What are the common factors causing consumer exploitation?
Common factors are: (i) Limited information- the consumers are not completely aware about the goods or services they intend to purchase and hence are easy targets. (ii) Limited supply- at times supply does not meet the demand. In such cases, the prices go abnormally high. (iii) Limited Competition- in certain goods their might not be much choice available and the producer may enjoy a monopoly in that area. In such cases consumers are forced into buying that product even though it may be over-priced or not up to the mark. (iv) Low literacy- by this it is implied that the consumers may have low consumer literacy i.e. low consumer awareness. Such consumers are also easy targets.
