consumer awareness case study with solution

Top 10 Case Study on Consumer Rights

We know consumer laws and courts exist, but only by reading through some case law can you understand how you as a consumer can exercise your rights!

Table of Contents

On an everyday basis, we purchase products and services. From our basic necessities like food and clothing to services like banking and education, we are dependent on companies and organisations to live comfortably in the present day, and we give them our hard-earned money in return. But sometimes, companies might fail to provide quality services or products. Many know there exist consumer courts and laws that protect consumers from consumer exploitation . But have you ever wondered who goes to these courts and what types of cases are filed? You would be surprised to know how basic these cases can be. So, here are 10 interesting case study on consumer rights curated for you.

Top 10 Case Studies on Consumer Rights

1. banks can’t always escape using ‘technical difficulties’.

We have come to rely on banks so much. A recent case study on consumer rights highlighted the need for stronger regulations. More than ever, most of our transactions are digital and heavily reliant on banks for these. Have you ever had your transaction fail due to the server being down or other errors?

Dipika Pallikal, a squash champion and Arjuna awardee found herself in an awkward situation when she used her Axis Bank Debit Card in a hotel at Netherlands’ Rotterdam failed. She had had 10 times the bill amount in her account at that time. Due to this, she faced a loss of reputation and humiliation. The bank said the incident was a case of ‘ Force Majeure’ (an act of god/ something beyond control)

Apart from that, the bank had also returned a cheque of ₹1 lakh issued to her by the government of India and blamed it on a technical error.

Dipika moved the consumer court in Chennai against Axis Bank

Court Decision

The court found that there was a deficiency of service on the part of Axis Bank and directed the bank to pay a compensation of ₹5 lakh and ₹5000 as expenses.

Key Takeaway

Banks are like any other service provider. We trust them with our money and they must perform the services we were promised. They cannot hide behind ‘technical difficulties’ or ‘ force majeure ’ and let customers suffer for it.

2. You Don’t Have to Be a Celebrity to Win a Consumer Case

A humble tea vendor, Rajesh Sakre, is an example of this. He had ₹20,000 in his State Bank of India account and had withdrawn ₹10,800. On his next visit to the ATM, however, he realized all his money was gone. When he asked the bank authorities they blamed it on him. 

So, he went to the District Consumer Disputes Redressal Forum with his grievance. He couldn’t afford a lawyer and he argued the case himself. This case study on consumer awareness presents insights into how consumers are becoming more vigilant.

The forum ruled in his favor and ordered the State Bank of India to return the ₹9,200 with 6% interest, pay ₹10,000 as compensation for mental anguish caused by the issue, and ₹2,000 for legal expenses.

It doesn’t matter who you are, as long as you have a valid case you can approach the Consumer Cases Forum. And even big companies and government entities like the State Bank of India can be made to answer for their mistakes.

3. Not All Free Items Are Welcome

Imagine you bought a bottle of Pepsi and found a packet of gutka floating in it! It happened to Rajesh Rajan from Ahmedabad when he bought Pepsi from a local store. He sent a legal notice for defective goods to the company immediately and approached a Consumer Cases Dispute Redressal Forum. Every case study on consumer complaints tells a unique story of a consumer’s journey towards justice.

Moreover, he claimed that there was a deficiency in service that could have caused a health hazard to him. He demanded compensation of ₹5 lakh for the same.

The consumer forum passed an order in favor of Rajesh Rajan and directed the company to pay a total of ₹4008 (₹4000 for compensation and ₹8 for the Pepsi he purchased).

Rajesh moved the State Consumer Dispute Redressal Commission, asking for higher compensation as ₹4008 was too low and he had spent ₹500 on sample testing itself. The State Commission passed an order asking the company to pay ₹20,000 as compensation and ₹2000 towards costs as it found Rajesh’s argument reasonable.

Free items are not all welcome! It is a deficiency in service on the part of the provider if you find anything in your food (packaged or otherwise) that isn’t supposed to be there. The Consumer Cases Forums are a good place to take them.

4. Paying More Than the MRP? You Shouldn’t.

It has become common to charge more than the maximum retail price (MRP) for packaged goods. Especially in places like theatres, food courts, railway stations, etc, we see this happen a lot and mostly ignore it. Among the prominent consumer cases last year, the MRP case stood out for its complexity

Mr Kondaiah from Andhra Pradesh, on the other hand, didn’t ignore it when he noticed that Sarvi Food Court charged him ₹40 for a water bottle where the MRP was ₹20. He filed a case against them in the District Consumer cases Disputes Redressal Forum for ‘unfair trade practice’. He supported his claim by producing the bill. The MRP case study on consumer rights brought to light some gaps in the existing regulations.

The court decided in favour of Mr Kondaiah and said that a practice is not justified just because it is widely common. Mr Kondaiah was awarded a compensation of ₹20,000, ₹20 (the extra money charged) and ₹5,000 in costs. 

No authority has the power to charge above the MRP for any packaged goods. It doesn’t matter where it is sold, you are not required to pay a rupee above the MRP.

5. No MRP at All on the Product?

Baglekar Akash Kumar, a 19-year-old got a book and ₹12,500 because of the book. How? He purchased the book online and when it was delivered, he noticed that there was no MRP mentioned in it. He browsed the internet and saw that the book was sold at different prices in different places.

So, he went to the consumer cases forum and filed a case against Penguin Books India Pvt. Ltd and the paper company.

The court held that not publishing MRP on the product without a valid reason is an ‘unfair trade practice’. MRP exists to ensure that a consumer is not overcharged for the product. So, it is mandatory for companies to print MRP.

The publishers were asked to print the retail price of the book and Akash was awarded ₹10,000 as compensation and ₹2,500 as costs.

It is required under law for companies to put MRP on every product. If you see a product without MRP, then it is a violation of Consumer Cases Protection Laws and you can take them to court. 

6. Medical Services Fall Within the Scope of the CPA

Do medical services fall under CPA? When there was a little confusion in this regard, the Indian Medical Association (IMA) decided to get this question resolved once and for all. The CPA case study on consumer rights brought to light some gaps in the existing regulations. The Medical Services case study on consumer complaints became a landmark case in consumer rights advocacy.

IMA approached the Supreme Court, asking them to declare that medical services are out of the scope of the CPA. They gave the following arguments to support their claim:

• Medical professionals are governed by their own code of ethics made by the Medical Council of India. 
• In the medical profession, it is hard to guarantee the end result of treatments. Many external factors which are out of the control of the professional can impact the outcome. So, allowing consumer claims will cause people to file a case whenever a treatment doesn’t work out.
• There are no medical science experts in the consumer complaints online.
• Medical service provided by government hospitals will not fall under the Act especially when the service is provided for free. 

These were decent points. After consideration, the court settled the claims in the following manner.

Medical services provided by any professional (private or government) will be covered by CPA. This means  people can file a case in a Consumer Court if the service provided is not in confirmation with the Act.

• Doctors and hospitals who treat patients for free cannot be sued by a person who availed their services for free. 
• In a government hospital, where services are provided free of charge – the Consumer Protection Act India would not apply.

Apart from these two exceptions, the Act will apply when a person gets treated in government hospitals for free, when a poor person gets treated for free, and when insurance money is used for treatment.

7. Tired of the False Claims Made by Skin and Hair Care Products Yet?

Maybe you are not tired yet or you are too tired to question. However, a 67-year-old man from Kerala’s remotest areas was tired of these consistent lies and how companies got away with them.

In 2015, K Chaathu complained against Indulekha (beauty product manufacturers) and Mammootty (an actor who was the brand ambassador of the company) for putting up misleading ads. The tagline of the soap was ‘soundaryam ningale thedi varum’ which meant ‘beauty will come in search of you. The ads also claimed that people using the soap would become ‘fair’ and ‘beautiful’ but the 67-year-old didn’t become fair or beautiful.

Funny, right?

Compensation Paid

Indulekha paid him ₹30,000 in an out of court settlement while the initial claim of Chaathu was ₹50,000. When he was asked about this, he said that this case was never about the money but about how these companies put up advertisements every day with false claims. And it is not okay to let these people get away with it.

Key Takeaways

Advertisements are made to sell the products, so exaggeration of results is too common. But this doesn’t make it okay to make false claims just for the sake of selling the products. Making false claims in violation of the CTA.

8. Homebuyers Are Consumers

Imagine you decide to buy a house (a dream come true for many). You do a lot of research, pool your hard-earned money, and pay a real estate developer to build the house for you. They promise to deliver within 42 months but 4 years later they haven’t even started construction. 

This is what happened to two people and they decided to move the National Consumer Disputes Redressal Commission (NCDRC) for it. The Homebuyer’s case study on consumer rights was instrumental in changing local regulations.

NCDRC decided in favour of the homebuyers and asked the real estate developer to refund the money with a simple interest of 9% per annum. They were also awarded a compensation of ₹50,000 each.

The real estate developer challenged this in the Supreme Court, saying that the issue is covered under another Act (Real Estate (Regulation and Development) Act) and therefore cannot be taken in a consumer court. But the Supreme Court denied their argument saying that as long as the other Act explicitly stops people from getting remedy under other laws, they will be allowed to do so.

Our laws are in such a way that even though there are other remedies available, in most cases where you are a buyer of a product or a service, you will have protection under the Consumer Protection Act. 

9. Insurance Claims Cannot be Rejected on Mere Technicalities

We pay the premium and get insurance to protect us from losses we can’t foresee. Sadly, many people have had bad experiences with the insurance company. Om Prakash, for example, had his truck stolen and claimed insurance for the same. The truck was stolen on 23.03.2010, the FIR was filed on 24.03.2010, and the insurance claim was filed on 31.03.2010. 

The insurance investigator was sent and he confirmed that the claim was genuine. The claim was approved for the amount of ₹7,85,000/-. But the amount was never given to Om Prakash. With the rise in consumer court cases , companies are now more cautious about their policies and practices. When he sent the insurance company a legal notice for the same, they replied saying that there was a breach of terms and conditions: 

“immediate information to the Insurer about the loss/theft of the vehicle”

Om Prakash was late to apply for insurance because he was held up by the police to try and recover his vehicle.

While the consumer courts didn’t allow his case, the Supreme Court allowed his appeal and held in favour of him. It was ruled that insurance companies cannot escape from paying the claimants on technical grounds. Especially when the claimant has valid reasons for it.

The Court directed the Respondent company to pay a sum of ₹8,35,000/- to the Appellant along with interest @ 8% per annum. He was also awarded ₹50,000 as compensation.

Over the years, many judgments have been made to ensure that insurance companies are accountable and do not escape from paying valid claims. If you experience a similar situation with your insurance provided, you can approach the consumer court.  

