CONSUMER BEHAVIOR

Q1:- DESCRIPTION OF THE PRODUCT / SERVICE ASSIGNED TO YOU – PRODUCT LENGTH AND
DEPTH OR DETAILED ELABORATION OF SERVICE AS APPLICABLE.

STEEL

CARBON STEEL ALLOY STEEL TOOL STEEL STAINLESS

STEEL
Chromium
Low Carbon Molybdenum High Speed  Martensitic

Medium Nickel-Chromium-
Carbon Molybdenum  Hot Work  Ferritic

Chromium Cold Work

Vanadium Steel
High Carbon Austenitic

HSLA -Nickel-
Chromium-
Molybdenum

Q2:- STATE THE TYPE OF PRODUCT AS PER INDUSTRIAL GOODS CLASSIFICATION.

In industrial Goods Classification Steel comes under Manufacturing Material.
In this the type of product are: -
1. Carbon Steel

Carbon steel looks dull, matte-like, and is known to be vulnerable to corrosion. Overall, there are three subtypes to
this one: low, medium, and high carbon steel, with low containing about .30% of carbon, medium .60%, and high
1.5%. They are exceptionally strong, which is why they are often used to make things like knives, high-tension
wires, automotive parts, and other similar items.

Fact: Carbon steels make up about 90% of all steel production

2. Alloy Steel

Next up is alloy steel, which is a mixture of several different metals, like nickel, copper, and aluminium. These
tend to be more on the cheaper side, more resistant to corrosion and are favoured for some car parts, pipelines, ship
hulls, and mechanical projects. For this one, the strength depends on the concentration of the elements that it
contains.

3. Tool Steel

Tool steel is famous for being hard and both heat and scrape resistant. They are made up of things like cobalt,
molybdenum, and tungsten, and that is the underlying reason why tool steel has such advanced durability and heat
resistance features.

4. Stainless Steel
Stainless steels are probably the most well-known type on the market. This type is shiny and generally has around
10 to 20% chromium, which is their main alloying element. With this combination, it allows the steel to be
resistant to corrosion and very easily moulded into varying shapes. Because of their easy manipulation, flexibility,
and quality, stainless steel can be found in surgical equipment, home applications, silverware, and even
implemented as exterior cladding for commercial/industrial buildings.

Q3:- STATE THE IDENTIFIED SEGMENTS FOR THE PRODUCT OR SERVICE UNDER
CONSIDERATION.
1=CARBON STEEL
LOW CARBON STEEL is usually made into flat-rolled sheets and strips, used for shipbuilding, wire, vehicle
bodies and domestic appliances. It’s widely used for fabrication and panelling because it can’t be altered by heat
treatment. Carbon steel with the lowest possible amount of carbon is called ‘wrought iron’, used for fencing, gates
and railings.

MEDIUM CARBON STEEL is a lot easier to machine and also called mild steel, it’s commonly used structurally
in buildings and bridges, axles, gears, shafts, rails, pipelines and couplings, cars, fridges and washing machines.

HIGH CARBON STEEL has a much better tensile strength, used to make cutting tools, blades, punches, dies,
springs and high-strength wire.

ULTRA HIGH CARBON STEEL is brittle and very hard, and can’t be cold-worked. It’s used to make extremely
hard components like blades, cutting tools and large machine parts, hot water radiators, industrial castings and
metal lamp posts. It’s also called ‘cast iron’, and it’s the material used to make old fashioned cooking pots.

Q4:- WHAT KIND OF BUYING SITUATION YOU ARE ASSUMING TO BE ENCOUNTERED –

STRAIGHT REBUY / MODIFIED REBUY OR NEW TASK.
New Task ( start a business ) or Straight Rebuy (big Firm) as well as Modified Rebuy (For Personnel Uses
e.g.- Black smiths)

Q5:- YOUR JUDGMENT OF THE RELATIVE IMPORTANCE OF THE BUYING STEPS V/S BUYING
CLASSES FOLLOWED BY THE BUYER DURING THE SALES PROCESS. PLEASE FILL THE TABLE
BELOW FOR THE SAME.
    Buy Classes
    Straight Rebuy Modified Rebuy New Task
  1. Problem Recognition  Moderate High High
2. General Need
  Description   High High  High
  3. Product Specification   High  High  High
Buy 4. Supplier Search   Low Moderate High
Phases 5. Proposal Solicitation   High Moderate High
  6. Supplier Selection  Low Moderate  High
7. Order-routine
  Specification Moderate Moderate High
  8. Performance Review   High High  High

Q6:- HOW WILL YOU SELECT VALUE PROPOSITION – PLEASE MENTION ATTRIBUTES
OF PRODUCT/ SERVICE UNDER THE FOLLOWING PROPOSITION PARAMETERS.

