LIVE Course for free

Rated by 1 million+ students
Get app now
JEE MAIN 2023
JEE MAIN 2023 TEST SERIES
NEET 2023 TEST SERIES
NEET 2023
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
859 views
in Business Studies by (60.7k points)

Explain the importance of Consumer protection from the point of view of business.

1 Answer

+1 vote
by (61.9k points)
selected by
 
Best answer

A business can not survive without paying attention on protecting the consumer's interest and adequately satisfying them. 

This is important because of the following reasons:

1. Long term interest of Business: Business firms should aim at long term profit maximization through customer satisfaction. Satisfied customers not only lead to repeating sales but also provide good feedback to prospective customers and thus help in increasing the customer base of business. 

2. Business uses Society’s Resources: Business organizations use the resources which belong to the society, thus they have a responsibility to supply such products and render such services that are in the public interest. 

3. Social Responsibility: A business has social responsibility towards various interest groups. Business organizations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of. 

4. Moral Justification: The moral duty of any business is to take care of consumer’s interests and securing them from exploitation. Thus, a business must avoid insecure loss, exploitation and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc. 

5. Government Intervention: A business engaging in any form of exploitation time trade practices would invite government intervention or action. Thus, it is advisable that business organizations voluntarily resort to such practices, where the customers’ needs and interests will be taken care of.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...