Consumer Awareness – A Case Study of Jalna City

*Dr. M.A. Lokhande

Introduction:

Each of us a consumer. We consume different commodities and services right from our birth to death.
All the business activities revolve around the consumer. In the words of Mahatma Gandhi (1980) “a customer is
the most important visitor on our premises, he is not dependent on us, we depend on him. He makes favour to
us, not we favour him. ” Do the manufacturers, the marketers respect and satisfy the customers? Today’s
customer is said to the kind of the market. Is this true? Due to lack of awareness consumers fall prey to unfair
and fraudulent tactics of the marketers. The form of exploitation may be look- alike e.g. Lifebuoy-lifebuoy, less
weight, inferior quality goods and services and exorbitant prices. So, there is need of creating consumer
awareness in our country. Higher the consumer awareness, lower the exploitation and vice versa. The degree of
consumer awareness determines the satisfaction levels and standard of living of the consumers. Consumer
awareness may be defined as clearly understanding the need and priority of purchasing, conditions warranties of
purchase agreement and rights and duties of consumers.

The consumer must be aware regarding his right and available legal measures against exploitation. In
order to create consumer awareness and safeguarding their interest, the Government of India has enacted MRTP
act, 1968, essential Commodities act, 1955, Sales of Goods act, 1955 and Protection of consumer act, 1986.

In spite of all these efforts, consumer awareness is not up to the mark of India. Indian consumer is a
victim of exploitation in the form of standard goods and services, false guarantee, exorbitant prices and
fraudulent tactics. Creation of consumer awareness is a big task in our vast country. Due to some impediments
such as, illiteracy, indifferent attitude, ignorance of law, lengthy legal procedures etc, and the degree of
consumer awareness is a very low in India.

The present study has a good deal of relevance in the present context i.e. increasing income levels,
changing consumption patterns, globalisation of Indian markets etc. It is the need of hour to enhance consumer
awareness and impart consumer education in our country wherein there are more than 35 crore illiterate people
and indifferent attitude prevails in the society towards consumer protection. Even educated people are not aware
about their rights as consumers and prevalent laws protecting the interests of the consumers.

The present study is an attempt to probe into the awareness of the consumers, their reactions regarding
service providing agencies and make some possible suggestions in order to overcome the problems.

OBJECTIVES OF THE STUDY:

The principal objectives of the study are as under:
I. To understand consumer awareness in Jalna City.
II. To know about the attitudes in relation to branded goods.
III. To understand the views of consumers on basic services.
IV. To make some suggestions in view of the problems faced by the consumers.

METHODOLOGY OF THE STUDY:

The present study is confined to Jalna city, a district head quarter of Maharashtra State. The study is
based on the field survey conducted with the help of a well structured questionnaire and interviews with the
respondents. The secondary data collated from books and Journals devoted to the consumer movement.

For the propose of the study, a sample of 90 consumers living in Jalna city was selected on random
sampling basis.

Reader & Deptt. Of commerce, Smt. Dankunwar Mahila Mahavidyalaya, Jalna-431203 (Mah,)

Indian Journal of Marketing May, 2006, P.No. 23

ANALYSIS OF DATA:
Out of respondents, 50 (55.56%) were male respondents and 40 (44.44%) female respondents.
(A)Profile of consumers under this study:
EDUCATION:
Education development a rational mind and created awareness among consumers. Illiteracy is one of
the impediments in the way of the consumer awareness.
The highest number of respondents, i.e, 25 (27.77%) were graduates, following by 24 (26.67%)
respondents who had completed higher secondary education. Our of 90 respondents, 16 (17.78%) had
reached up to S.S.C. level. There were 8 post graduate respondents and 7 (7.78) illiterate respondents
(table -1). Minority of the respondents expressed their ignorance about consumer protection measures.

Table -1: Education wise classification of respondents;

Sr.No Educational Qualification No.of Respondents Percentage

1 Uneducated 07 7.78
2 Primary/Middle 10 11.11
3 S.S.C. 16 17.78
4 H.S.C. 24 26.67
5 Graduation 25 27.77
6 Post Graduate 08 8.89
Total 90 100.00
Source: Field survey -2005.

