E-CONSUMERISM: A STUDY OF ITS FASCINATIONS AND COMPLEXITIES BY - FATHIMA IBRAHIM
E-CONSUMERISM:
A STUDY OF ITS FASCINATIONS AND COMPLEXITIES[1]
AUTHORED BY - FATHIMA IBRAHIM
ABSTRACT
"Consumerism is hard to describe
when it's the ocean and we're the plankton"
-Geoffrey Miller
'Online shopping' is a remarkable innovation that enables
individuals to purchase items from the convenience of their residences. No
longer will one need to visit many stores to locate the appropriate goods,
contend with overly eager sales personnel, or endure lengthy queues at the
checkout desk. Technological progress and the always connected consumer have
engendered an economy in which rapid access to products and services is
anticipated. As the Indian economy transitions from a physical to a digital framework,
customers have engaged in a new digital economy. E-consumerism refers
to the activities of consumers or their representatives aimed at safeguarding
and advancing consumer interests while seeking empowerment inside the
electronic marketplace. From a consumerism standpoint, the Internet transcends
mere communication; it serves as a catalyst for consumer empowerment. The
Internet serves functions in all three phases of consumption: pre-buy,
purchase, and post-purchase. Each function varies somewhat and, thus, need
diverse contributions from consumer educators. While
online shopping offers several advantages such as speed, worldwide selection,
and affordability, it also presents new risks to customers, including concerns
related to privacy, product quality, payment security, and electronic
transactions. The e-commerce surge has undoubtedly transformed our shopping
experience for the better. However, akin to other domains, the realm of
internet purchasing is not without its challenges. This paper examines the
significance of consumer rights under the sub-theme 'E-Consumerism: Problems
and Perspectives' and outlines the primary dangers faced by customers in online
buying.
KEYWORDS: Online shopping, e-consumerism- problems, consequences,
consumer.
INTRODUCTION
In the contemporary digital economy,
the prospects of the Internet, electronic communication, digital information
acquisition, and online purchasing are many. Several years ago, many
individuals who believed they were excluded from these unparalleled chances
today actively engage with the dot-com landscape. Through this 'e'-revolution,
electronic commerce has arisen as the prospective symbol of a new global
virtual economy.[2] Online
shopping provides customers with convenience, speed, and a worldwide selection
of products and prices; nevertheless, it also introduces new risks for
consumers within the realm of e-marketing. The consumer's position in an
electronic world is predominantly impoverished on quality, privacy, payments,
and electronic transactions.[3]
DEFINITION: E-Commerce
'The Internet is the engine of this
revolution and Electronic Commerce (E-Commerce) is its fuel'.[4]
E-Commerce refers to the utilisation
of electronic means in commercial activities. ‘e’ pertains to technical
proficiency, whereas commerce represents the application of such proficiency.[5] E-Commerce
refers to any economic transaction in which parties engage electronically
instead of via physical transactions or direct touch.
HISTORY: FROM PHYSICAL COMMERCE TO
E-COMMERCE
In point of fact, the roots of
electronic commerce can be traced back to the Electronic Data Interchange (EDI)
system, which is a standard method of sending data between businesses. This
system dates back around thirty years. Internet-based e-commerce, on the other
hand, is just a subset of the larger field of electronic commerce.[6] When
it comes to electronic transactions, e-commerce encompasses a wide range of
activities, including advertising, marketing, stock exchange, payment
mechanism, banking, taxation, supply chain mechanism, cyber law, and the World
Trade Organisation.
E-Commerce includes:
·
Electronic
Data Interchange (EDI)
·
Electronic
Mail (e-mail),
·
World
Wide Web (www.),
·
Electronic
Bulletin Boards (EBB) and
·
Electronic
Fund Transfer (EFT).
