well-trained in the day-to-day functioning of consumer forums.

9. Monitoring and Review SystemThe need for such a live system in an organization, spread over

in all the fourteen districts in the state, need not be emphasized. Regular upward communication regarding the activities, achievements, shortfalls, functional difficulties etc is necessary in a systematic manner so that correctives could be worked out by the authorities concerned at the top and communicated downwards for remedial action.

It is true that occasionally, the Hon’ble Minister in charge of Consumer Affairs, convenes meetings of the key personnel for review. such meetings do provide opportunities for sharing of information and work experience. But, this is not enough. Functional review exercise should be an in-built system of administration.

Concluding RemarksAs per the analysis, feasible recommendations are given,

issue-wise. The authorities concerned can take note of them and initiate remedial action. The overall impression is that the consumer protection system symbolized by the state Commission and the District Forums are active and on the right track. Data indicate that they enjoy judicial independence– almost free from external pressures and interference in handling cases. They can write verdicts as per their perspectives and conscience. It functions as per the norms of a typical quasi-judicial institution – partly formal and partly informal. Hence, the consumer feels comfortable and relaxed. The consumer can freely articulate his grievance and view-points.


The “Bench” listens with attention and empathy.

Bibliography1. Consumer Protection Act, 19862. Kerala Rules under CP Act3. Verdicts (Orders) of decided cases selected from CDRC,

Trivandrum and the CDRFs in the state4. Progress reports prepared by CDRC 2011- 20125. Annual Report 2011-2012, Government of India, Ministry of

Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs Krishi Bhawan, New Delhi

6. Files available with CDRC7. Rajeev Dhavan (1965). Judges and Judicial Powers, Ist Edition.8. Krishna Iyer (1999). Justice at Cross Road, Deep and Deep

Publications.9. Bagavathy P.N. (1988). The Role of Judiciary in developing

societies, in Law and Justice, The Politics of Judiciary.10. Venkatraman N.s. (2001). The Role and Reach of Judiciary, The

Hindu.11. Alexander Bickel (1957). Legislative Process and Judicial

Process, Harvard Law Review.


7 CONSuMPTION, eDuCATION AND eXPLOITATION: A PROBe INTO The CONSuMeR eXCLuSION IN KeRALA

D. Rajasenan

IntroductionThe study analyses the different dimensions of consumer

exclusion in Kerala, a state known for high literacy rates and social sector development indices comparable to developed countries despite poor economic performance. It is true that globalization has provided people in emerging economies an opportunity to be part of the global consumption experience; products and brands which were previously unavailable in these economies have now become every day names in the households. Awareness about consumer rights and effective institutional mechanisms to redress consumer complaints are definite elements in empowering consumers, a situation that can tackle the problem of exploitation and consequent consumer exclusion. Looking at consumer exclusion as a process warrants the need for effective checks and balances in the system to prevent exclusion, and looking at consumer exclusion as a status, points at the need to empower consumers. The need to have effective institutional mechanisms and empowered consumers is of paramount importance in the case of Kerala characterized by very high per-capita consumption expenditure among Indian states, the presence of a large number of emigrants and a vibrant middle class. The study is organized into three sections. The first section analyses the perception of the consumers in relation to exclusion and also their difficulties in consumer fora (those who have filed cases). The second section elicits the perception of the consumers regarding their exploitation/exclusion in product categories. The


third section explores the nexus between education and consumer exploitation.

Overview of LiteratureOne can find a plethora of literature relating to consumer

exploitation and the perception of the consumers relating to their buying behaviour, but literature pertaining to consumer exclusion is very scant. Consumer plays a central role in the economic system as it generates effective demand and the dearth of it will lead to the collapse of the system. The relationship between the consumers and the producers are twofold; as one ignites the other and vice-versa. Without consumer, it is difficult to see the economic dynamics of multiplier and accelerator. Consumer satisfaction is perceived discrepancy between a priori expectations and realization in satisfaction after the act of consumption (Tse and Wilton 1988). It also explains the buyer cognitive state of being adequately rewarded for the sacrifices one has undergone [Howard and Sheth, (1969); Westbrook and Reilly (1983); swan and Caroll (1980); Oliver (1992)]. Because of the greedy nature of manufacturers to make wind fall profit, consumers are exploited not only in terms of money but in a wider ambit in terms of their health. But consumer exclusion happens as a result of insufficient resources and asymmetry in information. It can also happen when decision leading to operational decisions of the producer in terms of cost minimization behaviour, particularly connected to spatial dimensions [Hohnen, (2007); Hamilton (2009)].The institutional dimension of exclusion is discussed by Beall and Piron (2005) with which institutions can play an important role in making a society inclusive.

Methodology and DataThe study was for understanding the aspects about consumer

exclusion, it was decided that sample selection should also take into consideration per-capita income; which could be taken as a close proxy for consumption ability.

Figure 1 compares the per-capita income of the districts in Kerala with the state per-capita income and also the deviation in the per-capita income of each district from the state average. There seems to be a distinct geographical character associated with the per-capita income in the state. The central region is the richest where only one district (Idukki) has a per-capita income lower than the


state average. One of the districts in the central region, Ernakulam has the highest per-capita income in the state. The southern region follows the Central region where two of the four districts have per-capita income below the state average. Thiruvanathpuram which falls in the southern region has the second highest per-capita income in the state. All of the northern districts starting from Palakkad to Kasargod, have per-capita incomes lower than the state average. The region also houses Malappuram district which has the lowest per-capita income among all districts in the state.

Total sample size for understanding the general perception about consumer exclusion was 300. Regional representation as well as distribution of per-capita income was identified as the two parameters on which the sample was to be drawn. For this the study adopted a multi-stage stratified proportionate random sampling technique. In the first stage the districts were classified on the basis of geographical location into south, Central and North. In the second stage the districts within each region was stratified on the basis of per-capita income into those above the state average and those below state average (in the case of northern region this was not possible as all the districts were below state average). In order to ensure more weight to regions with higher per-capita income, which was fixed by the researchers as a proxy for consumption ability, the sample selection was decided to follow the proportion of 5:4:3 with the highest proportion coming from the region with the highest

fig. 1: Per-capita Income of Districts in Kerala in Comparison with State Average- a Regional Outlook

source: CssEIP (based on data from Economic Review, 2010)


per-capita income and so on. Out of the 300 samples collected, the 125 were from the central region, the richest in terms of per-capita income, 100 samples from the southern region and 75 from the northern region. To make sure that representation within each region would give more weight to those districts with per-capita income above state average, it was further decided that the sample size from district with per-capita income above the state average within each region should be three times that of the sample size from district with per-capita income below state average. In case of regions where more than one district was selected from among the group with per-capita income above state average this rule was applied to the district with highest per-capita income from among the selected districts.

Based on the above criteria Thiruvananthapuram (75) was selected randomly from the strata of districts above state per-capita income from the southern region and Alapuzha (25) was selected from among the districts with per-capita income below state average. In the case of central region Idukki (25) is the only district with per-capita income below state average and hence the district was automatically chosen. From among the three districts that have per-capita income above state average Ernakulam (75) and Thrissur (25) were selected. Based on the prefixed criteria of fixing the sample size of the district that gets selected with the highest per-capita income any region the sample size of Ernakulam was fixed as three times that of Idukki. All the districts in the northern region fell below the state per-capita income and hence it was decided to select one district randomly and accordingly Palakkad (75) was selected from the northern region.

The study tried to apply the same criteria for the second section (i.e. the perception of people who have filed cases in consumer forums). However, the effort to randomly select complainants from each district already chosen for the first phase of the study could not be implemented on account of practical difficulties (lack of contact information, meeting the required number of persons in each district who have filed cases was difficult, the complainants who were approached, on many occasions refused to answer the questions) and hence the attempt was to have 300 sample size with as much representation from the districts as possible. For analyzing the perception of people who had already filed cases in consumer forums


the samples obtained from the different districts were Alappuzha (51), Ernakulam (75), Thrissure (69), Idukki (39), Thiruvananthapuram (36) and Palakkad (30). In addition to this, 100 samples were collected from the Cochin University community from two factions; first from the educated group comprising teachers and administrative category and the second from the class-four employees.

Section I

Consumer Perception The section explores the perception of the general public about

consumer exclusion and also the perception of those who have filed cases in consumer forums about the difficulties they face in the forums. Inter-district comparisons have been made for all possible variables after taking into account the sample adequacy. Even though the existence of consumer forums and their roles are known to the masses, the actual discharging of cases and providing redressal to consumer complaints by the consumer forums are not popular among the people. This is despite the fact that Kerala is one among the three fastest consumer case disposing states in India. It may be pointed out that while the Union Ministry of Consumer Affairs and different agencies have been working hard in the direction of popularizing consumer rights, the benefits of which have translated into higher awareness about the role of consumer forums among the masses, the achievements of consumer forums in terms of redressing consumer complaints need to be focused for encouraging people to file more cases.

To check whether there are differences in the effectiveness of different sources of information in popularizing the role of consumer forums, a Chi-square test is used. The results of which are given in Table 1.

Table 1: Chi-Square Tests –Source of Information about Consumer forums and Level of Awareness about Redressal of

Complaints by Consumer forums

Value Df Asymp. sig. (2-sided)Pearson Chi-square 30.482a 10 .001Likelihood Ratio 31.370 10 .001N of Valid Cases 300


Table 1 offers statistical validity to the observation that some sources of information were more effective than others with informal sources topping the list. In order to check whether the differences across the sample districts in terms of familiarity about consumer forums offers the requisite redressal. This could be indicative of the broader phenomenon that the level of awareness about consumer forums, their functioning and the redressal offered by them are different in different parts of the state. What is even more interesting is the fact that in the districts that are generally considered economically forward like Thiruvananthapuram, the level of awareness among the general public about consumer forums offering redressal is low. While the socially and economically forward districts in Kerala find information about consumer forums and consumer rights from conventional formal channels like print and audio-visual media, these channels are not really efficient in communicating the effectiveness of consumer forums in alleviating the plight of aggrieved persons.

Correspondence analysis given in Figure 2 is used to depict the relation between the differences in the desire levels of the respondents to file a case in the consumer forum and their level of awareness about consumer forums. As the point ‘very familiar’ is far away from the rest of the points indicating that people who are very familiar with consumer forums have a rather different level of preference to file cases compared to people who are somewhat familiar and totally unaware. since the inertia statistic is small (13.4 percent) no attempt is made to unearth the underlying dimensions that explain the significant Chi-Square value.

Figure 2 gives an interesting dimension. It looks at whether the level of awareness about consumer forums has an inverse relation with the attitude of people to file cases in consumer forums. In the case of people who have never heard of consumer forums, close to 75 percent of them have felt the need to file a case in consumer court; albeit in varying degrees. But at the same time, in the case of people who are ‘somewhat familiar’ with consumer forums, more than 60 percent have never felt the need to file a consumer case. This is of special importance when 100 percent of the sample has responded that they have felt as cheated or exploited consumers at some point of time in their life. The information could be indicative that while even people who have never heard


of consumer forums are willing to file complaints for redressing grievance; insufficient knowledge about consumer forums, their procedures and outcomes could deter people from approaching forums for redressal.

When we look at the distribution of the level of awareness within each district as given in Table 2, among all the districts, Alappuzha (36 percent) and Ernakulam (30.7 percent) has the most number of people who are unaware about consumer rights. Palakkad (25.3 percent) and Idukki (20 percent) are the districts with the most number of people who have knowledge about all the consumer rights.

Figure 3 depicts the differences in the level of awareness about consumer rights across districts using a correspondence graph.

fig. 2 : Correspondence graph for Awareness Level about Consumer forums Offering Redressal and Strength

of the Need felt for filing Complaints

Source: Worked out from field survey


Tabl

e 2:

Aw

aren

ess L

evel

abo

ut C

onsu

mer

Rig

hts f

requ

ency

(%)

D

istri

butio

n of

Aw

aren

ess a

bout

Con

sum

er R

ight

s with

in D

istri

cts (

%)

Dis

trict

Una

war

epo

orbe

low

av

erag

eAv

erag

ego

odve

ry g

ood

Exce

llent

Tota

l

Ala

ppuz

ha

3628

812

44

810

0

Erna

kula

m

30.7

1614

.718

.75.

32.

712

100

Thris

sur

44

1624

324

1610

0

Iduk

ki

840

416

84

2010

0

Thiru

vana

ntha

pura

m

10

.732

14.7

26.7

10.7

05.

310

0

Pala

kkad

10

.728

1.3

10.7

21.3

2.7

25.3

100

Tota

l17

2510

18.3

132.

314

.310

0

sour

ce: s

urve

y da

ta


A correspondence graph is used to depict the pattern in which the districts differ in their need to file cases in consumer forums. Palakkad and Thrissur have found themselves closer to the point ‘always’ with Palakkad being closer than Thrissur.

While Thrissur leads the districts in terms of the proportion of respondents who have always felt the need to file complaints in consumer forums (44 percent), an equal proportion of respondents in Thrissur have also said that they have never felt the need to file complaints (44 percent). Figure 4 also places Ernakulam and Idukki districts together in terms of the proportion of the people who have never felt the need to file complaints in consumer forums. Thiruvananthapuram and Alappuzha are not like the other districts in terms of the need felt to file complaints in consumer forums. Among all the districts, Thiruvananthapuram has the highest proportion of respondents who have ‘often’ or ‘rarely’ felt the need to file complaints in consumer courts. In the case of Alappuzha, the responses are not strong enough to make the district’s affiliation clear in any of the categories.

A factor analysis is performed to unearth the latent factors that

fig. 3: Correspondence graph for Awareness Level

source: Worked out from survey data


fig. 4: Correspondence graph for Need felt to file Complaints in Consumer forums


pose problems to people who have already filed cases in consumer forums. 14 variables were identified based on the inferences obtained from the field. As can be seen from Table 3, out of the 14 variables that were subjected to factor analysis, more than 75 percent of the common variance in these variables can be attributed to four components (underlying factors).

Table 3 gives the rotated component matrix, with the loadings of each variable on to the underlying factors. For ease of analysis, we have decided to include only those variables whose factor loadings are above 0.7. It can be seen that the variables ‘Lack of knowledge about court procedures, Cases adjourned for unnecessary reasons, Not getting enough time to justify and produce evidence, Members/President frequently absent, People concerned demand bribes’ have load heavily into factor 1. The underlying factor determined by these variables may be labeled ‘Limited procedural information and transparency’. Information about court procedures, its sequence etc. may be unknown to many people who have filed cases in consumer forums. The transparency issues associated with court verdict, the logic behind arriving at awarding damages etc. may also have an


important role in shaping the first factor. The second factor can be labeled as ‘Communication barriers’ as the variables ‘Difficult to communicate the plight, Court language difficult to understand, Help of advocate unavoidable’ are three out of four variables that

Table 3: Rotated Component Matrixa

Component 1 2 3 4Lack of knowledge about court procedures 0.937 0.086 -0.164 0.047Lengthy procedures 0.274 0.086 -0.004 0.75Cases adjourned for unnec-essary reasons 0.796 -0.083 0.19 0.12Advocates are not reliable -0.2 -0.103 0.19 0.014Respondents seldom appear in the court 0.403 0.116 0.009 0.77Not getting enough time to justify and produce evidence 0.848 0.195 -0.196 0.114Members/President frequent-ly absent 0.919 0.161 -0.119 0.124People concerned demand bribes 0.884 -0.006 -0.015 0.028Difficult to communicate the plight 0.049 0.869 -0.281 0.119Court language difficult to understand 0.017 0.797 -0.126 0.273Help of advocate unavoid-able -0.014 0.823 0.268 -0.065High fees charged by advo-cates -0.086 -0.042 0.892 0.059Expenditure is higher than the benefit/worth of the case -0.062 0.026 0.896 0.11Court rooms are crammed 0.221 0.705 0.075 -0.226Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.a. Rotation converged in 5 iterations.


have high loadings on the second factor. It is probably the language barrier that is making people who have filed cases in consumer forums to seek the help of advocates. This observation finds support from the factor analysis as the variable ‘help of advocates unavoidable’ has significant loading on the second factor along with the other two variables. The third factor can be undoubtedly labeled ‘monetary factors’ as the only two variables that define this factor are ‘High fees charged by advocates and Expenditure is higher than the benefit/worth of the case’. This observation indicates that the value of the complaint could be a major influential factor prompting people to file complaints in the forum. The fourth factor may be labeled as ‘delay in procedures’ as the variables ‘Lengthy procedures and Respondents seldom appear in the court’ define the factor with their heavy loadings to the factor.

Correspondence analysis (Figure 5) is performed to understand the perception about the efficiency of consumer forums. We can find the point ‘lot of aspects to be improved’ closer to the district ‘Alappuzha’ because, among the 15 responses in the category, 6 were


fig. 5: graph for efficiency of forums


from Alappuzha. Even though Thrissur also has the same number of responses in this category, the image of Thrissur is much better explained by the response ‘efficient’ which lies closest to Thrissur in the graph as the district has the highest comparative frequency in terms of response to this category. Going by the same explanation, we find Thiruvananthapuram to be closer to the response ‘some area to be improved’. The districts Ernakulam and Idukki lie closer to the point ‘very efficient’ indicating that the districts have the highest comparative responses in this category.

Perception about the Strength of existing Consumer Protection Act (CPA)

Figure 6 clearly shows that there is considerable variation regarding the perception of the consumers across various districts in Kerala. Consumers in Trivandrum, Idukki and Ernakulam districts, by and large have the perception that the existing CPA is good enough to protect the plight of the consumers. But Palakkad consumers have a different opinion while consumers in other districts have mixed perception regarding the strength of the existing CPA.

fig. 6: graph for Strength of existing CPA



Relation between Nature of Complaints and Strength of existing CPA

To check the perception differences about the strength of existing Consumer Protection Act, a correspondence analysis was performed. Figure 7 shows that people who are undecided (neither agree or disagree) as well as people who tend to disagree to the statement that the existing CPA is strong enough are in minority as these points lie far away from all other points. People in Palakkad and Thrissur districts tend to agree that the existing CPA is strong where as respondents from Idukki and Ernakulam strongly believe that provisions in the existing CPA are strong enough to take care of the consumer rights. Thiruvananthapuram as well as Alappuzha is closer to the group that strongly agrees about the efficacy of the existing CPA. However, since the respondents from Alappuzha have significant presence in the category of respondents (6 out of 12) who were undecided about the strength of existing CPA, we can see that the correspondence graph has pushed the district closer to the category ‘neither agree nor disagree’.


fig. 7: Correspondence graph for Strength of CPA and Nature of Complaints filed


Section II

Product/Service-wise Inferencessecond section tries to put under radar information relating

availability, dishonouring of warranty, demanding of bills, false information about products and defective products with respect to six types of products or services which consumers in Kerala predominantly come across, i.e. pharmaceutical products, cosmetics, food products, home appliances, services, automobiles and durable goods inter alia consumer exclusion. Chi-square analysis has been done for products vis-à-vis exploitation pattern and the results are given in Table 4. Table 4a explains the Chi-square result for the information on pharmaceuticals among the samples across the districts. It clearly states that, there is significant difference in the information available on pharmaceuticals across districts. About three-fourth of the respondents in the state have not frequently received any records/bills while purchasing pharmaceutical products, clearly shows the kind of exploitation meted out by the consumers in the state making them unable to go for redressal or complaints, if any. The trend is similar in almost all districts. Only 5 percent of the respondents in the state got records or bills while purchasing pharmaceuticals. It is seen that there is no significant inter-district differences in terms of receiving any records/bills while purchasing pharmaceutical products. Majority of the respondents have received defective pharmaceutical products some times in the form of expired or damaged medicines. The feature is uniform with almost all respondents across the districts. Chi-Square result shows no significant inter-district differences in terms of defective pharmaceuticals. False information in the form of falsifying the contents of the medicine by exaggerating the exact benefits of medicines etc is being experienced sometimes by half of the respondents. Dishonouring of warranty/contract on pharmaceuticals is quite high.

