Give the buyer a choice

By M.R. Pai

THE consumer is always at an advantage when there is competition because competition means choice. In contrast, monopoly or semi-monopoly means that the consumer will be at the mercy of the vendor or a few vendors. "Take it or leave it," the vendor will say and the helpless consumer will have to buy goods or services irrespective of price, quality and service.

Till liberalisation of Indian economy from 1991, Indian consumers experienced the hardship imposed on them by monopolist or semi-monopolist vendors. To cite only two examples:

(1) Indian Airlines was a monopoly. The air passenger had no choice. There were periodic increases in air fares without any effort to contain costs by operational efficiency. IAC services were neither regular, nor punctual. Reliability and punctuality are basic to any good airlines to earn customer goodwill. These qualities were absent. There were periodic strikes by various categories of employees such as pilots (who invented ‘mass sickness"), engineering staff, cabin crew and traffic assistants. Though the passengers had nothing to do with their grievances or problems, purely a matter between the concerned employee group and the management, they were always the sufferers. The profile of the air passenger had, in the meantime, changed perceptibly. It was no longer the rich industrialist nor affluent foreign tourist who patronised airlines.

Hundreds of ordinary workers from Kerala, Tamil Nadu, Punjab and other parts of India had to catch connecting international flights to report to duty abroad on contracted job or lose it. They suffered. Persons travelling to see a very sick parent, or the dead body of a close relative before last rites were the victims of the vagaries of Indian Airlines functioning. Once, even some Members of Parliament could not reach Delhi in time and an important piece of legislation was lost for sake of one vote!

As regards cabin service, there was no choice of food, and, on ground, luggage delivery sometimes took more than the time of travel between two cities. Passengers ceased to bother about rude staff behaviour, lumping it as part of air travel!

All this has changed today. It started with a visit of a Secretary of Civil Aviation Ministry of Government of India to Nairobi for an international conference. There was half a day’s spare time between sessions, and it was suggested that he visit one of the famous Kenyan tourist spots. He asked how it was possible to cover the big distance. The answer was a trip by an "air taxi" in Wilson airport of Nairobi where hundreds of small and medium-sized planes were parked as taxi cabs are parked at a taxi-stand.

Passengers were hopping in and out of these aircrafts which took them to remote areas for a conference or tourist visit or business. The Indian Civil Aviation Secretary was back for the next session of the conference after half-a-day’s visit to the tourist spot, thanks to an "air taxi" facility.

On return, this idea was mooted in India, and eventually "air taxis" were allowed. About half-a-dozen of them sprang up and most fell by the way because the competitive market is a taskmaster. The passenger found a choice for the first time, as also a smile on Indian Airlines staff for the first time in four decades! There is fierce competition today between three big airlines, and the passenger is not only offered reduced fares but also free stay in hotels, and other benefits. The rootcause: Consumer choice arising from competition.

The second example is that of common man’s vehicle: two-wheelers, particularly the ubiquitous scooter. Years ago, there was such a great scarcity that buyers had to wait for several years. They had to queue up for registering their names. In one city, Jaipur, there was such a scramble that there were disturbances and even police firing resulting in some deaths. Truly, consumer blood was literally shed!

Today, the scene has totally altered. The scooter manufacturers are running after the customers. They advertise the virtues and special features of their scooters to attract customers. The manufacturers watch anxiously the rise or fall of their total market share. The choice of the consumer is reflected in these movements.

The examples of consumers benefiting through choice can be illustrated in a large number of products and services — soaps and toothpaste to transport and financial services.

Hence the first principle of consumerism — give him/her the choice. His vote determines the fate of the manufacturer or service vendor.