What are Producers and Consumers? Types, Behavior, Rights, and Obligations

What are producers and consumers? We often hear the terms producer and consumer in the business world. To aim for big profits, we need to know about consumers and consumer behavior.

There are various factors that influence the behavior of producers and consumers. Starting from the amount of income, consumption levels, and others.

Another term for consumers is buyers. They can buy goods and services for themselves or trade them again. He is called a retailer if he resells the goods or services.

This is stated in the Consumer Protection Law (UUPK) Article 1 number 2 which states that consumers are users of goods or services that are consumed for themselves or others and are not re-traded.

Getting to Know Consumers

What are Producers and Consumers? 3 Definition of Consumer

It is known that consumers are not just buyers. They can also be intermediaries for the product. This is stated in the broad sense and the narrow sense of the consumer. Read the explanation.

a. Consumer

Consumers are parties who get goods or services for the purpose they have.

b. Intermediate Consumer

Intermediate consumers are people who get goods or services for re-trading. Given the nature of the use of the product, these consumers are entrepreneurs both in the form of individuals and institutions.

c. End Consumer

End consumers are parties who obtain goods or services to meet their needs. The products they get are not for sale anymore.

From the three definitions, it can be concluded that the definition of a consumer listed in the UK is the final consumer. Because the goods or services are not traded.

Consumer Rights and Obligations

We often hear the term “the buyer is king”. Thus, producers must pay attention to the rights and obligations of consumers.

There are a number of consumer rights that must be fulfilled. These rights are universal and must be protected and respected. What are those?

  • They have the right to appropriate security, safety, and information. Consumers also have the right to vote, be heard, and have the right to the environment.
  • These rights are inherent in consumers. Protection of these rights is guaranteed in Article 4 of Law Number 8 of 1999. The following is a summary.
  • Consumers have the right to feel comfortable, safe, and safe when consuming goods or services. Consumers have the right to choose and obtain goods according to the value and conditions guaranteed.
  • Consumers have the right to know product information that is true, clear, as it is, and honest about the condition of goods or services. He has the right to be heard for his opinion or complaint.
  • Consumers have the right to be advocated for and protected in an effort to properly settle disputes. He has the right to be nurtured and educated in consumer knowledge.
  • Consumers are entitled to compensation (compensation) if the product received is not as guaranteed by the manufacturer. Meanwhile, further rights are regulated in the provisions of other laws.

Meanwhile, a person’s rights are always related to his obligations. When the consumer demands his rights from the producer, he is also obliged to carry out his obligations.

This is stated in Article 5 of Law Number 8 of 1999 as summarized below.

Consumers are required to read and follow instructions on how to use the product for their safety. Consumers must have good intentions in conducting transactions.

He must pay according to the agreed value. Finally, consumers must follow the consumer’s business.

Consumer behavior

Consumer behavior is part of a study. This study studies individuals and organizations about the products used. This study covers the following five aspects.

  • Consumers’ thoughts and feelings towards product alternatives.
  • The consumer’s mind when choosing a particular product.
  • His behavior when choosing the product.
  • The influence of the environment on consumer behavior.
  • The influence of promotions and campaigns that makes producers buy the selected product.

Aspects that Drive Consumer Behavior

Generally, consumer behavior is influenced by three factors.

  1. Personal

This aspect is related to the personal interests and opinions of a consumer. It is also influenced by demographic elements, such as age, gender, culture, occupation, education, and other backgrounds.

  1. Psychological

This is related to a person’s response after being exposed to the influence of the campaign. This factor also includes a person’s attitude about how he wants to fulfill his needs.

  1. Social

Consumers are also influenced by the environment to the media in making a decision. This factor also includes income, social class, and education.

Information from Consumer Behavior

In analyzing consumer behavior, there is a number of information that can be collected. Anything?

  1. Desire to Buy

From here you can see how a promotion encourages someone to buy the product. You can see if their behavior is affected by the campaign or not.

  1. Promotion Analysis

You can see consumer responses to a promotion or campaign. You can also analyze consumer responses to the brand being promoted as a whole.

  1. Sentiment Analysis

You can find out consumer sentiment towards a particular brand or product. This can also affect consumer demographics.

This analysis is useful for product development. Because consumer behavior is not only related to the motivation to buy the product, but also the feedback.

Market segmentation

Everyone always has a different motivation when buying something. The results of the analysis are used to develop products to fit the categories and demographics.

  1. What are Producers and Consumers? Market Segmentation Types of Consumer Behavior

After being analyzed, it turns out that there are several types of consumer behavior in buying goods or services.

  1. What are Producers and Consumers? Complex Purchasing Market Segmentation

In this case, consumers buy a product that is expensive and may be rarely found. He will involve careful calculations before finally buying the product.

