Question

Explain the factor responsible the exploitive consumer in the market place

Answer 1

Explanation:

The following factors are responsible for the exploitation of consumers: Illiteracy and Ignorance of the Consumer: The majority of our population is illiterate and ignorant. They cannot differentiate between right quality and sub standard quality of goods.

Answer 2

Answer:

The following factors are responsible for the consumer exploitation:

(i) Limited information - For a correct decision and choice about a product, a consumer needs full informationabout the price, quality, durability, composition, etc of the Product. In the absence of full and correct information, a consumer may get exploited.

(ii) Limited supplies- when the supply of goods is less than their demand, the prices may go high and may also encourage the tendency of hoarding. As a consequence, consumers will get exploited.

(iii) Limited competition-when there is limited competition with regard to production i.e., when producers are few and can control and restrict the supply of a product there is a possibility of manipulation in prices.

(iv) Low literacy-Illiteracy causes ignorance, which leads to exploitation of consumers. The level of awareness in our country is generally low