Consider the following statements about the importance of consumer protection from the point of view of business:
(A) Business organisations use resources which belong to the society.
(B) Business organisations have a responsibility to supply products which are in public interest.
(C) Satisfied customers provide good feedback to existing customers and thus help in increasing the customer-base of business.
(D) Business firms should aim at short-term profit maximisation through customer satisfaction.
(E) Satisfied customers of a business lead to repeat sales.
How many of the statements given above are correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
(A) Business organisations use resources which belong to the society. — Correct. Business organisations use resources which belong to the society.
(B) Business organisations have a responsibility to supply products which are in public interest. — Correct. Since they use society’s resources, they must supply products in public interest.
(C) Satisfied customers provide good feedback to existing customers and thus help in increasing the customer-base of business. — Incorrect. Good feedback goes to prospective customers, that is, people who may buy in future. That is how the customer-base grows.
(D) Business firms should aim at short-term profit maximisation through customer satisfaction. — Incorrect. Firms should aim at long-term profit maximisation through customer satisfaction.
(E) Satisfied customers of a business lead to repeat sales. — Correct. Satisfied customers lead to repeat sales.
NCERT (2026-27 Edition): “(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.” “(ii) Business uses Society’s Resources: Business organisations use resources which belong to the society. They, thus, have a responsibility to supply such products and render such services which are in public interest and would not impair public confidence in them.” |