10. iPhone 5S Gold for ₹68 + ₹10,000

Let’s close the list with a fun one! How would it be to get an iPhone at just ₹68? In 2014, Nikhil Bansal (a student) saw this unbelievable offer on Snapdeal (a discount of ₹46,651) and ordered it immediately as any sane person would. He received an order confirmation but later he was told that the order was canceled. They claimed that the offer itself was a technical glitch. “The iPhone case study on consumer complaint showcased the challenges consumers face even in today’s digital age.

When he approached the e-commerce consumer complaints India Forum, he claimed that these kinds of offers were misleading people and it was the duty of Snapdeal to honour the order. The forum ruled in his favor and asked Snapdeal to deliver him the iPhone for ₹68 and asked him to pay a compensation of ₹2,000.

When Snapdeal appealed this order, the compensation was raised to ₹10,000! 

Key Takeaway – Case Study on Consumer Rights

E-commerce stores are just as answerable as any other shop owner under the Consumer Protection Act. So if you face any issues like this with them, consider taking it to the consumer court. Through each case study on consumer rights, we can learn more about our rights and responsibilities

Consumer forums exist to protect consumers from consumer exploitation and ensure that we are not cheated by the companies we pay for getting products or services. Knowing your rights is the first step towards becoming a conscious consumer. 

Don’t hesitate to approach the consumer court if you have a valid claim of consumer exploitation . Even if it is for an ₹ 8 product like Pepsi, a valid claim should be taken to the forum.

What is the Consumer Protection Act?

The Consumer Protection Act is a law that safeguards the interests of consumers against unfair trade practices and ensures their rights to quality goods and services.

When was the Consumer Protection Act passed?

The Consumer Protection Act was passed in 1986 and later updated with the Consumer Protection Act, 2019.

Who is a consumer under the Consumer Protection Act?

A consumer is any individual who purchases goods or services for personal use, not for manufacturing or resale.

Who can file a complaint under the Consumer Protection Act?

A complaint can be filed by a consumer, any recognized consumer association, or the Central or State Government on behalf of a consumer.

What is a consumer rights case study?

A consumer rights case study involves analyzing a real-life scenario where a consumer faced issues with a product or service and sought legal resolution under consumer protection laws.

What are consumer cases in India?

Consumer cases in India refer to legal disputes brought by consumers against businesses for grievances related to defective goods, poor services, or unfair trade practices.

What are some examples of consumer rights?

Examples of consumer rights include the right to safety, the right to be informed, the right to choose, the right to be heard, and the right to redressal.

What is the consumer rights class 10 project?

The consumer rights class 10 project typically involves students researching and presenting on the various rights of consumers and how they are protected under the law.

Who is a consumer class 10 SST project?

In the class 10 Social Science (SST) project, a consumer is defined as an individual who purchases goods or services for personal use and is protected under consumer laws.

What is COPRA? (Consumer Operating Protection Regulation Authority)

The Consumer Protection Act (COPRA) is a significant piece of legislation in India aimed at protecting the rights of consumers.…

What is Consumer Privacy and Why is it Necessary?

Understanding Its Significance and Necessity In an era where personal data has become a valuable commodity and digital interactions are…

Fair Debt Collection Practices Act (FDCPA): Rules, Works and Provisions

The Fair Debt Collection Practices Act (FDCPA) stands as a cornerstone of consumer protection in the United States, aiming to…

What Will Get Covered in the Consumer Protection Act?

Introduction Enacted in 1986, the Consumer Protection Act stands as a beacon of empowerment and protection for consumers in India.…

Understanding G-Secs and How to Invest in Them for Business?

G-secs refer to government securities or, in other words, loans or capital issued by the government. The biggest advantage associated…

Startups to Continue Receiving a Tax Holiday

Businesses of all sizes and types have been having a tough year courtesy of the coronavirus pandemic. The Indian government…

How the Rupee Depreciation is Enticing NRIs in Real Estate?

The Indian currency has depreciated as much as 5.2% against the US dollar in 2022 so far. The rupee’s depreciation…

Subscribe to our newsletter blogs

• Free Resources

5 mini case studies about understanding and serving the customer

This article was originally published in the MarketingSherpa email newsletter .

Mini Case Study #1: 34% increase in conversion for powdered health drink company by helping customers come to their own conclusions

A single-product company that sells high-quality, all-natural, powdered health drinks engaged MECLABS Institute to help better understand their potential customers and increase the conversion rate of prospects reaching the homepage.

The original homepage took a claims-driven approach – it provided several bold statements about what the product would do for a customer with no information about the product to help the customer understand why it would work for them. Here is a look at the upper left of the original homepage.

Creative Sample #1: Upper left of original homepage for health drink company

The MECLABS team created a version of the homepage that took a conclusion-driven approach – instead only trying to convince potential customers with only bold claims about the product, the homepage copy included information about the product to help customers understand why the product would help them.

Creative Sample #2: Upper left of treatment homepage for health drink company

The team tested this version as the treatment against the original homepage (the control) to help better understand what communication style customers would respond to.

The treatment generated a 34% increase in conversion rate.

This experiment highlights a classic disconnect between customers and marketers. If you work in a company or with a client, you have intimate knowledge of the product and believe in its effectiveness. You spend all day thinking about it. You personally know some of the people who designed it. Your paycheck depends on the success of the product.

A customer does not have this same understanding or belief in the product. They have a significant gap in their knowledge about your product. Bold claims alone are not enough to close that gap. They have to understand why the product will work and come to their own conclusions about the company’s ability to deliver on its promises.

You can learn more about this experiment in The Conversion Heuristic Analysis: Overcoming the prospect’s perception gap from MarketingExperiments (MarketingSherpa’s sister publication).

Mini Case Study #2: Bags company increases conversion 191% by adding clarity to homepage

“I'm the CEO of Doubletake , a tennis and pickleball bag company, but I spent the majority of my career focused on messaging and research, consulting as a strategist for top brands for the last 10 plus years, and in-house prior to that. I'm almost embarrassed that I have this example to share, but I thankfully came to my senses!,” Shawna Gwin Krasts told me.

“It is interesting that crafting messaging/copy for products that aren't ‘your baby’ is so much easier – there is just more distance to see it for what it is. If this wasn't so near and dear to my heart, I would have caught it in a second.”

The team launched its homepage with only the headline “Sports Meets Style” over a photo of a bag. The headline was meant to differentiate the brand from competitors that were either only sporty or fashionable. Below the headline was a call-to-action (CTA) button with the word “shop.”

Creative Sample #3: Previous homepage copy for bag company

Internally it seemed obvious that the company sells tennis and pickleball bags since a bag was in the photo.

But they came to realize that it might not be as clear to website visitors. So the team added the subhead “Gorgeous Yet Functional Tennis and Pickleball Bags.” They also added the word “bags” to the CTA so it read “shop bags.”

Creative Sample #4: New homepage copy for bag company

These simple changes increased the website's conversion rate by 191%.

“It is so important for marketers to get out of their own heads,” Krasts said. “I suppose this is why I struggle with messaging so much for Doubletake. I am the target customer – I have the answers in my head and I suppose my natural curiosity isn't as strong. But clearly, I also have to remember that I've seen my homepage 10,000 more times than my customers, which means things that seem obvious to me, like the fact that Doubletake is a tennis brand not a reseller, might not be obvious.”

Mini Case Study #3: Online motorcycle gear retailer doubles conversion with personalized emails

There are ways to better tap into what customers perceive as valuable built into certain marketing channels. Email marketing is a great example. Marketers can build off information they have on the customer to send more relevant emails with information and products the customer is more likely to value.

"Very early in my marketing career I was taught, 'You are not the target audience' and told to try to see things from my customer's perspective. Empathizing with customers is a good start towards seeing products from the customers' perspective, but marketers really need to focus on quantifiable actions that can help identify customers' needs. That means continuous testing across messaging, price points, packaging, and every other aspect of a product. This is where personalization can really shine. Every time a marketer personalizes a message, it brings them closer to their customer and closes that gap," said Gretchen Scheiman, VP of Marketing, Sailthru.

For example, 80% of the email messages RevZilla sent were generic. But the website sells motorcycle parts and gear to a wide range of riders, each with their own preference in brand and riding style. The online motorcycle gear retailer partnered with Sailthru to better connect with customer motivations. The team started by upgrading the welcome series for new customers by personalizing the email messages based on the customers’ purchases and preferences.

The company has tested and added many new triggers to the site, and now has 177 different automation journeys that include triggers for browse and cart abandonment as well as automations for different product preferences, riding styles and manufacturer preferences.

The conversion rate from personalized email is double what RevZilla was getting for generic batch-and-blast sends. Automated experiences now account for 40% of email revenue. Triggered revenue is up 22% year-over-year and site traffic from triggers has increased 128% year-over-year.

"Customizing the buyer journey isn't about one long flow, but about lots of little trigger points and tests along the way. For any marketer that is intimidated about getting started with personalization, it's important to realize that it's more like a lot of small building blocks that create a whole experience. We started with a custom welcome series using testing and built from there. We're still adding new tests and new trigger points, but it's with the same concept that we started with,” said Andrew Lim, Director of Retention Marketing, RevZilla.

Mini Case Study #4: Pet protection network increases revenue 53% thanks to survey feedback

Huan makes smart tags for pets to help owners find their pets if they go missing. Initially, the company focused on the technical features in its homepage copy. For example, the tags don’t emit harmful radiation, are water-resistant and have a replaceable one-year battery.

From customer feedback surveys, the team discovered that customers purchased the product because they were worried they wouldn’t be able to find their pet if the pet went missing. This discovery prompted the team to change its messaging.

The new messaging on the homepage read, “Keep your pet safe and prevent heartbreak. Huan Smart Tags help you find your missing pet automatically.”

Revenue increased 53% increase following the change in messaging. “We immediately saw an increase in engagement on our website, with a lower bounce rate, higher click-through rate and a higher conversion rate. There were also a few people who messaged us on social media saying how our new message resonated with them,” said Gilad Rom, Founder, Huan.

Mini Case Study #5: Talking to new customers leads SaaS to change strategy, increase sales 18%

When Chanty launched, the marketing messages focused on pricing since the Saas company is 50% less expensive than the best-known competitor. However, when the team started talking to customers, they discovered most people had switched from the competitor for different reasons – ease of use, better functionalities in the free plan, better experience with the customer support team, and a better mobile app.

The team changed its marketing to focus around these product attributes and only listed pricing in the end as an additional benefit.

“It turned out that this was the way to go because we attracted people who wanted a better experience, rather than just customers who wanted to save money. After six months of implementing this new marketing and sales strategy, our sales grew by 18%,” said Jane Kovalkova, Chief Marketing Officer, Chanty.

