Question

Navya went to a supermarket for grocery shopping. She bought one kg of bajra flour from the supermarket. On reaching home when she opened the packet she found worms inside it. She was disappointed and told her son about the same. Her son asked her to check the label. When she checked the label of the packet, she found that bajra flour was stale and beyond the expiry date. She approached the sales-person at the supermarket who replaced the bajra flour immediately. When she thanked the sales-person, she was told that it was the policy of the supermarket to satisfy the customers. He further told that satisfied customers not only lead to repeat sales but they also provide good feedback to prospective customers which helps in increasing the customer base of business. Identify the point of importance of consumer protection from the point of view of the supermarket which is helping them to increase the customer base :

• A. Long term interest of the business
• B. Moral justification
• C. Social responsibility
• D. Government intervention

Hint:

When questions mention "repeat sales" or "customer base growth", they typically test the business case for consumer protection.

Answer 1

The Correct Option is A

The supermarket's viewpoint prioritizes Long-term Business Interests due to:
1. Strategic Outcomes: - "Repeat sales" signify customer retention. - "Good feedback" generates word-of-mouth marketing.
2. Financial Impact: - Customer acquisition is 5 times more expensive than retention (Bain & Co). - A 5% improvement in retention increases profits by 25-95% (Harvard Business Review).
3. Policy Alignment: - Prompt replacements demonstrate a focus on customer lifetime value. - This contrasts with approaches prioritizing short-term cost reduction.
Rationale for Exclusion of Alternatives: - (B) Moral: Would focus on ethical obligations rather than commercial outcomes. - (C) Social: Would address community consequences. - (D) Government: No governmental regulatory pressure is indicated.
Conclusion: (A) The business's long-term interests