Skip to main content

Why consumers will suffer in India

As Calcutta and the rest of India grieves, TV channels tom-tom the same question all over again. Times Now asks, 'Is India a zero public safety nation?'

Now isn't that easily answered? But then it really doesn't matter because as a nation we still won't the take the road that leads to better products and services. When I say better, I also mean safer. For the moment, Mamtadi, anti-FDI crusader has gotten the hospital in question's license cancelled. I wonder what good is it to those who have lost loved ones?

The truth is, its the license raj that ensures consumers get the rotten end of the barrel. Licenses that are supposed to protect us consumers from unscrupulous service providers are the real reason why the latter thrive. Fixing a system that depends on regulations ensuring quality is easy. Bribe the regulator and you can get away with near murder. Which is why for ages past, and for ages to come, the Indian system was, and will be 'fixed'.

And guess who'll suffer? Consumers! Sometimes with the kind of disastrous consequences like the one we witnessed today at the AMRI hospital.

The answer to better quality products and services for consumers isn't greater regulation. As I said, regulators can be fixed. Its been happening for donkey's years in India. The only way out ironically is to eliminate regulation and bring in competition. That will have quality zoom, and consumers benefit. For god's sake, bring the MNCs in!

But then again, that's something Indians can't mouth or even understand. The socialist nonsense that passes off as government regulating because they 'care' for us, is not easy to shrug off. The latest example is one that's the handiwork of Mamtadi herself. After all, didn't she stand steadfast and save us from big bad Wal-Mart?

Though tragic, don't be surprised at what happened today. Regulation and government control can't save us consumers. Only competition in the market place can! It'll take a while before we Indians get around to understanding that. In the meanwhile brace yourself for more tragedies!

The only thing that can save us are prayers. Here's praying for all of us!

Comments

Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.


Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Consumer Spending

Carpe Diem Blog: From Visual Economics, a graphical representation appears above (click to enlarge) of Consumer Expenditures in 2007, using data from the Bureau of Labor Statistics. Note that total spending on food ($6,133), clothing ($1,881) and housing ($16,920) represented 50% of consumer expenditures and 30% of income before taxes in 2007. In 1997 by comparison, 51.1% of consumer expenditures were spent on food, clothing and housing, and 44.6% of income before taxes was spent on food, clothing and housing (data here).