"Consumer co-operative store are formed to protect the consumer ommon interest".Discuss.
The consumer cooperative stores are being initiated and operated by the groups of consumers. These cooperative stores prove to be beneficial for the consumers in the following manner.
1. Cost effective- Ensures good quality products at comparatively low price
2. Absence of intermediaries- Eliminates the role of intermediaries, thus low price is guaranteed
3. Low probability of infiltration and trading malpractices- As there is absence of intermediaries and the consumer cooperative stores are being run the consumers themselves, so there exists a lower probability of adulteration and infiltration.
4. Sense of belongingness and safety- Consumers feel safe and have the sense of belongingness when they purchase goods from the consumer cooperative societies.
5. Democratic form of management- Since the consumer cooperatives societies are being managed by a group of consumers, which represents a democratic form of management, so consumer are saved from the autocracies and dominance of the large scale retailers. Hence, consumers enjoy the greater bargaining power as compared to the large scale retailers.