  1. What are Producers and Consumers? Market Segmentation Reduces Discomfort

Consumers find it difficult to distinguish between brands. They worry that they will regret if their choosing one.

  1. What are Producers and Consumers? Purchasing Market Segmentation due to Accustomed

Consumers are used to buying products from certain brands. Their involvement in choosing a particular product is minimal.

An example is when buying basic necessities. Consumers tend to have certain habits. They are not too influenced by the campaign of the product purchased.

  1. What are Producers and Consumers? Market Segmentation Looking for Other Variations

Consumers buy a product with another brand not because they don’t have it. Their motivation is to look for other variations of the products they already have.

Know What is a Manufacturer

The producer is a popular term in economics and business. Scientifically, the meaning of the word producer is a person or party who produces goods or services to be sold or marketed.

Producers are often defined as entrepreneurs who produce goods and services.

In this sense, it includes professional manufacturers, wholesalers, suppliers, and retailers, namely any person or entity that is followed in the supply of goods and services to reach consumers, quoting Harry Duintjer Tebbens in International Product Liability.

The production process carried out by producers and consumers who will buy aims to add value to an object or create a new object that is useful to help meet the needs of many people.

For information, using an Android accounting application will facilitate the process of recording transactions for sellers, including producers, in dealing transactions. Journal provides accounting software that is often used by companies with many benefits for companies.

To better understand what producers and consumers are, the following is a review that will discuss the meaning of producers and consumers, the rights and obligations they contain, and their prohibitions in the world of economy and business.

Producer Definition

In Article 1 point 3 UUPK, the term producer is no longer used to describe the meaning, function, and matters related to it.

The term producer is replaced by the term “business actor”, with more or less the same meaning. Business actors or producers are defined as follows;

“Business actor is any individual or business entity, whether in the form of a legal entity or not a legal entity established and domiciled or conducting activities within the jurisdiction of the Republic of Indonesia, either alone or jointly through agreements to carry out business activities in various economic fields. “.

Based on the above understanding, what is meant by business actors or producers are companies in all forms and types of business.

This includes SOEs, cooperatives, and private companies in the form of manufacturers, importers, retailers, and so on.

Furthermore, to emphasize the meaning of the intended goods and/or services, Law Article 1 points 4 and 5 Number 8 of 1999 concerning Consumer Protection also provides the following definitions of goods and services:

  • Goods are any object, both tangible and intangible, whether movable or immovable, consumable or non-expendable, which can be traded, used, used, or utilized by consumers.
  • Service is any service in the form of work or achievement provided to the public for use by consumers.

An entrepreneur is a term used by lawmakers who are usually called entrepreneurs. The Association of Indonesian Economic Scholars (ISEI) mentions four major groups of economic actors; three of them belong to the group of entrepreneurs (business actors, both private and public). The three groups consist of:

  1. Investors, namely business actors provide funds to finance various interests. Such as banking, leasing business, “middlemen”, and so on.
  2. Producers, namely business actors who make, and produce goods and/or services from other goods and/or services (raw materials, additional/auxiliary materials, and other materials). They can consist of people/business entities related to food, people/business entities that produce clothing, people/business entities related to the manufacture of housing, and so on.
  3. Distributors, namely business actors who distribute or trade goods and/or services to the public, such as retail traders, street vendors, stalls, shops, supermarkets, etc.

Producer Rights

Business actors are one of the components that are also responsible for trying to achieve people’s welfare. So in various laws and regulations, a number of rights and obligations are imposed as well as things that are the responsibility of business actors or producers.

Quoting Celina Tri Siwi Kristiyanti in the Consumer Protection Law, the rights of producers can be found, among others, in factors that free producers from responsibility for losses suffered by consumers, even though the damage occurs due to defects in the product, namely if:

  1. The product is not actually in circulation;
  2. Defects arise later in life;
  3. Defects arise after the product is beyond the control of the manufacturer;
  4. Defects arise as a result of compliance with the provisions set by the authorities.

Meanwhile, the rights of business actors or producers according to article 6 of the UK are as follows:

  1. The right to receive payments in accordance with the agreement regarding the conditions and exchange rates of goods and/or services traded;
  2. The right to obtain legal protection from consumer actions with bad intentions;
  3. The right to conduct proper self-defense in the legal settlement of consumer disputes;
  4. The right to rehabilitate reputation if it is legally proven that consumer losses are not caused by traded goods and/or services;
  5. Rights are regulated by the provisions of other laws and regulations.