Information available for consumers about cosmetics in the pre-purchasing period has inter-district differences and is also in varying nature. Half of the respondents in the districts of Thiruvananthapuram, Ernakulam, Thrissur opined that information was easily available about cosmetics in the pre-purchasing stage itself. Table 4b Chi-square test on information about cosmetics


No.

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Tabl

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127

Tabl

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Chi

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Tabl

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76.7

620

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51

0.47

70.

114

10.

735

0.54

81

0.45

9


shows the prevalence of significant inter-district differences in this regard. Not providing bills and records is prevalent while purchasing cosmetics. Chi-Square shows no significant inter-district differences in terms of receiving any records/bills while purchasing cosmetic products. Another pertinent problem faced by consumers is defective goods and this is more in the case of cosmetics. Another issue in this area is false information and Chi-square result shows no significant inter-district differences in false information about cosmetic products. Dishonouring of warranty and contract is not that frequent.

Majority of the respondents say that information on food is easily available. The result of the Chi-square also (Table 4c) shows that there is no significant differences between districts as regards information on food is concerned. About 70 percent of the respondents throughout the state frequently do not receive any bill or records while purchasing commodities. The trends are somewhat similar among respondents across districts.

sixty eight percent of the respondents purchased defective food items in Kerala. Chi-square result in Table 4c shows that it is not statistically significant. Inter-district variation in the frequency of reporting the purchase of defective goods as the figures in Table 6c show similar trends across districts. Ernakulam respondents (76 percent) indicate that false information was provided about food items. Among the districts, respondents in Thrissur frequently experienced dishonouring of warranty and contract by the retailer/seller.

Among the districts, 73 percent of respondents in Ernakulam district and 66 percent of respondents in Thiruvananthapuram district said that, information on home appliances was easily available. Chi-Square (Table 4d) shows that there is no significant inter-district difference in terms of getting information about home appliances in the state. Most of the respondents buy home appliances without records/bills. Table 4d explains no inter district differences in terms of receiving records/bills while purchasing home appliances. 73 percent of the respondents purchased defective home appliances explains no significant inter-district difference in terms of buying defective home appliances. Providing false and misleading information is quite prevalent across districts. Chances


of dishonouring of warranty/contract on home appliances in general are less among respondents across districts.

District wise information on services shows the availability of adequate information across state. Chi-square results in Table 4e show that there is considerable difference in information availability based on districts. District-wise break up and Chi-square as depicted in Table 4e show that there is no considerable difference between the districts in terms of product records or bills. Majority of the respondents sometimes or frequently get false information. Chi-square analysis as shown in Table 4e shows frequent dishonouring of warranty conditions (service terms) in varying levels in various districts.

Majority of the respondents have opined that the information on automobile goods is available, but there is considerable difference in the availability of information based on districts, which is evident from Chi-square value as shown in Table 4f. For 68.3 percent of the cases, proper bills/records are given for automobile goods and those experiencing issues frequently or sometimes are less than 45 percent. There are issues with defective products in the case of automobile and other goods. situations of providing false information are highest in Thiruvananthapuram and Palakkad and the situations of dishonouring the warranty/contract is also high in the case of automobiles.

It is also clear that there are considerable asymmetry of information pertaining to production and expiry date for pharmaceutical and food products, home appliances, automobiles and service sector. This also highlights non-compliance of warranty and timely services.

Section III

education and exclusionHigher levels of education are posited to facilitate better

understanding of consumer rights and hence equip the consumers to fight consumer exploitation and exclusion. Proper awareness about all the rights is necessary for a consumer to averse himself from being cheated by the seller. From low education category, no one is aware of all the consumer rights, whereas 66.7 percent of the respondents with awareness about the consumer rights are familiar


with 1 to 3 rights. It can be inferred from Chi-square in Tables 5 that there is considerable difference between education of a consumer and his awareness level about the consumer rights.

Table 5: Chi-Square tests - Awareness about Consumer Rights

a. Awareness about consumer rights b. education and awareness about consumer rights

Value df Asymp. sig.

(2-sided)

Exact sig.

(2-sided)

Exact sig.

(1-sided)

Value df Asymp. sig.

(2-sided)Pearson Chi-square

33.762 1 0 9.283 2 0.010

Continuity Correctionb

31.473 1 0 .. .. ..

Likelihood Ratio

36.022 1 0 10.151 2 0.006

Fisher’s Exact Test

0 0 .. .. ..

Linear-by-Linear Association

33.424 1 0 8.340 1 0.004

Scope of exploitation for ProductsThe respondents were asked to record their perception about the

level of exploitation in various products/services, which are divided into 11 categories. To understand the product of high consumer exploitation, factor analysis based on principle component method was used. The sample adequacy for factor analysis was tested using Kaiser-Meyer-Olkin measure of sampling Adequacy Test. This measure varies between 0 and 1, and values closer to 1 are better. The test gives a value of 0.727, which is greater than the generally accepted minimum of 0.6, indicating sample adequacy. Bartlett’s sphericity Test, which tests the hypothesis that the variables subjected to factor analysis are uncorrelated, is rejected with cent percent accuracy. The results are portrayed in Table 6. The analysis brought out four factors that accounted for 59.65 percent of the total variance accounted for by the initial 11 factors. However, the three factors accounted for almost 50 percent of the total variance.


Table 6: Rotated Component Matrix

Component

1 2 3 4Perishable goods 0.493FMCG 0.834Consumer durables 0.773 Financial services and bank-ing(mutual funds, bank transac-tions) 0.644 Airlines and travel agencies 0.586Telephone and communication 0.613 Public service utilities (electrici-ty, water) 0.691 Vehicles related 0.662 Unorganized financial services, automobile financing 0.748 Insurance policies 0.857 Health care products and services Kaiser-Meyer-Olkin Measure of Sampling Adequacy= 0.727; Bart-lett’s Test of Sphericity: Chi-Square=160.39, Sig=.000Extraction Method: Principal Component Analysis; Rotation Method: Varimax with Kaiser Normalization; Rotation converged in 15 iterations.

It is evident from the Rotated Component Matrix in Table 6 that airlines and travel agencies, telecom, public service utilities and chitty/unorganized financial sector have a factor loadings of 0.5 or above with regard to the first component. These services are considered to have a high scope for exploitation. The second factor has positive correlation with consumer durables and financial services. Third factor shows a positive correlation with FMCG and vehicles.

Attitude towards Retail OutletsThe respondents were asked about their opinion on the benefits

of retail outlets. The analysis based on educational qualifications shows that there is considerable difference between the education and their attitude. Analysis shows that, those with high educational


qualifications were more aware of the benefits of shopping from the retail outlets. They were more aware and agreed that benefits such as convenience, economy, and freedom of choice, quality, diverse products, and better customer care support, freedom to weigh, better after sales services, better grievance redressal mechanism, availability of more choices, time saving and better offers are available in the retail outlets. However, majority of those with low educational qualifications were not at all aware of the benefits of these outlets. Whether they verify quantity, brand image, expiry date, conditions, bills, MRP, ingredients, quality marks, offers/discounts, terms and conditions, place of manufacture and contact address to send complaints are also highly linked with the education level of the consumers. statistical inferences show that education is a major determining factor in making consumer choices as well as in overcoming most of the ill-effects of consumer exploitation. This is more important for taking appropriate decisions in areas such as quantity exploitation, evaluation of quality of the products, evaluating offers and discounts, comparison of brand products, freedom to choose and availing warranty.

Conclusions and Policy OptionsWith almost one third of the sample responding that they have

always felt the need to file complaints in the consumer forums, it is evident that the instance of consumer dissatisfaction/exploitation in the state is high. But most of the respondents have also said that the option of filing a case does not seem worthwhile when considering the amount of the time needed to be spent in relation to the value of the product. Almost 56 percent of the sample responded that they have never heard of consumer courts offering any redressal to consumer complaints. While the existence of consumer forums and their roles are known to the masses, the discharging of cases and providing redressal to consumer complaints by the consumer forums are not popular among the people in Kerala. It is imperative that clarifications be made about the cost of filing complaints in consumer forums in order to encourage people to file when they face exploitation.

It looks as if the level of awareness about consumer forums has an inverse relation with the attitude of people to file cases in consumer forums. The information could be indicative that while


people who have never heard of consumer forums are willing to file complaints for redressing grievance. Insufficient knowledge about consumer forums, their procedures and outcomes could deter people from approaching forums for redressal. Information about court procedures, its sequence etc seems to be unknown to many people who have filed cases in consumer forums. The transparency issues associated with forum verdict, the logic behind arriving at awarding damages etc may also have an important role in shaping the first factor. Communication also is an important issue faced by people who have filed cases in consumer forums. It is probably the language barrier that is making people who have filed cases in consumer forums to seek the help of advocates. The value of the complaint could be a major determining factor prompting people to file complaints in the forum. The delay in procedures is another difficulty that people who have filed cases face.

In order to combat exclusion effectively the awareness level of consumers about their rights as well as the support mechanisms that exist to help them need to be increased. Targeting a five year window to increase the level of awareness may be planned. In addition to the existing channels of communication it is desirable to have consumer education strengthened in schools. The programme of starting consumer clubs in schools as part of a national initiative to sensitize school children about consumer rights need to be extended to all schools in the state. Consumer education should be made as a compulsory non credit course at the secondary and higher secondary education level. The idea of offering the course at two levels is to make sure that the continuity in the objective is not lost. At the higher secondary level the focus could be on consumer rights. The pedagogy need to have a heavier practical component with the teachers actually taking the students to shops to teach them about the various aspects that need to be taken care of at the pre-purchasing and purchasing stage. At the secondary level of education, the course could focus on visits to consumer forums and role plays of the proceedings of consumer forums. These will certainly ensure that students, the next generation consumers, get acquainted with the procedures. The recommendation is made against results from the analysis which showed that a general level education does not really have an influence on awareness about consumer rights. From the analysis performed, it was understood that the class four employees of the University from where the


sample was selected to determine the impact of education on exclusion, who has a minimum of secondary school education, had disturbingly low levels of awareness about consumer rights.

References1. Beall, J and Piron, L. H (2005), DFID Social Exclusion Review,

Department for International Development (DFID).

2. Hamilton, Kathy (2009), Low-income Families: Experiences and Responses to Consumer Exclusion, International Journal of Sociology and Social Policy, Vol.29. Nos.9/10, pp.543-557.

3. Hohnen, P (2007), Having the Wrong Kind of Money: A Qualitative Analysis of New Forms of Financial, social and Moral Exclusion in Consumerist scandinavia, The Sociological Review, Vol. 55 No. 4, pp.748-67.

4. Howard, John A. and sheth, J.N. (1969), The Theory of Buyer Behavior, New York: John Wiley and sons.

5. Oliver, Richard L (1992), An Investigation of the Attribute Basis of Emotion and Related Affects in Consumption: suggestions for a stage-Specific Satisfaction Framework, Advances in Consumer Research, Eds. John F. sherry and Brian sternthal. Ann Arbor, MI: Association for Consumer Research, 237-244.

6. swan, I. Frederick Trawick, and Carroll, G. Maxwell (1982), satisfaction Related to Predictive, Desired Expectations: A Field study, in H. Keith Hunt and Ralph L. Day, eds. Bloomington, New Findings on Consumer Satisfaction and Complaining. IN Indiana University, 15-22.

7. Tse, D. K. and Wilton, P. C (1988), Models of consumer satisfaction formation: an extension, Journal of Marketing Research, 204-212.


8CONSuMeR AND MeDICAL NegLIgeNCe: A CASe STuDy Of CONSuMeR ReDReSSAL MeChANISM IN The DeLIVeRy Of MeDICAL SeRVICeS IN The RuRAL AReAS

Shakti Kumar Pandey

IntroductionThe service which medical professionals render to us is the

noblest. since long the medical profession is highly respected, but today a decline in the standard of the medical profession can be attributed to increasing number of litigations against doctors for being negligent narrowing down to “medical negligence”. It’s a common observation that medical practitioners, hospitals are being attacked by family members of patient for alleged medical negligence.

It has been felt since long that the rural consumers of our country are victims of constant exploitation and harassment, so far as the health and medical services are concerned. social workers and media have always portrayed the helplessness of poor masses in this essential and basic need of their life. Their backwardness, illiteracy, ignorance and poverty are the main causes due to which they cannot resist and fight back. Unless sufficiently harsh legal security is provided and strict measures are adopted, it is not easy to support these people and to ensure a better quality of life for them.

We have seen numerous cases in which the private hospitals and nursing homes are cheating the patients and their attendants. It is a common experience that they do not discuss the details of


problems or diseases with the patients and attendants, and that they are charging exorbitantly – sometimes in the name of operation charges, sometimes in the name of pathological tests, and sometimes for medicines, nursing charges etc. They are supplying fake and spurious drugs. Very often after keeping the patients for several days, they tell the attendants to take the patient to a bigger hospital. And the vicious circle continues.

Thus the rural consumers are facing problems, and they suffer frequent exploitation and harassment in the hands of the doctors, many of whom are not even qualified. Lack of proper medical facilities and presence of quacks everywhere in the rural segment lead to chaotic situation in medical services. Lack of awareness is hampering the health of the rural consumers and putting them to risk by the use of spurious and fake drugs. The existing mechanism is poor; mostly the medical practitioners have their own clout in the area. strict legal provisions and awareness campaign is needed.

There has been fast spreading misconduct amongst the medical professionals. The unethical practices have gone to a level where the basic purpose of medical profession that is service to humanity has failed. Few unethical practices like fee sharing, particularly prescribing a company’s medicine, selling of body parts etc. for personal monetary gains are openly discussed in the society these days but never come to the surface due to lack of concrete proof. To err is human. Mistakes occur but which occur due to carelessness and negligence cannot be let off. The components of negligence are duty, breach and resulting damage.

The health service has been under the purview of the Consumer Protection Act, 1986. The landmark case Indian Medical Association vs. V. P. shantha brought the medical professionals within the ambit of “service” as defined in the Consumer Protection Act, 1986.

The judgment given by the Hon’ble supreme Court of India, three judges bench, in October 2005, ruled that doctors should not be held criminally responsible unless there is prima facie evidence before the court in the form of a credible opinion from another competent doctor, preferably a Government doctor in the same field of medicine, supporting the charges of rash and negligent act. This judgment has put brake on the possibility of prosecution and punishment of doctors.


ObjectivesImproving public health for all is documented in the Constitution

of India as one of the primary duties of the state. To achieve this, the planning process of the country provides a broad framework to the states to develop their health services infrastructure, as well as facilities for medical education and research. since the inception of the planning process, the central and state governments have experienced a number of constraints in implementing the health programme effectively.

In 1982, the National Health Policy (NHP) acknowledged these constraints and suggested an integrated and comprehensive approach towards the future development of health care services. To mitigate the problem of limited resources, the policy document recommended that the states design processes to encourage the practice by private medical professionals and investment by non-government agencies in establishing curative centres.

It is true that with the improved income and education, the expectations of the consumers have also increased. It is not merely the financial and physical access that has become important but the manner of delivery, the availability of various facilities and the interpersonal and diagnostic aspect of care also matter to the people with enhanced economic earnings. In the rural India, inadequate availability of doctors and medical equipment, poor clinical examination and poor quality of drugs were the important drawbacks reported at government hospitals.

The role of government in ensuring that its country’s healthcare system provides optimal services for its rural population has been greatly emphasized, but results have been below expectations. Improvement in the quality of primary healthcare services apart from increasing accessibility and affordability has become a matter of grave concern for the rural folks of our country in the recent years. The meaning of quality in healthcare system has been interpreted differently by different researchers. Ovretveit (1992) identified three “stakeholder” components of quality: client, professional, and managerial. After 70 years of independence, a number of urban and growth-orientated developmental programmes are being implemented, but nearly 833 million rural people (about 70 percent of the total population), half of which are below the poverty line (BPL) continue to fight a hopeless and constantly losing battle for survival and health.


The rural populations, who are the supposed to be prime beneficiaries of the policies, work in the most hazardous atmosphere and live in abysmal living conditions. Unsafe and unhygienic birth practices, unclean water, poor nutrition, subhuman habitats, and degraded and unsanitary environment are challenges to the public health system. The majority of the rural population are small-holders, artisans and labourers, with limited resources that they spend chiefly on food and necessities such as clothing and shelter. They have no money to spend on health. The rural peasant worker, who strives hard under adverse weather conditions to produce food for others, is often the first victim of epidemic.

The objective of the study was to find out in detail the kinds of injustices and frauds being committed on the rural masses by the medical practitioners and hospitals, their middlemen who are mostly the criminals and mafias of the health and in education sector. Through this study we sought to draw attention towards the legal provisions made in developed countries in this regard with a view to protect the consumers; and suggest as to what can be done regarding this. The study brings forth the possible steps and provisions which can be taken at the social level as well as legal level. This is urgently needed in our country to prevent the rural community from exploitation and injustice in the field of health and medical services. We need to formulate policies in future to ensure better consumer rights, protection and welfare in this field.

A study of the existing literature on consumer welfare revealed that no systematic study was done to evaluate the provisions of medical services and its impact on the consumers in the rural areas. The present study has been an effort to fill this gap and recommend suggestions for protecting the consumers from unethical acts of the medical service providers. This is just the beginning of the larger discussions in this part of the country where social enlightening process is still at very nascent stage. This study will help to focus some light on much dread of the ‘unknown’ that is inherent in legal aspects of medical practice, especially in relation to the Consumer Protection Act.

MethodologyMere mention of the Consumer Protection Act at any gathering

or scientific meeting of doctors evokes their instant attention and


all other conversation ceases, giving rise to passionate exchange of opinion, experiences, fears, etc. and questions are asked about the implications of the application of the Act to the medical profession. It is these questions and fears which are sought to be understood by this small research study conducted across the villages of four blocks – sadar, Mangraura, sandava Chandika and Lakshmanpur – in Pratapgarh district of UP, with the help and support of 400 respondents (one hundred from each block) and 100 medical professionals (25 from each block).

This study has been survey-based and the data was collected both through primary and secondary sources. secondary data was collected from various publications, government reports. Primary data was collected through field survey. Two sets of questionnaires were prepared and administered randomly on the consumers and hospitals in four blocks of Pratapgarh District of Eastern Uttar Pradesh. The blocks selected for the study were sadar, sandawa Chandika, Mangraura and Lakshmanpur. Keeping in view the time schedule and budget estimates the sample size was of 400 consumers and 100 medical service providers. From each block 100 consumers and 25 medical service providers were taken as the sample size.

Before the questionnaires were administered, they were pre-tested on a randomly selected sample and necessary changes were incorporated. As government hospitals provide free services to patients, they do not fall under the ambit of the Consumer Protection Act. Therefore, only private medical service providers were selected for the study. The data was then tabulated and presented in a report form.

This study mainly focused on the Consumer Protection Act, its provisions vis-a-vis doctor-patient relationship in Pratapgarh (UP). The study has been conducted with 400 respondents all of who were from the rural background. It must be noted that the participation in such survey which talks about doctor-patient relationship itself is a huge step for future studies in the sphere. This is the first major study in UP on this subject.

Major findingsThe detailed responses were sought from the respondents on

various aspects and the same have been grouped in 04 different sections as follow:


A. Patient ProfileIn all 400 patients were interviewed from 100 different clinics

of varying sizes and also the kind of services being provided in these clinics. The profiling was done on following points:

1. Family size

2. Number of Children

3. Number of Children under 13 years and above 13 years.

4. Occupation

5. Income

6. Number of persons suffering from illness

7. spending on illness

8. Borrowing for illness

Occupation, Income and IllnessWhile analysing the responses of the participating respondents

it is equally important to understand the background from which they are coming.

B. Medical facilitiesThe second aspect of this study was to understand the medical

facilities available for the respondents, to examine the extent of facilities available.

