CONSUMERISM IN INDIA AND

CUSTOMER SATISFACTION

PRESENTED BY: BNOY JOBALIA

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 MARKETING CONCEPT
• Marketing Concept came into being with
marketers realized that they would be able to
sell more if they knew what was required by
the consumers.
• Marketers could now understand the factors
which would lead to a particular behavior.

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 FACTORS:

• Psychological Factors • Socio-Cultural Factors

– Personality – Family
– Motivation – Reference Group
– Perception – Social Class
– Attitude – Culture
– Learning – Sub Culture

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 OTHER FACTORS:

• Monopoly and Oligopoly exists in countries like India.

• People are weary of the Legal and Judicial System.
• Consumers are thus susceptible to manipulations.
•
•
•
• These gave birth to Consumerism.
• Consumerism and Consumer Movement was born to counter
the influences and dangers of manipulation that were posed
by unscrupulous marketers.

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 WHAT IS CONSUMERISM??
• Consumerism is a term used to describe the effects of
equating personal happiness with purchasing material
possessions and consumption.
• Consumerism is all about protection of the interests of the
consumers.
• Chambers dictionary(1993) defines consumerism as “ A
movement or policies aimed at regulating the products or
services, methods or standards of manufacturers, sellers and
advertisers in the interest of buyers, such regulation may be
institutional, statutory or embodied in a voluntary code
occupied by a particular industry or it may result more
indirectly from the influence of consumer organisations”
 COMPONENTS OF CONSUMERISM:
• Self-protection by the consumers.
• Voluntary Consumer Organisations engaged in organising
consumers and encouraging them to safeguard their interests
is another important element of consumer movement.
• Regulation of business through legislation is one of the
important means of protecting the consumers.
• Consumerism has over the time developed into a sound force
designed to aid and protect the consumer by exerting, legal,
moral and economic pressure on producers and providers in a
country like INDIA.
 STAKEHOLDERS IN CONSUMERISM

• Consumers
• Business Enterprises or Industry
• Government

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 Consumer Groups in India
• Voluntary Organization in Interest of Consumer Education (VOICE)
• Consumer Care Society
• Bombay Telephone Users' Association
• Citizen consumer and Civic Action Group (CAG)
• Grahak Sahayak
• Consumer Guidance Society of India
• All India Chamber of Consumers (AICOC)
• Consumer Coordination Council
• Akhil Bhartiya Upbhokta Congress
• Consumer Unity and Trust Society
• Consumer Rights Education & Awareness Trust (CREAT)
• Rajkot Saher/Jilla Grahak Suraksha Mandal
• Upbhokta Sanrakchhan & Kalyan Samiti
• Upbhokta Margdarshan Samiti "UMAS"

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Anti Cigarette Campaigns – Consumer
Group & Govt. Initiative

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 Good Knight - ASCI Rulings
• Godrej Sara Lee Ltd(*) (Good
Knight Aerosol) Chutti TV
• “Aerosol as a fragrant and the
actors are inhaling it”.

• This is highly objectionable as one

must not inhale a pesticide even
if it is safe.
• The cannister for the aerosol
resembles that of `Hit’ spray for
cockroaches and other pests.
These insecticides are far more
dangerous and should not be
inhaled directly.

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 Bajaj Allianz – ASCI Ruling
• Bajaj Allianz Life Insurance Co Ltd
• (Bajaj Allianz Shield Plus)
• Bajaj Allianz makes a comparison
with a Fixed Deposit in any Bank,
in a taunting and indecent
manner, as if Fixed Deposit has no
merits for a client and is not
worth.
• This is not correct since the Fixed
deposit done for a period of 5
years and above qualify for
Income tax benefit under section
80 (C)

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 Benefits of Consumerism
• Consumer Education
• Consumer Groups can liaison between Government
& Industry
• Product Research & Information to Consumer
• Inculcate Honesty, Responsiveness & Responsibility
on to Manufacturers & Marketers.
• Move towards Societal Concept of Marketing

