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Which factors causes exploitation of consumer?
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Which factors causes exploitation of consumer?
Factors that Cause Exploitation of Consumers
Exploitation of consumers can occur in various forms, such as price gouging, false advertising, and misleading marketing practices. The following are some of the factors that contribute to such exploitation:
Monopoly or Oligopoly in the Market
- When a single company or a small group of companies control the market, they can set the prices and dictate the terms of sale, leaving consumers with little or no choice.
- These firms can also engage in anti-competitive practices, such as price-fixing and collusion, which can lead to higher prices and reduced quality for consumers.
Information Asymmetry
- When consumers lack the necessary information to make informed decisions, they are vulnerable to exploitation.
- Some companies may withhold important information, such as hidden fees or potential risks associated with their products, to maximize their profits at the expense of consumers.
Psychological Manipulation
- Some companies use psychological tactics, such as fear, guilt, and peer pressure, to influence consumers' purchasing decisions.
- For example, marketers may create a sense of urgency or scarcity to encourage consumers to buy products quickly, even if they do not need them.
Regulatory Capture
- Regulatory capture occurs when regulatory agencies tasked with protecting consumers are influenced or controlled by the industries they are supposed to regulate.
- As a result, these agencies may fail to enforce consumer protection laws or may even act in the interest of the industry instead of the public.
Lack of Competition
- When there are few or no competitors in the market, companies may abuse their market power to charge higher prices and provide lower quality products or services.
- Consumers may have no alternative but to accept these terms, leading to exploitation.
In conclusion, consumer exploitation can occur due to various factors, including market structure, information asymmetry, psychological manipulation, regulatory capture, and lack of competition. It is essential for consumers to be aware of these factors and take steps to protect themselves from exploitation.
Community Answer
Which factors causes exploitation of consumer?
(i). Limited information Consumers have limited
information about their rights and duties. Therefore, they get exploited by dishonest sellers.
(ii). Low Literacy and awareness The lack of knowledge about the quality or prices of various products or illiteracy causes exploitation of consumers.
(iii) .Limited competition Markets do not work in a fair manner when producers are few and powerful and consumer and scattered and purchase less.
information about their rights and duties. Therefore, they get exploited by dishonest sellers.
(ii). Low Literacy and awareness The lack of knowledge about the quality or prices of various products or illiteracy causes exploitation of consumers.
(iii) .Limited competition Markets do not work in a fair manner when producers are few and powerful and consumer and scattered and purchase less.
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Which factors causes exploitation of consumer?
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Which factors causes exploitation of consumer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Which factors causes exploitation of consumer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which factors causes exploitation of consumer?.
Which factors causes exploitation of consumer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Which factors causes exploitation of consumer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which factors causes exploitation of consumer?.
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