1:-Functional Benefits :-
1. strength
2. surface finish
3. Controlled dimensional tolerance and concentricity
4. straightness
5. machinability.

2:-Economic &Social Benefits –

Q7:- CALCULATE THE PERCEIVED VALUE OF THE PRODUCT TO CONVENIENCE THE BUYER –

  Perceived Value Calculation  

  Value Attribute
Perceived
Quality On time Value
Brands Price Responsiveness
Delivery
AB Steel
 5 5  4  4  18 
Supplier
Tata
 4 5  3  5 17 
Steel
JSW
 4 5  3  3  14 
Steel
Jindal
 5 4  3  3  15 
Steel

Q8:- ESTABLISH THE ROLES PLAYED BY PEOPLE IN YOUR CUSTOMERS ORGANIZATION FOR
BUYING YOUR PRODUCT/SERVICE –
 Buying Authority / Designation of person from
Role the Buying Organization
Initiator  Machine operator
Influencer  Anyone
Decider  Production Manager
Approver  Finance Department
Buyer  Commodity Manager/ Supply Manager
User  Operation Team
Gate
Keeper  Secretary

Q9:- HOW WILL YOU NEGOTIATE PAYMENT TERMS, DISCOUNT, DELIVERY TERMS,
PACKAGING, FORWARDING, INSURANCE.
1:- DISCOUNT

 If you can increase your contract's order, then you have the leverage to negotiate a discount.
 Threatening to take volume away can give you leverage. You'll likely need to discuss this internally to
gain alignment.
 If your contract forms a large part of their annual production, you have the negotiation leverage. So ask
what proportion of their production you can buy.

2:- DELIVERY TERMS

 Should something need to be delivered regularly or at short notice, it is possible to pay a little more for the
goods supplied in order to ensure delivery as required.
 Payment with order may save pennies, but payment after the delivery of goods may help ease any cash flow
issues. Weigh up which is the better option for your provision.

3:- PACKAGING
 A beverage company was facing annual price hikes from a beverage-packaging supplier. It seemed to have no
way out; the supplier had patented its manufacturing process, and its pricing was lower than that of other
sources.
3:- FORWARDING

 Negotiate for their best prices, but be mindful that you have already established the market rate, and if you
push them too low you risk them cutting corners and your quality suffering accordingly. 
4:- INSURANCE

 It’s always wise to get your business insured. Rather than losing heavily due to the risks that your enterprise
is exposed to, it’s better to be prepared in advance. The Reliance Industry Care package is a perfect
insurance policy that gives you ample cover and the liberty to select the type of cover that you require for
your business.

Q10:- WHICH METHOD OF BUYING WILL YOU REQUEST THE BUYER TO FOLLOW – LIKE:
HAND TO MOUTH BUYING, SCHEDULED BUYING, MARKET PURCHASING, CONTRACT
BUYING, BLANKET ORDERS, SEASONAL BUYING AND GROUP PURCHASING. ANY OTHER
METHOD OF BUYING YOU WANT TO SUGGEST. THERE ARE 12 METHODS OF BUYING. PLEASE
READ THE SAME.
In my opinion CONTRACT BUYING is good option for Steel Suppliers

 Futures contracts are financial derivatives that oblige the buyer to purchase some underlying
asset (or the seller to sell that asset) at a predetermined future price and date.
 A futures contract allows an investor to speculate on the direction of a security, commodity, or
a financial instrument, either long or short, using leverage.
 Futures are also often used to hedge the price movement of the underlying asset to help prevent
losses from unfavourable price changes.

Q11:- YOUR JUDGMENT ON THE MAJOR FACTORS INFLUENCING THE BUYING BEHAVIOR
FOR YOUR PRODUCT / SERVICE –

  Influences on Business Buying Behaviour    

Degree
Degree Degree
Environmenta Organizational of Interpersonal Degree of Individual
of of
l Influences Influences Influenc Influences Influence Influences
Influence Influence
e
Level of
 High Objectives  High  Interests  High  Age Moderate 
Demand
Economic
 High Policies   High Authority   High Income   High
Outlook
Interest Rate High Procedures   High Status   High Education   High
Rate of
Organizational Job
Technological  High   High Empathy  Moderate  low
Structures Position
Change
Political and
Persuasivenes Personalit   High
Regulatory   High Systems   High   High
s y
Developments
Competitive Risk
  High           High 
Developments Attitude
Social
Responsibility   High       Culture   High
Concerns