Electronic
commerce necessitates the use of many communication networks, including the
Internet, the Value-Added Network (VAN), and the Local Area Network (LAN). As a
result, the traditional brick-and-mortar company industries have been
supplanted by the dot-com (.com) and 'e' version firms.[7]
CONSUMERS IN THE PARADIGM OF
E-COMMERCE
When it comes to the trade of goods
and services, a "market" is traditionally understood to be a physical
location where buyers and sellers come together. Presently, in a more general sense,
e-marketing refers to the process of buying and selling products or services
that is assisted by electronic technology. Internet business, often known as
e-marketing, is primarily concerned with the establishment of a new online
market, the fulfilment of the needs of customers, the introduction of new
opportunities for customers, and other related topics. Consumers are the focus
of attention in the subject of law, with particular attention being paid to the
newly developing dangers posed by online commerce. The success of an Internet
business strategy is dependent on the anticipation of customer choice,
preferences, requirements, preferences, decision-making patterns, and
expectations. This is due to the fact that customers are the ones who determine
the success of a product or service. It is possible to move from one website to
another through the use of the Internet, and one can do so nearly without being
aware of the software tools that are responsible for making this happen.
Technology embodies adaptability,
programmability, flexibility, and other attributes that are extremely important
for customisation. These qualities are made possible by technology. The promise
of "anything, anyway, anytime" has been established by the world of
commerce that takes place completely online. Customers are able to have their
very own customised version of practically any product. As a result,
customisation that is led by the consumer is becoming increasingly important
since they have an excessive number of options.[8]
Electronic consumers are able to make
orders for tangible products through the use of e-commerce business models such
as business-to-consumer (B2C) and consumer-to-consumer (C2C) transactions,
which are made possible by the digital medium. Downloading digital products
such as music files, data, material, and software, among other things, is made
easier using this resource.[9]
RELEVANCE OF THE CONCEPT OF ‘E-CONSUMERISM’ IN INDIA:
E-consumerism is
considered to be a tool, a new social dimension, and a form of protest that
aims to expose the unethical business practices of manufacturers and service
providers, as well as to provide the necessary strength to consumers who are
looking to redress, restitution, and remedy for the dissatisfaction that was
caused by products and services, and to restore the equilibrium in the
relationship between buyers and sellers.[10]
The instrument known as the "e-Consumerism Policy Matrix" has
developed into a straightforward and widespread reference that is capable of
putting the idea of "Consumerism" into a matrix that can be worked
with in the e-market. The 'e-Consumerism Policy Matrix' is a tool that has been
developed on the basis of a ground that is firmly ingrained in one of the
golden rules of public policy research. When it comes to the field of public
policy research, the context or phenomena that is significant is not a
particular empirical problem but rather the context or phenomenon itself.[11]
Thus ‘e-Consumerism Policy Matrix’ involves
three fundamental doctrines:
1. A balancing of interests between the
profits of e-commerce and the delight of e-consumers.
2. A public policy that provides a
platform for 'consumerism' and 'e-marketing' to be included into a matrix that
may be considered actionable.
3. A legal mechanism that is structured,
systematic, and adequate in India for listening to the voice of consumers who
have issues with their online buying experiences. [12]
IMPACT OF E- MARKETING ON CONSUMER
BEHAVIOUR IN ONLINE SHOPPING
The Internet may be regarded as more
than just a means of communication when viewed from the point of view of
consumerism. When it comes to looking for, acquiring, utilising, assessing, and
disposing of things and services that they anticipate will fulfil their
requirements, consumers exhibit a certain behaviour that is referred to as
consumer behaviour. When it comes to consumption-related things, consumer
behaviour focusses on the decisions that individuals make on how they will
spend their available resources (time, money, and effort). The commercial
actions of consumers may be broken down into seven distinct processes, each of
which must be completed in order to be considered successful:
The first step is to determine the
preliminary requirements; the second step is to search for the available items
that can fulfil the requirement; the third step is to compare the selected
items with multiple perspectives in terms of the specification, price,
delivery, date, and any other terms or conditions; the fourth step is to place
an order; the fifth step is to pay the bill; the sixth step is to receive the
delivered items and inspect them; and the seventh step is to contact the vendor
to receive after-sales service and support, or to return the items if they are not
satisfactory.[13]
Therefore, the purchase decision
passes through three phases which are explained as under:
