Prof. Arvind Kumar
Faculty of Commerce
Lucknow University
Lucknow.
Dean
CERTIFICATE
This is to certify that Mr. Vishal Saxena has completed the
thesis titled
"A study of Consumer Behaviour Towards
Consumerism of Household Consumers of Uttar Pradesh" for the
award of Ph.D. degree in Commerce, Lucknow University, Lucknow
under my supervision. To the best of my knowledge and belief the
thesis under reference is based on original research work done by him.
He fulfills the conditions laid down in relevant ordinances.
(Prof. Arvind Kumar)
Supervisor
PREFACE
In the present study efforts have been made to explore the causes of
consumer exploitation, connotation of consumer behavior, consumer
reactions to unfair trade practices, functioning of consumer forums
and last but not the least, consumers approach to consumerism.
It's quite evident that Indian economy is growing day by day
and has a substantial share in world market. In this vast market there
are thousands of industries and billions of consumers. Mass
production is being taken place all around, entrepreneurs are aiming
ample amount of profit by sales maximization but in all these
activities the focus on consumers satisfaction is lost to a great extent
and in fact numerous unfair trade practices could be easily witnessed
across the country. The most significant part of all production
activities, the consumer, has become least focused one.
Since the behavior of consumer is reliant on psychological,
cultural, socio-economic, language, regional, religious, political and
other factors. Thus study of consumer behavior is interdisciplinary
science. If one needs to study properly and significantly the behavior
of consumer, he is required to study various facts of life about
thinking and decisions, like his education, culture, income, climate,
ii
social status, society, physiology, psychology, region to which he
belongs, his religion and his beliefs. To undertake research one has to
use research tools specially sampling, drafting the questionnaire,
tabulation and overriding at results and then interpret it properly and
accurately so that the results may be utilized for strategic policy
decisions.
Consumer behaviour is defined as activities people undertake
when obtaining, consuming, and disposing of products and services.
Every consumer is different from others in the sense of needs, wants,
habits, income level of the consumer. The field of consumer behaviour
covers a lot of ground. It is the study of the processes involved when
individuals or groups select, purchase, use or dispose of products,
services, Ideas or experiences to satisfy needs and desires.
The present study highlights the major aspects of household
consumer behavior, especially their buying habits, likings/disliking,
level of awareness, resistance level against unfair trade practices, use
of redressal machinery etc.
The term consumerism refers to consumer movements,
consumer protection activities and consumer activism, which seeks to
safeguard consumers by dropping unfair trade practices and ensuring
iii
honest packaging, advertising, product guarantees and improved
safety standards. In this sense it is a movement or a set of policies
aimed at regulating the products, services, methods and standards of
makers, sellers and advertisements in the interest of the buyer.
In the words of Mahatma Gandhi, A customer is the most
important visitor on our premises. He is not dependent on us, we are
depending on him. He is not an interruption in our look. He is the
purpose of it. He is not an outsider on our business. He is a part of it.
We are not doing him a favour by swing him. He is doing a favour by
giving us an opportunity to do so.
Consumerism is the concept that consumers should be informed
decision makers in the marketplace. Practices such as product testing
make consumer aware. Consumerism is the concept that says the
marketplace itself is responsible for ensuring social justice through
fair economic practices.
The growth of the society, rapid industrialization and agreed to
earn more and more profit coupled with slow system to catch and
penalise offenders led to corrupt practices by manufacturers, traders.
The society though concentrated on crime and punishment and at time
severe punishments awarded but fell short to rib the greed of certain
iv
individuals, industries, groups to earn/make a quick bruck. The normal
individual/consumer at one point or the other) become a sufferer.
The need was felt to protect the customer/consumer. The hue
and cry of consumers brought to the fore a most important aspect of
the society i.e. protection to the rights of the consumer.
The need to recognize and enforce the rights of consumers is
being understood and several laws have been made for this purpose. In
India, we have the Indian contract Act, the sale of Goods Act, the
dangerous Drugs Act, the Agriculture Produce (Grading and
Marketing) Act, the Indian Standards Institution (Certification Marks)
Act, the prevention of food Adulteration Act, the Standards of weights
and Measures Act, the Trade the Merchandise Marks Act, etc. which
to some extent protect consumer interests. However, these laws
required the consumer to initiate action by way of a civil suit which
involved lengthy legal process providing to be too expensive and time
consuming for by consumers. Therefore the need for a simpler and
quicker access to redress to consumer grievances was felt and
accordingly, it lead to the legislation of the consumer Protection Act,
1986.
v
The present study also emphasizes on the role, significance and
limitations of consumer forums and also provides a sound platform for
taking corrective measures to uplift the level of consumer forums and
enrich the entire redressal machinery.
