liquidity. asTheDiscount
FinanceHouseof
Indiaworksasa
compulsory
marketmaker
.
37 1x5=5
1. TheobjectiveofsettingupSEBIareoutlinedbelow:
•Topreventtradingmalpracticeinthesecuritiesmarkets.
•Toprotecttherightsandinterestofinvestors,andtoguide
andeducatethem.
•Toregulateanddevelopacodeofconductandfair
practicesbyintermediarieslikebrokers,merchantbankers,
etc.withaviewtomakingthem competitiveand
professional.
•Toregulatestockexchangesandthesecuritiesmarketto
promotetheirorderlyfunctioning.
ProtectivefunctionisperformedbySEBI:“TheSEBIhas
imposedapenaltyofRs.7,269.5croreonPearlsAgrotech
CorporationLimited.”
38 1+3+2=
1.SecuritiesAndExchangeBoardofIndia(SEBI)regulatesthe 6
workingofstockexchangesinIndia.
2.Threefunctionsperformedbystockexchangesareas
follows:
Ensuresliquidityandmarketabilityofexisting
securitiesbyaprovidingareadyandcontinuous
marketforthesaleandpurchaseofsecurities.
Helpsindeterminingthepricesofthesecurities
throughtheforcesofdemandandsupply.
Itprovidesalegalframeworkforfairandsafe
dealings.
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Twoadvantagesofscreen-basedtradingareasfollows:
Astheinvestorsgetaccesstothestockmarket
duringrealtime,thereiscompletetransparencyinthe
dealings.
Itprovidesacommonplatform forexchangeof
securitiestherebyincreasingtheefficienttransactions
bysavingtime,effortandmoney.
39 2+4=6
1. Dematerialisationreferstotheprocessofholding
securitiesinelectronicform.
2. Thetwoproblemsofholdingsharesinphysical
form areasfollows:
(1)Whenthesharescertificatesareheldinphysicalform,
thereisdangeroflossortheft.
(2)Thereisriskofforgery,asthebuyermaybedelivered
fakecertificates.
(3)Transferdelay
(4)Paperworkassociatedwiththesharecertificatesor
debenturesheldinphysicalforms.
40 2+2+2=
1.Primarymarketisthesegmentofcapitalmarketbeing
6
approachedbythecompany.Itisalsoknownasthenew
issuemarketasthesecuritiesareissuedforthefirsttime
bythecompaniesthroughthismarket.
2.Thetwomethodsoffloatationusedbythecompanyto
raisetherequiredcapitalare–Issuethroughprospectus
andOfferforsale.
3.Incaseofissuethroughprospectus,thecompany
approachesthemembersofthegeneralpublicdirectlyby
issuingaprospectuswhereasincaseofOfferforsale,the
companyapproachesmembersofthegeneralpublic
indirectlythroughintermediarieslikeissuinghouses,stock
brokersetc.
202/190
MarketingManagement
Marks(unit11&12carries15marks)
Pointstoberememberforsolvingthecasestudies
Alwaysreadthequestionfirstwhatthequestionwant
Importantlineandpointsshouldbeunderlinedatthetimeofreadingthecase
Inthischapteryoujustremember–marketingmix,elementsofpromotion
mix,product,price,placeandpromotion
S.N Questions Mark
os
1 Devwantedtopurchaseafuelefficientcarhavingthelateststandardsregarding 1
minimizationofpollution.Hesawanadvertisementofferingsuchacarandvisited
203/190
theshowroom ofthecompanywhereinthecarwasdisplayed.Inhisdiscussion,
theMarketingmanagertoldhim thatthecompanyisprovidingcreditfacilities,
maintenanceservicesand manyothereffectiveserviceswhicharehelping in
bringingrepeatsalesanddevelopingbrandloyalty.
IdentifythemarketingfunctionwhichtheMarketingmanagerwasdiscussingwith
Kumar.
2 ‘TVSLtd.’enteredintothemarketwithcoloredtelevisionandhavenowintroduced 1
productslikeaudiosystems,air-conditionerswashingmachines,etc.Thecompany
isnotonlyofferingtheproductsbutalsohandlingcomplaintsandofferingafter-
salesservices.
Theelementofmarketing-mixdiscussedhere.
a)Product b)Price
c)Physicaldistribution d)Promotion
3 ‘ChamoliMedicareEquipmentLtd.’manufacturesequipmentforsurgeonshavinga 1
uniquelasertechnique.Theequipmentcanbeusedbythesurgeonsonlyafter
propertraining.Eventheirmaintenancerequiresguidanceofspecializedengineers.
Becauseofthis,theequipmentisusedinalimitednumberofhospitals.The
companywantstoincreasethesaleoftheequipment.
Suggestthepromotiontooltobeusedbythecompanygivingreasoninsupportof
youranswer.
4 Namethefunctionofmarketingwhichisconcernedwithcostandlocationof 1
targetmarket.
a)Physicaldistribution b)pricing
c)Transportation d)storageandwarehousing
5 WhichofthefollowingisaShoppingProduct? 1
(a)T.V.Set (b)RawMaterial
(c)Sugar (d)Milk
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6 OneofthefollowingisanelementofPromotionMix: 1
(a)Product (b)Price
(c)Personalselling (d)Plantlocation
7 Marketingistheprocesswhichaimsat_____________
a)Production b)selling
c)customersatisfaction d)profitmaking
8 Anythingthatcanbeofferedformarketforattention,useandconsumptionthat 1
maysatisfyneedandwantsisa/an
a)Idea b)product
c)demand d)service
9 Ifthesalesforecastswillbehavinghigherdegreeofaccuracythenthelevelof 1
inventorieswillbe___________
10 “Howareyoutellingthetargetcustomersaboutyourproduct”thisrelatestowhich 1
conceptofmarketingmix
a)product b)price
c)place d)promotion
11 StarewhetherthefollowingstatementisTrue/False 1
Thespokenpartofbrandiscalledbrandname.
