MODULE 6

WHAT IS SATISFACTION?
Satisfaction is evaluation of an [Link] satisfaction is the summary of the opinion of the customer about the
vendor.

STEPS OF ENHANCING CONSUMER SATISFACTION

•Conduct Regular Research

•Customer feedback

•Add Value through sound pricing

•Create Distribution Equity

•Plan Consumer Benefitting Promotions

•Develop customer Satisfaction oriented culture

•Effective complaint management

FACTORS INFLUENCING CUSTOMER SATISFACTION

PRODUCT FACTORS
•Performance

•Efficiency

•Technology

•Maintenance requirement

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 •Life-span

•Price

•Appearance

•Customer-Friendly features

•Quality

•Trouble-free operation
HUMAN FACTORS
•Response

•Service

•Commitment adherence

•Complaint Management System

•Customer Importance

•Orientation

•Attitude

Consumerism

Meaning- Consumerism is the belief that personal wellbeing and happiness depends to a very large extent on the level of
personal consumption, particularly on the purchase of material goods. The idea is not simply that wellbeing depends upon a
standard of living above some threshold, but that at the center of happiness is consumption and material possessions. A
consumerist society is one in which people devote a great deal of time, energy, resources and thought to “consuming”. The
general view of life in a consumerist society is consumption is good, and more consumption is even better.
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 Definition of 'Consumerism'

The theory that a country that consumes goods and services in large quantities will be better off economically.
Consumerism for example, is an industrial society that is advanced, a large amount of goods is bought and sold.
Sometimes referred to as a policy that promotes greed, consumerism is also coined as a movement towards consumer
protection that promotes improvement in safety standards and truthful packaging and advertisement.
Consumerism seeks to enforce laws against unfair practices implement product guarantees.

Consumerism in India

Consumerism in India had started its journey with a need to raise his voice against the quality of goods as back as in
1969 through housewives at Mumbai .It took a shape of revolution at later stage and one day our parliament passed an act
for the welfare of consumers in 1986 .This Consumer Protection Act 1986 had further undergone many
challenges,criticism and even question on its legal validity was also put before the honorable Supreme Court of India After
hearing all sort of accusation and constraints from the big business houses , our apex court held this welfare act very much
valid , legal and within the framework of our constitution .

Since 1986 and after three important amendments to the act ,scenario in the market has drastically changed and
consumerism in India is diverted to more of lust than limited to needs .We are now easily confusing the things with what
we need and what we want Its true ,if we work hard ,we deserve nice things .But stuffing plenty of nice things which we
really do not need deprive the other consumers from the things they require for their survival .Keeping four cars for four
persons in the family is ultimately going to affect others and also more consumption of nation’s resources like petrol
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 [Link] sense of entitlement can muddy the waters when it comes to what you want and what you really need. The sizes of
our houses are expanding as per our income and resources irrespective of the fact what we had in olden days . People were
having more kids but still living in houses far smaller than we’re willing to settle for today Now we want a room for every
child, plus a living room, family room, media room, and kids’ playroom. And if we have to share a television, we are very
uncomfortable with the idea ..

This sense of entitlement is building commercial pressure on our [Link] of depression, anxiety and other mental
illnesses have risen in the past two decades in the children .A report submitted to the inquiry by the National Consumer
Council found that children in deprived areas were more obsessed with money and shopping than youngsters from better-
off homes. Poorer children wanted a job with a high salary compared with children from affluent areas and they were the
main victims of con-sumerism, as per the report conducted by the charity “The Children’s Society”

Our consumption patterns are so much a part of our lives that to change them would require a massive cultural overhaul,
In consumer society of the day now, people replace their goods with newer ones, use them and throw them away. The
question of repair does not arise People have money to purchase goods in plenty. In case, they do not do so , it leads to
recession massive unemployment. The success of a consumer society is measured with the rate of production , purchase
and consumption .The society is considered to be progressing if all above elements are present there . The single most
important measure of economic growth is the gross national product (GNP), the sum total of goods

But at the same time as per— Richard Robbins,

“ the production, processing, and consumption, of commodities requires the extraction and use of natural resources (wood,
fuels, and water); it requires the creation of factories and factory complexes whose operation creates toxic byproducts,

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 while the use of commodities themselves (e.g. automobiles) creates pollutants and waste. Yet of the three factors
environmentalists often point to as responsible for environmental pollution — population, technology, and consumption —
consumption seems to get the least attention. One reason, no doubt, is that it may be the most difficult to change;”

Positive Consumerism Effects:

Primary positive consumerism effects are:

 More industrial production.