• 19 respondents mentioned about the availability of medical facilities in the village, whereas other responses were negative. All these 19 respondents have confirmed that medical practitioner available is either quack or RMP. It also means that facilities are not available at almost all the places and wherever it is available it is not upto the mark.

• Out of total respondents, 366 respondents have mentioned that no medical store is available in the village. It shows the extent of availability of the basic infrastructure like medical store.

• Even at the nearest market only the quacks are providing services. 346 respondents have confirmed that quack / RMP is providing the medical services to the respondents whereas in about 54 cases even this facility is not available at the nearest market.


• It was also observed that nursing home facility is available at the nearest market area in only about 15 places whereas 385 respondents have confirmed that no such facility is available in the nearest market area too.

• 354 respondents have confirmed that medical store is available in the nearest market area whereas 46 respondents have responded it negatively.

• 309 respondents have reported that they have been to the medical practitioner in last 05 years multiple times, whereas 91 families have never been to the medical practitioner at any point of time.

C. experience of the RespondentsAll the respondents have been to the various places for seeking

medical support as needed. We have tried to analyse the experience of the respondents at the following 03 places:• At village level• At nearby market• At district headquarter

At Village LevelIn earlier section we have understood the extent of medical

facilities availble at the village level. This section will help us to understand the experience of the respondents vis-a-vis medical facility available at the village level.• It was observed that out of total patients at the village level

21 were in the age group of 01 – 18 Years, whereas 29 were major between 18 – 30 years and 59 above 30 years of age have consulted doctors for various ailments.

• As mentioned earlier the medical practitioners were available in only about 34 cases and all of them were either quacks or RMP.

• It must be noted that the medical practitioners in all these 34 cases have administered simple medicines and in some cases i.e. in 04 cases simple advise has been offered.

• It was observed that total 35 cases have mentioned about the benefit accrued to them which ranged between 30 percent to 70 percent. It must be noted that 18 have mentioned the benefit


level between 10 – 30 percent and 17 cases have reported that they have been benefitted between 30 – 70 percent from the doctors they have consulted.

• About the professional fees of the doctors, it was observed that in 16 cases doctors have charged between Rs. 50 to Rs. 100, in another 16 cases doctors have charged the fees between Rs. 100 to Rs. 500 and in one case doctor has charged between Rs. 500 to Rs. 1000.

• In some cases the patients at the village level have been referred to the places where more facilities are available. In all 65 cases have been referred. Out of the patients referred about 42 patients have been referred to the nearby market area, 03 cases to the private doctors at district places and about 10 cases have been referred to government hospital at the district level.

experience of the Patient in Nearby MarketAll the patients did not recover with treatment at the village level.

some of them went to nearby market on their own or by reference. The experience of these patients also needs to be understood. This helps to understand the satisfaction level at the nearby market level.

Level of Benefits• All the patients were from rural background. They experienced

varying degree of satisfaction with various doctors. It was observed that only 03 out of total respondent group size of 145 had satisfaction level in the top most group of 70 – 100 percent.

• The patients from the rural area went to this nearby market with high level of expectations. The patients expected that they would be informed with the nature of ailment and also the estimated cost of the treatment. We have also tried to understand the behaviour pattern and satisfaction level of the patients viz-a-viz doctors.

• Doctors in the nearby market area were having about 204 cases for various ailments. This chunk is very large as compared to referred patient from village level.

experience at District LevelIn this study we have analysed the overall experience of the

patients with doctors at the district level. The assessment is done on


the following parameters:• Facilities and services• staff behaviour• Doctor’s behaviour• Information on ailment• Cost estimate of treatment• Final bill to the patient• Negligence by doctor• Place of Referral

Patient at the district level are either referred patients or have approached on their own for the treatment. The expectation level of the patient is even higher in case they approach the district level doctors. The research sought to understand the satisfaction level at the district level on various counts as was done at village level and nearby market level.

The study also tried to understand the negligence by the doctor at district level. Only one case of negligence has been reported whereas in 324 cases the response was reported to be positive. In cases referred to other places, it was observed that 39 cases have been referred to the district hospital whereas whopping 110 cases have been referred to private nursing home. One of the patient has also been referred to the alternative medicine.

D. Medical Negligence by DoctorsThis is the core of this study. In this study we wanted to

understand the awareness level of the patients and their rights under Consumer Protection Act related to medical negligence by doctors. We have also tried to understand the awareness level of the patients on various provisions under the Act. Following are some of the observations made during the study.

During the study we wanted to understand from the patients whether they were aware that a complaint can be lodged against the doctor in case of negligence during the treatment. It was observed that 319 patients were not aware about this whereas about 81 patients did not respond.

In this representative study about 100 medical professionals


were interviewed and it was found that all of them were operating from a small clinic managed by them.

The other important aspect of the study was to understand the kind of professionals operating in the field. This will help to strengthen the Information, Education and Communication (IEC) strategy for consumer protection and rights of doctor as a medical professional. It will help to see the provisions of Consumer Protection Act as complimentary in the relationship of doctor – patient and not as monstrous one enacted with evil intentions.

It was observed that all the respondent medical professionals examine about 5-10 patients daily. All the patients (100 percent) were from rural background. The highlights of the responses from patients are summarized as follow:• All the doctors examined about 5-10 patients daily.• All the patients were from rural background.• No patient has been referred for further treatment during the

period of consideration i.e. in last 30 days.• Neither any doctor nor patient has reported any bad experience.

It also means that the interaction between doctor and patient was very healthy or doctor would not like to talk about it. It also leads to the conclusion that the patients have no expectation from the doctor apart from being treated or they do not understand the difference between being treated and treated with information.

• since there was no complaint, the nature of complaints could not be analysed. This also shows that there is complete vacuum of information on this front.

• Not a single doctor was aware about the provisions of Consumer Protection Act. This also shows that there is lack of awareness and also the state machinery could not reach out to the professionals for whom the Act has been enacted. It must also be noted that all the respondent doctors irrespective of their qualification, experience, set-up and age are not aware about the provisions in CPA.

• All medical professionals (100 percent) were of the opinion that doctors should not be covered under CPA. This was ironical that no one is aware about the provisions in the Act but they would not like to be covered under the Act.


• No doctor is aware about any guidelines either by supreme Court or by the professional body such as MCI.

ConclusionOn the basis of the survey conducted in the rural areas i.e.

the four targeted blocks of Pratapgarh district of eastern UP it is concluded that even the doctors are not properly aware about the provisions of Consumer Protection Act related to medical negligence and its implications. They perhaps need proper and thorough training about the provisions and the procedures of these Forums. Occasional orientation programs may be organized for the medical practitioners.

similarly, the patients are perhaps more ignorant about Consumer Protection Act and its provisions related to medical negligence. They are not able to get benefit from these provisions, though the government and social organizations are trying to popularize these provisions. Training programs must be organized in the villages to make them aware of these provisions. Thus we may say that the system of IEC needs strengthening at both levels i.e. at the level of doctors and also amongst the patients. We may even infuse values amongst doctors – the human values and the moral uprightness. That will help in avoiding the conflicts resulting from litigation and legal proceedings.

It will be imperative to organise the common sessions for doctors as well as patients for developing proper understanding about the Consumer Protection Act and its provisions related to medical negligence. The joint sessions will be helpful in generating interaction between the two warring groups. Further, the provisions of Consumer Protection Act should be displayed prominently in all the clinics, nursing homes, hospitals and Primary Health Centres to increase awareness level of the patients about it. This will make the doctors more careful, and the consumers aware of their rights. The patients should also be made aware about the procedure to file a complaint regarding medical negligence against the doctor. Most of the consumers filing complaints are taking the help of lawyers, which frustrates the intention of the policy-makers that the process should be simplified and made easy.

In a nutshell we can say that the rights of the patients should be explained properly to the patients under Consumer Protection Act.


The awareness campaign should be at all levels i.e. villages, nearby market area and at the district level. It is also observed that most of the medical practitioners in rural areas are quacks and specific focus should be on the provisions of CPA related to quacks. Doctors have mentioned reservations regarding CPA. They feel that doctors should not be covered under CPA. Doctors are not aware about guidelines of supreme Court or Medical Council of India regarding medical negligence.


9heALTh INSuRANCe – CAN IT ReDuCe The VuLNeRABILITy Of The POOR? AN eXPLANATORy STuDy wITh RefeReNCe TO RAjIV AAROgyASRI heALTh INSuRANCe SCheMe Of ANDhRA PRADeSh

L. Reddeppa

IntroductionIn the emerging situation of rising health care costs, and in

the absence of a national health care scheme or a health insurance scheme, many people are rendered bankrupt when faced with health problems. This phenomenon is all the more serious in the case of the poor sections of the society. In order to obviate this problem, a health insurance scheme targeting the poor families known as Aarogyasri Health Insurance scheme (AHIs) with public and private partnership is being implemented in Andhra Pradesh since April 2007. The drawbacks in the system of public health care were clearly pointed out in the Eleventh Five Year Plan (2007-12, P: 67). The scheme provides financial protection of up to Rs.2 lakhs per year for medical treatment for each family Below Poverty Line (BPL). However, identification of BPL is not free from the criticism of inclusion and exclusion errors in most of the welfare schemes. How the AHIs scheme overcomes this problem needs to be investigated.

The rate of utilization of the scheme and the services, apart from detailed awareness about the scheme entitlements is determined by a number of other factors such as accessibility of hospitals,


friendly nature of the scheme, availability of friendly services from hospitals, friendly claim procedures, etc. Also, given the educational background of the poor and their lack of capacity to demand their entitlements, whether or not they are able to get a fair deal from the administrators, and efficient and satisfactory services from the hospitals, are also issues worth examining. This is particularly important in the case of private hospitals as they are known for their discriminatory practices. It is also important to examine whether proper treatment protocols are being followed and whether there is administration of unwanted investigations, as private hospitals are notorious for several unscrupulous practices. The chances for overcharging by private hospitals are also high under the insurance scheme, and the chances for these unscrupulous practices can be said to be more under the scheme, as the consumers have no bargaining power, and are at the receiving end. Further, it can also be hypothesized that there may exist an unholy alliance between the private hospitals and the health workers, as they are the facilitators at the ground level, for guiding the patients.

Objectives of the Project The main objectives of the study were to assess:

• Whether the scheme is more inclusive, and there is awareness about the scheme and the entitlements.

• The rate of utilization of the health care services and the level of consumer’s satisfaction.

• Whether the scheme is planned and administered in a consumer-friendly manner.

• The current role of public hospitals and their future prospects.• The social, economic and medical impact of the scheme.

Methodology The study is mainly based on primary data. As the scheme

was initially implemented in Mahabubnagar, Anantapur and srikakulam districts, the primary data was collected from these three districts. From each district, two mandals with the largest number of card holders were selected, and from each mandal, two urban and two rural villages were selected. From the list of BPL families, due representation was given to all the social groups sC


/ sT / OBC / others through stratified random sampling method. Thus, altogether, the primary data was collected from 643 families spread over in 24 wards/villages. The sample included 382 families that were enrolled and have availed the services, 127 families that were enrolled but have not availed the services, and 134 families that were not enrolled.

Limitations of the StudyThe white ration card is substitute for Aarogyasri health card.

The families getting major treatment with their own expenditure were not available as control group to the study. The non-beneficiaries and non-card holders are mostly other than the salaried income group. They can also get assistance from Aarogyasri, if they provide income certificate below the annual income of Rs. 60000 in rural areas and Rs. 75000 in urban areas. Most of the non-card holders can also produce income certificate to claim Aarogyasri, if any necessity for treatment. Thus, there is no much difference between non-beneficiaries and non-card holders chosen in the sample.

Major findings of the Study

Inclusiveness of families under AarogyasriThere were about 190.78 lakh white ration cards (BPL cards)

under circulation in 2010. In addition, the government also started issuing new white rations cards under the Rachabanda Programme initiated by the Chief Minister of Andhra Pradesh. This means that all the white ration card holders were entitled to the benefits of the Rajiv Aarogyasri Health Insurance scheme (RAHIs) in the state, and that the exclusion error under the scheme is negligible. As per the data, about 2.03 crore families – or about 8 crore population, if the size of the family is 4 members –are eligible to claim under the scheme each year. Though the scheme was envisaged initially for BPL families, the coverage included more than 85 percent of the total households in the state. such a large coverage has been possible because the eligible family income for assistance was enhanced up to Rs. 60000 in rural and Rs. 75000 in urban areas in the year 2007-08. This provided scope for coverage even of non-BPL households, as well as for inclusive error. The reasons for this were: lack of standard measures of income estimation of the family,


machinery for identification and accounting practices, and vested interests of the political parties. The resultant effect was that the government has become more critical in the allocation of budget for primary health care due to paucity of budget to Aarogyasri.

Rate of utilisation of the Scheme Based on the secondary data, the number of patients who

received treatment in all the districts of the state since the inception of the scheme was about 10.69 lakhs, and the claim amount (approved) was about Rs. 3016.68 crores. It is important to note that the average claim per patient was Rs. 28204 as against the maximum eligible amount of Rs. 50000. The claim was from about 2 to 3 lakh patients per year. This shows that the rate of utilization of the claim is not even 0.5 percent, if the total population is taken into consideration for the four-year period, and it is less than 1.5 percent, if one family is considered as a unit. It was observed that most of the patients claimed only once during the four-year period of the scheme’s implementation. similarly, each family has mostly one patient only, though the amount eligible per family is up to Rs. 2 lakhs. The scheme covers 942 diseases identified to be affecting the poor, and whose treatment protocols are being evolved. The problem or disease intensity can be analysed based on the disease-wise frequency of the patients. The patients or claims were skewed in very few diseases and the patients are very few in certain diseases. It was also observed from the secondary data that there were less than 100 patients in the entire state for half of the eligible diseases, during the four-year period.

Level of Awareness about the Scheme The positive feature of the scheme is that the Aarogyamitra is

available to the patients placed at all PHCs and referral hospitals when the policy-holder or patient needs guidance and help for locating the doctors and assistance for admission in the referral hospital. It was observed from the study that the policy-holders and patients are aware of the diseases that are eligible for claim; choice in the selection of hospital; cashless transactions for all treatment procedures; available post-treatment services, including reimbursement of transport cost for the patient and his attendant under the scheme. However, they were not aware of claim amount eligible for each disease due to variations in the ceiling within the


broad category of each disease. There is not much difference in the levels of awareness between social groups (sC, sT, OBC, General, and Minority); illiterates and literates; and rural and urban areas. This was observed from not only the beneficiaries of the scheme but also non-beneficiaries as well as non-holders of the Aarogyasri card. For this, the Government is responsible for giving wide publicity through distribution of pamphlets and brochures, maintaining display boards about Aarogyasri, and conducting health camps in rural areas more frequently. Apart from these, provision of prompt ambulance services (through a toll-free number) has created confidence among the public about the services of the Government and the Aarogyasri scheme.

Despite this, the patients are not aware of the pre-authorization claim that would be approved for treatment/surgery. The data showed that majority of the patients (71.7 percent) have not received any information about the pre-authorisation amount (estimate) approved for treatment. such cases were relatively higher in public hospitals (80.5 percent) than in private hospitals (69.2 percent). It is the responsibility of the hospital management to disclose the pre-authorisation amount that can be claimed for the treatment. At the same time, the beneficiaries or policy-holders are not inclined to know the eligible claim or pre-authorisation amount or amount claimed by the hospital due to the fact that they are not paying anything from their pocket. It is common understanding that most of the hospitals would claim the pre-authorisation amount, which is supposed to be received as reimbursement.

Availability of Quality and Timely Services in Referral hospitals In order to become empanelled as a referral hospital for treating

cases under Aarogyasri, the hospital must have the required infrastructure and facilities, such as operation theatre; lab and equipment; scanning/x-ray facility; ambulance services; and latest medicines. It was observed from the study that all the referral hospitals were fully equipped with all the facilities mentioned above. The quality can be categorised as good and not-so-good with regard to the services provided by the various stakeholders such as the Aarogyamitra, doctors, nurses and hospital administration, as well as facilities such as hospital equipment and food, as all of these play some role or the other in providing services to the patients, either directly or indirectly. The data indicates that the services of


all the stakeholders were good in more than 95 percent of the cases both in public and private sector hospitals, with the exception of food (82 percent).

Admission in the referral hospital should be immediate, provided all the protocols and guidelines are followed. It was observed that the admission was within 24 hours in 58 percent of the total number of cases in the three districts taken together. These cases were serious in nature and the doctors have given priority to providing emergency treatment. There were also instances where the patients purposely delayed their treatment in order to get admission in the hospital of their choice. The data shows that 76.7 percent of the patients have received treatment in private hospitals, while 23.1 percent have received treatment from Government hospitals. The dependency on private hospitals was observed in all types of treatments under Aarogyasri. The results from the study indicate that patients prefer private hospitals due to availability of doctors, nurses and other staff at times of requirement—even after office hours; better maintenance of hospital in terms of cleanliness and hygiene within the available space; friendly behaviour of the doctors, nurses and other staff; better maintenance of medical equipment; and promptness and responsibility of the staff and doctors in the hospital. The hypothesis of an unholy alliance between the private hospitals and the health workers, as they are the facilitators at the ground level, in guiding the patients is rejected.

Status of Cashless Transactions for Treatment

The average pre-authorization amount for treatment for all the diseases taken together is Rs. 34788 in private hospitals and Rs. 28983 in government hospitals. This shows that the cost of treatment is Rs. 5805 more in private hospitals than that of the public hospitals. Though the government is explicit that the treatment under Aarogyasri is cashless, it is inevitable to bear certain costs over and above the claim amount. The average Out of Pocket Expenditure (OOPE) incurred by the patients is Rs. 4626 which is about 15 percent of the claim amount. This expenditure is mostly related to the attendant’s expenditure towards transport, local stay, food and any other treatment procedures and medicines for their general problems not covered under the scheme. This shows that the OOPE is relatively low in case of Aarogyasri, compared to the other Government schemes.


Current Role of Public hospitals and their future Prospects It was observed from the study that the public hospitals at the

grass-root level (PHCs and CHCs) are not equipped with lab facilities even to conduct small tests like sugar, hemoglobin content, x-ray for lung infections, etc. so the patients have to depend on private labs, even if they want to consult a government doctor. Hence, the patients prefer to approach a private doctor as all facilities are available at one place and they can undergo all the tests without wasting any time. The other disadvantage for consulting government doctors is that they are available at the hospital only during office hours, if the doctor is not engaged with any other Government work, or leave. The utmost concern of the public hospitals is the implementation of national programmes such as family planning, control of communicable diseases, vaccination of children, etc. They are not so concerned about the general health problems.

Social, economic and Medical Impact of the SchemeIt was observed from the study that poorest of the poor within the

broad category of the poor are more exposed to burdens of ill health. Further, it was observed from the study that the family income of the beneficiaries of Aarogyasri is less than Rs. 50000 per annum in 88 percent cases, of which 46 percent have income less than less than Rs 25000 per annum. Among these families, the expenditure on general health problems is also relatively high. Though Aarogyasri provides the poor social as well as emotional protection from indebtedness for listed diseases, they are not concerned about various others. The Public hospitals in metropolitan cities have now become overcrowded with patients having common ailments, due to lack of proper treatment in the primary and secondary hospitals at the district level. This shows that the government is not allocating adequate budget for primary and secondary hospitals at the district level for the larger interest of the poor due to paucity of budget for critical care and the implementation of Aarogyasri for the larger benefit of the private sector.

ConclusionThe results emerging from the study indicate that Government-

sponsored critical care with private partnership is not a rational choice due to under (un) utilization of the public sector. The focus on tertiary healthcare to the exclusion of all other forms of medical


assistance leads to an inefficient medical care model with a low level of real impact on meeting the needs of healthcare and the health of the population as observed by Rajan shukla et al. (2011, EPW, p.1) is appropriate in this context . There is need to regenerate commitment and responsibility in dealing with critical care through public sector on priority basis. Otherwise, it is difficult to monitor the private sector against the unscrupulous practices of profit generation at the cost of government budget and it would be difficult to get tertiary care on sustainable basis for the poor at affordable prices. Thus, more protection is needed to cover the genuine poor in progressive terms for all the diseases.


