please tell me few factors which cause exploitation of consumers??
Answers
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.
2. Consumer's indifference towards the market: There is a large group of such consumers who behave indifferently regarding purchasing. There are some consumers who think as – what to do, every thing is alright, leave it , why to take cash memo, whatever goods the shopkeeper gives is good, things should be cheap, good and durable , What is the need of the standardization marks like ISI and AGMARK etc. The producers take full advantage of this indifferent behaviour of consumers and succeed in exploiting them.
3. Tele Marketing Today in the age of computers, tele- marketing and e-commerce have become very popular. You also must have seen the advertisement on T.V. The information about the goods and the prices is also given in the advertisement. The consumer can send the required money and get the commodity through parcel. But very often the consumers feel cheated by this deal. One orders for costly products on being influenced, but he does not get the due benefit from that good.
4. Limited Information: In this age of globalization there are several types of products in the market. Producer is free to produce. There is no fixed law for quality and rate. There is lack of knowledge about several aspects of goods like rte, quality, rules for usage, rules for selling etc. Therefore a consumer makes wrong choice and suffers financial loss.
5. Monopoly : Monopoly means the right on the production and distribution of a commodity of a producer or a group of producers. In the state of monopoly producers have arbitrary behavior regarding the prices and the quality and availability of the goods. As a result, producers succeeded in exploiting consumers.
6. Illiteracy and Feeling of satisfaction: When the consumers are uneducated, the sellers cheat them very easily. The shopkeeper tells the resembling words as of branded and sells the goods of poor quality . For example Godraj is written instead of Godrej, the local producers sell it in the price of Godrej. Sometimes consumers are placid. Consumers think it was a loss, let it be or it was their fate, now who will fight etc. This thinking also makes consumers prey of exploitation. The sellers know consumer's mentality and seller exploit consumer freely.
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The factors causing exploitation of consumers are
(i) Lack of awareness among consumers.
(ii) Limited competition, leading to consumers being forced to buy a certain product.
(iii) Some consumers are illiterate.
(iv) Limited supply of goods, products or services, leading to shortages and black marketing.
(v) Misleading advertising in the media.