Consumer Research and Public Policy: The case of Sugar Crisis of 1980

Mehta Subhash C, Chhatopadhyay A and Jain B K

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Based on Consumer Study of Ahmedabad households, conducted immediately after the sugar crisis of 1980, the paper presents the changes that consumer consumption, buying and stocking patterns went through because of the high prices and shortage situation. It points towards reduction in household inventories, lowering of direct consumption at home with little or no effect on outside purchased sugar based products, and increased us e of ration quota by those who earlier cared very little about it. The study attempted to measure the nature and extent of consumer concern about the crisis and indicates that primary effects of excessive consumption. The blame for the crisis was attributed to bad government policies and behaviour of industry and trade. Manipulating by the vested intensity were seen as the major factor and the fact of lower production of the commodity was generally not believed by the consumers. These appeared to be major information and credibility gap between the consumer and the public policy makers and the later failed to evoke public cooperation to tiding over the crisis. The study makes recommendations to the policy makers about free-sale stock releases and the need for a demarketing effort and communication campaign to bridge the yawning gap between public and the public policies.

Date: 1981-07-01
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:wp00444

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