10DeVeLOPMeNT AND ASSeSSMeNT Of TeChNICAL BACK uP fOR CONSuMeRS Of TeXTILeS AND hOuSehOLD DuRABLeS

Neelam grewal

Introduction

Consumers are the largest economic group that has an impact on almost every public and private economic decision. They are playing a pivotal role in the health of economy of country but face many problems while shopping like spiraling pricing, substandard and counterfeit products, adulteration, short measuring, misleading guarantee/warranty, luring sale/discount offers, poor after sale service etc. So it has become difficult for consumers to make judicious choices and many times they fall prey to manufacturers/retailers marketing mal-practices. Though government has set up a well-defined mechanism and protection laws for consumers’ welfare, yet they continue to be cheated and victimized every day.

The problems of obtaining quality goods are on the rise in the case of prepackaged commodities which cannot be inspected before buying. some companies/manufacturers producing quality goods are going in for standardization and quality assurance marks such as IsI, IsO, Agmark, Ecomark, Woolmark, etc. to safeguard consumers' “Rights to safety”. But a parallel line of such manufacturers is also flourishing, who resort to imitation, duplicacy and fake marks resembling the genuine ones, thereby cheating millions of ignorant gullible consumers. Majority of Indian consumers are ignorant and do not know the role of consumption viz-a-viz economic system.


The entire marketing operation is aimed at profit maximization at the expanse of consumers. Malpractices like adulteration, short weights and measures, high prices, false and deceitful practices, and packaging are pervading the market even when Government of India claims to have passed maximum legal laws protecting consumers than any other country in the world.

Though government has passed several Acts and laws to protect consumers and seek redressal of their grievances but the consumers are simply ignorant of these due to their unorganized nature, lack of awareness regarding malpractices, lack of education and inaccessibility of the machinery for setting consumer grievances. Laws are not popular because they are framed in such highly technical terminologies that it would not be possible to comprehend by a layman.

There is a dire need to educate the consumers regarding business malpractices, to enable them to recognize the genuine goods and standardization marks and make them aware of their rights and responsibilities so as to safeguard them from evils of exploitation. This would lead to firm foundation for improving the economy at a micro and macro level. Thus, there is a strong need to study the reasons for such state of affairs and to access the magnitude of problem of malpractices in rural/urban markets, so that suitable strategies can be formulated for protecting consumers. Therefore, the current investigation was undertaken.

Objectives • To gain an insight into the common business malpractices

prevailing in the market with respect to textiles goods and household durables.

• To study the existing buying practices of consumers related to these goods.

• To develop and administer an intervention package containing technical back-up to empower consumers.

MethodologyThe methodology adopted for conducting the research is

categorized under the following subheads:1. Market survey


2. Household survey to study of consumer oriented practices of the respondents.

3. Development and administration of intervention package.

4. Impact assessment of intervention.

5. Analysis of data.

Market SurveyA market survey was undertaken to gain an insight into the

prevailing frauds and business malpractices pertaining to household textiles and durables. The tool used for the purpose included an inventory. The information, thus obtained, has been supplemented by observations of the researchers. The inventory was divided into three parts: -

• Part I and II included questions related to textile goods and readymade garments in terms of quality, care labels and marking, malpractices carried out by the retailers and sale practices and sales promotion techniques adopted by them.

• Part III include questions related to household durables in terms of product specifications, pricing, sales promotion schemes, quality of the product, guarantee/warranty, bill and installment buying and other services provided.

Sampling ProcedurePurpose random sampling technique was adopted for selecting a

sample for the survey. shops pertaining to textiles (running yardage), readymade garments and household durables were purposively selected to gain an insight into the common business malpractices and frauds carried out by the retailers. Ludhiana and Moga districts were purposively selected for conducting the investigation

In total 3 markets were surveyed from Ludhiana because it is a city nearing metropolitan status, with a large number of markets catering to enormous population. From Moga and other towns, the main market which was the only choice has been taken. Five shops each of textile running yardage, readymade garments and household durables were surveyed from the selected markets. Thus, the total number of shops surveyed were 150, comprising of 60 shops from the two cities and 90 shops from the towns selected for the study.


Pre Testing and Data CollectionBefore the actual market survey, the inventory was tested in

a market of Ludhiana, visiting the textile and readymade garment retail shops and the stores selling various household durables. Accordingly, certain modifications were made in the inventory to gain maximum information regarding the business malpractices and frauds.

household Survey to Study Consumer Oriented Buying Practices

Development of Research InstrumentAn interview schedule was prepared to get first-hand

information from the consumers about their buying practices and their awareness regarding the frauds and malpractices going on in the markets pertaining to textile goods and household durable. The interview schedule was divided into four parts:• General information regarding the consumer;• Questions related to purchase of household durables;• Questions related to purchase of textile goods;• Questions related to consumer awareness;

Sampling DesignPurposive sampling technique followed for selecting the

respondents, keeping in view that their literacy level was between senior secondary to graduation. They had enough disposable income to buy consumer goods / durables and were themselves involved in making purchases of the items included in the present study.

Sample SizeAs mentioned earlier, Ludhiana and Moga districts were selected

for the study. Three towns and four villages from each district were identified to select 30 respondents from each city, town and village. A total of 480 respondents were interviewed.

Pre-testing of research instrumentThe interview schedule was pre-tested before using it for

actual data collection. Pre-testing was conducted using 15 non-sample persons in non-sampled area to determine its suitability for achieving the objectives. Accordingly, certain relevant changes


were made in the schedule to get the valid responses and eliminate ambiguity.

Development of Intervention PackageBefore developing the intervention package in the form of

Consumer Education Training Programme, the needs of the respondents were assessed on the basis of data generated through market and household surveys. Based on the results of these, the intervention needs of the respondents were assessed: on wise buying practices for textiles and electronic gadget used in households; Defective weights/measures; Counterfeit products; clone standardization marks; and Consumer Rights and Act.

Development of Technical Backup BookletsThree booklets, covering the above mentioned aspects were

developed as technical backup after referring to the relevant literature. One of the booklets pertained to textiles where as another dealt with the selected household equipments. The contents of the third booklet were related to the Consumer Rights and Act. All these were written using non-technical, easy to comprehend Punjabi Language.

Development of Demonstration KitA demonstration kit on the above mentioned aspects was

developed for imparting knowledge to the respondents selected for intervention. The demonstration kit included booklet, selected counterfeit products, specimens of clone standardization marks and duplicate labels, standardized measuring tape, meter and textile and electronic items both fake and original.

Administration of the Intervention Package

Formulation of small group for the interventionAll the selected respondents were requested to assemble at

a common place for giving intervention. The respondents were appraised of the need and importance of consumer awareness, wise buying practices, consumer rights and responsibility. After a thorough appraisal, they were activated to formulate groups for consumer education action programme. Only those respondents, who were willing to participate in activities related to consumer


awareness, were selected for giving intervention. One group of 15 members from each location was formulated. Thus, the number of respondents who were selected for the purpose was 150.

Execution of intervention programme

Execution of intervention programme was carried out with the help of lecture -cum-demonstrations followed by group discussions. The pre and post exposure test was developed to find out the effectiveness of training to promote consumer awareness.

Impact Assessment of the intervention package

The major impact of the administered intervention package was assessed through gain in knowledge and changes in the attitude and practices of the respondents. A test inventory was developed to conduct pre and post exposure tests of the respondents to assess the efficacy of the intervention programme.

Preparation of VCD

A VCD containing a Punjabi skit on consumer empowerment was prepared. It covered most of the aspects of consumer empowerment that have been dealt within the technical backup booklets and the intervention package. This VCD was shown to rural families during Kisan Melas, Regional Kisan Meals and various trainings organized by the Departments of Clothing and Textiles, Family Resources Management and the Home science personnel working at 19 Krishi Vigyan Kendras in the state of Punjab to empower consumers.

Analysis of Data

The data collected during the two surveys was coded and tabulated. The coded data was used to form appropriate tables according to the specific objectives of the investigation. The impact of intervention was also assessed to study the significant change in the pre and post exposure tests scores of the respondents on the test inventory.

Major findings

Market Survey of Malpractices • None of the 150 retailers surveyed in 2 cities and 6 towns of


Ludhiana and Moga districts of Punjab stocked fabrics having labels that gave information regarding shrinkage and colour fastness.

• More than half of the retailers followed the practice of “no return no exchange” even if the goods were defective.

• Sixty five percent of the total retailers of textile materials refused to provide the bill/cash memo with full details.

• Acrylic garments were sold as pure wool by 56.0 percent of the retailers and 32.0 percent of them stocked garments with counterfeit wool mark.

• Nearly half (46.0 percent) of the retailers of readymade garments lured the customers through sales and free gifts.

• Further forty two percent of the retailers refused to give the bill, the percentage was more in towns than cities.

• Thirty eight percent of the retailers gave the bill that had the line “Goods once sold will not be taken back” typed at the bottom of the bill. This practice was more common in cities than towns.

• Twelve percent of the total retailers charged taxes in addition to the displayed MRP. This was more common in cities than towns.

• Malpractices in retail of selected household durables clearly showed a city/town divide. The results revealed that in the case of household durables, brand imitation and misleading information regarding standardisation of equipment were more prevalent in towns as compared to cities.

• Brand imitation was less in the case of major electrical appliances such as refrigerator, washing machine, television, whereas fifty percent of the retailers in towns were found selling fake and fraudulent products like electric bulbs, irons, electric fans and mixer grinders. some of these were being marketed under well-known brand names though the particular companies are not into manufacturing of these products. The percentage of such retailers was only 15.0 percent in cities.

• All the retailers in cities sold household durables with genuine standardization marks. However, in towns only 85.00 percent of the retailers sold genuine goods.


• The facility of after sale service for major appliances was provided by only 34.0 percent of the total retailers. The list of service centres was provided to the customer by only 36.0 percent of the retailers.

• All the retailers of branded household durables provided guarantee/ warranty cards and almost all the cards had clarity of language. Only 73.6 percent of the total retailers properly signed the guarantee/warranty card.

• seventy two percent of the total retailers provided bill only for major electronic products like television, refrigerator, washing machine etc.

household Survey on Purchase Practices and Awareness of Con-sumer Respondents’ Purchase Practices related to Textile goods • Less than 60.0 percent of total respondents (n=480) surveyed

visited two or three shops to conduct pre-purchase survey before making the actual purchase of textile goods. Nearly 1/4th of respondents purchased textile goods from one fixed shop while the remaining 15.0 percent visited many shops before actual purchase.

• Retail stores and wholesalers were the most preferred purchase points for textile goods.

• Both urban as well as rural respondents preferred to check quality of fabric by touch. Majority of respondents ignored checking of labels and testing of colour fastness.

Problems experienced by Respondents while Purchasing Textile goods • Majority of respondents reported the problem of overcharging,

followed by poor quality, short measuring, poor printing and finishing.

• Major technical problems faced by the respondents with regard to selection of fabrics in a descending order were lack of knowledge for assessment of fabric durability (38.74 percent), fibre content (34.37 percent) and uneven fabric thickness (32.70 percent).

Respondents’ Purchase Practices related to household Durables• A larger percentage of urban (60.00 percent) and rural (43.75


percent) respondents made price/quality comparison before actual purchase but shopping time decision and information search about brand, quality, price and performance of a product to be purchased were accorded least priority by the respondents.

• search for a particular brand of a product was mostly undertaken by a large number of rural respondents (58.32 percent), whereas majority of urban respondents (57.07 percent) looked critically for the quality, followed by brand 52.91 percent.

• More than half of urban respondents attached importance to guarantee/warranty and durability of the product. About 1/3rd of urban respondents (34.16 percent) also looked for standardization marks of the product being purchased, whereas 24.99 percent of the rural respondents looked for standardization marks.

• Only a few rural as well as urban respondents considered availability of spare parts, after sale services, additional new features and wattage/voltage requirements for the equipment being purchased.

Problems experienced by Respondents while Making Purchase of household Durables • The problem of overcharging was highlighted by majority

of rural (44.15 percent) as well as urban respondents (59.57 percent), followed by poor quality. Nearly 1/4th of rural and urban respondents reported the problem of poor after sale service.

• Both urban (47.49 percent) as well as rural respondents (31.66 percent) perceived guarantee/ warranty at first place as a right of replacement and servicing of a product. Majority of rural (63.75 percent) and urban respondents (87.08 percent) had a positive attitude towards guarantee/warranty.

Consumer Awareness• Only 33.74 percent respondents were aware of the care labels

while 51.24 percent of the urban respondents were aware of the brand labels.

• Awareness regarding certified labels was more among urban respondents. The foremost reason for checking the labels was to compare prices of the textile goods.


• Majority of rural respondents (61.66 percent) were able to distinguish between fake and original IsI mark where as 56.24 percent urban respondents could recognize the original lsI mark.

• Only (12.50 percent) urban and 4.17 percent rural respondents approached consumer forums for seeking redressal of their grievances. This shows that inspite of the safety measures, consumers are not getting any benefit because of their ignorance. so, consumer education should be given top priority especially in rural areas.

• An intervention package was developed which contained information regarding wise buying practices, fakes and fraudulent practices prevalent in the market, consumer rights, Acts and fora for redressal of their grievances. This package had a statistically significant impact on improving the awareness of the consumers regarding the topics dealt with.

Recommendations

for protecting consumers against market frauds• Display of rate list of goods and products in showroom, which is

mandatory for retailers, need to be enforced strictly.• The information regarding the specifications about equipment

should be displayed legibly and prominently at a place on the equipment where it can be conveniently seen/read.

• Detailed information about the material used for construction of equipment e.g. gauge, quality, finish given should be provided in addition to other specification of machine and additional features. similarly, for textiles, quality of yarn, content of different yarns should be mentioned on the labels.

• In the case of seconds products both in the textiles and the durables segment, the word sECONDs should be written clearly and prominently so that the consumers are not duped by the price difference only.

• Provisions, terms and conditions of guarantee/warranty of each equipment should be made available with the dealers to enable the consumers to make a comparison of the terms and conditions of different brands of specific equipment, comparison of different products.


• In order to make a guarantee/warranty card more comprehensive, reliable and authentic documents, terms, and conditions of guarantee/warranty should be simplified. Further, it should be made available in Hindi and other local languages as well. To create awareness among consumers about guarantee/warranty card, it should be made obligatory for the dealers to help the consumers by explaining the terms and conditions of guarantee/warranty at the time of purchase.

• For proper utilization of guarantee/warranty, consumer should be properly educated about the failure occurring due to their negligence and mishandling during the stipulated period.

• Date of manufacture should also be printed prominently on the textile goods and household durables to ensure the delivery of fresh stocks to the consumers.

• Availability of spare parts should be ensured with the dealer/service centre by the manufacturer until the expected average life of equipment.

for Creating Consumer education and Awareness• A Consumer Guidance Cell should be formed in each city, where

experts should guide people how and where to seek redressal for their complaints related to different goods and services.

• There is a greater need to involve youth/women in consumer movement. Consumer activists should also organize rallies for creating awareness regarding wise purchase practices and strengthening consumer movement.

• Agencies related to formulation of product standards should whole heartedly publicize their standardization marks, sensitizing the consumer regarding the original marks and fakes that are deceptively similar to the originals. They should also organize frequent seminars, exhibitions, and distribute literature among consumers for creating awareness regarding original and fake quality marks.

• Consumers should be made aware of the product ranges of household durables made by various leading companies so that they are not duped through the sale of duplicate products.

• There should be interaction between consumer activists and educationists. school/college teachers should be trained and


educated from time to time to make them well equipped to update their knowledge regarding latest addition and amendments in consumer related issues.

• Training courses should be organized in the rural areas to create awareness among consumers.

• Time and frequency for Radio and T.V. Programmes related to consumers’ issues should be increased. Private TV channels and FM radios should also be roped into telecasting/broadcasting consumer empowerment programmes.

• Non-government consumer organizations should play a proactive role in spearheading the consumer awareness movement. Consumer clubs should be established at the community level where these do not exist.

• Depending on the number of pending complaints and area of jurisdiction of the commission, additional fora, more number of full time officials/staff and resources should be made available by the government. This will help in quicker redressal of consumer grievances so as to instill a sense of confidence and faith among the consumers in the redressal mechanism.

• Volunteer from bar associations should also come forward for creating awareness about existing consumer rights/Laws and help removing any apprehensions and misconceptions. They should also provide free legal assistance for redressing consumers’ complaints as a part of their social obligation.

Conclusion

From the results of present research study it is concluded that sale of substandard, counterfeit equipment and textiles is rampant in small towns and villages of Punjab. The poor villagers are practically fleeced and looted as they do not have sufficient knowledge about wise buying practices, standardization marks and consumer protection services. Majority of rural people rely on shopkeepers while making purchases and are subjected to cheating/ exploitation. Both urban and rural consumers are at receiving end and at the mercy of suppliers of goods in the market. This is not solely because of manufacturers and marketers, but more so because of their own lack of awareness regarding the rights and responsibilities as consumers.


It is quite disappointing to note that less than 10 percent of total respondents utilized the services of consumer forums for seeking redressal of their grievances. so to educate consumers and bridge the gap between availability and utilization of consumer protection services offered by the government, an intervention package was developed and administered among selected respondents which had significant impact on consumer behaviour and knowledge.


11DeSIgNINg A STRuCTuRAL MODeL fOR MeASuReMeNT Of SeRVICe QuALITy IN RAILwAyS AND hOSPITALS wITh SPeCIAL RefeReNCe TO TAMIL NADu AND KeRALA STATeS

S. Rajaram

Introduction In order to survive in the business environment today, most

research places emphasis on service quality. Service quality is defined as foundation of a comparison between customers’ expectations and perceived performance of service providers. Customers’ expectations are defined as what customers want or desire, based on their antecedent experiences with the firm. Customer expectations compared with actual service performance results in the assessment of quality that customers obtain from particular service providers. The research analyses the inconsistency between customers’ expectations and their perceived service (performance) in specific service like Hospitals and Railways.

The dimensions of service quality are tangibility, reliability, responsiveness, assurance, and empathy. Outstanding service quality can lead to favourable behavioural intentions, which may result in improved customer retention (Zeithaml et al., 1996). By analyzing information about a customer’s tenure, company is able to forecast customer duration and whether the customer is likely to stay loyal to the company or not. Customer retention could help a company to increase its profitability and revenues as well as it generates referred customers in the future.


India is a land of diverse culture, and railways play a key role in meeting the transport needs of the country, but also in binding together dispersed areas and promoting national integration. Railways, being the more energy efficient mode of transport, are ideally suited for movement of bulk commodities and for long distance travel. As compared to road transport, railways have a number of intrinsic advantages. Railways are five to six times more energy efficient, four times more efficient in land use and significantly superior from the standpoints of environment impact and safety. Indian railways, therefore, rightly occupy place of pride in the growth and development of the nation.

Indian Railways is the largest rail network in Asia and the world’s second largest under a single management. spreading over the country’s vast geographical area, Indian railways is a multi-gauge, multi-traction system covering over 1 lakh track km. It runs some 11,000 trains every day, including 7,000 passenger trains. The passenger traffic has increased from 1.28 to 4.2 billion in last 40 years, making Indian Railways (IR) a leading passenger carrying railway in the world. This has placed a difficult task on the passenger to choose the best route for his journey from many alternatives.

While choosing a hospital, it is not always wise to simply go the closest facility or to assume that the biggest is the best one in your area. For the best possible results, you need to select a hospital that’s best suited to your particular needs. All hospitals have strengths and weaknesses. The type of illness must be considered before choosing a hospital. some hospitals are known for specializing in certain areas. On one hand, hospitals typically have the most experienced doctors training the interns.

