Who is a consumer? Needs and wants
A consumer is anyone who buys or uses goods (things) or services (help, like a haircut or mobile data). You are a consumer every day.
- Needs: things we must have to live, stay healthy and learn: food, water, clothes, soap, school things, travel to school.
- Wants: nice extras: a new game, a branded cap, a second pair of shoes.
Wants are not bad. The rule is simple: needs first, wants with what is left.
The changing consumer world
Today many teens shop online, pay with apps, see ads inside games and videos, and buy subscriptions and in-game items. Shopping is faster than ever, so thinking before buying matters more than ever. Your clicks and data are also collected to show you more ads.
Rational consumption: getting the best value
Rational consumption means choosing so that you get the most benefit from limited money.
- Make a budget: income − savings = money to spend.
- Compare benefit and cost: which choice gives more use for each coin?
- Count opportunity cost: the next best thing you give up. If you buy a ₹500 game, you give up ₹500 of books or savings.
- Compare unit price: price ÷ quantity. A 1 kg pack at ₹120 (₹0.12 per gram) is cheaper per gram than 400 g at ₹60 (₹0.15 per gram).
- Think of total cost: running cost, repairs, charger, subscription.
Consumer psychology: why we buy what we do not need
Sellers study how our minds work. Common tricks:
- Anchoring: showing a high 'old price' so the new price looks cheap.
- 99-pricing: ₹999 feels much less than ₹1,000.
- Bandwagon: 'Everyone has it', 'bestseller', many likes.
- Snob (status) buying: buying to show off a brand.
- Scarcity and rush: 'only 2 left', countdown timers.
- Celebrity and influencer ads: we trust faces we like, even when they are paid.
Defence: the 24-hour rule, a shopping list and comparing at least three options.
Consumers lead culture
What many people buy decides what companies make. When consumers choose fair-trade, local, repairable or less-plastic products, firms change. This is ethical and green consumption.
Contracts, terms and safe, informed buying
A contract is a promise the law can enforce. Signing a form or clicking 'I agree' online makes one. Before agreeing, check: total price and hidden fees, auto-renewal of free trials, how to cancel, refund and return rules, warranty, and what data you share. Many countries give a short cooling-off period to cancel some online or doorstep deals. Children usually cannot make big contracts without a parent.
Consumer safety
Look for safety and quality marks (in India: ISI for products, Agmark for farm goods, BIS hallmark for gold; other countries use marks like CE). Follow use instructions, watch for recalls, and never buy medicines or electric goods from unknown sellers.
Informed food consumer
Read the label: use by / expiry date, ingredients (listed from most to least), allergens (nuts, milk, gluten), nutrition per 100 g (sugar, salt, fat), veg/non-veg mark and the food safety licence number.
Consumer rights and responsibilities
The United Nations guidelines and laws in many countries (in India, the Consumer Protection Act 2019) give consumers rights:
- Safety from harmful goods.
- Information about price, quality, ingredients.
- Choice among products at fair prices.
- To be heard when there is a problem.
- Redress: repair, replacement, refund or compensation.
- Consumer education, basic needs and a healthy environment.
Responsibilities
Ask for and keep the bill, check marks and expiry, read terms, complain in writing (seller first, then a consumer helpline or commission), do not waste, and respect others' rights. 15 March is World Consumer Rights Day.
Try it at home
Pick three products of the same kind in your kitchen. Work out the price per 100 g, find the expiry date and the allergens. Which is the best value?
Key formulas and definitions
- Need: something we must have to live, stay healthy or learn.
- Want: a nice extra we can live without.
- Opportunity cost: the next best thing you give up when you choose.
- Unit price = price ÷ quantity (e.g. per 100 g or per litre).
- Budget: money to spend = income − savings.
- Contract: a promise the law can enforce (signing or clicking 'I agree').
- Auto-renewal: a subscription that charges again unless you cancel.
- Redress: getting a repair, replacement, refund or compensation.
Worked examples
1. Oil: 1 litre for ₹150 or 5 litres for ₹700. Which is cheaper per litre?
1 L pack: ₹150 per litre. 5 L pack: 700 ÷ 5 = ₹140 per litre. The 5 L pack is cheaper per litre, if you will use it before it expires.
2. Arjun has ₹800. He must pay ₹300 for a bus pass and ₹200 for books, and wants to save ₹100. How much can he spend on wants?
Needs = 300 + 200 = ₹500. Savings = ₹100. Left for wants = 800 − 500 − 100 = ₹200.
3. A music app offers '1 month free'. What should you check before signing up?
Whether it auto-renews and how much it charges after the free month, how to cancel before the date, whether a card is needed, and what data it collects. Set a reminder to cancel if you do not want it.
4. Shoes were 'MRP ₹3,000, today ₹1,499'. A similar pair elsewhere is ₹1,200. What trick is used, and what is the best choice?
Anchoring: the high crossed-out price makes ₹1,499 look like a deal. Comparing shows the other pair is ₹299 cheaper, so if the quality is similar, buy that.
5. Your new heater stops working in a week and the shop refuses to help. What steps do you take?
Keep the bill and warranty card. Complain in writing to the seller/maker. If no fix, contact the national consumer helpline, then file a complaint with the consumer commission for repair, replacement or refund (right to redress).
Common mistakes
- Thinking a discount always saves money. Saving only happens if you needed the item and the price is actually lower than elsewhere.
- Comparing only total price, not price per unit.
- Clicking 'I agree' without reading auto-renewal and cancel rules.
- Throwing away the bill, which makes it hard to get redress later.