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 perspective emphasizes Long-term Business Interests because:
1. Strategic Outcomes: - "Repeat sales" → Customer retention - "Good feedback" → Word-of-mouth marketing
2. Financial Impact: - Acquiring new customers costs 5x more than retention (Bain & Co) - 5% increase in retention boosts profits 25-95% (Harvard Business Review)
3. Policy Alignment: - Immediate replacement reflects customer lifetime value focus - Contrasts with short-term cost-saving approaches
Why not others: - (B) Moral: Would emphasize ethical duty over business results - (C) Social: Would discuss community impact - (D) Government: No regulatory pressure mentioned
Final Answer: (A) Long term interest of the business