The overall reputation of the hospital is asking family and friends about personal experiences. That provides the most direct insight into the quality of care received. In addition to this logical research, many people are able to feel in their gut, if they are in an unsafe hospital. Recovering from minor and major illnesses alike takes considerable internal strength. Feeling comfortable in a hospital may help speed up your recovery. Patient choice, particularly the choice of hospital, has been at the heart of health policy for a number of years. The aim of this policy is to create competition, which in turn drives improvements in quality; for this to work effectively, patients have to make their choices on the basis of clinical quality.


Design of the StudyThe services marketing literature indicates that there is a

significant difference between goods and services as to merit. Looking at that, the question arises whether generalization based on products can be applied to services. These differences between products and services give rise to the question whether the normative relationship exists among service quality, satisfaction, repurchase behaviour and loyalty as graphically depicted in figure 1. The domain of study is defined to be service industry.

figure 1: A Strategic Model of Customer Loyalty

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figure 1: A Strategic Model of Customer Loyalty

Statement of Problem Various research studies have shown wide gap between the customer expectation and perception with the management and they are continuously increasing trend in the service sectors like Railways and Hospital. Many railway stations are in gross disrepair, dirty, outdated and overcrowded, especially when compared to stations in developed countries. sometimes passengers are seen on trains hanging out windows and even on the roof creating safety problems. The interior of many train compartments are poorly maintained from rust, dirt and common wear and tear. Given the political infighting, corruption and inefficiencies, it is understandable that there are overcrowding, cleanliness and other maintenance issues. Although accidents such as derailment and collisions are less common in recent times, many are run over by trains, especially in crowded areas. Indian Railways have accepted the fact that given the size of operations, eliminating accidents is an unrealistic goal, and at best they can only minimize the accident rate. Human error is the primary cause, leading to 83 percent of all train accidents in India. While accident rates are low – 0.55 accidents per million train kilometre, the absolute number of people killed is high because of the large number of people making use of the network. While strengthening and modernization of railway infrastructure is in progress, much of the network still uses old signalling and has antiquated bridges. Lack of funds is a major constraint for speedy modernization of the network, which is further hampered by diversion of funds meant for infrastructure to lower-prioritized purposes due to political compulsions. A hospital, in the modern sense, is an institution for health care providing patient treatment by specialized staff and equipment, and often, but not always providing for inpatient care or longerterm patient stays. Today, hospitals are usually funded by the public sector, by health organizations (for profit or non-profit), health insurance companies or charities, including by direct charitable donations. Health is wealth. The real benefit of any wealth is realized by the society if only there is health. Hence, it is emphasized upon to improve the health status of people at each level along with all the efforts to increase the income of the country. Accordingly, technological advances, improvement in the access to and utilization of health services in the country are given due consideration in our health policies. In fact, India has built up a vast health infrastructure and manpower. However, the extent of access to and utilization of health care services varied substantially between states, regions and society. The variation with the service sectors’ Service Quality Dimension’s (SQD’s) segment varies in satisfying the customer. Due to this fact a comprehensive study is required to study the customer behaviour and service quality offered by the industries to their prospective customers. The intangibility and associated distinctive characteristics of services lead to some problems which are somewhat unique to services’ marketing. One of the major problems faced by the service provider is to control quality and to offer a consistent product (service) to the customers. A tangible product quality can be technically and statistically specified and can be checked for conformance with the specified standards before it reaches the customer. The subjective makes it imperative for the marketers to take into cognizance the customer perceptions of service quality so that the service package defined and planned by the marketers is close to the one that is expected by the customer. “In the context of services, consensus seems to be emerging on defining the value in terms of the consumers’ overall assessment of the utility of a product based on perceptions of what is received for what is given” (Zenithaml 1988). Service value takes into account the benefits defined in terms of perceived quality and satisfaction as well as the sacrifice made by the consumers. This conceptualization is found to be superior in explaining the behavioural outcomes. The purpose of the research was to address these concerns by focusing and building upon the concept of service value through an empirical investigation. The primary objective of research was to investigate the relationships among service quality, consumer satisfaction and casual ordering of these constructs in the determination of behavioural intension of customers. This research was required to evaluate perceived level and expectation (desired) level of the customers towards the service rendered by Railways and Hospital sector. This research re-affirms the

High Quality

High Satisfaction

Repeat Purchase

Customer Loyalty

Statement of Problem Various research studies have shown wide gap between the

customer expectation and perception with the management and they are continuously increasing trend in the service sectors like Railways and Hospital. Many railway stations are in gross disrepair, dirty, outdated and overcrowded, especially when compared to stations in developed countries. sometimes passengers are seen on trains hanging out and even on the roof creating safety problems. The interior of many train compartments are poorly maintained and in bad condition due to rust, dirt and common wear and tear. Given the political infighting, corruption and inefficiencies, it is understandable that there are overcrowding, cleanliness and other maintenance issues. Although accidents such as derailment and collisions are less common in recent times, many are run over by trains, especially in crowded areas. Indian Railways has accepted the fact that given the size of operations, eliminating accidents is an unrealistic goal, and at best they can only minimize the accident rate. Human error is the primary cause, leading to 83 percent of all train accidents in India.

While accident rates are low – 0.55 accidents per million train kilometre, the absolute number of people killed is high because of the large number of people making use of the network. While


strengthening and modernization of railway infrastructure is in progress, much of the network still uses old signalling and has antiquated bridges. Lack of funds is a major constraint for speedy modernization of the network, which is further hampered by diversion of funds meant for infrastructure to lower-prioritized purposes due to political compulsions.

A hospital, in the modern sense, is an institution for health care providing patient treatment by specialized staff and equipment, and often, but not always providing for inpatient care or longer term patient stays. Today, hospitals are usually funded by the public sector, by health organizations (for profit or non-profit), health insurance companies or charities, including by direct charitable donations. Health is wealth. The real benefit of any wealth is realized by the society if only there is health. Hence, it is emphasized upon to improve the health status of people at each level along with all the efforts to increase the income of the country.

Accordingly, technological advances, improvement in the access to and utilization of health services in the country are given due consideration in our health policies. In fact, India has built up a vast health infrastructure and manpower. However, the extent of access to and utilization of health care services varied substantially between states, regions and society. The variation with the service sectors’ service Quality Dimension’s (sQD’s) segment varies in satisfying the customer. Due to this fact a comprehensive study is required to study the customer behaviour and service quality offered by the industries to their prospective customers.

The intangibility and associated distinctive characteristics of services led to some problems which are somewhat unique to services’ marketing. One of the major problems faced by the service provider is to control quality and to offer a consistent product (service) to the customers. A tangible product quality can be technically and statistically specified and can be checked for conformance with the specified standards before it reaches the customer. The subject makes it imperative for the marketers to take into cognizance the customer perceptions of service quality so that the service package defined and planned by the marketers is close to the one that is expected by the customer.

“In the context of services, consensus seems to be emerging on


defining the value in terms of the consumers’ overall assessment of the utility of a product based on perceptions of what is received for what is given” (Zenithaml 1988). service value takes into account the benefits defined in terms of perceived quality and satisfaction as well as the sacrifice made by the consumers. This conceptualization is found to be superior in explaining the behavioural outcomes. The purpose of the research was to address these concerns by focusing and building upon the concept of service value through an empirical investigation. The primary objective of research was to investigate the relationships among service quality, consumer satisfaction and casual ordering of these constructs in the determination of behavioural intension of customers. This research was required to evaluate perceived level and expectation (desired) level of the customers towards the service rendered by Railways and Hospital sector. This research re-affirms the sequence “Service quality”→ “Customer satisfaction” → “Customer loyalty” as best reflecting the causality of relation between its constituent variables.

The consumers evaluate services by comparing their expectations of what will happen during a service encounter with their perceptions of the actual service received. Where service encounter experiences are better than expected there is positive disconfirmation and customers are satisfied. But where the experience is worse than expected there is negative disconfirmation and customers are dissatisfied. The difference between expected service and perceived actual service is conceptualized as a gap. To exceed the customer satisfaction service providers should aim to close this gap between management and customer. The Gap Model is used to identify the gap in the research work.

The four provider gaps can be identified as follows:1. Not knowing what customers expect – the gap between customer

expectations of a service and the company understanding of customer expectations.

2. Not selecting appropriate service designs/ standards – the gap between the company understanding of customer expectations and development of customer focused service designs.

3. Not delivering to service standards – the gap between development of customer focused service designs and actual service delivery by service providers.


4. Not matching performance to promises – the gap between service delivery and external communications to customers. The four provider gaps are summed in gap five, which between

customer expectations of service and the perceived service actually delivered.

Purpose of Research service quality is a considerable part of business, so it is

important to measure its effectiveness properly and correctly. This study was conducted in selected states of Tamil Nadu and Kerala. The purpose was to identify sQ dimension, which is the best predictor of Overall Service Quality. The individual SQ factors that influence customers’ quality perceptions as well as relative importance of these influencing factors and weighting are the source of their service quality perceptions. As a step towards increasing manageability of service quality, research herein considers the efficiency of (1) service quality dimensions and (2) expectation – perception gap analysis as two techniques for operationalizing service quality so that it can be better understood, specified, measured and finally improved. It is important to note that most published works on quality have come from practitioners’ sources and only recent interest from academic researchers. In addition, most of the works by both practitioners and academicians have concentrated on understanding “goods” quality rather than “service” quality. The intent of this study was to contribute to the development of a process to operationalize the service quality constructs.

The research evaluates customer experience and performance level in relation to the antecedents of behavioural loyalty. Behavioural loyalty is evaluated in relation to customer loyalty, willingness to pay more, non-switching to competitor and positive response towards the problem response. Customer satisfaction is evaluated in relation to the antecedents in the selected service sectors performance and service quality. The research provides an empirical evaluation of the relationships among the individual service quality dimensions of service sectors performance, customer satisfaction and behavioural loyalty. This research seeks to identify measures that can be used in industries for the purpose of assessing customer service effectiveness. This research is very useful for the decision makers who will further improve services to their customers and


gain competitive advantage. This research provides a brief review of the relevant approaches that have been used for the measurement of customer satisfaction.

As a whole, this research investigates antecedents of behavioural loyalty. The research empirically investigates the direct relationship among performance of the sector, customer satisfaction and behavioural loyalty. It is important to understand the aspects of business performance that persuade customers to become repeat purchasers and to exhibit behavioural loyalty. The overall research intent is to identify the antecedents and influences on behavioural loyalty. The research includes development of a scale to measure the Hospitals and Railways service sector performance in relation to the aspects of experience by customers.

Objectives of the Research

This research was designed to contribute towards closing the gaps in the literature on two distinct though interrelated areas a) the cross-sectional applicability of the revised sERVQUAL metric, b) the relationships among service quality, customer satisfaction and customer loyalty at the level of dimensions. The research objectives were:

1. To scrutinize the impact of demographic factors of customers in railways and hospital with special reference to Tamil Nadu and Kerala states.

2. To determine service gap between the perception and expectation level of customers in railways and hospital.

3. To determine the relative importance of service quality dimensions in the Hospital and Railways sector.

4. To determine the conceptual linkages among constructs of satisfaction, service quality and behavioural intention.

5. To identify the mediating variable of service quality dimension which leads to overall satisfaction of customers in railways and hospital.

6. To examine the impact of service quality dimensions of service sectors which influence overall service quality leading to satisfaction and behavioural intention of customers.


Research Question(s)

In particular, the impacts of service quality, customer satisfaction were investigated to identify their effect on future behavioural intention. This research addresses the following questions:

a. How to identify the impact of demographic variables on the service quality measurement of RATER dimensions (Reliability, Assurance, Tangible, Empathy and Responsiveness) in the selected service sectors like Railways and Hospital?

b. How the service gap is determined among the perception and expectation level of customers in the Hospital and Railways sector?

c. Explain the relationship between customers’ evaluation of overall service quality and discrepancies between customers’ perception?

d. Which of the service quality dimensions are the best predictors of overall service quality in the Railways and Hospital sectors?

e. How the impact of behavioural intention towards service quality dimensions and customer sAT (satisfaction) in the Hospitals and Railways sectors can be determined?

f. How a structural service model can be designed for determining the customer linkage between customer behaviour, service quality and overall satisfaction of the customers in Hospital and Railways sectors?

Research Design

An explanatory research design was used to answer the research questions and to test the hypothesis in this study. The design has examined the relationships among specific service industry customers’ socio-demographic variables, customer perceptions and expectations of service quality dimensions emphasizing the customer retention which are examined by behavioural intention of customers. Behavioural intention is measured using questions from the Behavioral-Intention Battery developed by Zeithaml, Parasuraman and Berry in 1996. Independent variables are customers’ perceived service quality and expectations of service providers.


Quota Sampling Method for hospital

The present study was designed with the cooperation of the doctors and patients (customers) an initial evaluation of HOsPQUAL instrument for hospital sector. It was also important that the hospitals are of a reasonable size to provide a suitable number of responses within the given time frame and the hospitals selected each have a minimum of 15 to 20 beds with basic physical facilities of hospital. Quota sampling approach was applied for collecting the samples from the patients. Quota sampling is an approach whereby the researcher selects a non-probability sampling technique in the representative of population as a whole. Totally 750 patients were selected and 926 subjects agreed to participate in resulting with a response rate of 81 percent. Totally 850 HOsPQUAL questionnaires were distributed for collecting the primary data from patients.

Purposive Sampling Method for Railways: Purposive sampling approach was applied for collecting the

samples from the passengers. Totally 718 customers were selected and 940 subjects agreed to participate in resulting with a response rate of 76 percent. Totally 950 RAILQUAL questionnaires were distributed for collecting the primary data from passengers.

Research Area In the present study, the primary data was collected from

selected districts of Tamilnadu and Kerala states. From Tamil Nadu, eleven largest districts out of 31 districts were selected; which were Ariyalur, Chennai, Coimbatore, Cuddalore, Dharmapuri, Dindigul, Erode, Kanchipuram, Kanyakumari, Madurai, Thanjavur, Nilgiris, Thoothukudi and Virudhnagar. In Kerala state, there are 14 districts. Out of which 5 districts were selected for the research which were: Ernakulam, Kottayam, Kozhikode, Thrissur and Thiruvananthapuram.

findings

Customer Satisfaction Effect on Behavioural Intention in Hospital: In Hospital, the effect of patients’ satisfaction on behavioural

intention dimensions like word-of-mouth, positive problem response, willingness to pay more and not switching to competitor,


were found to be significant. Although the joint effect of customer satisfaction and word-of-mouth dimension are influenced by patients getting treatment in hospitals, which is significant. This means that customer satisfaction does not directly affect the retention of customers (patients), but only through word-of-mouth. The hypothesis that direction of the causal relationship between word-of-mouth and behavioural intention of the patients is confirmed in Hospital.

Customer Satisfaction Effect on Behavioural Intention in Railways: In Railways, the effect of passengers’ satisfaction on

behavioural intention dimensions like word-of-mouth, positive problem response, willingness to pay more and not switching to competitor were found to be significant. Although the joint effect of customer satisfaction and word-of-mouth dimension are influenced in availing the train service by passengers, which is also significant. This means that passenger satisfaction does not directly affect their retention, but only through word-of-mouth. The hypothesis that direction of causal relationship between word-of-mouth and behavioural intention of the passengers is confirmed in Railways.

The model can be considered as accurately portraying the relationships among service quality dimensions, customer satisfaction and behavioural intention dimensions in the selected service industry. The proposed service model for service industry describes clearly the existence of an unbreakable chain of effects that starts from the dimensions of service quality and leads to the dimensions of behavioural intention. The whole construction is built on service quality. The effect is through customer satisfaction, serving as a mediating variable, is extended to the dimensions of behavioural intention.

In the service model network relationships between variables influence the future intentions of customers to recommend other to purchase the products or services is very important. It is well documented that word-of mouth is perhaps the most important promotional vehicle in the services industry. Under these considerations the model could serve as a system for directing quality investments. They have the most positive effect on customer satisfaction, on customer loyalty and especially on word-of-mouth dimension. However, the service model should be used as


a framework on which researchers and managers would attach additional marketing variables for better understanding the process which leads customers to be prepared to build long- term bonds with their service providers.

ConclusionThe researcher has shown that the applicability of HOsPQUAL

/ RAILQUAL scale across the Hospital and Railways sector is still open. This research re-affirmed the applicability of SERVQUAL provided that the scale is appropriately customized. It also provided additional knowledge on the dimensionality of the HOsPQUAL / RAILQUAL metric. The research has confirmed previous research findings on the causal relationships among service quality, customer satisfaction and customer loyalty. Further, the study is appropriately extended to examine these links at the level of service quality dimensions on customer satisfaction and behavioural intention dimensions.

The findings that all dimensions of service quality do not equally influence customer satisfaction as a contribution to the existing knowledge on the impact of service quality to customer satisfaction. The causal relationship ‘customer satisfaction’ ‘behavioural intention’ is also confirmed. The finding of this study that word of mouth is an antecedent of behavioural loyalty and that customer satisfaction have a direct effect on the latter, offers support for comparable findings that appeared in the literature (Luarn and Lin, 2003; Bandyopadhyay and Martell, 2007). This research is built on previous findings on the relationships of service quality with customer satisfaction and behavioural intention of customers. It has examined these relationships under a new perspective that associates the importance of service quality dimensions.

Further, this study associates the importance of service quality dimensions with the strength of their relationships with customer satisfaction. Hence, a wide variety of industries will be benefitted by replication of this study. The conclusions from this study are valuable on a number of accounts. The empirical study is taken to explain service quality and customer satisfaction which are the most important determinants for the service sectors. The study produces important conclusions and challenges on long established assumptions on the identity and homogeneity of domestic markets.


The outcome of result indicated that customer perceptions are not equal to their expectations. The output also indicated that customers expect much in the way of outstanding service. The research identified that service quality is a strong contributor, where customer satisfaction is mediation leads to positive effect on behavioural intention of customers. Both customer satisfaction and service quality have a significant effect on influencing the behavioural intention of customers, is also statistically proved in this research.

References 1. Zeithaml, Berry and Parasuraman (1996). Testing the Factor structure of

the Behavioral-Intentions Battery: An Empirical study of the Australian Banking Industry. ANZMAC 2002 Conference Proceedings, 2901-2907.

2. Zeithaml, VA, Berry, l.l. & Parasuraman, A. (1988). Communication and Control processes in the delivery of service quality, Journal of Marketing, 52(2), 35-48.

3. Luarn, P. and Lin H-H. (2003). A customer loyalty model for e-service context. Journal of Retailing, 82 (4), 367-377

4. Bandhpadhyay, s. & Martell, M. (2007). Does attitudinal loyalty influence behavioural loyalty? A theoretical and empirical study. Journal of Retailing and Consumer Services, 14, 35-44


12wORKINg TOwARDS A CONSCIOuS AND effICACIOuS CITIzeNRy AND ReSPONSIVe AND ReSPONSIBLe STATe AND The MARKeT: AN IMPACT eVALuATION Of The CONSuMeR PROTeCTION ACT ON The AwAReNeSS AND ATTITuDeS Of The CONSuMeRS IN DeLhI

Rajvir Sharma

Introduction

Consumer and his interests have been attracting the attention of the lawmakers, the administrators and the civil society institutions all over the world in view of the increase in (a) the number and variety of goods and services available; (b) size and complexity of production; (c) the level of sophistication in marketing and selling practices and in advertising apart from the reduction in personal interaction between buyers and sellers. A number of laws were there in the statute book of India having an implication for the protection of consumer rights and interests like the Indian Contract Act, the sale of Goods Act, the Dangerous Drugs Act, the Agricultural Produce (Grading and Marketing) Act, the Indian standards Institutions (Certification Marks) Act, the Prevention of Food Adulteration Act, the standards of Weights and Measures Act etc. The consumers were, however, handicapped to get speedy justice as they could file only civil suits under these laws, disposal of which took quite a long time.