OCCUPATION:
Occupation certainly influences consumption habits, choices and purchasing power of consumers.

Table -2: Occupation wise Classification of respondents

Sr.No Educational Qualification No.of Respondents Percentage

1 Business 23 25.55
2 Service 34 37.78
3 House Hold 33 6.67
4 Activities
Total 90 100.00
Source: Field survey -2005.
Out of 90 respondents, 34 (37.78%) were engaged in service, 23 (25.55%) had their own
business while 33 (36.67%) female respondents were smouldering the responsibilities of household
activities. It is noteworthy that all 90 respondents were key decision makers in purchasing for their
families.
INCOME:
Income is the main factor which determines purchasing power, consumption levels and tastes
of consumers. Higher income level, higher the purchasing power and vice versa. It was observed that
out of 90 respondents 3 (33.33%) and monthly income group i.e. Rs.20000 and above constituted 20
(22.22%) respondents and lowest income group i.e. Rs. 1000 accounted 15.58% of the total
respondents.

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 Table-3. Income Wise Classification
Monthly Income No. of Respondents Percentage
Upto 1000 14 15.56
1000-5000 30 33.33
5000-20000 26 28.89
20000-Above 20 22.22
Total 90 100.00
Source: Field survey -2005.

SOURSES OF FINANCIAL FOR PURCHASING

Timely availability of fiancé has a deep impact on purchasing power of the consumers. Now-a-day,
finance is easily available with lower interest rate which has resulted into increasing demand for consumer
goods.
Table -4 Sources of Finance

Source No. of Respondents Percentage to total (90)

Self Income 90 100.00
Banks 49 54.00
Privates Money Lenders 18 20.00
Relatives/Friends 16 17.78
Other 20 22.22
Source: Field survey -2005.
It was noticed that all the 90 respondents had their own income as the major source for financing
purchases. In addition 54.44% of the total respondents stated that they borrowed from banks while 20% raised
required money from private moneylenders. In case of 16 (17.78%) respondents had relatives/friends was one of
the sources of finance, while 20 (22.22%) used to borrow from other sources like, credit co-operative society or
chit funds (Table-4)
CONSUMER AWARENESS:
To understand the views of consumers on different issues, there was discussion in detail on the issues
with the respondents. The analysis of data shows that 44.44% of the total 90 respondents had knowledge about
consumer protection act, Prevention of adulteration act and 55.56% were unaware about the laws (Table -5).
Monthly budget was prepared by 38.88% of the total respondents while 61.12% respondents stated that they did
not have knowledge about it. It is noteworthy that majority of the respondents, i.e. 78.88% (71) had made
enquiry before purchasing the good. However, only 51.12% (46) respondents had duly observed and checked
the product. The consumers who solely relied on the sellers for purchasing constituted 27.77% of 90
respondents.
Table – 5 : Views of Respondents
Sr.no Educational Qualification No. of Respondents Percentage
1 Knowledge of consumer Protection laws 40 44.44
2 Monthly Budget was prepared 35 38.88
3 Enquiry was done before purchasing 71 78.88
4 Goods were observed and duly checked 46 51.12
5 Relied solely on the seller 25 27.77
6 Purchase receipts were taken and read out 35 38.88
7 Did not take purchase receipt 55 61.12
8 Returned/Replaced goods it not as per expectations 31 34.34
9 Purchased only Branched goods 67 74.44
10 Used Unbranded goods. 23 25.56
Source: Field survey -2005.

Indian Journal of Marketing May, 2006, Page No. 25

 A purchase receipt, being an evidence of sale contract can be produced in the court for the breach of
the contract. It was observed that only 35 (38.38%) has taken purchase receipts, read them out and understand
conditions and warranties. On the other hand, 55 (61.12%) respondents had not demanded for receipts.
In case of the purchase of the goods which were not as per the expectations or order, 31 (34.34%) had
either returned or replaced the goods. However, such action was not taken by 59 (65.66%) respondents which
throw light on their “ Chalta Hai” attitude.
Now –a-days, branded goods are popular among consumers because they assure some sort of quality
and status. Services certainly influence the standard of living of the consumers. The views of respondents on
availability of service in Jalna city are given in Table -6.
Table-6: Views of Respondents on availability of Services