12 Marketingcanbebestunderstoodas: 1
I.Preproductionactivity
II.Postproductionactivity
III.Pre&Postproductionactivity
IV.Sellingactivity
13 __________________isalsocalledassilentsalesman. 1
14 Underdirectchannels,firm have__________________intermediaries. 1
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15 Thecommunicationtoolwhichisusedtoimprovetheimageorgoodwillofthe 1
companyiscalled__________________. 1
1
16 StarewhetherthefollowingstatementisTrue/False
1
“PackagingandLabelingaresameorsynonymsofeachother”
17 Matchthefollowingonthebasisofsuitability
I.ZeroLevel a)Colgatetoothpaste
II.TwoLevel b)MarutiUdyog
IIIThreelevel c)MailorderHouse
18 Matchthefollowingsexampleswiththeitemsthatcanbemarketed
a)VisittoUdaipur i) Event
b)Diwalimela ii) Organisation
c)HindustanUnilever iii) Person
d)LokSabhaelections iv) Place
19 Matchthefollowingcharacteristicsofagoodbrandnamewithitsobjective 1
1.Todifferentiatefrom the a)Adaptable
otherproducts
b)Versatile
2.Tonotgetoutofdate c)Distinctive
3.Toaccommodatenew
d)Stayingpower
product
4.Toadvertisetheproduct
conveniently
20 Matchthefollowingexampleswiththeirrelativeterms
1.BasmatiRice a)Genericname
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b)Brandname
2. c)Logo
3.Book d)Grading
4.Maggi
21 “Ideasforlife”isthetaglineof
a)Samsung b)Google
c)Panasonic d)Sony
22 Matchthefollowingfunctionsoflabelingwiththesuitableexamples
1.Shampoofornormalhair a) Salespromotion
2.Nosmokingoncigarette b)Specifiescontents
c)Grading
packet d)RequiredbylawSpecifies
3.Oilcontainingamla,neem
contents
etc.
4.Buyonegetonefree
23 Japanesetechnique‘JustInTime’isrelatedtowhichcomponentofPhysical
Distribution
(a)OrderProcessing
(b)Transportation
(c)Warehousing
(d)InventoryControl
24 Youareasoapmanufacturerandwanttointroduceanew handwashinthe 3
market.Whichfactorswillyouconsidertofixpriceofyourproduct?Giveanythree
points.
25 JTM Ltd.launched‘Buddyline’,anexercisebookandcomprehensivestationery 3
brandnamecomprisingofballpens,gelpensandgeometryboxesafteridentifying
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thetargetmarketandunderstandingtheneedsandwantsoftheconsumersofthat
market.Alltheirproductswereofgoodqualityandeco-friendlybutexpensive.They
wantedtodistinguishtheirproductsfrom thatoftheircompetitors.Theyspentlot
ofefforts,timeandmoneyincreatingthebrandname,astheyknewthatwithouta
brandname,theycanonlycreateawarenessforthegenericproductsandcan
neverbesureofthesaleoftheirproducts.Theeffortpaidoffandthedemandfor
theproductsstartedgrowing.Thecustomerslikedthebrandandbecamehabitual
toit.Theydidnotmindpayingahigherprice.Overaperiodoftime,itbecamea
statussymboltobuy‘Buddyline’brandbecauseofitsquality.Theconsumersfelt
prideinusingthem.
(i)IdentifythemarketingmanagementphilosophyfollowedbyJTM Ltd.
(ii)Explaintheadvantagesofbrandingtothemarketershighlightedintheabove
26 Acompanylaunchedanewcarrunningonbiodiesel.Thelauncheventwas 4
coveredbythepopularnewspapersandnewschannels.
a)Whichnon-personalform ofcommunicationwasusedbythecompany?
b)Howisitdifferentforothernon–personalmodeofcommunication?
c)Explainanytwodemeritsofthemodeusedbythecompany.
27 Jayisworking astheChiefExecutiveOfficerofasoftdrinkscompany.The 4
companyisdoingitsbusinessincollaborationwithasoftdrinkscompanyof
France.Jay’sfriend,Swami,ateacherofBusinessStudiesinareputedcollegewas
discussingthe‘Marketing’chapterwithhisstudents.Hewantedclarityfrom Jay
aboutthefactorswhichaffectthemarketingdecisions.Jayexplainedthatthere
werealargenumberoffactorsaffectingmarketingdecisionswhichmaybedivided
intotwocategories:(i)controllablefactors,and(ii)non-controllablefactors.Jay
furtherexplainedthatcontrollablefactorsbecamemarketingtoolsthatcanbe
constantlyshapedandreshapedbymarketingmanagers,toachievemarketing
success.
Identifyandexplainthesetofmarketingtoolsthatcanbeconstantlyshapedand
reshapedbymarketingmanagers.
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28 Yourcompanyhassetup a coconuthair-oilfactoryin CoastalKerala,with a 4
productioncapacityof10,000bottlesof100milliliterperday.Thecompanyplans
tomarketthehair-oilwiththebrandname‘KaleKesh’.Designalabelforthehairoil
bottles.