A. The Pre-Purchase Preparation Phase;
B. The Purchase Consummation Phase;
C. The Post-Purchase Interaction Phase.
During the pre-purchase stage, the
primary focus is on directing customers to reliable sources of information on
the product or service they are interested in purchasing and maybe evaluating
the significance of the information in terms of its degree of independence and
utility. In order for customers to successfully negotiate for better terms of
sale, the focus throughout the buying stage is on discovering and assessing
networks of seller groups. This allows customers to better negotiate for better
terms. During the post-purchase phase, the primary focus is on providing
customers with information on websites that might assist them in obtaining
redress for disappointing purchases, and it is also possible to provide them
with instructions on how to utilise these websites.[14] Customers
that engage in online marketing have the option of paying with cash, debit
card, or credit card at the conclusion of the transaction. Every consumer has
their own unique point of view when it comes to selecting the numerous products
and services available.[15]
VIOLATION OF RIGHTS OF CONSUMERS IN ONLINE OR DIGITAL
ECONOMY:
Customers who make purchases on the
Internet may pay the total cost of their purchases in advance. In the
event that a disagreement arises, there may be no realistic avenues of recourse
available for transactions that include minor purchases. This is another
potential circumstance. Due to the fact that the transaction may include travel
across international borders, this issue is exacerbated even more over the
Internet.[16]
For the most part, the Internet has been transparent in terms of pricing and brand choices; nevertheless, it has not been sufficiently transparent in terms of the quality of products and services. The e-consumer is also more susceptible to manipulation as a consequence of the marketing methods that have been refined, and they have less control over the specifics of what occurs with their data, information, and communication processes.[17] Some of the important violations are highlighted as below:
1. E-Advertisements: Online auctions, Internet access services, work-at-home plans,
information and adult service, travel and holiday plans, advance free loans,
rewards, and win lottery portals are all examples of many types of fraudulent
activities that may be found on the internet. It is common for fraudulent
schemes to make advantage of the Internet in order to market alleged business
possibilities that would enable individuals to earn thousands of rupees through
work-from-home operations. The persons who participate in these scams are often
required to pay somewhere, but they do not provide the resources or knowledge
that would be required to turn the work-at-home opportunity into a potentially
profitable enterprise.[18]
2. Flaws in the Validity of e-Contracts: For a
contract to be considered legitimate, it is necessary for the parties to engage
into the agreement with their free assent. This is one of the key principles.
The term "consent" is used to describe the agreement between two or
more individuals regarding the same object in the same meaning, also known as
"consensus ad idem."[19].
A contract cannot be enforced because there is a fault in the consent
that was given. Deficiencies in consent can occur in six different ways:
coercion, undue influence, fraud, misrepresentation, and mistakes. There are
other concerns around privacy and confidentiality.
When it
comes to online contracts, the consent is considered to be not free when it is
influenced by three important aspects, specifically:
1.
Fraud,[20]
2.
Misrepresentation[21]
3.
Mistake.[22]
Section 19
of the Indian Contract Act, 1872 deals about voidability of agreements without
free consent.[23] Any
agreement to which the consent was obtained by fraudulent means is voidable at
the discretion of the party whose consent was obtained through fraudulent
means. Within the confines of a straightforward and specific definition of
"online-fraud," it is extremely challenging to circumscribe all of
the various types of fraudulent conduct that might occur in an online contract.
The
offences of "Spamming" and "Spoofing" were first committed
with the intention of defrauding clients who were not responsible for their
actions. A contract that was reached under the guise of spamming or spoofing
can never be deemed a legitimate contract. A contract that is voidable at the
discretion of the party that was deceived is one in which the assent to the
contract was induced by deception. The tendency in online purchasing is to
misrepresent the product being purchased.