 A higher growth rate economy.
 More goods and services available.
 More advertising since goods manufactured have to be sold.
 Increased production will result in more employment opportunities.
 A variety ofchoice for goods and services
 More comforts for a better living style.

Negative Consumerism Effects:

Top negative consumerism effects are:

The main cause of the current environmental crisis is human nature More specifically, all we’re doing is what all other
creatures have ever done to survive, expanding into whatever territory is available and using up whatever resources are
available and one day it may result into a death in their own waste..
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 Material wealth is the deciding factor about whether a society is highly developed or not. Our ethical and spiritual values
are left unimportant under the circumstances .Over-dependence on labor saving devices.
A car for each individual would mean gradual erosion of public [Link] rate also increases as wants to possess
expensive gadgets increase. Thefts become common and daylight robberies take place.
Personal relationships also get affected as people are busy trying to earn more to maintain their standard of living.
Cheaper goods are Today’s consumption which also affect environmental resource
Consumerism has also resulted in ecological imbalances. The natural habitat is being destroyed to create more goods and
build more buildings affecting the weather. Global warming will eventually result in health problems. Industrial pollution
is affecting people rather than focusing on simplicity.

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 Consumer Protection Act, 2019

The new Consumer Protection Act, 2019 came into force on 20th July 2020 and it will empower consumers and help
them in protecting their rights through its various notified rules and provisions. The new act will be swift and less
time consuming compared to the older Consumer Protection Act, 1986 in which single-point access to justice was
given making it a time-consuming exercise.

Key Points

Central Consumer Protection Authority (CCPA)

 The Consumer Protection Act, 2019 establishes the Central Consumer Protection Authority (CCPA) whose
primary objective will be to promote, protect and enforce the rights of consumers.

It is empowered to:

 Conduct investigations into violations of consumer rights and institute complaints/prosecution.

 Order recall of unsafe goods and services.
 Order discontinuance of unfair trade practices and misleading advertisements.
 Impose penalties on manufacturers/endorsers/publishers of misleading advertisements.

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 Rules on E-commerce
The government will notify the Consumer Protection (E-commerce) Rules, 2020 under the Act whose broad
provisions are given below.

o E-commerce entities are required to provide information to consumers, relating to return, refund,
exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal
mechanism, payment methods, security of payment methods, charge-back options and country of origin.

 These are necessary for enabling the consumer to make an informed decision at the pre-purchase
stage.
o These platforms will have to acknowledge the receipt of any consumer complaint within 48
hours and redress the complaint within one month from the date of receipt. They will also have to appoint
a grievance officer for consumer grievance redressal.
o The Consumer Protection (E-commerce) Rules, 2020 are mandatory and are not advisories.
o Sellers cannot refuse to take back goods or withdraw services or refuse refunds, if such goods or services
are defective, deficient, delivered late, or if they do not meet the description on the platform.
The rules also prohibit the e-commerce companies from manipulating the price of the goods or services to gain
unreasonable profit through unjustified prices

The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation
into consumer law violations.

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- The CCPA has been granted wide powers to take suo-moto actions, recall products, order reimbursement of the price
of goods/services, cancel licenses and file class action suits, if a consumer complaint affects more than 1 (one)
individual.

Unfair Trade Practices:

Unfair Trade Practices: The New Act introduces a specific broad definition of Unfair Trade Practices, which also
includes sharing of personal information given by the consumer in confidence, unless such disclosure is made in
accordance with the provisions of any other law.

- Enhancement of Pecuniary Jurisdiction:

Revised pecuniary limits have been fixed under the New Act. Accordingly, the district forum can now entertain
consumer complaints where the value of goods or services paid does not exceed INR 10,000,000 (Indian Rupees Ten
Million). The State Commission can entertain disputes where such value exceeds INR 10,000,000 (Indian Rupees Ten
Million) but does not exceed INR 100,000,000 (Indian Rupees One Hundred Million), and the National Commission
can exercise jurisdiction where such value exceeds INR 100,000,000 (INR One Hundred Million).