29 Oriflamehavebeenworkingwithskincareandthathasbeentheirareaofexpertise
formorethanover40years.Theycombinetheirproductswiththebestofwhatthe 4
naturehasgottogive,withthesciencebehindit.Pureingredientsandverystrict
manufacturingstandards,littleenergywasteandstrongenvironmentalpoliciesare
themanufacturingmantrasofthecompany.Oriflameisawareofthegrowing
concernsaboutenvironmentsoitisprovidingproductswhicharenottestedon
animals,withoutanyperfume,naturalingredientswhichcannotharm theskinor
causeallergiesuseenvironmentfriendlytechniquesofproduction
Identifyandexplainthemarketingphilosophyfollowedbythecompanyonthe
basisof:
a)mainfocus
b)means
c)ends
30 Flipkartwas setup bytwo software engineers from the Indian Institute of 5
Technology,Delhi,SachinBansalandBinnyBansal,in2007.Itsoldmanyitems
undervariouscategorieslikeapparels,appliances,books,etc.Octoberbeingthe
festiveseasoninIndia,thebige-commercecompanieswerelookingtolurebuyers
throughvariousattractivediscountsandoffers.Flipkarttoodeclaredasaleon
October6,2014.The company spenta huge amountofmoney on its ad
campaigns,installing servers to handle online traffic and deploying stafffor
processingtheordersanddeliveringthegoods.Unfortunatelyforthem,thingsdid
notturnoutquiteastheyexpected.Flipkart'sserverscrashed,itemswentoutof
stock,andthepricesofitemschangedduringthesale.Buyerswereoutragedand
tookto the socialmedia to expresstheirire.Manufacturerstoo accused the
companyofsellinggoodsbelow thesellingprice.Toprotecttheimageoftheir
company,Flipkart’sfounderssentoutapologyletterstothebuyersregrettingthe
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inconveniencetheyhadcausedandassuringthem thattheywoulddeliverbetter
serviceinfuture.Despiteallthehueandcry,Flipkartwitnessedamegasaleof
$100million(Rs6billion)injust10hours.
NameandexplainthemarketingconceptwasusedbyFlipkarttoprotecttheimage
ofthecompany?
31 Reliance Jio Infocomm Limited is the subsidiary company of Reliance 5
industry whichprovides 4Gnetworkservice.JioistheonlyVo-LTE(voiceoverLTE)
providerinthecountry.RelianceJiowaslaunchedwithfreeunlimitedcallingand
datausagefor3monthswhichwasextendedforanotherthreemonthslaterasa
specialoffer.Thiswasoneofthebiggestreasonsforitspopularityamongthe
masses.AfterApril2017customerhastopayfortheircallsanddatausagethere
aremanyveryreasonablepriceplansfrom whichyoucanchoosetouse.Company
usedalltypesofmedium forpromotingitsproductsinmarketi.e.print,electronic
media,sponsorshipofsportsandgameshows,DisplayandHoardings,Social
NetworkingSites,departmentalstoresetc.attheendofthethirdmonthitprovided
anotherattractiveofferforitsexistingcustomerstopayasum ofRs.300onceand
enjoythesameservicefornextthreemonths.Asaresultthecompanycovereda
majormarketsharewithinashortspanoftime.Ithaslauncheditsownmobile
phones,wifiRoutersalso.Inthecontextoftheabovecase:
a)Identifywhichtypesofpromotionaltoolswereusedbythecompany?
b)Identifyandexplaintwofeaturesofpromotionaltoolsidentifiedinpart(a)
32 ‘PushpanjaliLtd.’,ismanufacturingchocolates,biscuits,cakesandother 5
similarproducts.The companyis notgenerating enough profits.Saurabh,the
Marketing managerofthe companygota surveyconducted to find outthe
reasons.Thefindingsofthesurveyrevealedthatinspiteofbetterquality,the
customerswerenotabletodistinguishtheproductsofthecompanyfrom its
competitors.Thoughthecustomerswantedtobuytheproductsof‘Pushpanjali
Ltd.’againandagainbecauseofitsgoodquality,buttheywerenotabletoidentify
itsproductsinthemarket.Becauseofthis,thesalesofthecompanycouldnotpick
upresultingininadequateprofits.Saurabh,theMarketingmanagernow realised
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that‘PushpanjaliLtd.’hadforgottentotakeoneofthemostimportantdecisions
relatedtotheproduct.
Whatdecisionshould‘PushpanjaliLtd.’takesothatitscustomersare
abletoidentifyitsproductsinthemarket?Explainthebenefitsthatmay
resultto‘PushpanjaliLtd.’anditscustomersiftheabovedecisionistaken.
33 PiomaIndustries,knownforitsRasnaSDC(softdrinkconcentrates)brand,decided 5
tomakeitsentryintotheready-to-drinkbeveragesmarket.Itbelievedthatadding
new productstoexistingproductrangewouldimproveitssales.InIndia,theSDC
productwasintroducedbyPiomaIndustriesin1976underthebrandname'Jaffe'.
Itwasrenamed'Rasna'in1979.Inthelate70'sand80's,companyfoundin market
analysisthatpeoplewerehabituatedtodrinkingsquashesandsherbetsathome,
andthesewerequiteexpensive.Thecompanylaunchedlesscostlysubstitutesof
squashesandsherbetsandthattooinvarietyofflavours.PiomaIndustriesfounda
hugeuntappedpotentialin1977whenCocaCola'soperationsintheIndianmarket
werecloseddownduetochangedForeignExchangeRegulationAct(FERA)laws
forMNCsinIndia.ThisservedasanadvantageforRasnainitsbidtopenetratethe
market.In2012 Rasnaalso ventured into ethnicproductslikePickles,Paste,
Chutney,Curries,Gravies,Snacks,and Instanttea mix,etc.Pioma Industries
believedthataddingready-to-drinkbeveragesundertheflagshipbrandRasna
would help itgainnew revenuesaswellasachieveconsistentgrowthinits
business.
Byquotinglinesfrom theaboveparagraphidentifyandexplainthemarketing
functionsperformedbythePiomaIndustries.
34 SincechildhoodNiruandJanakhadbeenwatchingtheirgrandmotherprocuring 5
wheatfrom themarket,washingitwell,dryingitandgettingitconvertedintoatta.