Related resources

The Prospect’s Perception Gap: How to bridge the dangerous gap between the results we want and the results we have

Customer-First Marketing: Understanding customer pain and responding with action

Marketing Research Chart: How customer understanding impacts satisfaction

Improve Your Marketing

Join our thousands of weekly case study readers.

Enter your email below to receive MarketingSherpa news, updates, and promotions:

Note: Already a subscriber? Want to add a subscription? Click Here to Manage Subscriptions

Get Better Business Results With a Skillfully Applied Customer-first Marketing Strategy

The customer-first approach of MarketingSherpa’s agency services can help you build the most effective strategy to serve customers and improve results, and then implement it across every customer touchpoint.

Get headlines, value prop, competitive analysis, and more.

Marketer Vs Machine

Marketer Vs Machine: We need to train the marketer to train the machine.

Free Marketing Course

Become a Marketer-Philosopher: Create and optimize high-converting webpages (with this free online marketing course)

Project and Ideas Pitch Template

A free template to help you win approval for your proposed projects and campaigns

Six Quick CTA checklists

These CTA checklists are specifically designed for your team — something practical to hold up against your CTAs to help the time-pressed marketer quickly consider the customer psychology of your “asks” and how you can improve them.

Infographic: How to Create a Model of Your Customer’s Mind

You need a repeatable methodology focused on building your organization’s customer wisdom throughout your campaigns and websites. This infographic can get you started.

Infographic: 21 Psychological Elements that Power Effective Web Design

To build an effective page from scratch, you need to begin with the psychology of your customer. This infographic can get you started.

Receive the latest case studies and data on email, lead gen, and social media along with MarketingSherpa updates and promotions.

• Your Email Account
• Customer Service Q&A
• Search Library
• Content Directory:

Questions? Contact Customer Service at [email protected]

© 2000-2024 MarketingSherpa LLC, ISSN 1559-5137 Editorial HQ: MarketingSherpa LLC, PO Box 50032, Jacksonville Beach, FL 32240

The views and opinions expressed in the articles of this website are strictly those of the author and do not necessarily reflect in any way the views of MarketingSherpa, its affiliates, or its employees.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

The Elusive Green Consumer

• Katherine White,
• David J. Hardisty,
• Rishad Habib

Companies that introduce sustainable offerings face a frustrating paradox: Most consumers report positive attitudes toward eco-friendly products and services, but they often seem unwilling to follow through with their wallets. The authors have been studying how to encourage sustainable consumption for several years, performing their own experiments and reviewing research in marketing, economics, and psychology.

The good news is that academics have learned much about how to align consumers’ behaviors with their stated preferences. Synthesizing these insights, the authors identify five approaches for companies to consider: use social influence, shape good habits, leverage the domino effect, talk to the heart or the brain, and favor experiences over ownership.

People say they want sustainable products, but they don’t tend to buy them. Here’s how to change that.

Idea in Brief

The challenge.

Most consumers report positive attitudes toward eco-friendly products and services, but they often seem unwilling to pay for them. Insights from behavioral science can help close this gap.

The Solution

Consider five approaches: use social influence, shape good habits, leverage the domino effect, decide whether to talk to the heart or the brain, and favor experiences over ownership.

People’s desire to conform to the behavior of others—and the habits they develop over time—influence the likelihood that they will consume sustainable offerings. The good news is that sustainable choices often lead to further positive behavior.

On the surface, there has seemingly never been a better time to launch a sustainable offering. Consumers—particularly Millennials—increasingly say they want brands that embrace purpose and sustainability. Indeed, one recent report revealed that certain categories of products with sustainability claims showed twice the growth of their traditional counterparts. Yet a frustrating paradox remains at the heart of green business: Few consumers who report positive attitudes toward eco-friendly products and services follow through with their wallets. In one recent survey 65% said they want to buy purpose-driven brands that advocate sustainability, yet only about 26% actually do so.

• KW Katherine White is a professor and the academic director of the Dhillon Centre for Business Ethics at the University of British Columbia’s Sauder School of Business.
• DH David J. Hardisty is an assistant professor at the University of British Columbia’s Sauder School of Business.
• RH Rishad Habib is a PhD candidate in the Marketing and Behavioural Science Division at the University of British Columbia’s Sauder School of Business.

Partner Center

• Skip to main content
• Skip to primary sidebar
• Skip to footer
• QuestionPro

• Solutions Industries Gaming Automotive Sports and events Education Government Travel & Hospitality Financial Services Healthcare Cannabis Technology Use Case AskWhy Communities Audience Contactless surveys Mobile LivePolls Member Experience GDPR Positive People Science 360 Feedback Surveys
• Resources Blog eBooks Survey Templates Case Studies Training Help center

Home CX Customer Experience

Customer Awareness: What it is, Stages & Examples

Let’s start with the obvious. Not all people are ready to buy. We buy because we have a need that we want to solve , but on many occasions, we may not be aware that we have a problem. Customer Awareness is the first step in the Customer Journey and it needs to be paid special attention if you want to be successful in your strategies to propel business growth.

If you are in marketing, ask yourself: what’s the point of showing ads to people who don’t even know what they need? And if you are in sales, ponder why would you show a product/service update to somebody who still doesn’t know they need your product or even what it is for. 

The key is to understand the customer’s purchasing process and their different levels of awareness. And for this, it is essential to define your buyer persona with maximum detail and precision.

The latter is exactly what you are going to read and learn in this article, so if you want your campaigns and sales strategies to be profitable, pay attention.

LEARN ABOUT: Perfect Customer-First Strategy

What is Customer Awareness?

Customer Awareness refers to the degree your potential customer is aware of their problems, pain points, possible solutions, your product, and how you can solve their problems.

Put simply, If the customer doesn’t know they have a problem, they won’t buy your product.

Surely you have heard that one of the keys to selling is to send the right message, to the right person and at the right time. And it makes all the sense in the world.

To do this, the first step is to ask yourself a question. Does your potential customer really know that they have a problem? Are they aware?

A person can go through different steps until they are ready to buy. These phases are directly related to the sales/marketing conversion funnel of a company.

For example, when you start looking for information about different gyms, it is because you have a problem to solve. We don’t go to the gym for pure pleasure. Normally there is a reason behind it.

Whether it’s because you want to lose weight, get in shape, feel better about yourself, prepare for a competition, etc. There is always a reason behind a purchase.

Read about the consumer decision journey .

Overview of The 5 stages of customer awareness

• Completely Unaware: A person who doesn’t know they have a problem and therefore doesn’t know you or your solution.
• Problem Aware: A person who knows they have a problem, but doesn’t know there are solutions to that problem.
• Aware of the solution: The person who is aware of the problem knows that there are solutions but has not yet opted for one and also does not know your product.
• Product Aware: A person who already knows about your product but isn’t totally sure it will solve their problems. You have to work on objections.
• Fully aware: Finally, the person who knows a lot of information about your product is already about to buy but needs one last push.

We will go into detail in each of these stages so that you know what type of strategy your company has to implement, depending on the level of awareness of your customers.

Bottom line is that the more aware a customer is of their problem, the more direct you can be in your marketing/selling approaches.

Check out this guide to learn how to build your own Customer Journey Map .

Why it is so important to know the 5 stages of customer awareness?

You have to understand one thing. Not all people are equally prepared to make a purchase.

Some people may already be thinking about purchasing, but the vast majority are looking for solutions to their problems. They may not even know they have it yet.

That is, to transform cold traffic (a stranger), into warm traffic (they already know you) and into hot traffic (they know your solution).

For this reason, talking to all people with the same message is a big mistake. It must be adapted to the different levels of awareness your customers have. Adapting your strategy to each of the stages is one of the keys to making your business profitable.

Another thing you have to understand is that people don’t buy products, they buy solutions.

When I buy myself a coffee in the morning before going to work, it is not for pure pleasure.

It’s so that I don’t get sleepy, be alert and with it, be more productive.

Therefore, the first question you will have to constantly ask yourself is, what problem does your product solve?

The 5 stages of customer awareness 

Knowing the level of awareness of a customer is very important before launching a marketing campaign. Segmentation plays an important role in showing the right message to a potential customer. You have to be clear about what kind of people you are going to impact with your ads.

More than making an effort to sell, you should focus on getting to know you and understanding how your products or services can help them solve their problems.

Understanding the different levels of awareness that potential customer goes through until they buy will help you achieve the goals you have set for yourself. Focus on the following points:

• Listen to your potential customers. Answer questions like What do you want? What are they afraid of? What are they wondering?
• Be clear in your messages. You must go to the point, and be direct and concise. Don’t make them think too much.
• Put your focus on the desire to buy, not the desire to sell.
• Focus your efforts on highlighting the benefits of your product or service.
• Make them feel that what you are selling is the best solution to their problems and will improve their well-being.

Now let’s dive in into each of the 5 stages of awareness of a potential client.

Does your customer really know they have a problem? How is a customer going to buy from you who doesn’t even know that they have a problem?

At this stage the potential client has absolutely no knowledge of anything:

They don’t know they have a problem.

They don’t know you or your products/services.

And therefore, they are not aware at all that there is a solution to their problems.

They may even think that everything in their life or business is working fine.

This type of audience/cold traffic are the most difficult to convert, but it is where the money is because it is a large market. 

The key is to know how to reach this segment. If you notice, many ads start with a question focused on the main pain point of their target audience. Fear is one of the most powerful human emotions, so one option is to highlight the problem that this segment has.

Another way is to use social proof or statistical data to make people see there are many in that same situation and think:

“If so many people are in this situation, perhaps I should also seek more information about this”

Another way is to tell stories employing a narrative related to the main problem of your target audience so they can feel connected and evoke powerful emotions and insights. 

2. Aware of the problem

At this stage, the potential customer already knows that they have a problem, but does not know that there is a solution.

Their head has finally clicked. They recognize there is a need, but still don’t know of any product or service that can cover it.

The key to selling to this segment is letting them know that you too have been through it and know how they feel. For this, it is essential to go deeper into the pain points of your ideal client. At this stage, empathy map plays an essential role.

LEARN ABOUT: Client Management

Let’s think it through. What is the first thing you do when you have a problem? Find information, right? And where do you look for it? Most people will likely answer Google.

You could create educational content that solves those problems in order to build trust in your brand, for instance. 

3. Aware of the solution

At this level of awareness, the potential customer already knows what their problems are, they know there are solutions, but they don’t know your the absolute solution.

When a person knows that they have a problem, they need to solve it. For this reason, a research process begins to find out what is the product that can solve them better.

The fact that they are aware that they have an unmet need makes the temperature rise and the potential customer is closer to buying. 

If they’ve come along the journey with you, there’s most likely a deeper level of trust in your brand. Now that you’ve got their ear, you want to:

• Demonstrate your potential buyer how their problem is solved with your product or service
• Make your product shine when it comes to the competition

At this point, you’re showcasing your product/service and giving them reasons to choose yours, first and foremost.

