2. Consumerism- Definition
• Consumerism, the "social movement seeking
to augment the rights and power of buyers in
relation to sellers," (Kotler, 1972)
• It is manifest in new laws, regulations, and
marketing practices, as well as in new public
attitudes toward government and business.
3. Consumerism- Definition
• Marketing concept
• Consumerism is a social and economic order
that is based on the systematic creation and
fostering of a desire to purchase goods or
services in ever greater amounts.
• In economics, consumerism refers to economic
policies placing emphasis on consumption.
• In an abstract sense, it is the belief that the free
choice of consumers should dictate the
economic structure of a society
4. Consumerism
• The movement seeking to protect and
inform consumers by requiring such
practices as honest packaging and
advertising, product guarantees, and
improved safety standards"
• or alternatively: "The theory that a
progressively greater consumption of
goods is economically beneficial".
5. Consumerism
• Consumers are disenchanted with the
marketing system.
• Symptomatic of consumers' malaise are
complaints about rising prices, demands for
improved products and services, suggestions
for improving the adequacy of product
information, and concern for the physical
environment
6. Consumerism
• Consumerism and Public Policy-when is
Governmental intervention necessary?
• What form does Governmental intervention
take?
• Consumer movement had its conspicuous
beginning and took up momentum in the US
• 1962- JFK and consumer rights
• Ralph Nader- “Unsafe et any speed”
7. Consumerism in India
• “ Consumerism actually should be, must
be and I hope will be the opportunity of
marketing. This is what we in marketing
have been waiting for” Peter
Drucker
8. Consumerism in India
• India is a developing economy.
• Not all Indian consumers are well educated.
• Consumers are often exploited, misled by
deceptive advertisements, packaging poor
after sales service, adulteration, price
collusion and so on.
• Liberalization and competition
• Survival of the fittest
9. Situational Factors
• Situational Factors that aided unethical
marketing-
• Vastness of the country
• Imbalance in income distribution
• Backwardness, illiteracy , ignorance
• Lack of education and information
• Indian consumers get carried away by clever
advertising
10. Reasons behind the rise
• Reasons behind the rise of consumerism in
India-
• Imbalance in demand and supply of
commodities----- leading to hoarding, black
marketing, profiteering
• Low literacy levels and lack of awareness of
rights encourages businessmen to be
indifferent to consumers
11. Reasons behind the rise
• Reasons behind the rise of consumerism in
India-
• Lack of effective competition
• Consumerism is still in its infancy
• Legal framework is time consuming and
tiresome
• Lamentable state of public sector monopolies
12. Remedies
• Active participation from the business,
Government and consumers.
• Business must ensure efficiency in production
and quality of output and must refrain from
Unfair Trade Practices
• Government through legislations, statutory
bodies etc prevent exploitation of consumers.
• Consumers should assert their rights and protect
themselves from business malpractices
13. Consumer protection in India
• Marketing concept has to be broadened to
include the societal marketing concept.
• TATA Steel
• Lifebuoy's “Swasthya Chetna”
• Tata Tea's Jaago Re! campaign
14.
15. Changes in the attitude of Indian consumers
• The attitude of Indian consumers has undergone
a major transformation over the last few years.
• He wants to lead a life full of luxury and
comfort.
• He wants to live in present and does not believe
in savings for the future.
• He is open to the idea of consumption and a
better lifestyle.
• An increase in their income level due to high
rate of industrialization, growth of services
sector and better employment opportunities
16. Questions
• Why social cause marketing? What is the intended
objective? Why should companies commit their
shareholders' money for social issues? Or is it to do with
the company's values?
• What is the difference between a Social Cause Marketing
initiative and a Corporate Social Responsibility Initiative?
• At what stage of brand life cycle, would it be meaningful
for any brand to get out of its comfort zone and start
embracing social causes?
• Are the social cause marketing initiatives truly sustainable