Theyconductedasurveytocollectdatatoidentifywhetherthereisdemandfor
readymadeattaandrealisedthatwiththegrowingnumberofworkingwomen,itis
theneedofthehourtomanufacturehighqualityatta.Theynamedtheirproduct
‘Srijan’andsetup‘SrijanAttaFactory’atJaunpurVillage.Topenetrateinthe
market,theydecidedtokeepthepricelow.Formaintainingsmoothflow oftheir
211/190
productintothemarketandavoidingdelaysindelivery,itwasdecidedtostore
wheatatSKM Serviceswhichhadscientificprocessesandlogisticsfacilitating
quick delivery.Theyalso setup an online complaintportalto take care of
consumergrievances.
Byquotingthelinesfrom theaboveparagraph,statefivemarketingfunctions
undertakenbyNiruandJanakforsuccessfulmarketingof‘Srijan’atta.
35 Asthenumberofpeoplemakingonlinepurchasehasincreasedmanifolds,thereis 6
agrowingconcernaboutthedisposalandmanagementofpackagingwaste.Every
item boughtis delivered with excess packaging and sometimes even non-
biodegradablematerialsareused.
Inthecontextoftheabovecase:
a)Nameandexplainthedifferentlevelsofpackagingusedbythemarketer.
b)Describeanytwofunctionsperformedbytheadditionalpackagingdonein
onlinesoldmaterial.
c)Stateanytwo factorsto bekeptin mind byonline marketer while
designingthepackagingofitsproducts.
ANSWERS
MARKETINGMANAGEMENT
1 CustomerSupportServices 1
2 a)Product 1
3 PersonalSelling. 1
Thisisbecauseitisacomplexproductrequiringtechnicaldetailsand
isbestsoldthroughshorterchannels.
4 Transportation 1
5 a)TVset 1
6 c)Personalselling 1
7 c)customersatisfaction 1
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8 b)product 1
9 Low 1
10 d)promotion 1
11 True 1
12 III.Pre&Postproductionactivity 1
13 packaging 1
14 Zero/no 1
15 PublicRelation 1
16 false 1
17 i.(c),ii.(a) 1
18 a(iv),b(i),c(ii),d(iii) 1
19 1(c),2(d),3(b),4(a) 1
20 1(d),2(c),3(a),4(b) 1
21 c)Panasonic 1
22 1(c),2(d),3(b),4(a) 1
23 (d)InventoryControl 1
24 Factorsaffectingprices(anythree) 1x3=
1.Cost 3
2.Demandandutility
3.Pricingobjectives 1+2
4.Extentofcompetitioninthemarket
5.Governmentregulations
6.Marketingmethodused
25 (i)Societalmarketingphilosophy.
(ii)Advantagesofbrandinghighlightedintheabovecaseare:(Anytwo)
(a)Helpsinproductdifferentiation.
(b)Helpsinadvertisinganddisplayprogrammes.
(c)Differentialpricing.
213/190
26 a)Publicity 1+1
b)Itisnon-paidform ofcommunicationitisfreeofcostand +2=4
comesintheform ofnews
c)i.nocontrolonmessage
ii.newsmaybenegativealso
27 Setofmarketingtoolsthatcanbeconstantlyshapedandreshapedby 4
marketingmanagersare:
(i)Product
Productisamixtureoftangibleandintangibleattributeswhichare
capableofbeingexchangeforavaluewithabilitytosatisfycustomer
needs.
(ii)Price
Pricemaybedefinedastheamountofmoneypaidbythebuyer(or
receivedbytheseller)inconsiderationforthepurchaseofaproductor
aservice.
(iii)PlaceorPhysicalDistribution
PlaceorPhysicalDistributionisconcernedwithmakingthegoodsand
servicesavailableattherightplace,inrightquantityandattheright
timesothattheconsumerscanpurchasethesame.
(iv)Promotion
Promotionreferstotheuseofcommunicationwiththeobjectiveof
informingpotentialcustomersabouttheproductandpersuadingthem
tobuythesamec
28 Thefollowinginformationistobeprovidedonthelabelinanyform (any 1x4=
four): 4
Nameoftheproduct/KaleKesh
Nameofthemanufacturer/FutureOilsLtd.
Addressofthemanufacturer/54,ChandniChowk
Netweightwhenpacked/100ml
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Manufacturingdate/20thJuly2015
Expirydate/20thDecember2016
Maximum retailprice(MRP)/40
Batchnumber/D4567
Directionsforuse/Forbestresults,massagewithLukewarm oil
29 Societalmarketingconcept/philosophy 1+3=
Mainfocus:customers’needandsociety’swellbeing 4
Means:integratedMarketing
Ends:Profitthroughcustomersatisfactionandsocialwelfare 1+3=
4
30 MarketingconceptusedbyFlipkartisPublicRelation 1+2+
2=5
31 a)AdvertisementandSalesPromotion
b)Featuresofadvertising 1+2
1.Paidform +2=5
2.Impersonalcommunication
3.Massreach
4.Identifiedsponsor
FeaturesofSalespromotion
1.encouragethebuyerstomakeimmediatepurchase
2.includeallpromotionaleffortsotherthanadvertising,
personalsellingandpublicity
3.provideshortterm incentivestoboostthesalesofafirm.
4.itisusuallyundertakentosupplementotherpromotional
effortssuchasadvertisingandpersonalselling.
32 Thedecisionwhich‘PushpanajaliLtd.’shouldtakesothatits
customersareabletoidentifyitsproductsinthemarketisBranding.
BenefitsthatmayresulttoPushpanjaliLtd.:(Anytwo)
(i)Enablesmarkingproductdifferentiation.
215/190
(ii)Helpsinadvertisinganddisplayprogrammes.
(iii)Differentialpricing.
(iv)Easeinintroductionofnewproduct.
Benefitsthatmayresulttothecustomers:(Anytwo)
(i)Helpsinproductidentification.