Here are some types of content that could work well: 

• Social evidence
• Affirmations
• Study cases
• Testimonials

Imagine a person who is somewhat overweight and wants to lose 5 pounds. You know that there are many solutions, such as different diets, gym, running, abdominal vibration machines, etc. The problem is that they have so many solutions that they don’t know which one is best for them.

Your mission is to help them understand why your company’s offerings are better than the competition. Remember, we need to evoke to their emotions to really speak to their needs.

If you like reading about customer awareness you might find it interesting to learn how customers measure your brand .

4. Aware of the product

We already have a potential client about to take out the credit card and buy from us, but they need a push. Right now they are in a comparison process and therefore it’s time to demonstrate your business has the best solution.

In other words, you have to convince them, more than ever,  that your product better meets their needs compared to the rest.

To this end, you will have to create product-centric content and highlight the specific features or benefits that differentiate your product from the competition. The types of content you can use at this level of awareness are:

• Free content.
• Product Reviews.
• Product comparisons
• Product walkthroughs.
• How-to guides

Completing the customer growth journey is imperative, so you have to continue to build trust to educate your audience. Making your content valuable and engaging is something to keep in mind. 

Try the brand awareness survey template (CTA)

5. Most aware

Congratulations! You have taken your potential client from not even knowing they had a problem to the brink of becoming an actual customer.

At this stage they already know who you are, have information about your product, they are about to purchase but they need that last nudge to pull out the credit card.

Now, do not intoxicate them with content, because they already know and do not need more information.

They have already seen your sales page, they have even hit the buy button, but they have not finished the process.

The type of content they need is:

• Guarantees to reduce objections.
• Free shipping
• Bundled offers

Sometimes giving your audience a direct incentive to buy can be the best content.

Let’s do a quick walk-through of what we’ve learned:

• To carry out any marketing strategy, you need to know the 5 levels of awareness of a potential client. Each of them corresponds to each of the 5 phases that make up a purchase process. 
• The levels of awareness are the degrees of knowledge that a client has about their problems and the possible solutions that exist in the market. 
• There will be people who do not know you and others who do, but all of them need to know more about you so that they trust you. 
• Depending on the level of awareness that each client has, you will have to create the content that you are going to direct to them. 
• Only by understanding the prospect’s behavior and level of awareness in each purchase phase will you be able to sell successfully.

Measure customer awareness with QuestionPro CX

At QuestionPro, we offer a lot of custom survey solutions to meet your needs. Before you begin creating surveys, you will need to keep in mind the following aspects:

• Who is our target audience?
• What products will be featured in the survey?
• How will we use the data collected to increase customer awareness?
• What questions will increase survey participation?
• Do we need to offer an incentive for increased participation?

One of the best ways to know if your potential customer is aware of your product and your offerings is simply by asking them. QuestionPro CX is a customer experience management platform that can help you gain better insights of your customers. 

From creating the survey to closing the loop, keep a 360º tracking of your customer touchpoints . 

QuestionPro offers some of the most advanced customer experience tools available. Gain valuable insights into customers’ thoughts and feelings using QuestionPro CX today.

LEARN MORE         FREE TRIAL

MORE LIKE THIS

Experimental vs Observational Studies: Differences & Examples

Sep 5, 2024

Interactive Forms: Key Features, Benefits, Uses + Design Tips

Sep 4, 2024

Closed-Loop Management: The Key to Customer Centricity

Sep 3, 2024

Net Trust Score: Tool for Measuring Trust in Organization

Sep 2, 2024

Other categories

• Academic Research
• Artificial Intelligence
• Assessments
• Brand Awareness
• Case Studies
• Communities
• Consumer Insights
• Customer effort score
• Customer Engagement
• Customer Experience
• Customer Loyalty
• Customer Research
• Customer Satisfaction
• Employee Benefits
• Employee Engagement
• Employee Retention
• Friday Five
• General Data Protection Regulation
• Insights Hub
• Life@QuestionPro
• Market Research
• Mobile diaries
• Mobile Surveys
• New Features
• Online Communities
• Question Types
• Questionnaire
• QuestionPro Products
• Release Notes
• Research Tools and Apps
• Revenue at Risk
• Survey Templates
• Training Tips
• Tuesday CX Thoughts (TCXT)
• Uncategorized
• What’s Coming Up
• Workforce Intelligence

Case Study Questions Class 10 Social Science Economics Chapter 5 Consumer Rights

CBSE Class 10 Case Study Questions Social Science Economics Consumer Rights. Important Case Study Questions for Class 10 Board Exam Students. Here we have arranged some Important Case Base Questions for students who are searching for Paragraph Based Questions Consumer Rights.

Case Study 1:

The consumer is the focal point of all business activities. In contemporary times, it is widely acknowledged that the consumer is the sovereign of the market. The primary objective of business activities is to cater to the needs and desires of consumers. A commercial entity is entirely reliant on its customers not only for its survival but also for its expansion. Currently, the customer is accorded utmost importance, and every effort is made to satisfy their requirements. However, in reality, the position of the consumer is different. They are akin to slaves who are exploited by well-organized and well-informed sellers through exorbitant pricing, provision of substandard goods, supply of adulterated products, short weight, misleading advertising, and so on. Customers remain unorganized and are unaware of their fundamental rights, such as the right to safety, the right to choose, the right to be heard, and so forth. The term “Consumerism” refers to the user or customer, and “ism” denotes a movement. Therefore, the consumer movement is commonly referred to as “Consumerism.” It is a collective and organized movement of consumers. The primary objective of this movement is to educate and unite consumers and to fight for the protection of their rights.

Answer Consumer groups can take several steps to protect consumers, including advocating for stronger consumer rights and protection laws, raising awareness about product safety, promoting ethical business practices, and engaging in campaigns against unfair pricing and fraudulent advertising. They may also provide information and support to affected consumers.

Case Study 2:

Prior to making a purchase, consumers should insist on the quality of the products and the assurance of their reliability. It is advisable to opt for products that bear quality marks such as ISI, AGMARK, and others.

Q2) What do you understand by Right to informed in consumer protection act? 1

Case Study 3:

Q1) What is the difference between consumer protection council and Consumer Disputes Redressal Commission? Mark 2

Answer Consumer Protection Council is a voluntary organization that educates and raises awareness about consumer rights. In contrast, Consumer Disputes Redressal Commission is a government body that legally resolves consumer disputes and complaints, providing a platform for grievance resolution and compensation.

Case Study 4:

Furthermore, the Act mandates that e-commerce companies have a return policy in place and provide more detailed information about the product and the seller in their listings.

 Q1) Mention a few factors which cause exploitation of consumers. Mark 1

Case Study 5:

Q1) What do you understand by the term ”right to repair”? Mark 2

Answer  The “right to repair” is a concept that advocates for consumers’ ability to repair and modify their own purchased products, from electronics to appliances, without facing legal or technical barriers imposed by manufacturers. It aims to promote sustainability, reduce electronic waste, and empower consumers to extend the lifespan of their possessions.

Leave a Reply Cancel reply

We have a strong team of experienced teachers who are here to solve all your exam preparation doubts, dav class 5 math solution chapter 8 simplification of numerical expressions, sikkim scert class 4 english chapter 6d i can read solution, kerala scert class 8 english the sower question answer, up scert solutions class 6 english chapter 10 – the story of a bicycle.

The consumer decision journey

If marketing has one goal, it’s to reach consumers at the moments that most influence their decisions. That’s why consumer electronics companies make sure not only that customers see their televisions in stores but also that those televisions display vivid high-definition pictures. It’s why Amazon.com, a decade ago, began offering targeted product recommendations to consumers already logged in and ready to buy. And it explains P&G’s decision, long ago, to produce radio and then TV programs to reach the audiences most likely to buy its products—hence, the term “soap opera.”

Marketing has always sought those moments, or touch points , when consumers are open to influence. For years, touch points have been understood through the metaphor of a “funnel”—consumers start with a number of potential brands in mind (the wide end of the funnel), marketing is then directed at them as they methodically reduce that number and move through the funnel, and at the end they emerge with the one brand they chose to purchase (Exhibit 1). But today, the funnel concept fails to capture all the touch points and key buying factors resulting from the explosion of product choices and digital channels , coupled with the emergence of an increasingly discerning, well-informed consumer. A more sophisticated approach is required to help marketers navigate this environment, which is less linear and more complicated than the funnel suggests. We call this approach the consumer decision journey. Our thinking is applicable to any geographic market that has different kinds of media, Internet access, and wide product choice, including big cities in emerging markets such as China and India.

In the traditional funnel metaphor, consumers start with a set of potential brands and methodically reduce that number to make a purchase.

We developed this approach by examining the purchase decisions of almost 20,000 consumers across five industries and three continents. Our research showed that the proliferation of media and products requires marketers to find new ways to get their brands included in the initial-consideration set that consumers develop as they begin their decision journey. We also found that because of the shift away from one-way communication—from marketers to consumers—toward a two-way conversation, marketers need a more systematic way to satisfy customer demands and manage word-of-mouth. In addition, the research identified two different types of customer loyalty , challenging companies to reinvigorate their loyalty programs and the way they manage the customer experience.

Finally, the research reinforced our belief in the importance not only of aligning all elements of marketing—strategy, spending, channel management, and message—with the journey that consumers undertake when they make purchasing decisions but also of integrating those elements across the organization. When marketers understand this journey and direct their spending and messaging to the moments of maximum influence, they stand a much greater chance of reaching consumers in the right place at the right time with the right message.

How consumers make decisions

Every day, people form impressions of brands from touch points such as advertisements, news reports, conversations with family and friends, and product experiences. Unless consumers are actively shopping, much of that exposure appears wasted. But what happens when something triggers the impulse to buy? Those accumulated impressions then become crucial because they shape the initial-consideration set: the small number of brands consumers regard at the outset as potential purchasing options.

The funnel analogy suggests that consumers systematically narrow the initial-consideration set as they weigh options, make decisions, and buy products. Then, the postsale phase becomes a trial period determining consumer loyalty to brands and the likelihood of buying their products again. Marketers have been taught to “push” marketing toward consumers at each stage of the funnel process to influence their behavior. But our qualitative and quantitative research in the automobile, skin care, insurance, consumer electronics, and mobile-telecom industries shows that something quite different now occurs.

Actually, the decision-making process is a more circular journey, with four primary phases representing potential battlegrounds where marketers can win or lose: initial consideration; active evaluation, or the process of researching potential purchases; closure, when consumers buy brands; and postpurchase, when consumers experience them (Exhibit 2). The funnel metaphor does help a good deal—for example, by providing a way to understand the strength of a brand compared with its competitors at different stages, highlighting the bottlenecks that stall adoption, and making it possible to focus on different aspects of the marketing challenge. Nonetheless, we found that in three areas profound changes in the way consumers make buying decisions called for a new approach.