Objective of the Study
There are lots of activities run in a business enterprise. There
are so many activities which should be done before the process of
manufacturing begins and after the product is sold. In fact, essence of
all business activities should be the same for consumer protection and
satisfaction.
The household consumer movement is a social economic
protection that seeks to protect the rights of the household consumer in
order to the goods purchased and services availed. Government has
awarded high priority to the programme of consumer protection. The
department of consumer Affairs, is first for being a noble department
in the field of household consumer protection, has initiated a number
of steps to promote a responsible and responsive consumer movement
in the country. Such measures are used for promoting household
consumer awareness, and encouraging consumer's involvement
through those organisations which work freely and those which are in
vi
possession of Government.
The proposed study is an attempt to achieve the following objectives–
1.
To assess the household consumer's satisfaction about the goods
or the services they buy or hire in Uttar Pradesh.
2.
To assess the several problems faced by consumer while
approaching the forum.
3.
To assess consumer's awareness for Consumer Protection Act and
Consumer redressal forum.
4.
To assess the effectiveness of Media for promoting the consumer
awareness movement.
Without consumer there is no birth for any product to be sold
anywhere on this earth. Whatever is produced in our industry, there is
just one motive behind it, that is to earn money and the money can be
earned if the consumer is satisfied with it. So even if onsumers are not
given a primary focus, still they are considered the king and all the
products in the market are produced keeping the need and desires of
consumer in mind.
Methodology of the Study
Qualitative as well as well as quantitative approach has been
vii
used for this research and descriptive type of research design has been
used for the study. Fixed quota sampling has been adopted for the
study. The sample size of 200 household consumer divided as per the
educational level, age group and marital status bases.
A structured questionnaire was used as an instrument in
gathering the required information from the consumer.
Primary data is collected for this study. This makes the study
effective and appropriate medium to transfer the knowledge. A
consumer satisfaction is like a mirror to the society in which the state
of affairs gets affected and demand attention of the public. This is the
easiest and novel way of getting acquainted with knowledge.
Plan of the Study
The present work has been divided into eight chapters. The
First chapter is introductory in nature. It discusses the place of
consumer behaviour towards consumerism of household consumers. It
also explains the motives of the research on which total work is based.
The movement of household consumer is a social economic protection
that seeks to protect the right of the household consumer in order to
the goods purchased and services availed. Such protection has initiated
a numbers of steps to promote a responsible and responsive consumer
viii
movement in the country. Such measures are used for promoting
Household
consumer
awareness
and
encouraging
consumer's
involvement through those organisations which works freely and those
which are in possession of Government.
The Second chapter entitled, "Consumer Behaviour and
Consumerism", highlights the buying habits of consumers. Consumer
behaviour is relatively a new discipline in the field of marketing and
lot of time and efforts are being spent on this exercise. The knowledge
of consumer behaviour is a fairly important aspect, both from the paint
of view of the academician's theoritical interest and the practical
application that it has for the modern concept of marketing
practitioners. In the modern concept of marketing, the only rational for
the firm's existence is to be the consumer's satisfaction on that is
provides. Consumer Behaviour is everything and everything is
consumer behaviour. Our enormously productive economy demands
that we make consumptin our way of the life, that we convert the
buying and use of goods into rituals, that we seek our spiritual
satisfaction and our ego satisfaction in consumption and our ego
satisfaction in consumption. We need things consumed, burned up,
worn out, replaced and discarded at an ever-increasing rate.
ix
The Third Chapter entitled, "Relationship Between Household
Consumer and Consumer Forums" deals with the historical evolution
as well as theoretical aspects of the house hold consumer with special
references to consumer forum. A household consumer is a user of
good and services. Any person paying for goods and services which he
uses is entitled to expect that goods and services are of a nature and
quality promised to his by the seller.
The Fourth Chapter describes in great detail the "Reserach
and Methodology". With the use of Quantitative and Qualitative data
this Research makes an attempt to recognise the preferences and
behaviour of the consumer of Uttar Pradesh on the bases of their
attitudes, wants and beliefs. This research also analyses the influence
of psychographic factors on brand loyalty in the competitive marked
environment. An attempt has been made in this research to look into
consumer behaviour towards consumerism with special reference to
household consumer of Uttra Pradesh.