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CUSTOMER SATISFACTION
 WHAT IS CUSTOMER SATISFACTION?
• Customer satisfaction is a measure of how products and
services supplied by a company meet or surpass customer
expectation.
• It is the number of customers, or percentage of total
customers, whose reported experience with a firm, its
products, or its services (ratings) exceeds specified
satisfaction goals.
• It is a key performance indicator.
• It is a factor on which sales and profitability of the company
depends.
• Customer satisfaction decreases with an increase in
bargaining power.
 IMPACT OF CUSTOMER SATISFACTION ON A
COMPANY’S SALES:
• CASE STUDY: APPLE IPHONE
AREAS OF CUSTOMER SATISFACTION COVERED:
• JD Power’s latest 2010 phone satisfaction study ranks the Apple iPhone
again with top score for all consumer and all business smart phones.
• Measuring customer satisfaction across several key factors:
1. Ease of operation
2. Operating system
3. Features
4. Physical design
5. Battery function
• Apple also takes top score for business phone category, ahead of other
smartphones that are marketed as business phones, such as the RIM
BlackBerry. BlackBerry only scored 724, while iPhone scored 803 for
workers in the business phone category
 PURPOSE OF CUSTOMER SATISFACTION:
• It sends a message about the importance of tending to
customers and ensuring that they have a positive experience
with the company’s goods and services.
• Although sales or market share can indicate how well a firm is
performing currently, satisfaction is an indicator of how likely
it is that the firm’s customers will make further purchases in
the future.
• Research has focused on the relationship between customer
satisfaction and retention (basically returned customer +
suggesting other customers).
• Willingness to recommend is a key metric relating to
customer satisfaction.
FACTORS DECIDING CUSTOMER SATISFACTION:
ACTIVITY:
• Consider we are having a website design company and so in
this business It is important that we work closely with our
customers to make sure that the site we are making is almost
close to their requirements.
• Since a close relation is required, customer satisfaction is
vital.

QUESTION:
• What strategy or easy steps can be applied to maintain that
close relationship Or to maintain customer satisfaction?
 ANSWER:CUSTOMER SATISFACTION IN 7
STEPS:
1. Encourage Face-to-Face Dealings.
2. Respond to Messages Promptly & Keep Your Clients
Informed.
3. Be Friendly and Approachable.
4. Have a Clearly-Defined Customer Service Policy.
5. Attention to Detail (also known as 'The Little Niceties').
6. Anticipate Your Client's Needs & Go Out Of Your Way to
Help Them Out.
7. Honour Your Promises.
 WHY CUSTOMER FEEDBACK IS IMPORTANT?

• Discover customer dissatisfaction.

• Identify customer needs.

• Discover priorities of customers.

• Compare performance with the competitors.

• Determine opportunities for improvement.

CASE STUDY-TATA NANO( 24/2/2011)
 PROBLEM:NANO RANKS LAST IN CUSTOMER
SATISFACTION BY TNS ( 24/2/2011)
• The customer expectations even at the bottom
end are rising.
• The owners of Tata Nano expect more in terms
of design and service.
• While Alto scored 91 points, Nano got only 70
points.
• Nano has been having issues following fire
incidents with six reported cases since its launch
in 2009.
SUGGESTIONS TO IMPROVE CUSTOMER
SATISFACTION???
 WAKE- UP CALL!!
• Indians are poor but India is not a poor country. One of the
swiss bank owner said “ 280 lac crore of inidian money is
deposited in the swiss bank which can be used for:
• Taxless budget for 30 years.
• 60 crore jobs to inidans.
• Four lane roads from any village to delhi.
• Every citizen can get 2000 rupees per month for 60 years.
• This is how money is blocked by rich politicians.
• “Padhega india tabhi badhega india”
 REFERENCES:
Bibliography:
1.Management Sciences. Pandey & Singh.
2.Total Quality Management. Bester field-Pearson education.
3.Industrial engineering & Management- O.P.Kanna, Dhanpat Rai and
Sons.
4.Making TQM work. Kit Sadgrove.
5.Essentials of Management. Harold Koontz. McGraw Hill.
6.Industrial engineering- Mukhi.

Webliography:
1.http://www.iaeng.org/publication.com
2.www.wikipedia.com
3.www.google.co.in
THANK YOU!!!
QUESTIONS???