If
there is a mistake or error in the contract, then it is null and void, which
means that neither party can enforce it at their discretion.[24]
A
mistake can have two different effects on a contract: it can either completely
nullify the consent that was given, or it might mislead the parties on the
purpose that they had in mind when they signed the contract.[25] It
is vital that adequate attention be paid to the development of a lawful online
contract before finalising a transaction in the click-world. This is because
the formation of a valid contract is the cornerstone of e-commerce, and it is
essential that this care be provided.[26]
3.
Frauds in e-Consumerism: Within the Indian physical banking sector, the
categorisation of banking frauds has traditionally encompassed various forms,
including misappropriation and criminal breach of trust, fraudulent encashment
via forged instruments, manipulation of financial records or fictitious
accounts, conversion of property, unauthorised credit facilities granted for
rewards or illicit benefits, negligence and cash shortages, as well as
cheating, forgery, and irregularities in foreign exchange transactions.[27]
To
this day, consumers continue to be subjected to fraudulent activities in the
marketplace; however, the methods of deception have evolved to become
increasingly refined and sophisticated. Technological advancements have
undeniably bestowed a plethora of conveniences upon consumers in the digital
realm; conversely, they have also given rise to innovative methods of
perpetrating fraud that are notably challenging to identify and scrutinise. The
various forms of fraud in electronic transactions can be classified into
several categories: Cyber Money Laundering, Credit Card Frauds, Phishing,
Pharming, ATM Frauds, Unwanted Programs (such as Adware, Spyware, and Browser
Parasites), Hacking, Cyber Vandalism, and Malicious Code (including Worms,
Trojan Horses, and Bots).[28]
4. Defective Delivery of Goods: In the tangible realm, a consumer enters a
store, chooses a product, and exchanges currency for the items, which are then
taken away. The potential risks are minimal, and in the event of any issues,
consumers typically have the option to exchange defective products. One is
aware of where to return for shopping, as physical establishments seldom change
locations abruptly. Nonetheless, engaging in online trading is far from
straightforward: The aspiration of a virtual trader can swiftly transform into
a distressing reality. The exploitation of e-consumer rights, cloaked in the
guise of information technology, has evolved from a mere cesspool into a
formidable iceberg. The safeguarding and assurance of consumer welfare present
a significant challenge in India. The notions of 'consumer sovereignty' and
'customer supremacy' are mere illusions in the current context, especially
within developing societies.[29]
E-COMMERCE ADVANTAGES FOR CUSTOMERS
·
Convenience: Every product is readily accessible
at your fingertips on the internet, quite literally. Input the desired product
into your preferred search engine, and within moments, a comprehensive and
systematically arranged list of options will be presented to you.
·
Time Saving: E-commerce
eliminates the need for aimless driving in search of desired items, allowing
for a more efficient and focused approach to shopping. Online retailers provide
their complete range of products and utilise warehouses in lieu of traditional
storefronts—items are readily accessible and can be dispatched to your
residence within a matter of days.
·
Multiple Options: Consumers can effortlessly evaluate and differentiate products without
the need to traverse from one store to another. Examine the various providers
to identify the most competitive pricing and expand your selection of options.
Although a brick-and-mortar establishment is constrained by spatial
limitations, its online counterpart possesses the capacity to maintain an
extensive inventory.
·
Easy to compare: Comparative analyses can be
effortlessly conducted and are widely accessible. When products are presented
online, they are accompanied by comprehensive details, encouraging comparisons
with alternatives, asserting their superiority, and enticing customers to
return for additional purchases.
·
Easy to find reviews: Reviews, both favourable and
unfavourable, are ubiquitous across various platforms. They provide insight not
only into the general reception of a product but also elucidate the rationale
behind each endorsement or critique.
·
Coupons and deals: As the proliferation of online
businesses intensifies, the abundance of coupons and deals becomes increasingly
inescapable, presenting significant advantages for consumers.[30]
E-COMMERCE
ADVANTAGES FOR BUSINESSES
·
Increasing customer base: The
clientele represents the primary focus for any enterprise, whether in the
digital realm or the physical world. In the digital realm, a business is
liberated from the constraints of securing prime physical locations;
individuals from across the globe can engage with their offerings at their
convenience and return as they please.