(ii)Ensuresquality.
(iii)Statussymbol
33 FunctionsofmarketingperformedbyPiomaIndustries 1x5=
MarketPlanning:PiomaIndustries,knownforitsRasnaSDC(softdrink 5
concentrates)brand,decidedtomakeitsentryintotheready-to-drink
beveragesmarket
GatheringandAnalysingMarketInformation:Inthelate70'sand80's,
companyfoundinmarketanalysisthatpeoplewerehabituatedto
drinkingsquashesandsherbetsathome,andthesewerequite
expensive
Branding:.InIndia,theSDCproductwasintroducedbyPioma
Industriesin1976underthebrandname'Jaffe'.Itwasrenamed'Rasna'
in1979
Pricing:Thecompanylaunchedlesscostlysubstitutesofsquashesand
sherbetsandthattooinvarietyofflavours.
Product:In2012RasnaalsoventuredintoethnicproductslikePickles,
Paste,Chutney,Curries,Gravies,Snacks,andInstantteamix,etc.
34 MarketingfunctionsundertakenbyNiruandJanak: 5
(i)Gatheringandanalyzingmarketinformationisnecessarytoidentify
theneedsofthecustomersandtakevariousdecisionsforsuccessful
marketingofproductsandservices.
“Theyconductedasurveytocollectdatatoidentifywhetherthereis
demandforreadymadeattaandrealisedthatwiththegrowingnumber
ofworkingwomen,itistheneedofthehourtomanufacturehighquality
216/190
atta.”
(ii)Branding:Itistheprocessofgivinganame/sign/symboltothe
productinordertodistinguishtheproductfrom thatofcompetitors.
“Theynamedtheirproduct‘Srijan”
(iii)Pricingofproductinvolvesfixationofpriceofaproductandtaking
variousrelateddecisionslikepricingstrategies.
“Topenetrateinthemarket,theydecidedtokeepthepricelow.”
(iv)Storageorwarehousingreferstoarrangingforproperstorageof
goodstomaintainsmoothflowofgoodsinthemarketandavoiddelay
indelivery.
“Formaintainingsmoothflow oftheirproductintothemarketand
avoiding delaysin delivery,itwasdecided to storewheatatSKM
Serviceswhichhadscientificprocessesandlogisticsfacilitatingquick
delivery.”
(v)CustomersupportServicesaim atprovidingmaximum satisfaction
tothecustomersfordevelopingbrandloyaltyforaproduct.
“Theyalsosetupanonlinecomplaintportaltotakecareofconsumer
grievances.”
35 a)1.PrimaryPackage:Itreferstotheproduct’simmediatecontainer.In 3+2
somecases,theprimarypackageiskepttilltheconsumerisreadyto +1=
usetheproduct. 6
2.SecondaryPackaging:Itreferstoadditionallayersofprotectionthat
arekepttilltheproductisreadyforuse,e.g.,atubeofshavingcream
usuallycomesinacardboardbox.
3.TransportationPackaging:Itreferstofurtherpackagingcomponents
necessaryfortorage,identificationortransportation.
b)Functionsperformedbytheadditionalpackagingdoneinonlinesold
material.
1.ProductProtection:additionalpackagingprotectstheproductfrom
damagewhichmaybecausedduringtransportation
2.EasyToTransport:additionallayershelptohandletheproducteasily
during itstransportation and carrying itthrough differentmodesof
transportswithoutdamage.
217/190
c)factorstobekeptinmindbyonline marketerwhiledesigningthe
packagingofitsproducts
1.usebiodegradablepackagingmaterial
2.packagingshouldenhanceutilityoftheproduct
CONSUMERPROTECTIONACT1986
Q.no Questions Marks
1 ShubhangipurchasedacarforRs.1.1croreandfounditsengine 1
defective.Despitemanycomplaints,thedefectwasnotrectified.She
218/190
filedacomplaintinNationalCommissionbutwasnotsatisfiedwithits
order.Suggesthertheappropriateauthoritywhereshecanappeal.
(a)Nationalcommission (b)Districtforum
(C)SupremecourtofIndia (d)Noneoftheabove.
2 Sonuwenttoashopkeepertobuyshampoo.Theshopkeeperforced 1
himtobuyaparticularbrandofshampoooutofvariousavailable
brands,irrespectiveofthewillingnessofSonu..WhichrightofSonu,as
aconsumer,hasbeenexploited?
(a)RighttoInformation. (b)Righttochoose
(c)Righttoconsumereducation. (d)Righttobeheard
3 Ritawantstobuyapacketofjuice.Asanawarecustomer,howcanshe 1
besureaboutthequalityofjuicesheplanstobuy?
(a)ByISImark (b)ByFPO marklabel
(c)ByHallmark (d)Agmark
4 ConsumercanmakeacomplainttotheNationalCommissionwhenthe 1
valueofgoodsorservicesandcompensationclaimedexceedsrupees 1
5 VijaypurchasedaflatforRs.50lacsandfounditdifferentfromwhat
wasagreed.Hewantshismoneyback.Suggesthimtheappropriate
authoritytofilehiscomplaintinthethree-tiermachineryunderthe
ConsumerProtectionact,1986.
(a)Statecommission (b)Districtforum
(c) Nationalcommission (d)Supremecourt
6 Whenwastheconsumerprotectionactenacted 1
(a)1984 (b)1985
(c)1986. (d)1987
219/190
7 RajaBabupurchasedadieselcarforRs.7lakhsfromanautomobile 1
companyandfounditsenginebeingdefective.Despitemany
complaintsthedefectwasnotrectified.Namethehighestauthorityto
filehiscomplaintinthethree-tiermachineryundertheConsumer
ProtectionAct.
