Advertisements
Advertisements
Question
While purchasing groceries in the local market, Radha realises that the same item is priced differently in every shop.
In the above context, explain the causes of price variation faced by Radha.
Advertisements
Solution
Causes of price variation:
- Better Quality Costs More than Lower Quality: Higher quality products often come with higher production costs, such as superior materials or advanced manufacturing processes. This increased cost is usually reflected in the higher price of the product compared to lower-quality alternatives.
- Variation in Purchasing Power of People in Different Areas: Prices can vary based on the purchasing power of consumers in different regions. Areas with higher income levels may see higher prices due to greater demand and higher cost of living, while lower-income areas might have lower prices to match the local purchasing power.
- Lower Prices in the Wholesale Market Compared to Retail Areas: Products are typically sold at lower prices in wholesale markets where they are bought in bulk. Retailers add a markup to cover their costs and profit margins, which results in higher prices at retail outlets compared to wholesale prices.
- Packaging of Products: Products that are pre-packaged and branded often cost more than those sold loose. Packaging adds to the cost due to the materials and labor involved, and these costs are passed on to the consumer.
- MRP Includes Retailer’s Commission: The Maximum Retail Price (MRP) printed on labels often includes the retailer’s margin or commission. This means the final price consumers pay at retail outlets can be higher than the base cost of the product due to this additional markup.
APPEARS IN
RELATED QUESTIONS
Write short answer of the following.
State the responsibilities of consumers.
Explain the concept of ‘consumer protection’ and any three points of its importance from the point of view of consumers.
Select the proper option from the options given below and rewrite the complete sentence:
A District Forum can entertain the claims up to Rs ________.
Answer the following question.
'VOICE' is an important consumer organization. It organized workshops in the months of December in Delhi/NCR for consumers. The theme was 'Organic Food – From Farm to Plate', to spread awareness on the importance of organic farming and to encourage consumers to switch from conventional food, that contains chemicals and pesticides to organic food. Expert speakers from farmers' community explained the harmful effects of usage of pesticides in farming and the importance of organic food.
People were informed that the organization regularly tests samples to detect adulteration like the presence of heavy metals or pesticides. The results of the tests are published in their monthly magazine 'Consumer Voice' to make people aware of the quality of different products. It also provides aid and legal advice to the consumers in seeking a remedy.
State the functions performed by the Consumer Voice for the protection and promotion of consumer interest by quoting lines from the above para.
Explain any four needs of consumer protection.
Mayank purchased a pack of chocolates of a renowned brand for his daughter from a shop in the nearby market. After consuming the chocolates, his daughter fell sick. He filed a case with the District forum against the renowned brand. He lost the case because of a mistake that he could not provide proof of purchase. What should be kept in mind by a consumer while purchasing, using and consuming goods and services apart from avoiding the mistake committed by Mayank, in order to enable him/her to achieve the objective of consumer protection? Enumerate any four points.
State any four features of the Consumer Protection Act, 2019.
Tara went to a farm on the outskirts of the city. She purchased honey and ghee from the farm. On reaching home, she found that the seal of the honey bottle was broken.
- What are standardised marks? Which standardised mark should Tara look for on the above mentioned products?
- 'On reaching home, she found that the seal of the honey bottle was broken. Which right of Tara was violated as a consumer?
- Mention any four details that a consumer should check on the label of a product, before purchase, to ensure its quality.
Raman made a bank transaction to purchase a shirt, but immediate deduction was not made from his bank account.
Which method of banking did Raman use?
Meena wants to deposit her surplus money in the bank for a higher rate of interest. Keeping in view Meena’s requirement, suggest the type of bank account she should open. Mention any one feature of the account suggested by you.