India passed Consumer Protection Act in 1986 which was amended in 1993 and 2002 to provide speedy and inexpensive redressal of consumer’s grievances and provide protection against his exploitation by the powerful market and un-empathetic officialdom of the country. The Act provides for the safeguards in the form of, among others, the Consumer Disputes Redressal Commissions/Foras at the national, state and the district levels to provide necessary relief to the consumers from the arbitrary and arrogant treatment meted out to the consumers by the public and private providers of goods and services in the modern age of globalization characterized by higher rate of competition to grab the market and reach the consumer. In the process, the consumer is caught unaware and becomes a victim of wrong doings of the market players and apathy of the public servants. The question that arises in view of the laudable objectives of the Act is whether and how far has this consumer’s charter been able to impact and shape the attitudes and behaviour of all concerned-the consumer, the market and the State. The consumers are quite often unsatisfied and discontented on the questions of quality, quantity and the price. At the same time, it has also been generally observed that the common man prefers to suffer silently either because he feels helpless and inefficacious in view of the general anti-consumer environment. He thinks that nothing could be done to improve the state of affairs. A sense of despondency is seen wide and deep in his person or it could be the case of mere ignorance or lack of information about the institutions established for redressal of consumer disputes/ complaints as well as the procedures, practices, rules and regulations pertaining to the protection of their rights as consumers.

In order to bring this movement out of the state of infancy, the state is playing a determined role in generating consumer rights' awareness in the public through different modes and means including the involvement of schools, universities and colleges apart from establishing a number of consumer grievance redressal mechanisms at national, state and district levels. Pertinent question here, however, is whether these institutions are satisfactorily functioning in terms of its sittings, the disposal of cases in time, in providing consumer-friendly environment inside the forum premises at district level, in giving cost effective justice to the consumer. The study assumes significance in view of the emerging global, social and economic realities to know the place of the consumer in the faceless market.


Objectives of the Study

The project was undertaken with a view to evaluate and assess the changes in the attitude and behaviour of consumer, market and the state with the passage of the Consumer Protection Act, 1986, i.e., whether the legislative and administrative efforts to safeguard the interests of the consumers by protecting against exploitation by the providers of goods and services in the public or private sector proved to be productive, efficient and effective in realizing its goals. Thus, the study aimed at:

1. assessing and evaluating the levels of awareness among the respondent consumers about their rights with a view to know the extent of consciousness and responsibility of the citizenry to defend their rights by filing complaints against the defaulters so as to instill a sense of accountability and responsiveness in the providers of goods and services;

2. understanding and analyzing the role of social and economic status in building and sustaining knowledge, culture and behaviour structure in the process of empowering the consumer;

3. making an effort to know the extent of awareness of the consumers about law, redressal machinery and procedures of action and solutions or the type of relief he/she could demand from the forums against the opposite party for defects and deficiencies.

4. knowing and analyzing the level of satisfaction of the complainants about the speedy and inexpensive disposal of their case/s and about their views on the reforms in the working of the consumer forums at different levels; and

5. an attempt to suggest measures to improve awareness intensity of the consumers and ways and means to improve the working and performance of the consumer forums.

6. analysis of the factors of dissatisfaction of the complainants regarding the access and nature of delivery of justice to them.

Locus of Research

The study was first conceived for the whole of the national capital territory of Delhi that was later delimited to the south and North-West Districts of Delhi. Delhi and the specified areas therein were


deliberately chosen for the purposes of study basically because Delhi is perceived to be a centre of highly mobilised populace on social, political and cultural scale; community interaction and interface of people with the market and the state agencies is greater here. Media plays an active role in opinion formation, awareness generation and building consciousness and efficacy among the citizens. The cumulative effect of all these factors, it was presumed, would be more informed, participative and assertive citizenry to make full use of the provisions of the CPA. At the same time the study was confined to the South and the North-West Delhi to assess the levels of awareness and use of the CPA by the rural and urban segments and also to understand and analyse the level of difference/s, if any, between the consumers of the two localities.

Research Methodology

The study was carried by employing survey method of research. The selection of respondents was done on the basis of purposive random sampling. The respondents were chosen from the targeted groups from different social strata inclusive of the gender, income, occupation, education and age. The respondents were divided, for instance, into middle income group/class, low income category from the unauthorized or rehabilitation colonies. Occupationally the sample consisted of teachers, self-employed persons, and employees in government and private organizations. It may be stated here that the researcher first applied a pilot survey method to know the feasibility of the acceptability and understanding of the questions by the respondents. The pilot study was done on around 30 persons of different categories and it was found that the medium of the questionnaire has to be both English and Hindi. Moreover, the size and nature of the questionnaire and questions were recast in view of the experience in the field. Again, it was with great difficulty 150 complainants pursuing their cases in the District Consumer Forums agreed to fill the questionnaire after assurance that the questionnaire would not have any implications for their case. This tendency of avoiding the filling up of questionnaires was reported from the field also.

The total sample included 200 teachers from the government and private schools, 200 self-employed persons mainly from the vllages and the unauthorized colonies, 100 employed persons, 150


complainants currently pursuing their complaints in the District Consumer Forums, 150 selected from the two villages of shikarpur and Tikari Kalan along with 50 persons from the unauthorized /slum areas of sangam Vihar in the south and Mangolpuri and shakurpur in the North.

Major findings and Recommendations1. Level of awareness about the consumer rights, District

Consumer Forum and Consumer Protection Act is higher among the teachers, employees and the self-employed in the descending order.

2. Age is an important factor in awareness among the rural population. The young respondents were found to be more aware than the middle aged or old age persons.

3. socio-economic background did not matter in relation to the knowledge about standards marks like IsO, Hallmark or AGMARK.

4. In the opinion of the majority of the respondents, the efforts made by the government to generate awareness were not adequate.

5. Education is linked with the level of awareness about the District Forum and consumer rights.

6. Majority of those provided with defective goods or services tend to get the matter resolved at the source of supply rather than taking to the consumer forum or they tend to bear with; that indicates greater degree of tolerance/patience. When the researcher tried to know the reasons for such attitude of the consumers, some did not answer while some said low cost of the item, lack of time, cost of litigation being higher than cost of the good purchased etc. influenced their decision of not taking any action.

7. The level of awareness in the slum or resettlement areas was more among the female (60 percent) than male (47 percent) about the consumer forums and vast majority of the respondents got this information through the radio/TV (71.4 percent of males and 75 percent of females said so). In the case of knowledge about the District Consumer Forum, the level of information among the women was zero while 30.43 percent male were


aware about their District Courts or Forums.8. Income is seen as an influential factor in the determination of

the level of awareness in the rural areas. However, the level of awareness even among the teachers and the employed was found to be low in general in two villages.

9. The responses to the question of replacement of the defective good by the supplier show that the market is more responsive to the young, male, MIG, teachers and graduates and post graduates and least in case of low income and service category and middle aged persons.

10. 100 percent high income, 40 percent low income, 75 percent employed and 16.6 percent self-employed complainants think consumer forum to be the right place to approach for the protection of consumer interests.

11. study shows that 50 percent young, 25 percent middle age, 38.46 percent male, 50 percent low income engaged lawyer to present their case before the forum while 100 percent of the MIG, HIG, women, teachers, 83.3 percent post graduates and 80 percent employed presented their case by self. These figures indicate that the CPA has been successful in creating some impact on the attitudes of the complainants to contest their cases themselves in order to make use of the arrangements for inexpensive justice for consumers.

12. The level of complainants’ satisfaction with the attitudes and decision of the consumer forums was found to be low among the youth (20 percent), the male (45 percent), low educated (25 percent of those who belonged to the secondary education category), self-employed and the employed (50 percent each).

13. The time limit prescribed under the CPA is hardly observed and the cases remain pending for period between 6 months to many years. The complainants said that it was so because of the procedures involved in the hearing of the case or because of the non-presence of the judicial member of the forum. Resultantly the consumer feels frustrated or at times forced to leave pursuing the case because of long time and financial cost of such delays. It is also shown in the responses of the complainants that the forums do not observe the punctuality in starting the proceedings of the forum in time.


14. Observatory data of the researcher as well as the responses of the complainants found a lack of human resources and physical infrastructure at the premises. Therefore, lack of proper record keeping and proper and timely service of information and summons to the party against which complaint was filed was a feature, rather than an exception.

15. The role of the advocates in Consumer Forum makes it like any other court of the country. It also shows that advanced age acts as a taboo on contesting the case by oneself. It can be further noted that more of the high income respondents engage lawyer.

One may conclude from the analysis of data that-• Teachers were comparatively more conscious of their rights as

consumers followed by the employed and the self-employed in that order.

• The self-employed preferred to ignore the anti-consumer behaviour of the trader/s more than the employed or the teachers instead of taking action against them.

• There seems to be a prevailing sense of responsibility and responsiveness in the business and trade toward the consumer. This is so because they might be afraid of adverse publicity against them by the aggrieved persons, if their complaint is not properly redressed. This could finally impact their business or trade in the age of competition.

• There also seems to be relationship of trust between the buyer and the seller because 66.6 percent teachers, 43.47 percent self-employed and 58.33 percent employed went to the shopkeeper with their complaint against adulteration and received positive response of the business to that in the face of his legal and commercial interests. The trader knows, perhaps that the consumer has become more aware and, hence more assertive, of his rights. The growing recognition on the part of the trade and business of this emerging change is, therefore, becoming a tool of enforcing market accountability in terms of supply of goods and services in the correct quantity and quality.It may further be added that following measures needed to be

taken to make consumer protection movement more effective:1. It is imperative to enhance the level of awareness not only about


the consumer rights on a bigger scale but also the place and procedure of grievance redressal.

2. It is needed that the number of members in the forum be raised or should be fixed after the review of the average complaints being filed in the respective forum in a year. Moreover, the forum should come prepared and thorough with the cases to be heard by them on a particular day.

3. The procedure needs to be made more simple and accessible to the consumer/complainant. The physical facilities and manpower need to be strengthened for faster disposal of cases and consumer friendly environment.

4. The role of educational institute like schools/colleges receiving funds from govt. sources should be regularly monitored and evaluated to assess the impact of the programme.

5. It would be desirable to examine the feasibility of banning the legal practice by the advocates in the consumer forums, especially at the district level. Presently, lawyer is engaged because the complainant is generally unaware of the legal issues involved, preparation of the complaint and the affidavit. Besides, the references to the judicial precedents relevant to the case are required to win the case which the litigant is not aware about. This further necessitates the employment of an advocate.

6. There is a need to restrict the number of adjournments to provide speedy justice to the complainant.

7. If the case is listed for final arguments, attendance of the members, except emergency, could be made mandatory at such stages to avoid delays in the final decision of the cases.

8. It is necessary to provide sufficient, competent and committed staff as well as adequate physical infrastructure at the District Forums.

9. Since consumer education is a very significant part of consumer rights and their protection, it is required to strengthen the consumer awareness programme further by involving and monitoring the NGOs and the media on a larger scale in the dissemination of consumer education. It is also necessary to impart consumer education at the senior secondary level and in the colleges regularly by setting aside at least 10-15 hours in


a year to tell about CPA, the machinery and the procedure of filing complaints, the organizations and services covered under the CPA and the information about the local consumer forum in whose jurisdiction the school or the college or the university department is located. This will go a long way in enhancing the levels of knowledge, confidence and efficacy of the young citizens as a consumer. Further, the organizations like Nss and the NCC could also be used to take the consumer awareness forward.

10. The location of the district consumer forum should be decided by keeping in mind the easy visibility and accessibility to the consumer. The jurisdiction of the district forum should be decided to include the residence of the consumer and not the location of the opposite party.

11. More consumer advisory and mediation centers should be set up with the involvement and training of the Resident Welfare Associations (RWAs) and NGOs as well as the municipal ward committees. Municipal leaders should be also given training in consumer rights and consumer protection.

12. There should be set up local area consumer groups/ Associations consisting of the office bearers of the RWAs, the Traders/ Market Associations, the local municipal councillor/s, the local MLA and other eminent persons of the area which could become instruments of dissemination of information/ consumer education.

13. Each district consumer forum should be provided with a counsellor/ guide to help the needy or illiterate consumer complainant coming to the forum. This would help obviate the need to engage a lawyer and would also spread consumer literacy and competence and efficacy in a long run.To sum up, it can be stated that despite the growing impact

on the levels of awareness and activism of consumer in the city of Delhi, there is growing evidence of exploitation of the consumer by the corporate world. The concept of consumer is King or sovereign could be put into reality only by way of consumer empowerment. For this to happen, the government, the consumer organizations, the consumer himself and elected representatives together have to play a collaborative and collective role. The citizens of Delhi are


acquiring activist behaviour and attitudes which is reflected in the positive response of the sellers to their complaints in many cases, yet it still remains that many of the consumers feel cheated on account of breach of assurances or contract on the part of the market. It is equally true, however, that the consumer is not quite happy with the working and performance of the consumer disputes redressal machinery at the district level.


13MeDICINe QuALITy: DO The BRAND MATTeRS?

Banhi Chakarborty

IntroductionIndia’s pharmaceutical market is ensuing with a bright future.

As per MCkensy’s report (Kumra, Palash Mitra, Chandrika Pasricha, 2012) India’s market by 2015 will grow to Us $ 20 billion occupying a place within 10 top pharmaceutical markets. It was also forecasted that therapy mix will continue to grow together with anti-infective and gastro-intestinal drugs and these together will cover 50 percent of the total market by 2015. such a market situation raises hopes in common people who thinks that India is progressing where availability of medicine will not be a problem. However, researches conducted to the contrary, indicate that market flourishing was not considered as enough guarantors for ensuring availability to the common consumer. Nevertheless, market ensures enough availability only for those who have affordability (Tripathy et al, 2004). The real situation, if compared with other countries, India’s health expenditure arrived as the lowest one among all the OECD countries. As per OECD report 2012, it was 4.1 percent of GDP (calculated based on per capita purchasing power parity) of the country in 2010 against approximately 9.5 percent for other OECD countries in the same year. Even it is lesser than sri Lanka, China and Thailand (Economic Bureau, 2012). The consequences of low expenditure by India has further been reflected on the lower life expectance (64.8 years) than that of other OECD countries (79.8 years).

It was observed that in the absence of sufficient investment from public sources, people need to pay nearly two-thirds of expenditure from their own pocket (OOP) on health (2004-05), while, however,


it is not uniform all over the country. A clear cut division exists, which was 62 and 32 percent in case of rural and urban people respectively during 2004-5 (National Health Accounts, 2009). The quintile distribution, as per economic slabs further shows that out-of-pocket expenditure tends to rise with the economic position both in rural and urban areas of India (Garg and Karan, 2008; NHA India, 2009), and differences varied over the states ranging from 2 percent to 7 percent. In terms of accessibility to health facilities, combining both public and private centres, it is 80 percent of the population, of which only 20-25 percent availed public health facilities (TNMC, 2011); while in Tamil Nadu, which is said to be the best service provider state in terms of medical facilities including drug distribution, it is only 40 percent. However, in the Twelfth Plan, inter-alia, one of the visions is to enhance the availability of and accessibility to drugs through increased affordability. Hence, it is targeted to raise the figure at 52 percent for all the states with the help of National Urban Health Mission (NUHM) and National Rural Heath Mission (NRHM) under the holistic approach of National Health Mission 2005, including hitherto those outside the accessibility zone (Planning Commission, 2012). It is irony that in-spite of Government’s commitment to provide adequate health care through NHM 2005 (MOHFW, 2007) weaknesses exist in the system itself both for rural and urban areas. Provisioning of care through medical intervention team, targeting for interventions on all serious diseases, primary infrastructure facilities are some of the major strategies of NHM (MOHFW 2011), but adequacy in disease remedial medicines, was somehow not considered as one of the core responsibilities. This, indeed, weakens the goal of the overall programme in reality. severity of the problem due to high OOP is understood to have implications on furthering poverty that instigate the health complications and morbidity pattern more in perpetuity.

India’s fast growth pace of the pharmaceutical industry accompanied with rising prices of medicines have not eased out the accessibility for common people, and has created a situation of contradictions. Considering this situation, Government’s policy options for health sector, so far taken up, apparently appear as inadequate in tackling all the related segments in holistic manner.

To understand the implications of such contradictory situation and it’s consequence on the availability, it appears relevant to deal


with the intricacies involved in the distribution system of medicines in general and price-related inhibitor that incapacitate the common people from buying the essential one.

In fact, to reveal the complicacies, it is essential to explore the Indian pharmaceutical sector in relation to its distributional network in particular, that has been altered significantly with the growth of pharmaceutical industry of the country since the initiation of liberal market regime.

The basic purpose, has, therefore, been targeted to find out the causes responsible for such mismatch between the production growth and availability constraint, which, however, appear as a matter of intricacies involving all related sectors, viz. the industry and market linkages, product specialization and dimension of the market and distribution chain and government policies and governance. Keeping this in view, the present study was undertaken with the aim to-explore the background situation of inaccessibility in the light of growth intricacies of pharmaceutical industry and related issues involved in the market mechanism; examination of the inter-relationships between brand and related price variations; evaluation of quality associated claim in brand-related price phenomenon.

Analysis of Background Situation

I. Industry and Market Linkages A Industrial Structure: Pharmaceutical industry has an

integral relation with its market. In fact, in all economies, industries have market-dependent production function while for drug it is the absolute determinant of the markets. Like other commodities, for drugs there lies no option from the consumers’ sides. Therefore, this market is supply-side dominated and industries are free to decide product varieties not withstanding with epidemiological conditions always. However, it’s initial growth was mainly based on demand-determined products where country’s disease pattern was the main point of decision. India, in fact was self-sufficient in producing almost in all segments of drugs including antibiotics. Even the unorganised sector could contribute about 35 percent of the total production (GOI, Annual Report 2011). The history of process patent and government protection policies for indigenous industries


were some of the major factors for the growth of self-sufficiency of the country.

The pharmaceutical industry is by and large divided into both large and small scale sectors. Production of formulations and bulk drugs-the two major components, are almost segmented according to scale of the industry. In case of bulk drugs mostly small scale units were involved which, in fact, contributed largely in the development of pharmaceutical industries in India leading to fifth position in the world bulk drug market. Now there are nearly 10,563 manufacturing units producing both bulk drugs or active pharmaceutical ingredients or API and intermediates together with formulations. In fact these units are the major supplier of basic raw materials for the large scale formulation industries. Bulk drug is an active constituent with medicinal properties, which acts as basic raw material for formulations. Formulations are specific dosage form of a bulk drug or a combination of bulk drugs. Drugs are sold as syrups, injections, tablets and capsules. Among these, 77.4 percent (8174) manufacturing units are involved with the production of bulk drugs while 22.6 percent (2389) or are producing formulations of all types. The two segments of produces, however, are indirectly controlled by two different associations viz. Organisation of Pharmaceutical Producers Association of India (OPPI) representing international and large manufacturers while Indian Drug Manufacturers’ Association (IDMA) play vital role in the development of the industry. Price control, patents and Trade Marks Laws, Quality and Good manufacturing Practices (GMP), Research and Development (R & D) and Exports are the major issues handled by IDMA.

B. Production and Marketing Strategies: The production and distribution of drugs in the markets are directly related with the industries’ operational manner and market outlook. Although, Government of India is providing constant support to units under small and Medium Enterprises (sME) through different incentives but growth of small-scale industries are constrained by production limitation only on four products- Niacinamide, Pyrazolones, Lanolinanhydrous and Potassium Citrate (industrial grade)-(Department of Chemicals & Petrochemical, Government of India, 2007) while the key players are exempted from such restriction. The key manufacturing houses though are few only but occupy the major share of the market e.g. Ranbaxy, Cipla,


Dr. Reddy’s Laboratories, Lupin, Nicolas Piramal, Aurobindo Pharma, Cadila Pharmaceuticals, sun Pharma, Wockhardt Ltd. and Aventis Pharma. since last decades, acquisition of a number of small firms by the larger one and merging of Indian manufacturing house with MNCs like Glaco smith Kline (GsK) Baxter, Aventis, Pfizer, Novartis, Wyeth, Merck and others (Greene W, 2007) are constantly contributing in the production of generics as major share in the pharmaceutical markets. Expiry of patented-drugs in Us firms and increasing approval of FDA have supported the growth of prescription drugs by $ 45 billion and $ 25 billion respectively in generic markets of UsA and Europe during 2007-08 (KPMG, 2006).