The decision-making process is now a circular journey with four phases: initial consideration; active evaluation, or the process of researching potential purchases; closure, when consumers buy brands; and postpurchase, when consumers experience them.

Brand consideration.

Imagine that a consumer has decided to buy a car. As with most kinds of products, the consumer will immediately be able to name an initial-consideration set of brands to purchase. In our qualitative research, consumers told us that the fragmenting of media and the proliferation of products have actually made them reduce the number of brands they consider at the outset. Faced with a plethora of choices and communications, consumers tend to fall back on the limited set of brands that have made it through the wilderness of messages. Brand awareness matters: brands in the initial-consideration set can be up to three times more likely to be purchased eventually than brands that aren’t in it.

Not all is lost for brands excluded from this first stage, however. Contrary to the funnel metaphor, the number of brands under consideration during the active-evaluation phase may now actually expand rather than narrow as consumers seek information and shop a category. Brands may “interrupt” the decision-making process by entering into consideration and even force the exit of rivals. The number of brands added in later stages differs by industry: our research showed that people actively evaluating personal computers added an average of 1 brand to their initial-consideration set of 1.7, while automobile shoppers added 2.2 to their initial set of 3.8 (Exhibit 3). This change in behavior creates opportunities for marketers by adding touch points when brands can make an impact. Brands already under consideration can no longer take that status for granted.

The number of brands added for consideration in different stages differs by industry.

Empowered consumers.

The second profound change is that outreach of consumers to marketers has become dramatically more important than marketers’ outreach to consumers. Marketing used to be driven by companies; “pushed” on consumers through traditional advertising, direct marketing, sponsorships, and other channels. At each point in the funnel, as consumers whittled down their brand options, marketers would attempt to sway their decisions. This imprecise approach often failed to reach the right consumers at the right time.

In today’s decision journey, consumer-driven marketing is increasingly important as customers seize control of the process and actively “pull” information helpful to them. Our research found that two-thirds of the touch points during the active-evaluation phase involve consumer-driven marketing activities, such as Internet reviews and word-of-mouth recommendations from friends and family, as well as in-store interactions and recollections of past experiences. A third of the touch points involve company-driven marketing (Exhibit 4). Traditional marketing remains important, but the change in the way consumers make decisions means that marketers must move aggressively beyond purely push-style communication and learn to influence consumer-driven touch points , such as word-of-mouth and Internet information sites.

Two-thirds of the touch points during the active-evaluation phase involve consumer-driven activities such as Internet reviews and word-of-mouth recommendations from friends and family.

The experience of US automobile manufacturers shows why marketers must master these new touch points. Companies like Chrysler and GM have long focused on using strong sales incentives and in-dealer programs to win during the active-evaluation and moment-of-purchase phases. These companies have been fighting the wrong battle: the real challenges for them are the initial-consideration and postpurchase phases, which Asian brands such as Toyota Motor and Honda dominate with their brand strength and product quality. Positive experiences with Asian vehicles have made purchasers loyal to them, and that in turn generates positive word-of-mouth that increases the likelihood of their making it into the initial-consideration set. Not even constant sales incentives by US manufacturers can overcome this virtuous cycle.

Two types of loyalty

When consumers reach a decision at the moment of purchase, the marketer’s work has just begun: the postpurchase experience shapes their opinion for every subsequent decision in the category, so the journey is an ongoing cycle. More than 60 percent of consumers of facial skin care products, for example, go online to conduct further research after the purchase—a touch point unimaginable when the funnel was conceived.

Although the need to provide an after-sales experience that inspires loyalty and therefore repeat purchases isn’t new, not all loyalty is equal in today’s increasingly competitive, complex world. Of consumers who profess loyalty to a brand, some are active loyalists, who not only stick with it but also recommend it. Others are passive loyalists who, whether from laziness or confusion caused by the dizzying array of choices, stay with a brand without being committed to it. Despite their claims of allegiance, passive consumers are open to messages from competitors who give them a reason to switch.

Take the automotive-insurance industry, in which most companies have a large base of seemingly loyal customers who renew every year. Our research found as much as a sixfold difference in the ratio of active to passive loyalists among major brands, so companies have opportunities to interrupt the loyalty loop. The US insurers GEICO and Progressive are doing just that, snaring the passively loyal customers of other companies by making comparison shopping and switching easy. They are giving consumers reasons to leave, not excuses to stay.

All marketers should make expanding the base of active loyalists a priority, and to do so they must focus their spending on the new touch points. That will require entirely new marketing efforts, not just investments in Internet sites and efforts to drive word-of-mouth or a renewed commitment to customer satisfaction.

Aligning marketing with the consumer decision journey

Developing a deep knowledge of how consumers make decisions is the first step. For most marketers, the difficult part is focusing strategies and spending on the most influential touch points. In some cases, the marketing effort’s direction must change, perhaps from focusing brand advertising on the initial-consideration phase to developing Internet properties that help consumers gain a better understanding of the brand when they actively evaluate it. Other marketers may need to retool their loyalty programs by focusing on active rather than passive loyalists or to spend money on in-store activities or word-of-mouth programs. The increasing complexity of the consumer decision journey will force virtually all companies to adopt new ways of measuring consumer attitudes, brand performance, and the effectiveness of marketing expenditures across the whole process.

Without such a realignment of spending, marketers face two risks. First, they could waste money: at a time when revenue growth is critical and funding tight, advertising and other investments will be less effective because consumers aren’t getting the right information at the right time. Second, marketers could seem out of touch—for instance, by trying to push products on customers rather than providing them with the information, support, and experience they want to reach decisions themselves.

Four kinds of activities can help marketers address the new realities of the consumer decision journey.

Prioritize objectives and spending

In the past, most marketers consciously chose to focus on either end of the marketing funnel—building awareness or generating loyalty among current customers. Our research reveals a need to be much more specific about the touch points used to influence consumers as they move through initial consideration to active evaluation to closure. By looking just at the traditional marketing funnel’s front or back end, companies could miss exciting opportunities not only to focus investments on the most important points of the decision journey but also to target the right customers.

In the skin care industry, for example, we found that some brands are much stronger in the initial-consideration phase than in active evaluation or closure. For them, our research suggests a need to shift focus from overall brand positioning—already powerful enough to ensure that they get considered—to efforts that make consumers act or to investments in packaging and in-store activities targeted at the moment of purchase.

Tailor messaging

For some companies, new messaging is required to win in whatever part of the consumer journey offers the greatest revenue opportunity. A general message cutting across all stages may have to be replaced by one addressing weaknesses at a specific point, such as initial consideration or active evaluation.

Take the automotive industry. A number of brands in it could grow if consumers took them into consideration. Hyundai, the South Korean car manufacturer, tackled precisely this problem by adopting a marketing campaign built around protecting consumers financially by allowing them to return their vehicles if they lose their jobs. This provocative message, tied to something very real for Americans, became a major factor in helping Hyundai break into the initial-consideration set of many new consumers. In a poor automotive market, the company’s market share is growing.

Invest in consumer-driven marketing

To look beyond funnel-inspired push marketing, companies must invest in vehicles that let marketers interact with consumers as they learn about brands. The epicenter of consumer-driven marketing is the Internet, crucial during the active-evaluation phase as consumers seek information, reviews, and recommendations. Strong performance at this point in the decision journey requires a mind-set shift from buying media to developing properties that attract consumers: digital assets such as Web sites about products, programs to foster word-of-mouth, and systems that customize advertising by viewing the context and the consumer. Many organizations face the difficult and, at times, risky venture of shifting money to fundamentally new properties, much as P&G invested to gain radio exposure in the 1930s and television exposure in the 1950s.

Broadband connectivity, for example, lets marketers provide rich applications to consumers learning about products. Simple, dynamic tools that help consumers decide which products make sense for them are now essential elements of an online arsenal. American Express’s card finder and Ford’s car configurator, for example, rapidly and visually sort options with each click, making life easier for consumers at every stage of the decision journey. Marketers can influence online word-of-mouth by using tools that spot online conversations about brands, analyze what’s being said, and allow marketers to post their own comments.

Finally, content-management systems and online targeting engines let marketers create hundreds of variations on an advertisement, taking into account the context where it appears, the past behavior of viewers, and a real-time inventory of what an organization needs to promote. For instance, many airlines manage and relentlessly optimize thousands of combinations of offers, prices, creative content, and formats to ensure that potential travelers see the most relevant opportunities. Digital marketing has long promised this kind of targeting. Now we finally have the tools to make it more accurate and to manage it cost effectively .

Win the in-store battle

Our research found that one consequence of the new world of marketing complexity is that more consumers hold off their final purchase decision until they’re in a store. Merchandising and packaging have therefore become very important selling factors, a point that’s not widely understood. Consumers want to look at a product in action and are highly influenced by the visual dimension: up to 40 percent of them change their minds because of something they see, learn, or do at this point—say, packaging, placement, or interactions with salespeople.

In skin care, for example, some brands that are fairly unlikely to be in a consumer’s initial-consideration set nonetheless win at the point of purchase with attractive packages and on-shelf messaging. Such elements have now become essential selling tools because consumers of these products are still in play when they enter a store. That’s also true in some consumer electronics segments, which explains those impressive rows of high-definition TVs in stores.

Sometimes it takes a combination of approaches—great packaging, a favorable shelf position, forceful fixtures, informative signage—to attract consumers who enter a store with a strong attachment to their initial-consideration set. Our research shows that in-store touch points provide a significant opportunity for other brands.

Integrating all customer-facing activities

In many companies, different parts of the organization undertake specific customer-facing activities—including informational Web sites, PR, and loyalty programs. Funding is opaque. A number of executives are responsible for each element, and they don’t coordinate their work or even communicate. These activities must be integrated and given appropriate leadership.

The necessary changes are profound. A comprehensive view of all customer-facing activities is as important for business unit heads as for CEOs and chief marketing officers. But the full scope of the consumer decision journey goes beyond the traditional role of CMOs, who in many companies focus on brand building, advertisements, and perhaps market research. These responsibilities aren’t going away. What’s now required of CMOs is a broader role that realigns marketing with the current realities of consumer decision making, intensifies efforts to shape the public profiles of companies, and builds new marketing capabilities.

Consider the range of skills needed to manage the customer experience in the automotive-insurance industry, in which some companies have many passive loyalists who can be pried away by rivals. Increasing the percentage of active loyalists requires not only integrating customer-facing activities into the marketing organization but also more subtle forms of organizational cooperation. These include identifying active loyalists through customer research, as well as understanding what drives that loyalty and how to harness it with word-of-mouth programs. Companies need an integrated, organization-wide “voice of the customer,” with skills from advertising to public relations, product development, market research, and data management. It’s hard but necessary to unify these activities, and the CMO is the natural candidate to do so.

