Star Gazing
Outlook Money|July 2017

The higher the star rating, better the product is what the Bureau of Energy Efficiency (BEE), would like you to believe. But, do not be blinded just by these matrix figures.

Shipra Singh
Star Gazing

Star rating has caught consumer frenzy in every sphere—be it the app-based cab service, mutual fund schemes, insurance policies or the neighbourhood food joint. The belief that a higher rating indicates better product or service is not always true, as ratings are subjective and based on extensive data and experiences shared by people. So, about a decade ago, when the Bureau of Energy Efficiency (BEE) initiated star labelling on manufacturers of electrical goods like air conditioner, refrigerator, geyser, tubular fluorescent tube light among others, the intent was to get consumers to choose products where the power savings was high depending on the star rating of the product.

Since 2008 it is mandatory for product manufacturers of both white and brown goods to have the star ratings mentioned on their products prominently. Says Vijay Babu , Business Head, Residential Air Conditioners - LG Electronics: “For manufacturers star labelling provides an opportunity to differentiate and showcase their product excellence with the help of Star labels.” The move is commendable considering that the ratings reflect the power consumed by these goods. Considering that the cost of running an AC or refrigerator hinges on the power it consumes, it is very useful to know which product consumes more power, which in turn indicates its operational cost.

Gaining popularity

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