(a)Nationalcommission (b)Statecommission
(c)Districtforum (d)Supremecourt
8 Harshaskedforabottleofmineralwaterfromashopkeeper.The 1
maximumretailpriceprintedonthebottlewasRs.20onlywhereasthe
shopkeeperwaschargingRs.35.Inspiteofmanyargumentsthe
shopkeeperwasnotreadytosellthebottleforlessthanRs.35.Harsh
wasinneedofitandhadnooptionexcepttobuy.Identifythe‘Right’
whichHarshcanexercise.
(a)Righttochoose (b)Righttoseekredressal
(c)Righttoheard (d) Righttoinformation
9 Whetherfollowingwillbetreatedasaconsumersay'yes'or'no' 1
(a)Sitapurchaseawashingmachineforherhome.
(b)RameshpurchasedaDVDPlayerforresale.
(c)RahulpurchaseacomputerforearninghislivelihoodbydoingDTP
work.
(d)Kunaluseanewmobileconnection.
10 Matchthefollowingqualitymarkisaconsumershouldlookforwhile 1
purchasingthefollowingproducts.
Products. Qualitymarks
(A)electricalgoods. 1.FPOmarks
(B)AgriculturalProducts. 2.ISImark
(C)jewellery. 3.Hallmark
220/190
(D)Foodproducts. 4.Agmark
11 Identifytheconsumerrightdiscussedinthefollowingcases: 1
(A)Manyconsumerorganisationsaretakinganactivepartincreating
awarenessinconsumers.
(B)Accordingtothisrightproduceshavetoprovideallrelevant
informationabouttheproduct.
12 .Aconsumerisnotcertainsatisfiedwithdistrictforum.Inhowmany 1
dayswecanchallengethesameandapproachthestateCommission?
(A)20days. (B)30days
(C) 40days. (D)50days
13 RedressalAgenciescomeunderwhichConsumerProtectionAct? 1
(A)Districtforum
(B)Statecommission
(C)Nationalcommission
(D)Noneofthese
(E)Allofthese
14 ________________________________________________________reliefis 1
availableifthegoodsareadulteratedandthemanufacturerisstillin
practiceofselling.
(A)ceasemanufacturingofhazardousgoods
(B)tocompleteconsumereducation.
(C)tofreechoiceofgoodsandservice.
15 Fullform ofVOICEanNGOis: 1
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(A)variousOrganisationininterestofconsumereducation
(B)voluntaryorganisationininterestofconsumereducation.
(C) Voluntryorganisationininterestofcommodityeducation.
16 StatewhetherthefollowingstatementisTrueorFalse 1
(a)Consumerprotectionhasamoraljustificationforbusiness.
(b)Inadditiontorights,aconsumeralsohassomeresponsibilities.
(c).Aacomplaintcanbemadetoadistrictforum whenthevalueofthe
goodsorserviceinthequestion,alongwiththecompensationclaimed
exceedsRupees20lakh.
(d)ISIisthequalitycertificatemarkusedincaseoffoodproducts
17 IdentifythegivenstatementwhetheritisRightofconsumeror 1
Responsibilityofconsumer:
(A)consumermustreferlabelcarefully.
(B)consumertogetreliefincasetheproductorserviceFallsshortof
hisexpectations.
(C)toacquireknowledgeandtobeawellinformedconsumer
throughoutlife.
(D)totakecashmemo.
18 _________________________issetupbythecentralgovernment. 1
(A)stateCommission
(B)districtForum
(C)NationalCommission
(D)noneofthese
19 Reenapurchasedsomehouseholdgoodsfroma‘Generalstore’.After 3
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reachinghomeshefoundafacecreamwhichshehadnotbilledfor. 3
Aftercheckingthedateofexpiryandotherdetails,shestartedusingit. 3
Herfaceburntduetotheuseofthecream.WhereshouldTanyafilea
complaint?Justify.UnderConsumerProtectionAct,1986whocanfile 4
acomplaint?
20 SeemapurchasedabookfromHarishBookStore.Whilereadingthe
book,shefoundthatsixteenpagesweremissing.Sheapproachedthe
sellerofthebookandcomplainedaboutthemissingpages.Theseller
promisedthatifthepublisherwasreadytochangethebookhewould
changethesame.Afteraweek,thesellerinformedSeemathatthe
publisherhadrefusedtochangethebook.WherecanSeemafilea
complaintagainstthesellerofthebook?Givereasoninsupportofyour
answer.Alsoexplainwhoisaconsumerasper“ConsumerProtection
Act1986”.
21 RaghavmovedfromDehraduntoMumbaitoworkasanartistin
televisionserials.Ongettinghisfirstsalary,heopenedanaccountina
nearbycommercialbankandalsooptedforATMfacilityunderATM
card.Afterafewmonths,helosthisATMCardandlodgedarequest
withthebankforfurnishingduplicatecard.Consequently,hewas
allottedduplicateATMCardNumberbutthatcardwasnotgiventohim.
Afteraweek,hereceivedaSMSmessageonhismobilestatingthat
sumofRs.10,000/-hasbeenwithdrawnfromhisaccount.Sincethe
duplicateATMcardwasnotgiventohim,hebroughtthedebitentryin
thenoticeofthebank.Thebankassuredtorepaythatamounttohim
within15daysafterinvestigatingtheissue.But,morethanamonthhas
passedsincethenanddespitehispersistenteffortsthebankhasnot
takenanyactionsofar.So,hefilesacaseagainstthebankinthe
districtforum.Theconsumercourtcanissueanoticetothebankafter
beingsatisfiedwiththegenuinenessofthecomplaintanddirectsthe
banktorepayRs.10,000toRaghavalongwiththecompensationofRs.
50,000.NametherightsexercisedbyRaghavinthecontextoftheabove
case.