Sr.No Service Adequacy % Inadequate % Total %

1 Education 36 40.00 54 60.00 90 100
2 Health 41 45.55 49 54.45 90 100
3 Banking 45 50.00 45 50.00 90 100
4 Telephone 38 42.22 52 57.78 90 100
5 Insurance 60 66.67 30 33.33 90 100
6 Electricity 32 35.55 58 64.45 90 100
7 Drinking Water 35 38.89 55 61.11 90 100
8 Entertainment 40 44.44 50 55.56 90 100
9
Source: Field survey -2005.
Of the 90 respondents, educational facilities of 40% of the respondents’ were adequate 54(60)
respondents were dissatisfied with the available educational facilities. Majority of the respondents expressed
concern over high fees structure and deteriorating standard of education. In case of health facilities, 45.5% of
the respondents were found satisfied while 54.55% respondents were dissatisfied. A few respondents
complained about too high charges and poor services rendered by the hospitals. About banking services, 50% of
the respondents were satisfied. However, 50% respondents had complained about delays in services provided by
the banks and 57.7% were disappointed over telephone services. It is noteworthy that more than 66% of the total
respondents had good experiences in relation to Insurance services. 58 (64.45%) respondents complained about
inadequate and irregular supply of electricity. Majority of the respondents expressed their concern over
exorbitant electricity bill. According to 61.11% respondents. Water supply in Jalna city was irregular inadequate
while 55.56% respondents complained about poor quality of theatres. To sum up, Majority of the respondents
were found unsatisfied over the quality and adequacy of needful services in Jalna city.
Table – 5: Experiences of Respondents regarding unfair trade practices.
Unfair trade practices/Defects. No. of Respondents Percentage of total 90
Inferior Quality 56 62.62
Less quantity 14 15.56
Look-alikes 28 31.11
Adulteration 30 33.33
Exorbitant Price 35 38.89
False guarantee 20 22.22
Source: Field survey -2005.

Indian Journal of Marketing May, 2006 Page No. 26

 It can be observed from table-7 that majority of the respondents i.e. 62.62% of total 90 respondents,
were supplied inferior quality goods. According to 40 (44.44%) respondents, they had to pay the price in excess
of the printed price as did not have another alternative. 15.56% of the respondents had bad experiences of being
provided less quality than demanded. To differentiate between look alike was the major problem before 31.11%
of the total 90 respondents. They were provided look alike goods as original goods, e.g. Parachute- parashute,
Colgate- colgatte, Lifebuoy-lifeboy etc. It is noteworthy that 33.33% (30) of the respondents had been provided
adultered milk, edible oil, ted Powder and perfume. 35 (38.89%) respondents had experienced of exploitation in
the form of charging exorbitant prices by scratching out the printed prices.
Out of 90 respondents 20 (22.22%) respondents stated that they were given false guarantee of the
durability of the goods. This indicates that there has been continuous exploitation of consumers in spite of
existing.
The respondents were asked about what action they had taken against the greedy sellers, while 63.33%
of the respondents had not lodged complaints in spite of understanding that they were cheated. 25 (27.78%)
respondents had complained to grahak Panchyayat and 8 (8.89%) had complained to district forum. Nobody had
complained to the state commission or the national commission.
A few respondents stated they did not complain because of the lengthy process involved. Majority of
the respondents i.e. 50(55.56) had knowledge about consumer protection Act .(Table-5)
Table – 8 : Reactions of the Respondents
Educational Qualification No. of Percentage
Respondents
Complained to Grahak Panchyat 25 27.78
Complained to District Forum 08 8.89
Complained to State Commission -- --
Complained to State Commission -- --
No Complain was made 57 63.33

Total 90 100.00
Source: Field survey -2005

FINDING AND SUGGESTIONS

Consumer awareness in essential to avoid any type of unfair practice or cheating by greedy markers.
The study disclosed that only 55.56% of the 90 respondents from Jalna city were unaware about consumer
protection acts, consumer redressal machineries such as, district consumer forum, state/ central commission.
Every Consumer has the right to get maximum satisfaction from the goods and services for which he
has paid. Besides formal education, consumer education should be imparted right from High School level. A
wider publicity should be given to consumer protection measures through T.V., newspapers. Use of audio-visual
media is effective to educate illiterate Consumers. Consumer protection movement should be strengthened.
The analysis of data shows that 38.88% of the total respondents were aware about monthly purchase
budget preparation.
It was noteworthy that majority of the respondents i.e. 78.88% (71) were habitual of making
enquiries before purchasing while 51.12% respondents had habits of observing, Checking and handing of goods
before purchasing.
It may be strongly recommended that every customer should be cautious while purchasing. He must
observe and check the goods otherwise he himself is responsible for loss caused by his negligence as per sales of
goods act.