At present country produces nearly 400 APIs and is one of the top five API producing countries (Greene, William, 2007). Nevertheless, such spurt in production also has enabled the industry as a whole to export about two-thirds of its formulations while in bulk drugs it came around one-fourth (Ken Research Pvt. Ltd., 2012).

C. growth of Industry and export : Growth of Indian pharma on its own soils as well as in other countries through merging has led to revenue generation to a larger extent ever before. The total size of the market has reached to rupees 100, 000 crore (Planning Commission 2012). such growth has enabled the country to spread her dominance through export growth to major developed markets of the world. UsA, Germany, Russia, UK and China are the major destinations. However, such export is mainly due to formulations while the pharmaceutical intermediates, bulk drugs occupy much smaller shares. But a substantial portion of total export is composed of quality drugs which are being shipped to rich nations at affordable prices (selvaraj et al, 2011). In addition to this, another potential market for Indian generics for which a trade pact has already been signed between two countries under a special scheme for Registration of Generic Medicinal Products from India in May 2010 (AsA & Associates, 2012).

Further examination for a fifteen years stretch (1995-2010) on the market sales on bulk drugs reveals that substantial portion of the total sales are also meant for export than for domestic market (BDMA, 2011). Greater alliance was made possible because of allowance of automatic route for FDI (PwC, 2011). The share of


individual performance in export sales of big pharma companies varies between 92 percent to 51 percent during the year 2010-2011 (DGCIs, Industry Overview 2012).

The increase in size of Indian exports to different destination countries is mainly due to rising ANDAs that helped in greater number of approvals for Indian companies like Ranbaxy, Dr. Reddy’s Lab, Aurobinda, Glenmark and Lupin. According to Danzon (2011), one of the basic reasons behind the market alliances between large and small firms or merger and acquisition is the economics of scale of the larger firms that ease out the facilities for research and development (R & D). In terms of production in volume, the top 20 countries’ contribution by the end of March, 2012 was Us $ 17.4 billion where Ranbaxy alone reported Rs. 99,769 million or Us $ 2,145 million or 33 percent up to the end of 2011 end. Eighteen more companies have reported improved sales in 2012 than that of 2010-11 (Report Linker, 2013). The same report also noted that prospects of pharmaceutical industry in India is bleak to earn sufficient revenue from domestic market and hence, the focus towards export market is likely to be more preferable by the industries. Except the sudden fall in export market during 2010 as well as in domestic market in 2009, the performances of industries are slightly fluctuating.

D. Import growth: It is ironical that India which was once self-sufficient in bulk-drug processing, now needs to import also. India’s import of bulk drugs and intermediates has surpassed the export growth (CAGR 17 percent) during the same period (DGCIs, Industry Overview, 2012). However, India being one of the largest generic producer, overseas pharmaceutical markets found it advantageous for collaboration or merging. In addition, pressure from developed nations for quality drugs was one of the reasons that MNCs ventured on Indian soil for acquisition and merger. The major volume of inexpensive import of formulations is also owing to liberal opening up of Indian market to MNCs (Joseph Alexander, 2013). In fact they are the major consumers of such imported bulk drugs for the interest of exporting the quality drugs to rich nations at affordable prices.

However, further analysis reveals that inspite of increase in domestic as well as export markets, contribution towards research and development has not been increased significantly by pharma companies. The share of Research and Development over this


period increased only from 1.34 percent to 4.50 percent and from 0.77 percent to 4.01 percent respectively for domestic and foreign companies operating in India. On the contrary if the growth rate in fixed assets and share in R & D are compared, the performance of the foreign firms show much steady trend over the years than those of the domestic companies, although domestic firms having much greater fluctuations over the years, but could achieve much higher values than the earlier one (Figure 1 & 2 ).

fig. 1: growth of fixed Assets & Share of R & D expenditure : Domestic Companies

204

Figure. 1 Growth of Fixed Assets & Share of R & D Expenditure : Domestic Companies

Source : Bulk Drug Manufacturers Association (India), 2011.

Figure. 2 Growth of Fixed Assets & Share of R & D Expenditure : Foreign Companies

Source : Bulk Drug Manufacturers Association (India),

E. Distributional Factors: Distribution of drugs is basically a function of a complex

system operated as the tools for market occupancy(demand) which lies on the

discretion of pharmaceutical companies as well as also on the external market

demand. Because of huge external demand for generic medicines compiled with

very insignificant internal demand creation by the medical practitioners within

country, the possibility of considerations for country’s epidemiological conditions in

targeting the production towards generic medicines at affordable prices appear in

Growth of Fixed Assets of Domestic Companies

% Share of R &D Expenditure of Domestic Companies

Growth of Fixed Assets of Foreign Companies

% Share of R &D Expenditure of Foreign Companies

source : Bulk Drug Manufacturers Association (India), 2011.

fig. 2: growth of fixed Assets & Share of R & D expenditure : foreign Companies

204

Figure. 1 Growth of Fixed Assets & Share of R & D Expenditure : Domestic Companies

Source : Bulk Drug Manufacturers Association (India), 2011.

Figure. 2 Growth of Fixed Assets & Share of R & D Expenditure : Foreign Companies

Source : Bulk Drug Manufacturers Association (India),

E. Distributional Factors: Distribution of drugs is basically a function of a complex

system operated as the tools for market occupancy(demand) which lies on the

discretion of pharmaceutical companies as well as also on the external market

demand. Because of huge external demand for generic medicines compiled with

very insignificant internal demand creation by the medical practitioners within

country, the possibility of considerations for country’s epidemiological conditions in

targeting the production towards generic medicines at affordable prices appear in

Growth of Fixed Assets of Domestic Companies

% Share of R &D Expenditure of Domestic Companies

Growth of Fixed Assets of Foreign Companies

% Share of R &D Expenditure of Foreign Companies

source : Bulk Drug Manufacturers Association (India),

e. Distributional factors: Distribution of drugs is basically a function of a complex system operated as the tools for market occupancy (demand) which lies on the discretion of pharmaceutical companies as well as on the external market demand. Because of huge external demand for generic medicines coupled with very insignificant internal demand creation by the medical practitioners


within country, the possibility of considerations for country’s epidemiological conditions in targeting the production towards generic medicines at affordable prices appear in general to be very limited. Moreover, price manipulations have become one of the major thrust by the industries, the advantage of which has been chosen by product trimming. Product diversification, segmentation or choices for specialized items are some of the alternative important criterion in price changing/rising. In fact due to absence of strict vigil and rules, manufacturers are free to produce any drug once approved by the Drug Control authorities (DGCIS, 2011). Lack of sufficient information on proportionate use of generic and branded medicines in the domestic market, choices for costly branded alternatives remain as highly possible alternatives. However, the research, so far carried out in focusing the accessibility at affordable prices, indirectly proves in that direction. However, at the same time the constant rise in acquisition and merger by the MNCs also hold good for major causes for price rise (Chowdhury s, 2011 & Chowdhury s, 2005). Perhaps such situation may be described as one of the older conditions prevailed during British period that India now facing, thereby proving that India’s pharmaceutical market as one of the supply-dependent one instead of demand-oriented.

Further as a proof of supply-dominated drug market, the report by PricewaterhouseCoopers can be noted where it was reported that the markets in developing countries are too heavily loaded with sales representatives. For example in China, about new medicines promotion, three-fourth of information reach to doctors through sales representatives and conferences organized by manufacturing companies (PwC, 2011). The presence of several medical representatives indicates introduction of several brands for one specific drug and inter-brand competition leading to price competitions. However, price competitions under the liberal market regime undoubtedly go in favour of manufacturing houses where quality is shown as yardstick of price-worthiness (Creese A, 2003).

Moreover, there is always a big pressure from the manufacturing houses, especially those which are much bigger to capture the markets of developing economies. Under such condition there lies hardly any possibility that prices of medicines will be target group (beneficiaries and epidemiological conditions) oriented. Since the Indian market is open to global market after 1991 and granting of


100 percent equity to foreign companies, price rise in medicines was imminent to happen, and evidences in this respect have been cited by many researchers (Garg & Karan, 2008; selvaraj & Nabar, 2010; saktivel s, 2010; Chakraborty B, 2012; sengupta A et al., 2009). However, the concerns have equally been raised on the availability and accessibility of medicines for common consumers because of brands related price variations (Das s.C; M. Mandal and s.C. Mandal (2007), Correa C.M (1997), 26; Burdon P (2012); Roy, Vandana et al. (2012). To reveal the intricacies, the pricing procedure and the distribution-chain related issues are required to be examined further.

Trade focus and Pricing ProcedureNational Pharmaceutical Pricing Authority (NPPA) function in

keeping pace with pharmaceutical policy changes from time to time and price determination while the pharmaceutical trade trends are directed by manufacturing houses (both in domestic as well as international market). Constant rise in outsourcing by foreign companies on Indian soil together with rising tie-ins with domestic manufacturing houses have made a considerable effect on reorganization of pharmaceutical industry from withdrawing its focus from domestic needs to more towards international trade. Major focus in reorganization is towards production of drugs for non-communicable diseases deviating from the earlier focus on communicable diseases (which are major needs of tropical countries). Nevertheless, this has enhanced the exportability and helped to occupy a major chunk of generic market at international level, at the same time necessitated the building up of competent marketing network. As an outcome of marketing reorganization, Indian pharmaceutical industry has equipped them to release a number of R & D scrutinized quality drugs in the domestic market among a host of originally existing domestically produced drugs, already prevailing in the market. However, such conditions initially helped in the escalation of prices at a time which was altogether unseen before 1991. The transition, the Indian pharmaceutical market has seen, is the switching over towards the drugs of supposedly “quality” brands complying the R & D verification and gradual elimination of consumer drugs for common people from the market. In fact, the ground of R & D compliances have paved the industries to keep the prices of their drugs at much higher level certainly with NPPA’s node in this respect.


It is the fact that pricing of consumer drugs depends on a variety of factors including demand (created by prescribers’ choice), availability, substitutions, as a whole the total market factors, which however, appears to be constrained again due to emerging market trends. Compelling situation as a whole made the availability of drugs at reasonable prices more difficult for common people. Unlike other commodities, drug pricing is determined by a centrally appointed body under the authority of the Drug Controller General of India (DCGI) or NPPA. DCGI function as the executive head in association with Central Drugs standard Control Organisations (CDSCO) who look after the quality and efficacy in distribution for the public.

III. Marketing Mechanism : Marketing strategies, however, depend on a number of factors like geographical span, distribution network and prices. Area of marketing is highly sensitive issue which directly determines the level of competition for the industries. The present trend of the market indicates that in many cases, manufacturers may not always be the marketing agency. It is found that market leaders in pharmaceutical trade are only marketing houses, not producer but are the deciding authority on prices. This is done in order to get cost-advantage. In addition, it is to be noted that there are number of trade agents like Promotional Distributors, Propaganda Distributors, Marketing approval or marketing companies who actually propagate the pharma trade as a whole (BCDA, 2011). In the absence of proper documentation in this regard it is difficult to show the actual distribution and their extent of coverage which, however, possibly influencing the distribution of medicines. scattered information so far available are such that companies like Ranbaxy, GlaxosmithKlin, Lupin, Uniqes, Nicholas Piramal as market leaders and likewise many others, have their contract outsourcing for some of their products.

However, marketing opportunity, guides the companies’ distributional strategies including geographical destination of the product. Examples in this regard are spark Medicine, whose marketing jurisdiction is within North Bengal and further north. similarly, at the same time the bigger industries like GsK, Ranbaxy, Lupin , Nicholas and many others having much wider market without any geographical barrier, also have entered in negotiation with some other smaller agencies for marketing.


A. Stakeholders in Distribution System: The drug market is one of the most complex and fragmented system – where roles of a number of players are imbibed in. The flow chart depicted below may depict the system’s complexity:

figure 3

B. Role of different segments in the Distribution Chain C & fA or Super-stockiest : Carrying & Forwarding Agencies or

Consignee and Forwarding Agencies (shortly speaking C & FA) who are to disburse the drugs directly to the Distributors while the other one is the super-Distributor or Distributors who may have direct dealing with the companies. Differences between the two is that C & FA are the company appointed depots whose jurisdiction of operation is only within their state whereas the distributors act as the independent points of distribution having no geographical limit in spreading their business.

C & FA may have agency right of only one manufacturer or may have multiple-agency rights. Usually market leaders connect only one C & FA. Business return of C & FA varies between 1-1.5 percent on total turnover per year.

Distributors and wholesalers: These groups are next to C & FA in the hierarchy rank. Business margin is determined by the manufacturing houses.

Retail Distribution: These segments are the direct connectors with the consumers in the distribution chain.(a) Profit margins differ from one point to other and it is maximum

at retailers’ shops-the end points.


(b) The limit of profit margin exceeds the stipulated level as per DPCO norm i.e. 10 percent and 20 percent respectively for wholesalers and retailers for non-DPCO drugs.

(c) Huge differences exist between retail and tender prices as well as between wholesaler and bulk-purchaser (as per documents related to Price structure submitted to BCDA for approval by different Companies; Tamil Nadu Medical services Corporation (TNMsC) and CDMU, West Bengal. In addition, there is price incentives for the retailers, which are usually offered by the wholesalers a discount at the rate of 5 to 7 percent depending on the level of competition in the wholesale market.

Analysing the situation of distribution system it appears that no generalisation is possible as the states vary widely in procurement decisions which further induces price variations. Although Drug Price Control, act as sanctioning authority for release of medicines in the market, the entry of medicines in the state depends on the Carrier and Forwarding Agencies appointed by the manufacturing houses mainly or super-stockists, selected by the companies. Ultimate price the consumer pays, therefore, lay on a long and complicated chain.

C. Price equations in relation to Distribution System :

Maximum Retail Price or consumer’s price is determined prior to release of the medicines through the above network. Products are transferred from stockiest/distributor to sub-stockiest or wholesaler and from stockiest or wholesaler to retailer and rates of margins moves in inverse direction from higher order to lower order. The stipulated price margins respectively are 16 percent and 8 percent for Non-DPCO and DPCO drugs respectively where a substantial amount of indirect margins are allowed at different levels in between the release-price and maximum retail price (MRP)- the consumer pays. Prices and margins are determined at national level by NPPA, the authorized department at the Centre where the ceiling prices or Maximum Allowable Post-Manufacturing Prices (MAPE) are decided. Additional limits of leader prices are also determined for formulations by NPPA based on most popular brands belonging to category I (DPCO) and II(non-DPCO) which in principle is cost-plus approach. Hence, MAPE or Maximum Allowable Post-


manufacturing Expenses is pre-decided and added within MRP providing a large margin for different stakeholders involved in the total supply chain. MAPE is practically an extra-pharmacological factor that is added with retail price to make the ultimate Maximum Retail Price which, however, is the buying price for consumer. In support of this Levison, L and R. Laing's article (2003) on “hidden cost” can be quoted – “For the nine countries, studied the hidden costs included: import tariffs; port charges; clearance fees; pre-shipment inspections; pharmacy board fee; importer’s mark-ups; value added tax (VAT); federal and state taxes; and wholesale and retail mark-ups. While some of these rates are relatively low (for example, 1 percent for port charges), even 1 percent is significant on orders of Us$5 million. The impact of hidden costs is thus compounded one and has a “carry on” effect. On an average, hidden costs increased cost by 68.6 percent in the surveyed countries”. Not only this, authors also pointed out how this hidden cost factor implicate the loss of net savings. They also emphasised that calculation of hidden cost is not a simple arithmetic but a complicated one depending on country’s procurement policy, product selection and other issues. The case of India has been cited as an example where 30-35 percent could be saved during 1995 through adopting restricted procurement policy (Chaudhury RR, 1999).

Large price variations that exist between brands around the contrary, may have some solace if there was the possibility of availing of alternative and cheaper substitute in the event of inability to purchase highly-priced drugs. Moreover, people in the drug market has no choice to select unless the prescription by physicians demand so. It is the physicians who are the primary promoter of drugs in the market and for whose preferences, brands are established. The earlier study on the drug market (Chakraborty B, 2011) clearly indicated that the medicines manufactured by Mankind Pharma are least prescribed though, the company is found as the producer of drugs of almost all therapeutic categories and having lowest minimum of prices (little above the generics available at Jana Oushoudhi–retail shops located at few tertiary level hospital premises or directly from hospital pharmacies). But irony is that this information is least known to common people. As such no initiative has taken up yet to make the consumers aware, though NPPA in a news report by Alexander Joseph, in on-


line media publication (2013), declared that it will carry out the awareness programmes.

The general perception regarding quality is still not clear (singhal, G. l et al, 2011). However, the policy approaches generally rules the price factor as the deterministic criterion of quality only and that too is based on leading manufacturers’ products’ prices. On query it was known that some companies seek the strategies of greater return through wider market coverage by maintaining lower margin while some strategically concentrate in few products of higher MRP specially those which are essential for certain acute therapeutic segments having higher market return. Irrespective of strategic differences, the prices of medicines in general are much higher for which a significant portion of the total consumption expenditure of the people goes out of their own pockets. Though this is very common for almost all developing and poor countries, India’s condition is nothing better. Meagre amount of public expenditure (public share) is not more than 1 percent to total health expenditure share of GDP which is much below in comparison to other comparable countries (NHA, 2004-05) has no doubt contributed in such impinging conditions.

surmising the above facts, following issues emerged –a) Procurement and distribution of drugs play an intricate role in

determining the prices;b) Product trimming and selection is in the domain of

manufacturing houses where market domination is manipulated through brand competition;

c) Unlike other consumables, drug market is not demand-driven but supply-determined;

d) Maximum Retail Prices is the ultimate product of Markups or MAPE which as an extra-pharmaceutical cost or hidden cost and are applied for both products under ceiling prices and non-ceiling prices- the differences might be variant;

e) Consumers of drug, hence, are not on the bargaining side, it is the prescribers’ induced preferences;

f) Brand quality myth is used as the slogan for drug promotion and market capturing;


Therefore, overall implications as arise here, are that the accessibility to required medicines for common people is imminent to be constrained and determined through a much complex system of marketing strategies of drug industries where Government policies nonetheless are not less responsible.

Brand - Quality Relationship Assessment: Based on the above understanding, further evaluation of quality

of the drugs with reference to price differences, is considered essential. This part of the study was solely based on drug inventory formation based on elected areas. Following is the methodology:

a) Area selection: The availability of drugs in the market is highly prescription-sensitive. Therefore, the prescription biasness is one of the major rules which govern the supply of drugs and the preference patterns are again determined by the industrial houses where the promotional capacity of industries played a significant role.

b) Location-specific site selection: Particular attention has been paid to have comparative information on prescribing pattern/ choice, for which the medical professionals at different ranks and files from both Government-run hospitals and private clinics were considered as the targeted objects for interviews.

c) Drug selection: Collection of information on drug stock, pre-formatted list with exhaustive number of brands of each of 8 therapeutic categories were used. For comparative differences in prices, drugs were judicially selected from both controlled and uncontrolled categories (category I and category II) covering major therapeutic segments.

d) Drug inventory of shops: shops at different locations have been taken as source areas. Considering the possibility of availability of maximum number of drugs of different therapeutic importance, the shops around Government hospitals were taken as source areas as zone of highest influence intensity; while the shops in different locations which house the practitioners for private practice were also included as another source area. The assumption here is that, medicines which are mainly available in those shops are usually prescribed by the private practitioners beside which other medicines are supposed to be least available.