22 Intheyear2015,Undersection12(ID)oftheConsumerProtectionAct,
theConsumerAffairsMinistryhadfiledasuitinNationalConsumer
DisputesRedressalCommission(NCDRC)againstNestleIndia,the
manufacturerofMagginoodles,seekingaboutRs.640crorein
damagesforallegedunfairtradepractices,falselabelingand
misleadingadvertisements.
Incontextoftheabovecase:1.Nameanytwoothertwoparties
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besidesgovernmentwhocanfileacaseunderConsumerProtectionAct
1986.
2.WhyhasthegovernmentfiledasuitinNationalConsumerDisputes
RedressalCommission(NCDRC)andatnootherlevelofthreetier
redressalsystem?
23 RajatpurchasedanISImarkelectricironfromBharatElectricals.While 4
usingit,hefoundthatitwasnotworkingproperly.Heapproachedthe 5
sellerandcomplainedaboutthesame.Themanufacturerrefusedto
replaceandBharatElectricaldecidedtofileacomplaintintheconsumer
court.CanBharatElectricalsdothis?Why?Alsoexplainwhoisa
consumerasperConsumerProtectionAct,1986.
24 Onhersister’swedding,Radhadecidedtogifthergoldearrings.When
shesharedherplanwithherhusband,heshowedheranarticleinthe
dailynationalnewspaperundertheheading“JagoGrahakJago.”The
campaignincludeddetailsaboutthevariousaspectsthatpeoplemust
considerbeforebuyinganygoldjewellery.
1.Whydoyouthinkcampaignslike“JagoGrahakJago”areinsertedin
thenewspaper?
2.Nametherightofconsumerbeingfulfilledthroughthisinitiativeof
thegovernment
3.StateanythreeresponsibilitiesthatRadhamustdischargeasan
awareconsumerwhilebuyinghersister’sweddinggift.
25 HomeShop18isianonlineandon-airretailanddistributionventureof 5
theNetwork18group,India.ItisapartoftheNetwork18Mediaand
InvestmentsLimitedwhichisownedandoperatedbyReliance
Industries.Currently,HomeShop18comcomprisesofmorethan15
categoriesnamely,Mobiles,Health&Beauty,Apparel,Jewellery,Home
&Kitchen,HouseholdAppliancesetc.tonameafew.Thecompany
offersawidevarietyofgoodsundereachofthesecategories.
1.Identifyandexplaintherelevantconsumerrightbeingpromotedby
thecompany.
2.Alsomentionanytwovaluesbeingreflectedthroughthisapproach
adoptedbythecompany.
224/190
26 RajaRam boughtabottleofdisinfectantsprayfromthenearbymarket. 6
Ithadaknobwhichwastobeopenedinaparticularway.However,
therewasnoinstructiononitspackageinthisregard.Therefore,when
hetriedtoopentheknobinacasualway,someofthesprayflewinhis
eyes.Thisaffectedhisvision.
Incontextoftheabovecase:
1.Nametherightofconsumerbeingviolatedbythecompany.
2.Stateanytwodirectionswhichtheconsumercourtcanissuetothe
companyafterbeingsatisfiedwiththegenuinenessofthecomplaint.
27 AmanadegreeholderinEntrepreneurshipcametoknowaboutPiplantri 6
VillagelocatedinRajasthan,wherein2006aninitiativewasstarted,in
which111treesareplantedeverytimeagirlchildisborn.Tokeep
termitesawayfromthetreesthevillagershaveplanted2.5millionAloe
Veraplantsaroundthetrees.Thishasturnedthevillageintoonoasis,
astheplantingoftreesledtohigherwaterlevels.Amandecidedtovisit
thevillagetostartabusinessunit,fortheprocessingandmarketingof
AloeVeraintojuices,gelsandotherproducts.However,onvisitingthe
villageAmanfoundthatthevillagersweresufferingexploitationatthe
handsoflocalmerchantswhowereengagedinunscrupulous,
exploitativetradepracticeslikehordingandblackmarketingoffood
productsandalsosellingunsafe,adulteratedproductstothevillagers.
Afterlookingattheirplightinsteadofabusinessorganizationhe
decidedtosetupanorganizationfortheprotectionandpromotionof
theconsumerinterestofthevillagers.
StatethefunctionsthattheorganizationestablishedbyAmanwillbe
performing.(anysixpoints)
28 GoodHealthLtd.,apharmaceuticalscompany,hasintroducedmosquito 6
repellentbandsunderthebrandname‘Jaddu’inthewakeofoutbreakof
dengueinvariouspartsofthecountry.Theproductattractedmany
peoplefromallagegroups,especiallykids.However,thecompany
failedtoprovideadequateguidancefortheusersonthelabelofthe
productintermsoftimeperiodoftheeffectivenessoftherepellent
bandonceitssealisopened.Becauseofthisambiguity,manybuyers
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facedproblems.Incontextoftheabovecase:1.Identifyandexplainthe
consumerrightwhichhasbeenoverlookedbythecompany.
2.Nameandexplainanytwofunctionsoftheimportantproductrelated
aspectignoredbythecompany.
Markingscheme
Q.n Answer Marks
o
1
1 (c)TheSupremeCourt 1
2 (b)Righttochoose. 1
3 (b)ByFPOmarklabel 1
1
4 1crore 1
5 (a)StateCommission
6 (c)1986 1
1
7 (a)NationalCommission 1
8 (c)RighttobeHeard
9 a,candd'yes'
b.'No'
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10 A. __2 1
B.____4 1
C_____3 1
D______1 1
1
11 (a)righttoconsumereducation 1
1
(b)Righttobeinformed
1
12 B
13 E
14 A
15 B
16 A.True
B.True
CFalse
D False
17 (a)Responsibility
(b).Right
(C).Right
(D)Right
227/190
18 c 1
3
19 Reenacannotfileacomplaintinanyconsumercourtsinceshe
doesnothavetheproofofpurchase,i.e.,cashmemo.Shedid
notfulfilherresponsibilityofanhonestconsumer.Sheshould
havegonebacktothegeneralstoretogetitsbilling.