·
Rise in sales: By eschewing the management of a
physical shopfront, a business can potentially enhance its online sales while
enjoying a greater profit margin. They have the capacity to reallocate
financial resources to enhance the efficiency and speed of the consumer shopping
experience. By engaging with international markets, the potential for increased
product sales will be realised.
·
24/7, 365 days: The doors remain perpetually open,
ensuring a continuous ascent in profits.
·
Expand business reach: An exceptional resource available on
the internet is translation! An online business is not required to create a
separate website for each language. Through effective marketing strategies,
consumers worldwide can access business websites, products, and information
from the comfort of their own homes.
·
Recurring payments made easy: Through diligent inquiry, any
enterprise can establish a system for recurring payments. Identify the provider
that aligns most effectively with your requirements, ensuring that billing is
conducted with consistency; payments will be processed uniformly.
·
Instant transactions: E-commerce eliminates the delays
associated with cheque clearance and the prolonged waiting periods often
required for various payment methods. Transactions are processed promptly,
typically within a timeframe of one to three days for the funds to be fully
settled within the banking infrastructure.[31]
E-COMMERCE
DISADVANTAGES FOR CUSTOMERS
·
Privacy and security: Prior to executing immediate transactions online, it is essential to
verify the security certificates of the websites. Although the act of shopping
may present itself as straightforward and efficient, the apprehension
surrounding the potential theft of one's personal information remains a
significant concern. Although numerous websites maintain a commendable
reputation, it is imperative to conduct thorough research on those that exhibit
inadequate security measures.
·
Quality: Although e-commerce
facilitates effortless access to a wide array of products, consumers are unable
to physically interact with items until they arrive at their doorstep. One must
carefully examine the return policy prior to making a purchase. It is prudent
to ensure that the possibility of returning goods is available.
·
Concealed expenses: In the
process of acquiring goods, the purchaser is cognisant of the product price,
shipping fees, handling charges, and potential taxes. Please be aware that
there may be concealed charges that will not be reflected on your purchase
invoice but will appear on your payment method. Additional handling fees may be
applicable, particularly in the context of international transactions.
·
Postponement in the arrival of goods: While the
delivery of products frequently occurs more swiftly than anticipated, one should
remain ready for potential delays. A snowstorm in a singular location can
disrupt the entire shipping system universally. There exists a possibility that
your product could be misplaced or sent to an incorrect address.
·
Access to the internet is not without cost: utilising
complimentary Wi-Fi services carries the inherent risk of information theft on
unsecured platforms.
·
Absence of direct engagement: Although
the guidelines and stipulations of each e-commerce enterprise are presented for
your perusal, the extensive content can be overwhelming, particularly regarding
the complexities of legal matters. In the case of substantial or significant
orders, one finds oneself without the opportunity for direct, in-person
dialogue when enquiries or concerns arise.[32]
E-COMMERCE
DISADVANTAGES FOR BUSINESSES
·
Security concerns: Despite
the considerable measures that enterprises implement to safeguard both
themselves and their clientele, there exist individuals who will circumvent any
protective barriers to acquire the information they seek. It has become
increasingly evident that even the most prominent and esteemed enterprises are
susceptible to online breaches.
·
Credit card issues: Numerous
credit card companies tend to favour the consumer in billing disputes, as they
are keen on maintaining their clientele. This situation may result in a
detrimental outcome for e-commerce enterprises when products have been
dispatched and the payment is subsequently returned to the customer.[33]
·
Investment in additional resources and
specialised knowledge for e-commerce infrastructure: Ensuring
the proper functioning of an online business necessitates financial commitment.
As an owner, it is imperative to ensure that transactions are conducted with
integrity and that products are depicted with utmost accuracy. To ensure that
all your requirements are adequately addressed, it is advisable to engage a
professional to resolve any outstanding matters.