Indian Journal of Marketing May, 2006 Page No. 27

 The study revealed that only 35(38.38%) respondents had demanded and taken the purchase receipt and
also read out the conditions. This indicates that a large number of consumers are aware about taking purchase
receipt which is a written evidence of purchase contract. This type of negligency on the part of consumer is loss
to the exchequer through tax evasion. On the other hand, he cannot complain against the without purchase
receipt. Whichever deceived customer complains orally against fraudulent seller, he just denies to entertain it on
the ground that the customer does not have the receipt.
In order to have a legal evidence of purchasing, the buyer must get original purchase receipt, warranty
cards and understand the condition of the purchase contract.
The campaign “Jago Grahak Jago” on national network should be continued to make the consumer
aware.
It was evident that only 34.34% had either returned or replaced the goods which were not as per
expectations, while 65.66% respondents consumed the goods, Indian customers’ indifferent attitude is not only
responsible for their deception but it also encourages the greedy marketers. The “Chalta Hai attitude” must be
rooted out.
With regard to use of branded goods, majority of the respondents i.e. 60% were dissatisfied and
expressed concern over high fees structure and deterioration standard of education. Shortage of drinking water
was the major problem in case of 61.11% of the respondents. 54.45% of the respondents were not satisfied and
they complained about high fees charged by the hospitals. 50% respondents were found disappointed on delayed
services. 52 about high fees charged by the hospitals. 50% respondents were found disappointed on delayed
banking services. 52 of the respondents complained about exorbitant bills charged by the electricity board and
BSNL.
The service providing agencies such as, SEBs, BSNL, Banks, Insurance companies should provide
adequate and timely services to the customers. In case of default, they must be dragged to the consumer
redressal agencies and should be punished. The deceived customers should take stringent action against faulty
agencies.
The study revealed that majority of the respondents were given inferior quality goods , 14 (15.56%)
had got less quantity of goods, 28 (31.11%) respondents had received look-alike goods as original goods,
33.33% respondents had got adulterated goods and 35 (38.89%) respondents had to pay too high prices than
printed prices.
The conclusion of the study is that in spite of understanding about exploitation, a few consumers i.e.
only 33 (36.67%) respondents had dared to complain against faulty sellers. This throws adequate light on the
different attitude of consumers and also highlights the degree of unawareness among the consumers.
IN spite of consumer protection measures, consumers are cheated in one or other form. The need of
hour is to implement the acts strictly and the culprits must be punished. There should be better co-ordination and
co-operation between Grahak Panchayats, Consumer Redressal Forums and the government agencies in
safeguarding the interests of consumers. The fees charged for lodging the complaint should be waived to benefit
the customers, particularly poor customers. The sellers, traders should follow business ethics and try to give
maximum satisfaction to the consumers and the society.
BIBLIOGRAPHY
 Nair, R Suja, Consumer Behaviour and Marketing Research, Himalaya Publication House, New Delhi,
2004, pp3
 Lokhande, M.A., Business Regulatory Framework, Kailas Publication, Aurangabad, 2002, pp150
 Sen Gupta A, Srivastava AK, Big Bad and parallel word of counter feits and look- Alikes, Indian
Journal of Marketing of Marketing, Vol XXXIII, Aug.2003, pp
 Kotler p, Principles of Marketing, New Delhi, Prentice Hall of India Pvt. Ltd.1992
 Majumdar P.K., Law of consumer Protection in India, Orient Publishing Company, New Delhi, 1994
 Peshwe V.M., The Consumer Protection Act. 1986.
 Singh Gurjeet, The law of consumer protection in India.

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