Answer :

Factors causing exploitation of consumers are:

(a) Limited Information:

Due to absence of correct and timely information regarding quality, price, instructions, warnings etc. Consumers are not aware of how to use the product and they end up paying more for product than the MRP.

(b) Limited Supplies:

The consumers are exploited when the goods and services are not available in the market to the required amount or quantity. This makes or gives chance for black marketing & hoarding, of the goods etc.

(c) Limited Competition:

At times only one producer or a group of producers produce some products. They manipulate the prices of their products by making these non-available for certain period. So the prices rise high and the benefit goes to that particular group causing loss to the customers.

(d) Literacy:

Illiterate people are very easily exploited by the sellers. Due to low literacy the level of consumer consciousness in our country is very low. It benefits the producers and sellers in keeping the rates of their products high and earns more profit. Thus the consumers are easily exploited.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Right Circular CylinderRight Circular CylinderRight Circular Cylinder45 mins
Right Circular Cone And FrustumRight Circular Cone And FrustumRight Circular Cone And Frustum43 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses