Q.In the modern competitive market, consumers are regarded as the ______.

The term is 'Consumer'.

A Consumer is a person who buys goods or hires services for consideration and uses them for personal use or need — the ultimate user of a commodity or service. The Consumer Protection Act recognises the consumer as the central figure whose interests are to be safeguarded against defective goods, deficient services …

It is consumers (not sellers) who are widely dispersed and not united, which is why consumer protection is needed.

One of the main reasons for the need for consumer protection is that consumers are in a weak position compared to sellers:

• Consumers are widely dispersed and not united – they are scattered all over the country and do not have any strong organisation to fight for their rights.
• Sellers/producers are organised and powerful – they have money, expert knowledge and associations to protect their interests. …

Because success of a business depends on satisfying buyers, in a competitive market the consumer is regarded as the king.

In today's competitive market, producers depend entirely on the buyer's choice for their survival and growth. The buyer is free to select from many sellers, so businesses must design products around consumer wants.

…

Consumer satisfaction is the ultimate aim of business, because satisfied consumers ensure demand, goodwill and long-term profit.

A business earns profit only when its goods and services are actually bought and re-bought. This makes the consumer the real focus of every business activity.

• Satisfied consumers repeat their purchases and spread goodwill, ensuring survival and growth. …