Marketers have long been aware of profound changes in the way consumers research and buy products. Yet a failure to change the focus of marketing to match that evolution has undermined the core goal of reaching customers at the moments that most influence their purchases. The shift in consumer decision making means that marketers need to adjust their spending and to view the change not as a loss of power over consumers but as an opportunity to be in the right place at the right time, giving them the information and support they need to make the right decisions.

David Court is a director in McKinsey’s Dallas office, Dave Elzinga is a principal in the Chicago office, Susie Mulder is a principal in the Boston office, and Ole Jørgen Vetvik is a principal in the Oslo office.

The authors wish to acknowledge the contributions of Mary Ellen Coe, Jonathan Doogan, Ewan Duncan, Betsy Holden, and Brian Salsberg.

Explore a career with us

Related articles.

Driving business growth by zeroing in on the consumer decision journey

The new consumer decision journey

The new battleground for marketing-led growth

To read this content please select one of the options below:

Please note you do not have access to teaching notes, the value of consumer awareness and corporate social responsibility in marketing: an overview.

Products for Conscious Consumers

ISBN : 978-1-80262-838-8 , eISBN : 978-1-80262-837-1

Publication date: 6 July 2022

Changing economic and social landscape due to globalisation, increased communication, general environmental challenges and marketing scandals are factors which have significantly impacted marketing in the twenty-first century. To this effect, this research examines how marketers can increase confidence in their consumers through active engagement in consumer awareness and corporate social responsibility (CSR). It focuses on the roles of consumer awareness and CSR in marketing and aims to show the degree of influence the synthesis of both variables can have in marketing. The research, which is exploratory, depends on secondary sources of data and concludes that knowledge of products, services, consumer rights and CSR activities of a company is potent in shaping consumer behaviour. In addition, it shows that the synthesis of both variables has a great influence on moderating the effectiveness of each other and in improving marketing.

• Consumer awareness
• Corporate social responsibility
• Ethical marketing
• Social responsibility
• Consumer rights
• Consumer confidence

Clinton, C. and Chatrath, S.K. (2022), "The Value of Consumer Awareness and Corporate Social Responsibility in Marketing: An Overview", Ogunyemi, K. and Burgal, V. (Ed.) Products for Conscious Consumers , Emerald Publishing Limited, Leeds, pp. 49-63. https://doi.org/10.1108/978-1-80262-837-120221004

Emerald Publishing Limited

Copyright © 2022 Chibueze Clinton and Sarvjeet Kaur Chatrath. Published under exclusive licence by Emerald Publishing Limited

All feedback is valuable

Please share your general feedback

Report an issue or find answers to frequently asked questions

Contact Customer Support

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Consumer Protection Legal Measures of, Issues and Analysis through Case studies

Consumers are to market what citizens are to a democracy. As the world is contracting into a global village with enhanced communication technology and diminishing role of political state, the market is gaining prominence. The markets forces are reigning over the geographical and socio political boundaries and bringing together the globe under one force - The free market. This paper presents the legal framework in India for the consumer protection, highlights the key issues of consumer protection and critically analyse the legal measures through case studies to present arguments.

Related Papers

Joginder Grewal

Indian market today is dominated by the consumerism, particularly after a decade from economic reforms process. It is gradually being transformed from a predominantly sellers market to a buyers market where exercised choice by the consumers depends on their awareness level. Consumer rights could be protected in a competitive economy only when right standards for goods and services for which one makes payment are ensured by evolving a network of institutions and legal protection system. Ensuring consumer welfare is the responsibility of the government as every citizen of the country is a consumer in one way or the other. The present paper attempts an analytical, critical and synthetic examination of "consumer protection in India".

Studies in Social Science Research

Mohammed Nabi

Consumer Protection Policy creates an environment where consumers receive satisfaction from the goods or services availed by them. One of the disquieting features of consumerism is that an average consumer continues to suffer due to poverty, illiteracy, ignorance or general apathy. Adulterated food, spurious medicines and substandard domestic appliances etc., are pushed over the counter with ease. Glossy and unethical advertisements are published in the print and electronic media with intent to allure and dupe gullible consumers. So, it becomes imperative for the State to initiate steps for safeguarding the interest of consumers by enacting suitable legislations. The present study is a modest attempt at ascertaining the need for consumer protection, identification of factors responsible for exploitation of consumers, and the role law can play in protecting consumer rights visa-a-vis the vendors and in striking a balance between the interests of the two.

Journal of Law and Conflict Resolution

Sushil Kumar Sen

Dr. Humayun Rasheed Khan

We are living in a highly materialised, commercialised and consumerist way of life. The rising opportunity of earning and easy accessibility of modern markets has given meteoric pace to production and consumption. The modern day scientific and technological advancements have further intensified consumerism. But these developments have also provided greater space for financial deceptions and fraudulent transactions. In most simple terms, a seller sells a product to a buyer, the buyer finds the product not to be up to his satisfaction, some would say it is a mere co-incidence but is it so? In the absence of definitive statistics, the instinct of a consumer living in a capitalist society would lead one to wonder if the seller intentionally did or did not do something that led to a compromised consumer satisfaction. The need for the protection of the rights of the consumer also demands greater concern of the policy makers, quasi- judicial bodies and non- governmental organisations in this new age of commercialisation. This paper focuses on the statutory protection provided to the consumers in India, consumer services, penalties and issues of fairness and transparency.

Pinar Akman

The protection of the interests of consumers is a central aspect of all modern competition laws as well as a direct aim of consumer protection laws. However, despite being complementary in many ways, competition and consumer protection laws cover different issues and employ different methods to achieve their goals. While consumer protection rules are built upon the premise that consumers are the weaker party to transactions and should be directly protected for this reason in their dealings with traders through certain consumer rights, competition law only indirectly protects the consum-ers' economic well-being by ensuring that the markets are subject to effective competition. This article explores the interplay between consumer protection and competition law in the Indian context with some comparison with the EU position, where relevant. After an examination of the relevant legislation and case law, the article finds that given that the mandate of the Competition Commission of India is to prevent practices having an adverse effect on competition, in cases of overlap between consumer protection and competition laws, the Authority should act only on the basis of adverse effects on competition. The treatment of 'unfair trade practices' is used to demonstrate the appro-priateness of this approach. K E Y W OR D S : competition law, consumer protection law, unfair trade practices, restrictive trade practices, India J E L C L A S S I F I C A T I O N S : K21

QUEST JOURNALS

Every individual is a consumer and always depends upon many goods and services. Consumer play vital role in attaining the success for any business. The Educated and aware consumer is always an asset for the nation. Consumers are availing many services and buying different goods in many different ways through offline and online which are increased the fraud and misleading cases in India. Here comes the role of consumer forums and consumer councils in safeguarding the consumer rights and benefiting the consumers with the right products and services. The government established consumer forums at district, state and central level to protect the interest of consumers and providing justice to them. As the India is booming market place, different companies are up with different types of products, services and technologies. Even though there are many Acts for protecting consumer rights still some companies are misleading the consumers with fraudulent and fake information. This paper focused on the different initiatives taken by consumer forums and councils in protecting and the consumer rights. And also addresses importance of the consumer councils and forums in safeguarding the consumer rights.

Dr. Arti Parihar

A consumer is said to be a king in a free market economy. The earlier approach of caveat emptor which means, "Let the buyer beware", has now been changed to caveat venditor "Let the seller beware". However, with growing competition and in an attempt to increase their sales and market share, manufactures and service providers may be tempted to engaged in unscrupulous, exploitative and unfair trade practices like defective and unsafe products adulteration, false and misleading advertising, hoarding, black marketing etc. Consumers are not aware of their rights and reliefs available to them as a result of which they are exploited. In order to save consumer from exploitation consumer protection is needed. Thus Consumer Protection Act 1986, sale of goods act 1930, Bureau of Indian standard 1986 was introduced to make consumers aware about then rights and to give them legal protection. Consumer Protection Act provides three-tier machinery at the district, state and nati...

SANJAY SUBBA

Journal of Consumer Policy

Rajendra Nayak

IJAR Indexing

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

Journal ijmr.net.in(UGC Approved)

IAEME PUBLICATION

IAEME Publication

International Journal for Research in Applied Science & Engineering Technology (IJRASET)

IJRASET Publication

Dr. Chandu RaviKumar

Gurjeet Singh

gLAWcal Global Law Initiatives for Sustainable Development

TIJ's Research Journal of Commerce & Behavioural Science - RJCBS

SANGEETHA SUDHA

Tij S Research Journal of Social Science Management Rjssm

Ashok Chandra

prakash sharma

Muzammil Shah

Asif Khan , Asmat Ullah

Ijariit Journal

New Directions in Higher Education in India

Md. Zafar M A H F O O Z Nomani

Journal of Business Ethics

Basant Kumar

Maheshwari P A & Associates

International Journal of Advanced Research

Dr Rita Bansal

Dr. Mohamed Nafees

Asian Journal of Home Science

Dr. Urvashi Mishra

Emaediong Ofonime

Journal of advance research in business, management and accounting

rajbans gill

Universal Journal of Industrial and Business Management

P Uma Maheswari Devi

Journal of Indian Academy of Forensic Medicine

Kamarudeen Bello

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

CONSUMER AWARENESS

In the latest trend of Marketing, the buyer is the soul of all its operation and functioning. The market gets insightful, and in some cases, the purchaser needs to experience its brunt. In this manner, buyer assurance is a demonstration of furnishing shoppers with complete data about the services, their rights, and merchandise.

Consumer awareness is vital as they put their time and cash into promotional exercises, and they reserve an option to straightforward data.

Misdirecting commercials, risky or unsafe items, cheating and unweighing, and different acts of neglect are performed by corrupt business entities. Consumer awareness is a demonstration of saving buyers from such wrongdoings.

Meaning of Consumer Awareness:

Consumer Awareness is a demonstration of ensuring the purchaser or buyer knows about the data and information about items, products, administrations, and buyers’ privileges. Consumer awareness is significant with the goal that purchasers can settle on the best choice and settle on the ideal decision. Shoppers reserve the privilege to data or information, the option to pick, right to wellbeing.

The Prerequisite for Customer Protection:

• The shopper or the end consumer is the main component in business. No business can make do without purchasers as their fulfilment is the fundamental reason for any business activity.
• Business isn’t just with regards to money-related advantages yet additionally updating society to a superior variant by keeping its welfare as a goal.
• The Constitution has given us the Consumer Protection act 1986 to shield the customers from any promoting misbehaviours.
• Consumer protection rights advance a solid aggressive market that upholds financial development. It wards off pernicious exchange practices and deceitful entrepreneurs from harming reasonable or fair trade or exchange.
• Shoppers are an essential piece of a market structure. It is vital to secure their privileges and rights to have a reasonable or fair market structure.