·
The necessity for enhanced reverse logistics: The
framework of an online enterprise must be meticulously aligned. This represents
an additional financial burden for the enterprise, as resources must be
allocated to guarantee the meticulous management of all facets of commerce,
particularly in dealings with dissatisfied customers who seek more than mere
reimbursement.
·
Adequate internet connectivity: While it
may appear that the entire populace is perpetually online, there remain regions
where network bandwidth can present challenges. Prior to establishing an
ecommerce enterprise, it is essential to ascertain whether your locale
possesses the requisite telecommunication bandwidth necessary for efficient
operation.
·
Continuous maintenance: Once a
business has embarked on the e-commerce journey, it is imperative to remain
adaptable to ensure ongoing compatibility. As technology advances, it is
imperative that the systems underpinning your business are either updated or
replaced as necessary. There could be supplementary demands to ensure the
continuous operation of databases and applications.[34]
CONCLUSION
In the contemporary
landscape of digital marketing, e-commerce significantly influences consumer
purchasing behaviour. The e-commerce sector in India is experiencing
significant expansion, driven by extensive internet accessibility and advanced
electronic devices. Nevertheless, the current growth rate of e-commerce in
India significantly trails that of other developed nations. Numerous significant
issues and obstacles confront an online merchant. The challenges posed by
safety and security in online monetary transactions, among other issues, have
significantly hindered the seamless growth of the online industry within the
nation.
Here
are some suggestions aimed at safeguarding consumers in the realm of
e-commerce:
Consumers engaged in e-commerce ought to receive clear and efficient consumer protection measures that are economically accessible, necessitating collaboration between government entities and relevant stakeholders. Businesses must, under no circumstances, engage in representations or practices that are misleading or detrimental to the rights of consumers. Businesses ought to be transparent about all terms and conditions that could influence the consumer's decision-making process concerning the transaction.
Consumers engaged in e-commerce ought to receive clear and efficient consumer protection measures that are economically accessible, necessitating collaboration between government entities and relevant stakeholders. Businesses must, under no circumstances, engage in representations or practices that are misleading or detrimental to the rights of consumers. Businesses ought to be transparent about all terms and conditions that could influence the consumer's decision-making process concerning the transaction.
In instances where a contract delineates the financial recompense to be provided in the event of a consumer's breach, it is imperative to ascertain that such remuneration is commensurate with the actual harm incurred. Businesses ought to refrain from limiting a consumer's capacity to express negative reviews, contest charges, or lodge complaints with governmental and other relevant agencies. Advertising and marketing must be distinctly recognisable as such. The advertised price should transparently reflect the total cost associated with a good or service.
It is imperative that the payment made for the confirmation of a transaction is explicitly articulated and remains unequivocal under all circumstances. In e-commerce, the facilitation of transactions necessitates the informed consent of consumers. Organizations ought to empower consumers to preserve a record of such transactions for potential future reference or other pertinent purposes, as the situation may require. Organizations are required to address the risks associated with digital security and to establish measures that effectively reduce or mitigate the negative impacts linked to e-commerce. Creating awareness, having sufficient and timely legal consequences are means by how online frauds can be prevented. And to attain this Consumer Protection Act, 2019 and its institution plays the pivotal roles.
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[12] Kaur, Gagandeep,
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[15] Kaur, Gagandeep,
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[19] Section 13 of the
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[20] Section 17, Indian Contract Act,
1872.
[21] Section 18, Indian Contract Act,
1872.
[22] Section 20 and 21, Indian
Contract Act, 1872.
[23] When consent to an agreement is
caused by coercion,1*** fraud or misrepresentation, the agreement is a contract
voidable at the option of the party whose consent was so caused.
[24]https://www.researchgate.net/publication/255582306_EConsumerism_as_a_Tool_for_Empowerment, accessed on 19.02.2025.
[25] This case falls
under Section 13: If the mistake prevents the consent itself, then there is no
Consensus ad idem and thus no contract.
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