Mannu started a small stationery shop in the nearby market. In pursuit of earning higher profits in a short term, he overpriced all his products by 10%. Gradually, the consumers understood his pricing strategy and stopped coming to his shop for making any purchase. Identify the related point highlighting the importance of consumer protection from businessmen

Long-term interest of business is assured Business uses society’s resources so they need to safeguard consumer’s interests. Social responsibility towards consumers as an important interest group. It is the moral obligation of the businessmen to give due consideration to the consumer

Long-term interest of business is assured

(i) Long-term Interest of Business: Enlightened businesses realise that it is in their long-term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business. Thus, business firms should aim at long-term profit maximisation through customer satisfaction.