For this reason, citing J. Sidobalok in the Consumer Protection Law, it is known that the core or principal rights of business actors or producers are as follows:

  1. Receiving payment; means that the business actor is entitled to receive a certain amount of money as payment for the product he/she delivers to the buyer.
  2. Get legal protection; meaning that the perpetrator gets legal protection if there is an action from another party, namely a consumer who in bad faith causes him a loss.
  3. Self-defense; has the right to defend himself and defend his rights in the legal process if there are other parties who dispute or harm his rights; and
  4. Rehabilitation; has the right to get rehabilitation on his good name (his good name is restored) as a business actor if due to a lawsuit it is finally proven that the business actor has acted correctly according to the law.

Producer’s Obligations

In addition to having rights, business actors or producers of course also have obligations that must be carried out under Article 7 of the UK, namely:

  1. Have good intentions in carrying out their business activities;
  2. Provide correct, clear, and honest information regarding the condition and guarantee of goods and/or services as well as provide an explanation of the use, repair, and maintenance;
  3. Treat or serve consumers correctly and honestly and non-discriminatory;
  4. Guarantee the quality of goods and/or services produced and/or traded based on the provisions of the applicable quality standards of goods and/or services;
  5. Provide opportunities for consumers to test, and/or try certain goods and/or services as well as provide guarantees and/or guarantees for goods manufactured and/or traded;
  6. Provide compensation, compensation, and/or compensation for losses resulting from the use, use, and utilization of traded goods and/or services;
  7. Provide compensation, compensation, and/or replacement of the goods and/or services received or utilized that are not in accordance with the agreement.

Continuing from the explanation in the UK, the main obligations of business actors or producers are:

  1. In good faith; In business activities, it is obligatory to do so in good faith, namely to be careful, comply with the rules, and with full responsibility.
  2. Giving information; obliged to provide information to the consumer community on the product and all appropriate matters regarding the product that consumers need. That information is true, clear, and honest information.
  3. Serve in the same way; must provide services to consumers correctly and honestly and do not discriminate in the way or quality of service in a discriminatory manner.
  4. Provide guarantees;
  5. Give a chance to try; must provide the opportunity for consumers to test or try certain products before consumers decide to buy or not to buy, with the intention that consumers gain confidence in the suitability of the product with their needs, and
  6. Give compensation; obliged to provide compensation, compensation, and/or compensation for losses due to the non-usefulness of the product to meet the needs according to its function and because the product received is not in accordance with the agreement.

Manufacturers are legally responsible for all their mistakes in carrying out the obligations mentioned above.

Business actors or producers can be legally prosecuted for any negligence in carrying out these obligations.

Prohibition for Producers in Employment Hubungan

The legislation provides certain prohibitions for business and production actors in relation to activities.

Actions that are prohibited by business actors that are not directly related to research, will only be briefly reviewed, the prohibitions can be categorized as follows:

  1. Business actors are prohibited from producing and/or trading goods and/or services that:
  • does not meet or does not comply with the required standards and provisions of laws and regulations;
  • not in accordance with the net weight, net or net contents, and the amount in the calculation as stated in the label or label of the goods;
  • not in accordance with the size, measure, scale, and amount in the calculation according to the actual size;
  • not in accordance with the conditions, guarantees, privileges, or efficacy as stated in the label, label, or description of the said goods and/or services
  • not in accordance with the quality, grade, composition, processing process, style, model, or certain use as stated in the label or description of the said goods and/or services;
  • not in accordance with the promise stated in the label, etiquette, description, advertisement, or promotion of the sale of the said goods and/or services;
  • does not include the expiration date or period of best use/utilization of certain goods;
  • does not follow the provisions for halal production, as stated in the “halal” statement on the label
  • not attaching labels or making descriptions of goods containing the name of the goods, size, net or net weight/content, composition, rules of use, date of manufacture, side effects, names and addresses of business actors as well as other information for the use which according to the provisions must be installed/manufactured;
  • does not include information and/or instructions for the use of goods in the Indonesian language in accordance with the provisions of the applicable laws and regulations.
  1. Business actors are prohibited from trading damaged, defective or used and polluted goods without providing complete and correct information on the goods in question.

The provisions of Law Number 8 of 1999 concerning Consumer Protection are the only general provisions that apply generally to the business activities of business actors in the Republic of Indonesia.

The essence of article 8 itself is related to the prohibition of producing goods and/or services, and the prohibition of trading the goods and/or services in question. Broadly speaking, the prohibitions imposed in Article 8 of the UUPK can be divided into 2 main prohibitions, namely:

  1. a prohibition on the product itself, which does not meet the proper requirements and standards to be used or used or utilized by consumers;
  2. prohibition regarding the availability of untrue, and inaccurate, information that misleads consumers.

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