The Fifth Chapter is devoted to Literature Review. It reflects
history of consumer behaviour towards consumerism. The concept of
consumer behaviour and consumerism can be traced back to Adam
Smith. In his book "Wealth of Nations" Adam Smith pointed out flows
x
in capitalism. An understanding of consumer behaviour is of critical
importance to all personnel engaged in any form of marketing activity.
This understanding of consumerism enables the marketers or
producers to find behaviour of consumers to influence their behaviour
and to manipulate the influencing variables to gain benefits.
The Sixth Chapter presents "Analysis of Survey Results on
Different Bases." It is established fact that need for products or
services, its adaptability and acceptance often varies with consumer's
age, income, marital status, education level etc. Researcher has found
that all of these variables play a vital role in decision making process
of a household consumer segment.
Chapter Seven discusses at length the "Conclusion and
Suggestions" to improve the status of household consumer and to
spread awareness regarding consumer forums and normal court,
Promoting general awareness on the rights of the consumer by
encouraging
consumer
education
and
supplying
information.
Organised database may enable the consumers to retrieve the required
information in a less expensive and simple way. Setting up a website
which publish information, news including judgements, articles on
products analyses and related matters for the guidance of consumers
xi
may be of great worth.
The last Chapter Eight is entitled "The Road Ahead :
Direction For Future Research” provides an overview regarding future
researches and initiatives open to consumerism. The new researchers
can explore some burning issues of consumers dissatisfaction, Ebusiness and frauds, practical problems in on-line shopping etc. It may
also cover consumers dilemma about consumer forums and normal
court, privilege of consumer courts over normal judicial procedure.
Some more researches may be executed on consumer behavior,
particularly on Industrial buyers. On the basis of various decisions
given by the National Commission, for betterment of consumers, it is
also essential to make an attempt to identify the major loopholes in the
policy work, administration and weaknesses of consumer forums.
***
xii
ACKNOWLEDGEMENT
I feel immense pleasure in forwarding the present research
thesis
entitled,
“A
Study
of
Consumer
behaviour
towards
consumerism of Household Consumers of Uttar Pradesh”, and in
acknowledging the gratitude towards a number of people to whom I
owe a debt for their valuable suggestions in order to successfully
complete this work.
First and foremost, I would like to express gratitude from the
bottom of my heart to honourable Prof. Arvind Kumar, The Dean,
Faculty of Commerce, University of Lucknow for his expert guidance,
valuable instructions and suggestions. I thank a lot that he could very
kindly spare time for me despite his hectic schedule. I feel privileged
to work under his guidance.
I am thankful to Prof. Somesh Kumar Shukla, Head,
Department of Commerce, University of Lucknow and the Faculty
Members of Department of Commerce for providing me their valuable
encouragement and inspiration.
I would also take this opportunity to express deep sense of
gratitude to my principal Prof. S.P. Singh and my colleagues from
Department of Commerce, National P.G. College especially, Dr.
xiii
Kaushiki Singh, Dr. InduBala, Dr. Pawan Kumar Bhasin and senior
faculty members for their constant encouragement and suggestions to
accomplish the present work.
Also, I would like to acknowledge the significant role of
officials of District consumer forum and State consumer forum in
helping me out at successive stages of research work and providing
me with requisite information. The co-operation which I received from
the staff members of these organisations is also laudable and worth
memorable.
Finally, I would like to express my gratitude towards my Father
Mr. R.C. Saxena, my Mother Mrs. Kanak and my Wife Mrs. Richa
Saxena for their active support & contributions and all my near and
dear for providing me the required doses of encouragement,
motivation and stimulation for successfully reaching this significant
milestone of my life.
Date :
Place : Lucknow
(Vishal Saxena)
xiv
CONTENTS
Chapter
I
Page No.
Certificate
i
Preface
ii
Acknowledgement
xiii
List of Tables/Figures
xix
1-12
Introduction
 The Place of Household Consumer
 Household Consumer Movement
 Objectives of the Study
II
13-67
Consumer Behaviour and Consumerism
 What is consumer Behaviour ?
 Economic Policies
Consumption
 Government
Agencies
and
Emphasis
Non
Government
 Determinants of Consumer Behaviour
 On the bases of psychology factor.
 On the bases of physiological factor.
 On the bases of Demographic factor.
 On the bases of Geographic
Segmentation.
 On the bases of cultural factor.
 On the bases of Religion.
 On the bases of Social Class.
 On the bases of Backward Classes.
 On the bases of Economics.
xv
on
 On the bases of Statistical Econometries.
