Key Concepts on Consumer Education

As a consumer educator, we should have some background knowledge and understanding of certain key concepts of consumerism and consumer education. This knowledge and understanding is our foundation base to assist us in our task of imparting consumer education to our intended audience. Here are some of the key concepts:

Concept 1: Who is a Consumer?

A consumer is a person who consumes goods, services and gift of nature for his/her satisfaction and general well being¹.

In this definition, there are three important concepts to recognise:

First, when we talk about a consumer we refer to a person. In this context everyone, from the king to the pauper and from the young to the old, is a consumer. A businessperson is also a consumer. The businessperson plays dual role. As a businessperson he/she is a supplier of goods and services. As a consumer, he/she is a consumer of goods, services and gifts of nature.

Second, we consume goods, services and gifts of nature. Often the consumption of these gifts of nature like fresh air, clean water and a healthy environment is left out in defining a consumer. We must not forget in addition to goods and services, the right to a healthy and clean environment is also an important prerequisite for a good quality of life.

Third, the purpose of consumption is for satistaction of our wants and needs to ensure our general well being. We often pay for the goods and services we consume. Even if we do not pay and the goods and services are offered free, we as consumers are entitled to safe and satisfactory products and services that guarantees our well being. A good example is the services by the government. The government in a democracy, is in essence a provider to the people services such as keeping law and order, administration of justice and other services.

Concept 2: What is Consumer Education?

It is important to recognise and understand that "consumer education" means different things to different people². For instance:

To an ordinary consumer, education is viewed as information to help him/her to make better choices of goods and services in the market place.
A businessperson views consumer education as activities that assists in selling services and products.
A bureaucrat views consumer education as a programme to complement and supplement laws and regulations that foster trade competition. They believe that healthy competition and an educated body of consumers will ensure protection for the consumers.
A consumer advocate sees consumer education as providing information to consumers to protect them from fraudulent trade practices and exploitative market operation.
And an educator sees consumer education as development of skills and knowledge that assist consumers to play their role effectively in the market place.

Therefore, it is important for us to recognise the people involved and understand the meaning of consumer education according to their given perspectives.

Concept 3: Why do we need Consumer Education?

We need consumer education to build our knowledge, skills, aptitudes, values and capacity to play the role of a responsible consumer. There are five important aspects to consumer education:

Informed Choice
Consumer education must be functional. The business of living in this modern world is complex and can be bewildering. We must learn to obtain information on goods and services, discriminate between sources of information, understand the psychology of selling and advertising. Learn to shop wisely, distinguish between needs and wants, and understand the alternatives of conserving and saving rather than buying and consuming.

Value Systems
Consumer education must include the development of a Value System. We must learn how to share and care. Consumers are not individuals insulated away from the rest of society. They are part of the society. Consumer education must enable the consumer to understand that individual consumer decisions have broad social impact and influence on such important things as the overall allocation of resources within the society. We can use our power as consumers to promote value for money, value to people, value to the environment, value to democracy and value to justice.

Recognition of Responsibilities and Rights
In pursuing the daily business of living, we play three distinctive roles, namely that of a worker, consumer and citizen. Sometimes such roles can impinge upon and may be in conflict with one another. As a consumer, we want to buy goods that are safe and durable. As workers, we may be contributing to the production of shoddy goods and goods that have built-in obsolescence. It is important to articulate and understand both our responsibilities as well as our rights as consumers. This will help to iron out possible conflict of roles and bring greater harmony in the relationship.

Wise Decision Making
To make careful and wise decision we need information to make informed choices. We also require developing the correct attitude and orientation. In addition we must become aware of our roles, responsibilities and rights. There is a need for consumers to wear their thinking caps all the time to evaluate, assess and make responsible decisions in their consumption choices and options. Consumer education should enable consumers to consider seriously and carefully the environment and social impacts of our economic decisions and the sustainability of the eco-system in supporting life on this planet.

Catalyst for Action
Consumer education must catalyse action. We must be aware of the available avenues of consumer complaint and redress and learn to use them for our benefit. Most important, consumer education should help in developing the intellectual processes of inquiry and problem-solving, motivate participation and social concern in promoting not only value for money but also value for people as human beings.

Concept 4: How can Consumer Education help us?

In the final analysis, consumer education must motivate consumers to particapate proactively in the decision making process especially those that affect their day-to-day lives. Consumer education is "living and sharing³". It must include both the individual concerns of the consumer and the shared concerns of society at large. Consumer education must awaken the consumer eye, inculcate the responsibilities of consumers, ensure constant vigilance of consumer rights and develop a shared value system.

Opening the Consumer Eye
It is believed that meditation opens the "third eye". Likewise, consumer education should help to open the "consumer eye" of the consumers. The "consumer eye" concept means that an informed consumer looks at a product critically and analytically, first from own point of view as an individual consumer, then with the interest of the community at large in mind. The consumer who has had his "consumer eye" opened, analyses product on several level, like health, economics, product safety, legal and environment considerations, and social costs.

Shared Value System
Consumer education is about "living and sharing³". This is a very powerful concept. Consumer education should assist the development of a strong consumer movement. The five pillars of the consumer movement which consumer education should help to imbibe as part of the Shared Value System are⁴:
1. Caring people: The consumer movement is people who care about others and about themselves. It's about value for money of goods. But more importantly. it's about value for people.
2. Protecting the earth: Consumers must be conservers, protecting and preserving the earth. We must be aware of the consequences of our actions so that the earth's resources are not squandered by the few at the expense of the many.
3. Knowing your Rights: Human rights are central to the consumer movement, especially the right of people to have their basic needs met.
4. Fighting for justice: Political and economic systems often discriminate against the powerless. Consumers can help to build fair, rational and just societies.
5. Discovering your power: Acting together ordinary people can make a difference. Consumers can use their collective power to protect their interest and to fight those forces that threaten them.

To conclude, consumer education is necessary to develope living skills in the individual as well as his/her role in society. The right to consumer education is one of the basic consumer rights. This right to consumer education incorporates the rights to knowledge and skills for taking action to influence factors that affect the final analysis of consumer decision-making.

1 Federation of Malaysian Consumers Association (FOMCA), working definition, 1992, as defined by Bishan Singh, former President of FOMCA Back

2 "About Consumer Education." by Bishan Singh from the "Consumer education - a resource handbook" by Anwar Fazal and Bishan Singh, IOCU Publication, July 1991. Back

3 Living and sharing: Materials for Consumer Education, written by Susan Churchman, B.A. LLB for the Australian Consumers Association, 1982. Back

4 The "five pillars of the consumer movement" were first articulated by Anwar Fazal at a speech he made in Stockholm on 9th December 1982 on his receipt of "The Right Livelihood Award" popularly known as the "Alternative Nobel Prize". The speech was titled "The New Consumer Movement". Back