- E-Filing of Complaints:

The New Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at
the place of residence or work of the consumer. This is unlike the current practice of filing it at the place of purchase or
where the seller has its registered office address. The New Act also contains enabling provisions for consumers to file
complaints electronically and for hearing and/or examining parties through video-conferencing. This is aimed to
provide procedural ease and reduce inconvenience and harassment for the consumers.

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- Product Liability & Penal Consequences:

o A manufacturer or product service provider or product seller will be held responsible to compensate for
injury or damage caused by defective product or deficiency in services
o Basis for product liability action:

 Manufacturing defect.
 Design defect.
 Deviation from manufacturing specifications.
 Not conforming to express warranty.
 Failing to contain adequate instructions for correct use.
 Service provided-faulty, imperfect or deficient.
The New Act has introduced the concept of product liability and brings within its scope, the product manufacturer,
product service provider and product seller, for any claim for compensation. The term 'product seller' is defined to
include a person who is involved in placing the product for a commercial purpose and as such would include e-
commerce platforms as well. The defense that e-commerce platforms merely act as 'platforms' or 'aggregators' will not
be accepted. There are increased liability risks for manufacturers as compared to product service providers and
product sellers, considering that under the New Act, manufacturers will be liable in product liability action even
where he proves that he was not negligent or fraudulent in making the express warranty of a product. Certain
exceptions have been provided under the New Act from liability claims, such as, that the product seller will not be
liable where the product has been misused, altered or modified.

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 Punishment for Manufacture or Sale of Adulterated/Spurious Goods:

o In case of the first conviction, a competent court may suspend any licence issued to the person for a period
of up to two years and in case of second or subsequent conviction, may cancel the licence permanently.

- Penalties for Misleading Advertisement:

The CCPA may impose a penalty of up to INR 1,000,000 (Indian Rupees One Million) on a manufacturer or an
endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to 2
(two) years for the same. In case of a subsequent offence, the fine may extend to INR 5,000,000 (Indian Rupees Five
Million) and imprisonment of up to 5 (five) years. The CCPA can also prohibit the endorser of a misleading
advertisement from endorsing that particular product or service for a period of up to 1 (one) year. For every
subsequent offence, the period of prohibition may extend to 3 (three) years.

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- The New Act fixes liability on endorsers considering that there have been numerous instances in the recent past
where consumers have fallen prey to unfair trade practices under the influence of celebrities acting as brand
ambassadors. In such cases, it becomes important for the endorser to take the onus and exercise due diligence to verify
the veracity of the claims made in the advertisement to refute liability claims.

Alternate Dispute Resolution Mechanism of Mediation:

o A complaint will be referred by a Consumer Commission for mediation, wherever scope for early settlement
exists and parties agree for it.
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 o The mediation will be held in the Mediation Cells which will be established under the aegis of
the Consumer Commissions.
o There will be no appeal against settlement through mediation.
The New Act provides for mediation as an Alternate Dispute Resolution mechanism, making the process of dispute
adjudication simpler and quicker. This will help with the speedier resolution of disputes and reduce pressure on
consumer courts, who already have numerous cases pending before them

 Simplification of the Consumer Dispute Adjudication Process:

o Empowering the State and District Commissions to review their own orders.
o Enabling a consumer to file complaints electronically and in consumer commissions that have jurisdiction
over the place of his residence.
o Video-conferencing for hearing and deemed admissibility of complaints if the question of admissibility is
not decided within the specified period of 21 days.
 Other Rules and Regulations:

o As per the Consumer Disputes Redressal Commission Rules, there will be no fee for filing cases up to Rs.
5 lakh.
o The credit of the amount due to unidentifiable consumers will go to the Consumer Welfare Fund (CWF).
o State Commissions will furnish information to the Central Government on a quarterly basis on vacancies,
disposal, the pendency of cases and other matters.
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 o Apart from these general rules, there are Central Consumer Protection Council Rules, provided for the
constitution of the Central Consumer Protection Council (CCPC).

 It will be an advisory body on consumer issues, headed by the Union Minister of Consumer Affairs,
Food and Public Distribution with the Minister of State as Vice Chairperson and 34 other members
from different fields.
 It will have a three-year tenure and will have Minister-in-charge of consumer affairs from two States
from each region- North, South, East, West, and North-East Region.

For further information on consumer protection act 2019, kindly refer:

[Link]

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