What are Consumer Rights?

The Consumer Protection Act 1986 was sanctioned by the Parliament of India in 1986 to safeguard the interests of consumers in India. According to our economy, the perfect measure of demand with consistent and dependable supply can aid the development of the economy. Henceforth, to shield the purchasers from any kind of abuse or exploitation, this act was presented.

Types of Consumer Rights:

Right to information:.

The buyer has an option to get data about the quality, amount, strength, standard, and cost of the products or services. The buyer ought to legitimately ask for getting all the data about the product or service prior to settling on a decision or a choice. This will empower him to make very much educated and thoughtful choices, and furthermore, keep himself from succumbing to high-pressure selling methods. The right to data is utilised to protect shoppers from tricky promotions, deluding marks and bundling, excessive costs, and so on.

Right to Choose:

This right gives admittance to all the assortment of products and services and cutthroat costs. In a monopolistic market, the products and services ought to be of the best quality and cost.

The dealer ought not to utilise forceful methods to see the items, and buyers ought to reserve the privilege to all the assortment of choices, substitutions, and alternatives. This right requires free competition in the market. The customer ought to have a free decision in picking a product from the market.

Right to be Heard:

The other rights are pointless in the event that there could be no appropriate power to pay attention to client complaints. Assuming a purchaser is disappointed with the service or a product, then, at that point, one has the option to document a grievance against it, and it must be tended to inside a set time period. For example, assuming that a shopper purchases an electronic item and it begins breaking down, a customer has all privileges to make a fitting move by returning or supplanting it.

Right to Seek Redressal:

This right gives power to the buyers to settle any cases, complaints, and claims against dealers for their out-of-line exchange practices and double-dealing or exploitation. The purchaser has the privilege to review in case the nature of the item is compromised. Buyers need to document an objection under the Consumer Protection Act.

Right to Customer Education:

A purchaser should know about his freedoms and obligations given by the authorities with respect to advertising and marketing practices. This is a vital right as this sets out the establishment for reasonable exchange or trade practices as a customer knows about his freedoms or rights. The customer has all the positions and authority to acquire information about his privileges and rights as a purchaser.

Right to Safety:

This is a fundamental right to be ensured against the advertising of such products and services, which are perilous to life and property. Utilisation or consumption of products and services which are not up to standard can effectively affect the shopper’s wellbeing and security. To secure the shoppers’ interest, they reserve an option to get top calibre and dependable merchandise. For example, household products like LPG cylinders, if not fixed as expected, can cause massive harm to life and property; stale food products can hurt purchasers’ wellbeing; low-quality beauty care products can cause comparative damages.

Leave a Comment Cancel reply

Your Mobile number and Email id will not be published. Required fields are marked *

Request OTP on Voice Call

Post My Comment

Register with BYJU'S & Download Free PDFs

Register with byju's & watch live videos.

• Accountancy
• Business Studies
• Organisational Behaviour
• Human Resource Management
• Entrepreneurship

Consumer Awareness : Meaning, Need and Importance

What is consumer awareness.

Consumer awareness is a cornerstone of modern commerce, signifying the level of understanding and knowledge that individuals have about their role as buyers in the marketplace. It goes beyond the simple act of purchasing, emphasizing the importance of informed decision-making. Informed consumers are equipped to navigate through a plethora of products and services, considering various factors such as quality, safety, and pricing. This knowledge empowers them to demand fair treatment and value for their money, acting as a safeguard against exploitative practices by businesses.

Moreover, consumer awareness extends to a broader spectrum, encompassing a comprehensive grasp of market dynamics, legal frameworks, and ethical considerations. A well-informed consumer understands their rights and responsibilities, contributing to a marketplace where businesses are held accountable for their actions. This awareness not only benefits individual consumers but also plays a crucial role in shaping a more transparent, ethical, and competitive market environment. As consumers actively engage with the intricacies of commerce, they become integral contributors to the economic ecosystem, fostering a symbiotic relationship between buyers and sellers based on trust and fairness.

Key Takeaways Consumer awareness involves understanding rights and responsibilities in the marketplace, empowering individuals to make informed decisions and demand fair treatment. The need for consumer awareness includes protection from exploitation, informed decision-making, market accountability, healthy competition, and the reduction of fraud. Consumer awareness is important for empowerment, quality assurance, market efficiency, economic growth, and promoting ethical consumption. In India, consumer awareness is supported by a robust legal framework, government initiatives, digital platforms, and consumer advocacy groups. Consumer rights encompass safety, information access, choice, being heard, and redress, while responsibilities include being informed, exercising rights wisely, making ethical choices, and complaining responsibly.

Table of Content

Why is there a need for Consumer Awareness?

Importance of consumer awareness, consumer awareness in india, what are consumer rights, types of consumer rights, responsibilities of a consumer, effects of consumer awareness, frequently asked questions (faqs).

1. Protection from Exploitation: Consumers’ awareness serves as a shield against exploitation by unscrupulous businesses. Informed consumers are likely to fall prey to deceptive practices, ensuring fair transactions and safeguarding their interests.

2. Informed Decision-Making : A well-informed consumer can make better decisions by comparing and evaluating products or services based on factors such as quality, price, and reviews. This aspect is pivotal in promoting a market where consumers actively seek value for their money.

3. Market Accountability: Consumer awareness plays a pivotal role in holding businesses accountable. When consumers are knowledgeable about their rights and expectations, businesses are compelled to maintain quality standards and ethical practices to meet consumer demands.

4. Healthy Competition: Informed consumers foster healthy competition among businesses. Companies strive to offer superior products and services, as consumers, armed with knowledge, gravitate towards options that provide the best value.

5. Reduction of Fraud: One of the significant benefits of consumer awareness is a reduction in fraud and deceptive practices. Informed consumers are more likely to recognize and avoid scams, contributing to a marketplace characterized by trust and reliability.

1. Empowerment: Consumer awareness empowers individuals by providing them with the knowledge and tools to assert their rights. This empowerment ensures that consumers actively participate in the marketplace, making choices that align with their preferences and values.

2. Quality Assurance: An informed consumer base acts as a driving force for businesses to maintain high-quality standards. The demand for quality products and services, fueled by consumer awareness, encourages businesses to continuously improve and innovate.

3. Market Efficiency: A well-informed consumer base contributes to market efficiency. In such a scenario, businesses are motivated to operate efficiently, meeting consumer expectations and optimizing resource allocation to align with market demands.

4.Economic Growth: Consumer awareness is a catalyst for economic growth. It stimulates healthy competition, innovation , and efficiency in the market, ultimately contributing to the overall economic development of a country.

5. Ethical Consumption: Informed consumers tend to make ethical choices. They support businesses that adhere to ethical, sustainable, and socially responsible practices, thereby promoting a market that values corporate responsibility.

1. Legal Framework: India has established a robust legal framework to protect consumer rights, including the Consumer Protection Act, 2019 . This framework ensures legal recourse for consumers in cases of exploitation or substandard products and services.

2. Government Initiatives: The government of India, along with various consumer organizations, actively conducts awareness programs. These initiatives aim to educate the public about their rights and responsibilities as consumers, fostering a more informed consumer base.

3. Digital Platforms: The rise of digital platforms has played a significant role in enhancing consumer awareness in India. Consumers now have easy access to reviews, product information and can compare prices online, facilitating informed decision-making.

4. Consumer Advocacy Groups: Several consumer advocacy groups in India work towards promoting awareness and advocating for consumers’ rights. These groups play a crucial role in representing consumer interests and ensuring their concerns are heard.

5. Challenges and Opportunities: While consumer awareness in India has seen improvements, challenges such as illiteracy and lack of access to information persist. Addressing these challenges and leveraging emerging technologies present opportunities for further enhancing consumer awareness in the country.

Consumer rights are fundamental entitlements designed to protect individuals in the marketplace. These rights serve as a framework to ensure fair and ethical treatment, empowering consumers and establishing a balance of power between buyers and sellers.

1. Right to Safety: The right to safety ensures that consumers are protected from products or services that may pose a threat to their health or well-being. This encompasses the need for goods to meet safety standards and for services to be delivered without any undue risks.

2. Right to Information: Consumers have the right to access accurate and transparent information about products and services. This includes details about the ingredients, manufacturing processes, pricing, and any potential risks associated with the consumption or usage of a particular product or service.

3. Right to Choose: The right to choose empowers consumers to select from a range of products and services available in the market. This encourages healthy competition among businesses, giving consumers the freedom to make decisions based on their preferences, needs, and budget constraints.

4. Right to be Heard: This right ensures that consumers have a platform to express their concerns and opinions about products and services. It includes the right to complain, provide feedback, and be part of any decision-making process that affects consumer interests.

5. Right to Redress: The right to redress entities consumers to seek compensation or replacement for products or services that fail to meet established standards. It serves as a mechanism for holding businesses accountable and provides a means for consumers to rectify unsatisfactory transactions.

6. Right to Consumer Education: Right to Consumer Education states that a consumer has the right to acquire the required knowledge and skills to be an informed consumer. Literate consumers can easily attain required information, know their rights, and take actions, but illiterate consumers cannot. Therefore, this right assures that illiterate consumers can seek information regarding their rights, existing acts, and agencies set up for their protection.

1. Being Informed: Consumers have the responsibility to educate themselves about the products and services they intend to purchase. This involves researching, reading reviews, and staying updated on market trends to make informed decisions.

2. Exercising Rights Wisely: While consumers have rights, they also carry the responsibility of using these rights judiciously. This means not abusing rights but using them responsibly to ensure fairness in transactions.

3. Making Ethical Choices: Responsible consumption involves supporting businesses that adhere to ethical and sustainable practices. Consumers should consider the environmental and social impact of their purchases.

4. Complaining Responsibly: When faced with unsatisfactory products or services, consumers have the responsibility to complain and provide constructive feedback. This not only helps rectify individual issues but also contributes to the overall improvement of products and services in the market.

1. Quality Improvement: Consumer awareness drives businesses to enhance the quality of their products and services. Informed consumers demand value for their money, pushing businesses to continuously improve and innovate.

2. Ethical Business Practices: An informed consumer base encourages businesses to adopt ethical and transparent practices. Companies that prioritize integrity and social responsibility are more likely to gain the trust and loyalty of consumers .

3. Market Dynamics: Informed consumers influence market trends and preferences. Their choices shape the demand for certain products and services, impacting the overall dynamics of the market .

4. Empowerment: Consumer awareness empowers individuals by giving them the tools to assert their rights. This empowerment creates a more balanced and fair marketplace where consumers actively participate and influence business practices.