Drug inventory of the shops were further matched with the information on drug preferences of the practitioners. However, 21 drugs from 8 therapeutic categories were finally selected for detail analysis.

e) Data Analysis on : 1: Inter-brand and intra-brand distributional pattern of the

drugs in relation to locational variations and their price variability based on simple statistical measures;

2: Quality evaluations based on testing of drugs of different therapeutic importance.

justification of the Approaches: Considering the importance of above inter-related issues the work has been attempted through investigations at micro level, scattered in different parts of West Bengal. The areas are categorized according to their status in terms of importance in health facilities. The basic assumptions behind such categorical selection are – (i) major drugs have their own selected catchment areas or market coverage and are usually spread in hierarchical orders in relation to major city core market in usual cases; (ii) which is particularly due to the industries’ promotional policy related phenomenon and (iii) such particular mechanism reinforcing the controls on the availability or unavailability through developing market- medical professionals nexus.

justification of area Selection : Hence, the case study areas as selected were the Districts of West Medinipur, Purulia, Bankura, considering that these districts having both secondary and primary level health services and hence, possibility of getting drugs of both reputed and less known brands exists. siliguri in Darjeeling District, being favourably situated in north of the state, and functioning practically as gateway of entire North-eastern states and Nepal also, the possibility of market occupancies are extended over a large areas, hence, presence of multiple number of industries (both major industries and low-profile industries exist there. Kolkata – as Metropolis functioning with major tertiary health service centres, is expected to have much greater market coverage. In fact, the city having combinations of both Government-run tertiary hospitals and private-run super-speciality hospitals, the possibility of most common medicines (essential medicines with generic names, said to be prescribed by state-run hospitals ) as well as most costly


brands of market leaders are likely to be available. Moreover, all the districts except the district Purulia, there are Medical Colleges-cum-hospitals where the specialised treatment facilities exist. This also acts as an advantage for the availability of different combinations of drugs in the markets.

Results Brand Variations and Price Relationship : In fact the top

selling brands which are very few in numbers but together covered more than 60-80 percent of each market while there are few which are very much scattered and concentrated in very few pockets only. Moreover, in case of DPCO drugs in the anti-infective segment, the costly brands are more prevalent than the other trade names of the same group. Examples in this respect are Althrocin (Erythromycin), Ciplox (Ciprofloxacin), Calaptin (Verapamil), Aceten (Captopril) all belong to controlled group but are costlier than the other brands in their groups. The manufacturers of these drugs respectively are Alembic, Cipla, Nicholas Piramal and Wockhardt which are now among the top-ranking pharmaceutical industries, having market shares ranging between more than 5 percent to 18 percent or even more. Examination of price-brand variations may help in justifying the brand-price equation further.

Considering overall situation or aggregate of all areas it was observed that almost, all the drug markets are flooded with a number of brands which grossly vary in sizes in terms of their market existence as well as in prices. In this respect prescribers’ preferences provide enough justification where for each brand, preferences varied from minimum of 20 percent to more than 100 percent.

The covariance of inter-brand differences in availability and related price differences, however, did not show any systematic trend only except four drugs i.e. Ofloxacin, Cefotaxim, Ceftriaxone and Livofloxacin among antibiotics and Atorvastatin of anti-lipid drug where price variations were significantly higher than their inter-brand variations in availability. At this juncture two major issues emerged- (i) localization tendency of the companies according to market openness in order to capture the new areas to eke out maximum return and (ii) the sharp competitiveness among the companies allowing only for few dominant brands to occupy the


major share. Price competitiveness appears to be less significant in influencing the brand entry thereby indicating serious implications of brand monopolization by few industries only.

Hence, all these factors together further established the earlier scholars’ observations and strongly prove the assumption that the medicines not only are dearer for common people but the cheaper alternative also are difficult to be accessed. However, huge difference between retailers’ rate and MRP clearly confirm that the actual prices of medicines are much lower than what the consumers’ price or MRP. Moreover, this also proves that the industries’ actual cost of production is much lower and even after keeping their reasonable margin, the medicines could be disposed at much lower prices. Hence, it can be surmised that industries in the given polity, are given undue advantage in over-charging their products.

evaluations of Inter-brand Drug Quality Variations : since the study on quality assessment of drugs with reference to their brand variations are still limited (singhal et al, 2011), the present study, therefore, attempted to examine the justifiability of quality-brand equations through verification of quality of different brands for each single drug formulations.

The methodology adopted for the purpose was as follows:Quality Verifications of Different Drugs : To justify the

price-worthiness of the medicines, quality examination of drugs is considered essential. To study this, 16 out of total 22 drugs were selected for quality verification. Emphasis was given on selection of brands under each drug category considering their intra-brand price variation primarily. However, constraints in availability of each sample from same batch number had posed problem in some cases causing limitation in collecting all the drugs, selected primarily for examination.

Sampling procedure: The test samples were procured from the licensed authorized chemist shops from different areas under study. The valid (purchase) invoices have been collected against all the purchases. The sample size comprises 10 x 2 tablets for each brand of medicine while for different drugs, uniformity in number of brands could not be maintained as the emphasis to get more number of brands under each category of drug was the objective to explore the price-quality equation. However, constraints of market availability


also added to the variations. The sample sizes for all the drugs varied between 20 to 24, 20 being the minimum required quantity. The size has to be kept minimum considering the budgetary constraints (due permission of the testing centre was obtained) as the work was part of a public funded sponsored project. The test was done at M.s. Ramaiah Drugs and Allied Products Ltd., Bangalore- the IsO accredited testing laboratory. Each sample consisting of two to three/four strips (depending on the number of tablets in each strip) were purchased having same batch number in order to rule out the possibility of difference in assay. The test was carried out according to the prescribed methods in the Indian Pharmacopoeia, 2010 as per the standards laid down in the Drugs and Cosmetics Act, 1940 and the Rules 1945.

Following tests were performed :

a) Uniformity of Weight: All the samples were tested for estimation of uniformity of weight. For the coated tablets other than film-coated tablets uniformity in weights is not applicable.

b) Disintegration Test: This test is done to estimate the variation in time requirement for a tablet to break. Depending on the tablet’s categories of coating, the time for disintegration varies (standards on disintegration, Indian Pharmacopoeia 2010, vide Appendix V). For film-coated tablets, the minimum stipulated time allowed for the operation is 30 minutes while for the other coated tablets, it is 60 minutes. For chewable and dispersible tablets, the test is not applicable. The given samples do not comprise any chewable or dispersible tablets.

c) Dissolution Test : The samples were subjected to dissolution studies to evaluate their drug release pattern. These studies were performed in the dissolution media through instrumental analysis using HPLC (high Pressure Liquid Chromatography).

d) Assay Tests: These tests were done to confirm uniformity of contents or Assay tests which means that whether each drug have required amount of Active Ingredients or not.

Results The results shows that all the medicines comply the required


specific norm with ± 10 percent in all the assay tests while for dissolution all the samples satisfy the standards having dissolution values more than the required specific amounts.

The most significant observation in this regard is full compliance of the generic variety, in some cases even, the result show much higher values for the generic variety than the branded substitute which determines comparative superiority of generic variety. Examples in this regard are Erythromycin, Ciprofloxacin, Ofloxacin, Atorvastatin, Pantoprazole and Metronidazole, Paracetamol which inspite of their much lower prices proved to be much superior.

In explaining brand-price relationship, parity between price variations in relation to brand variations though can be substantiated but no significance in observations could be drawn because of smaller size of the samples. However, as the performance of the cheaper brands in all the tested drugs also show equally favourable results, the price-worthiness claim of the higher-priced brands also cannot be sustained. More striking is the examples of two brands of Paracetamol - Crocin and Calpol, both are the product of Glaxo smith Kiln (GsK) and also comply the standards but differ in prices by more than 13 percent from each other, Calpol which is produced by GsK in it’s factory, is cheaper one while Crocin is outsourced to Remidex Pharma Pvt. Ltd., is costlier one. This perhaps indicates the cost recovery by the industries in general either through outsourcing for marketing or for processing whichever comes cheaper.

Discussion: Based on the above observations it can be surmised that price of medicines is no way a determinant in justifying the quality rather it is the myth that is being utilized by the industries in favour of their business interest. The study of this kind first undertaken by Singal et al. 2011, who examined five pairs of drugs comprising generic and branded varieties, is further justified by these observed results here. However, the present study was little ahead of the earlier scholar because of it’s inclusion of those drugs prescribed by the doctors (based on patients’ survey and also the propensity of market concentration by different pharmaceutical companies in the selected case study areas).

Results obtained so far has enabled the study to focus certain relevant issues for discussion. (i) Huge inter-brand price differences ranging from more

than 50 percent to more than 100 percent respectively for


different essential medicines like anti-infective antibiotics, anti-hypertensive, anti-ulcer and cardiovascular drugs which logically could not be established on scientific ground and requires attention from all concerned.

(ii) Price variations in brands even in case of schedule drugs (under control category) is another stark evidence against the lapses on the Government machineries where inter-brand price variation nullifies the existence of DPCO policy in totality.

(iii) This further suggests that the price fixation by the industries is based on no scientific ground although industries are enjoying price support by the government appointed agency NPPA only. In fact according to Drug Price Control Order, pricing of medicine is to be done depending on the active principle ingredients (API) content and under this condition all the DPCO approved medicines said to have DPCO 1995 norms compliance which practically should consider all drugs made of same molecule and are of equal qualities irrespective of brand name differences, the price differences, hence, prove otherwise. Instance in this respect is the price differences in Crocin and Calpol, both being paracetamol, and are even produced by one single company, GsK only. Therefore, prescribers’ biasness indulging in monopolization by some pharmaceutical houses in disguise of brand names cannot also stand as valid on this ground.

(iv) But unfortunately retail outlets which are over-flown with dozens of brands of same molecule promoted directly by physicians and indirectly by companies’ promotion battalion (MR) has made the situation worse for the patients who has no scope for knowing about the cheaper version. In India retailers are not also authorized to substitute with cheaper alternative. Therefore, common tendency arises among the retailers to gradual elimination of those brands from their stock which are not promoted by the prescribers. This makes the situation of inaccessibility by the patients or consumers worse.

surmising the fact of quality compliances by all the drugs (based on tested results) irrespective of their price differences, Government may need to rethink and analyse the relevance of the present procedure (notification) of price fixation based on the ceiling


price as determined by the market leaders’ price which also are subject to change from time to time. Under this notification, as the formula laid down in paragraph 7 of the Official Gazette, the prices are to be reviewed from time to time where the cost declared by the leading manufacturers will be the ceiling price only within which all manufacturers of the same formulation has to adhere this norm for fixing their prices. As a consequence of this provision, any change in ceiling price of the products from the leading manufacturers, automatically there will be rise in prices by other manufacturers of the same category of formulations.

(i) Notwithstanding the containment in the Order where it also states that “Government may, if it considers necessary so to do in public interest, after calling for such information by order fix or revise the retail price of any formulation including a non-schedule formulation” (Drugs Prices Control Order, 1995) , now the question arises how the Government will act to do so disobeying it’s own Order as stated above which will harm the leading manufacturers' interest.

Before adopting any corrective measures, some of the crucial issues which have logical importance in underpinning the entire system of drug delivery may need to be highlighted here –

• In the absence of any monitoring and regulatory agency (issues related to the absence of regulatory body to examine all inadequacies including the scarcity if scientifically controlled testing centres, as were noted in the Mashelkar Committee and are yet pending in action) and systematic documentation, there is also no scope for procuring valid information pertaining to real investment in R & D and hence, justifiability of the company’s claim for R & D authentication of each product as well as their related price fixation also does not hold good, unless product -wise publications containing the results on successful trials are published for common’s knowledge. Although India is now one of the green field for major multinational or trans-national pharmaceutical giants for carrying out production along with R & D, clinical trials while associated outcomes and costs issues, are placed to concerned Government body while submitting the price list for their approval, how much comparable examinations are done to authenticate the claim of superiority than those


existing in the market already, which is yet to be ascertained only except through prescribers' recommendation.

• Moreover, the efforts by the Government in promoting the pharmaceutical industry in the name of interest for public health by providing sufficient amount of reduction in taxes (as endorsed by 2005 Drug Policy), thus presents a contradictory situation. Moreover, validity of price-worthiness of any drug based on the single criterion of R & D support also loses its stand as most of the drugs in the markets are available for long without having any change in combinations and are off-patent now.

• The principle of Ceiling price fixation based on leaders’ price is another crucial flaw in the Policy. No scientific reasoning stand in validating the concept of leaders’ price as ceiling price for drug, as the quality claim failed to prove so. Hence, DGCI and NPPA must make it a concern before making further upward revision in prices. In the absence of generic named drugs in most of the

prescriptions, this is a simply indicator of violation of rule of “standard Treatment Guidelines” by doctors. suggestions in this regard already had been tabled by the Parliamentary standing Committee on Health and Family Welfare on 4th August, 2010 both in Rajya sabha and Lok sabha which however is yet to be taken up for implementation. However, considering the price pressure in the International market especially in US, it is difficult for India being one of the signatory of TRIPs to come out easily from that pressure. Hence, the Government under this situation requires a strong motivation like European economy where they could have overcome price pressure to an extent by reorganizing domestic economy already. For this there is a need for rational strategy formulation.

Suggestive Measures for Consumer welfare: The availability of all the essential medicines at affordable prices including the specialised kind of drugs for acute treatment also, Government should adopt certain measures immediately which are –a) Initiative to materialize the 45th standing Committee

recommendations in addition to form monitoring body to start effective vigilance in the matter related to availability and


related price variations at all levels of government controlled health facilities.

b) Adoption of stringent policy regarding writing of prescriptions in generic names only, instance in this regard as can be cited in the order delivered in one of the tertiary level hospital in Calcutta (Order No. CNMCH/3401/50, dt.6.12.05 and Memo No. H/TDE/1160/1411/2005, dt.14/11/05). Unfortunately effective implementation is yet to be seen here (as evidenced in the study).

c) If the former can be made mandatory, the onus will lie on the trade to supply the medicines in generic names only. In case of any violation, Government may promulgate the Drugs and Cosmetics Act, 1940 (23 of 1940) and Rule framed there under –

d) No manufacturer or distributor shall withhold from sale or refuse to sell to a dealer any drug without good and sufficient reasons;

e) At present there is provision for a purchaser to go for verification of quality of any drug he/she purchased to a Government analyst which is often denied. The provision as laid down in the law under section 26 Drug and Cosmetic Act, 1940 where a person individually or as a representative of any recognized Consumer Association is authorized to obtain test or analysis at any Government Testing laboratory, which unfortunately is always denied. Following is the excerpts from the book on Law of Drugs with Allied Acts along with Rules which state : “any person or any recognized consumer association, whether such person is a member of that association or not) shall, on application in the prescribed manner and on payment of the prescribed fee, be entitled to submit for test or analysis to a Government Analyst any drug (cosmetic) purchased by him and to receive a report of such test or analysis signed by the Government Analyst”.

f) To make the system more executable there is a need to constitute a monitoring body which should be constituted with a member from authorized departments in the Government looking after price and production, member from the Department of Consumer Welfare, member from Health and Family Welfare


and member from social Welfare Department, member of Rajyasabha and Loksabha and noted scientists and personality of any voluntary organization.

g) similar bodies should be formed to decentralize down to state, district and Block level and if possible further down at Ward or Gram sabha levels. However, constitutional structure in the body at local level may differ from place to place depending on the social structure including that of the prevailing Local self Government.

h) The same group also needs to be trained in the task of prescriptions auditing too.

ConclusionsIn concluding, it may need to be emphasized that Government

must take initiative to relook at medicines as an integral issue related to health. India’s low Human Development Index (HDI) which is 136 among 186 countries (UNDP, 2013) points towards overall health insecurity only and rectification of the index in no way possible to materialize unless the drug as the only disease-remedial measure can be made easily available at reasonable cost. Major flaws lies in Indian economic policy in dealing pharmaceutical sector under industry and commerce while treating it with health exclusively under Ministry of Health & Family Welfare. As an obvious reason of considering pharmaceutical production on industrial approach, policies related to growth generating factors for industrial production are obviously made equally applicable for pharmaceutical production also. Hence, the present strategy of GDP enhancing priority requires correction in policy shifting to health-saving prioritisation instead.

Therefore, Government of India must make it a point, that success of Million Development Goal i.e Health for All by 2000 AD which is still far away to achieve even in a slightest possible manner if the sector concerned with drugs is not dealt separately with due care for making it available and accessible within means of common people. In fact, concern for rational drug policy is involved with much larger perspective where complete medication is as essential as to keep the country free from irreversible damages due to spread of drug resistant bacteria. Recent incidences of malaria, Chickungunia, Dengi/dengue and resistant variety of TB are the


instances in this regard and is an alarm too for any catastrophe to emerge.

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About the editorsProf. Suresh Misra a well-known expert on consumer issues

is currently Professor (Consumer Affairs) and Coordinator, Centre for Consumer studies, a Think Tank and Knowledge Partner of the Department of Consumer Affairs, GoI at the Indian Institute of Public Administration, New Delhi. He holds his Master’s in Political science from Jawaharlal Nehru University, New Delhi, Masters in Human Resource Management from Pondicherry Central University, D.Phil. from Allahabad Central University and Post Graduate Diploma in Journalism and Mass Communication from Calcutta. Prof. Misra has been associated with consumer studies for the last twenty five years and carried out a number of research and evaluation studies sponsored by national and international agencies. Prof. Misra is a Member of the Central Consumer Protection Council, GoI. He is the Project Director of the National Consumer Helpline and the state Consumer Knowledge Resource Management Portal set up by the Department of Consumer Affairs, GoI at IIPA.

Dr. Sapna Chadah is currently working as Assistant Professor in Constitutional & Administrative Law at the Indian Institute of Public Administration, New Delhi. she holds her Masters in Law (LL.M) from University of Delhi and Ph.D. from Jamia Millia Islamia, Delhi. Her major areas of interest include Constitutional Law, Administrative Law, Consumer Protection law and Policy, Environmental Management, Laws in Urban Management, Regulation of service sectors and Privatisation. she was associated with a number of research studies in the area of consumer protection and consumer welfare. she has also been associated with Consultancy Project on “Promoting involvement of Research Institutions/Universities/ Colleges in Consumer Protection and Consumer Welfare” sponsored by department of Consumer Affairs. she has nine books, four monographs to her credit and published more than 30 papers in journals of repute.


Editors Suresh Misra

Sapna Chadah

Reflections on C

onsumer Protection : C

ase Studies

Reflections on Consumer Protection

Case Studies

IIPAINDIAN INSTITUTE OF PUBLIC ADMINISTRATION

NEW DELHI

INDIAN INSTITUTE OF PUBLIC ADMINISTRATION

The Indian Institute of Public Administration, established as an autonomous body under the Registration of Societies Act, was inaugurated on March 29, 1954 by Shri Jawaharlal Nehru who was also the first President of the Society. The basic purpose of establishing this Institute was to undertake such academic activities as would enhance the leadership qualities and managerial capabilities of the executives in the government and other public service organization. The activities of the Institute are organized in four inter-related areas of Research, Training, Advisory and Consultancy Services and Dissemination of Information.

CENTRE FOR CONSUMER STUDIES

CCS is dedicated to consumer studies and is sponsored by DCA, GoI. The objective of the CCS is to perform, facilitate and promote better protection of consumers’ rights and interests with special reference to rural India. The broad areas of focus of the Centre comprise capacity building, advocacy, policy analysis, research, advisory and consultative services, and networking.

The Centre seeks to network with national and international agencies and interface with other stakeholders by serving as a bridging “think tank” with an intensive advocacy role. The Centre provides a forum for creating dialogue among policy-makers, service-providers, representatives of various business establishments and their associations, professional bodies/associations, civil society organizations, educational/research institutions, economic and social development organizations as well as leading NGOs.

Centre for Consumer Studies

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INDIAN INSTITUTE OF PUBLIC ADMINISTRATION Consumer … of Consu… · consumer movement to grass root level; and introduce researchers to consumer issues to motivate the academic

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