Causes of consumer exploitation
Answers
Answer:
Lack of knowledge: The main reason for exploitation of consumers is lack of knowledge. Several consumers do not have the knowledge about the price, quality, services related commodities. Therefore, consumers simply trust the facts told to them by the sellers and purchase goods, thus become trapped and are exploited
FACTORS CAUSING EXPLOITATION OF CONSUMERS - DEFINITION
Reasons or factors causing exploitation of consumers are: (1) Limited information (2) Limited supplies (3) Limited competition (4) Low literacy (5) Lack of bargaining power (6) Irregular prices offered (7) Misleading advertisements (8) Lack of unity and (9) Cumbersome and time taking legal proceedings.
FORMS OF CONSUMER EXPLOITATION - DEFINITION
Some of the common methods adopted by the manufacturers and traders to exploit the consumer are as follows:
1. Underweight or under-measurement
2. Goods or services of substandard quality
3. Overpricing
4. Articles harmful for health
5. Unsatisfactory after-sales services
6. Sale not in accordance with predetermined conditions
7. Scarcity in service sector.
8. Rough behaviour with the consumer and undue conditions
9. Cheating in choice
10. Faulty equipments
11. Artificial scarcity
12. Incomplete or insufficient information.