5. Healthy Competition: Informed consumers foster healthy competition among businesses. Companies are incentivized to innovate and offer better products or services, contributing to a competitive and dynamic market environment.

The power of consumer awareness helps you confidently move through the market. It is about much more than just realizing what you need to buy; rather it involves comprehension of your rights and how to use them to be able to make decisions that are based on knowledge. It is simply a matter of understanding what you are entitled to as a consumer and what you are responsible for. This way, you can always make your own choices based on full information and not allow any enterprise misuse you. Imagine that you are trying to figure out which cell phone plan would be best for you. When you have knowledge, advertisements with too much hype become clear; additional charges become visible, too. It’s possible to check with other clients about their experiences as well as characteristics while matching plans so that they correspond with what you really need. Consumer awareness is what not only shapes markets but makes businesses more accountable to those who can tell right from wrong. In turn, all these ensure there is good competition , improvement as well as development of more satisfactory goods and services in the end.

What role do consumer rights play in the digital age?

Consumer rights are crucial in the digital age as they protect individuals from online scams, privacy violations, and ensure fair treatment in e-commerce transactions.

How Consumer are Exploited?

Consumers get exploited by shrewd advertisers and dishonest sellers. This occurs when there is deceit in advertising with exaggerated claims, hidden fees hidden into your bill, or even fake products pretend to be as the real deal are all ways consumers can get exploited. The good news is that with a little consumer awareness you can be a confident shopper and avoid these pitfalls by staying informed.

Where Should Consumers Go to Get Justice?

In India, Consumer Courts are your weapon to Get Justice. These specialized courts, at district, state, and national levels, settle disputes and award compensation for unfair business practices. District courts handle claims up to ₹20 lakh, while State Courts tackle claims between ₹20 lakh and ₹1 crore. National Courts address issues exceeding ₹1 crore. Don’t hesitate to appeal decisions – know your rights! Fight for fair treatment with Consumer Courts on your side.

What steps should consumers take when they believe their rights have been violated?

Consumers should document the issue, contact the seller or service provider, and if necessary, escalate the matter to consumer protection authorities. Legal action can be pursued if other avenues do not yield resolution.

How can consumers ensure the authenticity of product information in the era of online shopping ?

Consumers can verify product information through reviews, ratings, and by purchasing from reputable online platforms. Additionally, checking for certifications and contacting customer support can provide assurance.

Can consumer awareness impact industries with a significant environmental footprint?

Yes, consumer awareness can lead to a shift in preferences towards environmentally sustainable products, influencing industries to adopt eco-friendly practices.

How can governments contribute to enhancing consumer awareness?

Governments can conduct awareness campaigns, enforce consumer protection laws, and promote educational initiatives to enhance consumer awareness. Strengthening regulatory frameworks also plays a vital role in safeguarding consumer rights.

Please Login to comment...

Similar reads.

• Geeks Premier League
• Geeks Premier League 2023
• Top Android Apps for 2024
• Top Cell Phone Signal Boosters in 2024
• Best Travel Apps (Paid & Free) in 2024
• The Best Smart Home Devices for 2024
• 15 Most Important Aptitude Topics For Placements [2024]

Improve your Coding Skills with Practice

What kind of Experience do you want to share?

Talk to our experts

1800-120-456-456

• Consumer Awareness

What does Consumer Awareness mean?

To satisfy unlimited wants people purchase goods and services at a given price. But what to do in the case if the goods and services bought are found to be in bad quality or overcharged or measured less in quantity etc. In such situations. the consumers, instead of getting satisfaction, often feel cheated by the sellers who have sold the goods and services. Here, consumer awareness plays a significant role.

Consumer awareness is nothing but an act of making sure the buyer or consumers are aware of the information about products, goods, services, and consumer’s rights. Consumer awareness is important so that buyers can make the right decision and make the right choice at the right time. In this article, we will discuss consumer awareness, and consumer rights in detail.

Why There is a Need for Consumer Awareness?

The need for educating consumers about product quality and product price is significant and should not be ignored. The advancement of technology and emergence of sophisticated gadgets in the market and aggressive marketing strategies in the era of globalization has not only given a wide choice to consumers but also do not defend them with a plenitude of problems associated with such rapid changes.

There is an urgent and increasing necessity to educate and motivate the consumer to be attentive about the product's quality, and also the possible deficiencies in the services of the growing sector of public utilities.

In short, the consumer should be educated with respect to his rights as a consumer. He should be educated enough so that he is able to protect himself from any wrongful act on the part of the trader. In order to help consumers to be in such a state, there is a need to provide reliable and exhaustive information, which they can access without much effort and expense. Considering these issues, the Government of India and the State Government have made an effort to introduce a dispute redressal mechanism by means of the Consumer Protection Act. Apart from this, a lot more has to be done in the area of creating awareness. A suitable remedy should be suggested wherever there is a need. This becomes more significant in the rural areas, where there is widespread illiteracy.

Let us now discuss six different types of consumer rights which help consumers to protect themselves from any scams or fraud.

Six Consumer Rights: Everyone should be aware of

Right to Safety

Right to safety is a basic right that helps consumers to be protected against the marketing of such goods and services which are hazardous to life and property. Consumption of goods or services which are not up to the mark can have adverse effects on the consumer’s health and safety. In order to protect the consumer’s interest, they have a right to receive high- quality and reliable goods. For instance- Household goods like LPG cylinders if not sealed properly can cause immense damage to life and property, Stale food items can cause harm to buyer’s health, Low-quality cosmetics can cause similar harms.

Right to Be Informed

The consumer has a right to receive information about the quality, quantity, potency, standard, and price of the goods or services.This will not merely help him to make well- informed and thought decisions but also prevent himself from falling prey to high-pressure selling techniques. The right to information is used to shield consumers from deceptive advertising, misleading labels and packaging, high prices, etc.

Right to Choose

This right permits consumers to choose among a wide variety of goods and services without being forced to do so. In case of monopolies, the right to be assured of satisfactory goods and services at fair and reasonably priced.   It also includes the right to basic goods and services. The right to choose can be better employed in a competitive market where a wide range of goods and services are available at a competitive price.

Right to Be Heard

The above three rights are useless if there is no proper authority to listen to customer grievances. If a buyer is dissatisfied with the product or service, then one has the right to file a complaint against it in a consumer court and it has to be addressed within a set time frame. For instance, if a consumer buys an electronic Item and it starts malfunctioning, a consumer has all rights to take appropriate action by returning or replacing it. 

Right to Seek Redressal

This right states that If a consumer is not satisfied with a particular purchase, he has the right to get the product replaced, or even he can demand a refund for the product. The consumer may even ask for compensation in case a product or service causes severe harm to them.

Right to Customer Education

A consumer must be aware of his rights and responsibilities provided by the authorities regarding marketing practices. The consumer has all the authority to gain knowledge about his rights as a buyer. Lack of Consumer awareness is the most important issue our government should pay heed to resolve.

What is the Responsibility of a Consumer?

The consumer has a certain responsibility to perform as an aware consumer can bring changes in the society and would help other consumers to fight against the unfair practices or be aware of it. Following are the important responsibilities of a consumer which they should carry out.

They should know their rights under the consumer protection act and should practice the same in case of need.

They should have sufficient knowledge about the product they are buying. They should act as a cautious customer while purchasing any product.

A consumer can file a complaint if a product is found to be false or not satisfactory.

The consumer can demand a cash memo while making a purchase.

The consumer should verify the standard mark that has been introduced for the reliability of the quality of the product like ISI or Hallmark, etc.

Consumer Awareness in India

Consumer awareness campaign- Jago Grahak Jago is the most important and successful campaign which has shielded consumers against marketing malpractices and has successfully redressed consumer complaints. The campaign Jago Grahak Jago was started in 2005 by the Department of Consumer Affairs under the Ministry of Consumer and Public Distributions by the Government of India.

The Slogan “ Jago Grahak Jago”  means wake up consumers has now become very popular in almost every household. The Government of India used several different channels to create awareness among consumers. Following is the list of the channels used by the Government to meet the objectives of the “Jago Grahak Jago” awareness program.

Media Advertisements

Video Campaign

Audio Campaigns

At last, it is concluded that consumer awareness means being aware of having the knowledge about the several consumer production laws, rectified techniques, and consumer rights which include the right to protection of health and safety from goods and services that consumers purchase, right to be informed about the price, quality, quantity, potency, and standard of goods.

FAQs on Consumer Awareness

1. What consumer rights are assured under the Consumer Protection Act 2019?

The consumer retains following six consumer rights under this act:

Right to be Informed 

Right to be Heard

Right to seek redressal

Right to Consumer Awareness

2. What are the three consumer redressal agencies

Consumer redressal agencies are the quasi bodies established under the act to provide the easy, speedy, and inexpensive redressal to the grievances of the consumers. These bodies have been established at three levels namely:

District Consumer Dispute Redressal Commission or District Commission.

State Consumer Dispute Redressal Commission or State Commission.

National Consumer Dispute Redressal Commission or National Commission.

3. Who is regarded as the consumer?

A person who purchases goods and services for a deliberation, which has been either paid or promised or partly paid and partly promised, or under any system of deferred payment which also incorporates the user with acceptance of such goods or receiver of services.

According to the consumer protection act 2019, the statement “purchase any goods or hore any services” includes both online and offline transactions through electronic medium or by direct selling or multi-level marketing.

4. Why is it Important to protect consumer’s interest?

It is important to save consumer’s interest as they are the main purpose of any business information. There is no business if there is no one to satisfy.

5. What are Indian Consumer Rights?

Consumer Rights in India. The definition of Consumer right is 'the right to have information about various parameters of the product like its quality, potency, quantity, purity, price or standard of goods or services', as it may be the case, and the consumer is to be protected against the unfair practices of the trade.

7. How do I file a consumer complaint in India?

One must submit a formal complaint under the Consumer Protection Act, 1986.

8. What is Jago Grahak Jago Campaign?

Jago Grahak Jago is a consumer rights awareness programme issued by the Ministry of Consumer Affairs, Government of India. This programme enables Indian Customers to get educated about their consumer rights.

Consumer Awareness

• Harvard Case Studies

Harvard Business Case Studies Solutions – Assignment Help

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

porter’s five forces model

STEP 2: Reading The Consumer Awareness Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Consumer Awareness:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Consumer Awareness and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Consumer Awareness HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Consumer Awareness is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Consumer Awareness.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Consumer Awareness Case Solution:

• Pest analysis

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Consumer Awareness.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Consumer Awareness Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Consumer Awareness:

Vrio analysis for Consumer Awareness case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Consumer Awareness company’s activities and resources values. RARE: the resources of the Consumer Awareness company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Consumer Awareness)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Consumer Awareness Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Consumer Awareness Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Consumer Awareness Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Consumer Awareness Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.