UndertheConsumerProtectionact,1986,anyofthefollowingcan
fileacomplaint:
1.Anyconsumer
2.Anyregisteredconsumers’association
3.ThecentralGovernmentoranyStateGovernment
4.Oneormoreconsumersonbehalfofmanyconsumershaving
sameinterest.
5.Alegalrepresentativelyofadeceasedconsumer.
20 Since,thevalueofthegoodsorservicesinquestion,alongwiththe 3
compensationclaimed,doesnotexceedRs.20lakhsshewillfilea
caseintheDistrictForum.
1A‘consumer’isgenerallyunderstoodasapersonwhousesor
consumesgoodsoravailsofanyservices.
2.Apersonwhobuysgoodsforcommercialpurposeorresalewill
notbeconsideredtobeaconsumer.
21 ThetworightsexercisedbyRaghavinthecontextoftheabove 3
3
caseareRighttobeheardandRighttoseekredressal.
22 Thetwoothertwopartiesbesidesgovernmentwhocanfileacase
underConsumerProtectionAct1986areanyconsumerandany
registeredconsumers’association.
2.ThegovernmentfiledasuitinNationalConsumerDisputes
RedressalCommission(NCDRC)andatnootherlevelofthethree
tierredressalsystembecauseacomplainthastobemadetothe
NationalCommissiononlywhenthevalueofthegoodsorservices
inquestion,alongwiththecompensationclaimed,exceedsRs.1
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crore.
23 No,BharatElectricalswillnotbeabletofileacomplaintunder 4
ConsumerProtectionAct1986becauseaccordingtothisacta
personisnotdeemedtobeacustomerifhebuysgoodsforresale
orcommercialpurpose.UndertheConsumerProtectionAct1986,
aconsumerisdefinedas:
1.Anypersonwhobuysanygoodsforaconsideration,whichhas
beenpaidorpromised,orpartlypaidandpartlypromisedorunder
anyschemeofdeferredpayment.Itincludesanyusesofsuch
goods,whensuchuseismadewiththeapprovalofthebuyer,but
doesnotincludeapersonwhoobtainsgoodsforre-saleorany
commercialpurpose.
2.Anypersonwhohiresoravailsofanyservice,fora
considerationwhichhasbeenpaidorpromisedorpartlypaidand
partlypromisedorunderanysystemofdeferredpayment.It
includesanybeneficiaryofserviceswhensuchservicesareavails
ofsuchservicesforanycommercialpurposes.
24 Thecampaignslike“JagograhakJago”aregiveninthenewspaper 5
5
tomaketheconsumersawareofthevariousundesirableactivities
likeunscrupulous,unfairtradepracticesetcwhicharecarriedout
bythemarketerstoexploitthebuyers.
2.RighttoConsumerEducationisbeingfulfilledthroughthis
initiativeofthegovernment.3.Thethreeresponsibilitiesthat
Radhamustdischargewhilebuyinghersister’sweddinggiftareas
follows:
1.Buyonlystandardizedgoodsandcheckforstandardization
marklikeHallmarkforgoldjewellery.
2.Assetsherselftoensurethatshegetsafairdeal.
3.Askforacashmemoonpurchaseofgoodsorservices.
Ans.25
25 TheRighttoChooseisbeingpromotedbythecompany.
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AccordingtotheRighttoChoose,theconsumerhasarightto
choosefromavarietyofproductsatcompetitiveprices.Also,the
marketersshouldofferwwidevarietyofproductstobuyers.
2.Thetwovaluesbeingreflectedthisapproachadoptedbythe
companyareincreasingstandardoflivingandtechnological
development
26 Thetworightsofconsumerbeingviolatedintheabovecaseare 6
6
RighttoinformationandRighttosafety.
2.Thetwodirectionswhichtheconsumercourtcanissuetothe
companyafterbeingsatisfiedwiththegenuinenessofthe
complaintareasfollows:
1.Nottoofferhazardousgoodsforsale.
2.Topayareasonableamountofcompensationforanylossor
injurysufferedbytheconsumerduetothenegligenceofthe
marketer
27 FunctionsofanNGO/Consumerorganization
1.Educatingthevillagers/generalpublicaboutconsumerrights
byorganizingtrainingprogrammes,seminarsandworkshops.
2.Publishingperiodicalsandotherpublicationstoimpart
knowledgeaboutconsumerproblems,reliefsavailableandother
mattersofinterest.
3.Carryingoutcomparativetestingofconsumerproductsin
accreditedlaboratoriestotestrelativequalitiesofcompeting
brandsandpublishingthetestresultsforthebenefitof
consumers.
4.Encouragingconsumerstostronglyprotestandtakeanaction
againstexploitativeandunfairtradepracticesofsellers.
5.Providinglegalassistancetoconsumersbywayofprovidingaid,
legaladviceetc,inseekinglegalremedy.
6.Filingcomplaintsinconsumercourtsonbehalfofconsumers.
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28 TheRighttoinformationisbeingoverlookedbythecompanyinthe 6
abovementionedcase.1.AccordingtotheRighttoinformation,a
consumerhastherighttogetcompleteinformationaboutthe
producthe/sheintendstobuyincludingitscontents,dateof
manufacture,dateofexpiry.Price,quality,directionsforuseetc.
Also,asperlaw,itismandatoryforthemarketerstoprovide
completeinformationabouttheproduct/servicetothebuyers.
2.Theimportantaspectrelatedtothemarketingofproducts
whichhasbeenignoredbythecompanyisLabelling.
Thetwoimportantfunctionsperformedbylabelingare:1.
Describestheproductandspecifiesitscontents:2.Helps
inidentificationoftheproductorbrand:
.
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