 On the bases of personal factor
 Consumer Decision
 Buyer's Decision Process.
 Critical Steps to Develop Customer
 Service Culture
 Consumerism
 Mass Production
III
Relationship Between Household Consumer
And Consumer Forums
 Household Consumer : A Historical
Approach
 Consumer Protection Act, 1986
 Objectives of the Consumer Protection
Act, 1986
 Administration
 Enforcement and Remedies.
 Major Definitions.
 Consumer Protection Council.
 Powers of and Procedure Applicable to
Consumer Protection Council.
 Major Steps Taken
Consumer Forums.
to
Strengthen
 Marital Status of Respondents.
 Family Size of Respondents.
 Education Qualification of Respondents.
 Occupation of Respondents.
 Monthly income of the Respondents.
 Place of Purchasing the Items.
 Awareness About Terms and Condition
of the products and services.
xvi
68-123
 Defective or Sub-Standard items.
 Action of receiving Defective Substandard item.
 Consumers Action when the seller did
not co-operate.
 Awareness About
Consumer Forum
the
Existing
of
 Redressal of Grievance in Consumer
Forum.
 Advantages of Consumer Forum to
Consumer
 Reasons for not
Consumer Forum.
approaching
the
 Willing to Approach Consumer Forum
But unable to do so.
 Cautiousness for the Receipts, Warranty
or Guarantee cards.
 Extent to which Consumer Forum May
help.
 The Effect of Consumer Forum on
Sellers.
 The proceedings of the Consumer Forum
and Normal Court the same.
 Functioning of Consumer Forum.
 Role of Media in Promoting Consumer
Forum.
 The Uttar Pradesh Consumer Protection
Rules, 1987
IV
Research and Methodology
 Objective of Research.
 Significance of Study.
 Research Approach.
 Research Design
xvii
124-132
 Sampling Technique
 Sample Size
 Research Tool
 Statistical Tool.
V
133-154
Literature Review
 Consumer Protection law and Practice.
 Principle of Consumer Protection Act :
As an instrument of Social Justice.
 Consumer Awareness.
 Consumer's Action in small cities.
 Consumer Protection Strategies.
 Issues Involved in Consumer Protection
Movement.
VI
Analysis of Survey Results of Different
Bases
155-189
 Age-wise classification of Respondents.
 Sex-wise classification of Respondents.
 Sex-wise classification of Respondents.
VII
Conclusion and Suggestions
190-203
VIII
The Road Ahead/Direction For Future
Research
204-205
 Directions for Future Researches
 Emerging Dimensions of Researches
206-217
Bibliography
Appendix – Questionnaire
Research Papers:
Published/Presented/Workshops Attended
***
xviii
LIST OF TABLES/FIGURES
Chapter Title
Page No.
4.1.1
Age wise classification of Respondents
129
4.1.2
See-wise classification of Respondents
130
4.1.3
Marital Status of Respondents
130
4.1.4
Family Size of Respondents
131
4.1.5
Educational Qualifications of Respondents
131
6.1.1
Age-wise Classification of Respondents
155
6.1.2
Sex-wise classification of Respondents
157
6.1.3
Marital Status of Respondents
158
6.1.4
Family size of Respondents
160
6.1.5
Educational Qualifications of Respondents
161
6.1.6
Occupation of Respondents
163
6.1.7
Monthly Income of Respondents
164
6.2
Place of Purchasing the Items
166
6.3
Habit of insisting on receipt cash memo while
buying
167
6.4
Aware of Terms and Conditions
169
6.5
Defective or Sub Standard Item
171
6.6
Action on Receiving a Defective/Sub-Standard
Item
172
6.7
Reaction of the Respondents when the Seller
did not Co-operate
173
6.8
Existence of Consumer Forum
174
6.9
Red-ressal of Grievances
175
6.10
Benefited from Consumer Forum
177
6.11
Reasons for not Approaching the Consumer
Forum
178
6.12
Reasons for not going to Consumer Forum
179
xix
6.13
Cautiousness for The Receipts, Warranty or
Guarantee Cards
180
6.14
Extent to which the Consumer Forum may help
181
6.15
The Effect of Consumer Forum on Sellers
182
6.16
Proceedings of Consumer Forum and Normal
Court
183
6.17
Comparison of Expenditure Involved
184
6.18
Comparison of Time consumed
185
6.19
Satisfaction Forum Consumer Forum
186
6.20
Functioning of Consumer Forum
187
6.21
Role of Media in Promoting Consumer Forum
188
***
xx