to the consumers. The errs i age « n. bsence of the bu; s se aati vil come to a stand still. Right from the mo newspaper to milk and vegetables, we need different kinds of goods in ‘daily life. "The factors to be considered in buying include quality, quantity, timing_and the reputation of the supplier. A businessman will probabl consider the following points before taking the buying decision. i () He has to make an estimation of the demand for the goods in the market that he wants to produce and/or sell. - ii) Locating the source of supply is the next step. A decision S to b ” taken on croatian source from which he will buy. It is possible that he may buy from more than one source. i) The terms of credit of the supplier are an important determinant of buying. In business, there are usually credit transactions. The term of credit include the period of credit (whether 1 month, 45 days or months as the case may be), the mode _of payment (whether by cheque or cash) and so on. (iv) The reputation of the supplier is yet another important factor to b considered before taking the buying decision. The different st _involved in the buying decision of the consumer have discussed in the chapter ‘Buyer Behaviour’ Different Kinds of Buying “alg es a various kinds of buying, identified by market (i) Hand-to-mouth buying: It refers —, A Besules Duyithe Settles sade. os in small_quantities. dai = a | Speculative buying: Businessmen, aily use on this basis. , Who antici i of. pec 2 ds, accumulate stock oan ae = a 1 baring cae Such a kind of buying, kno Rego re is quite common in a share , pa Per the ‘Sale of Goods Act’ AA trip: :ilrs te Slee boas tr eke 9 At | goods are imported) or the seller may not permit such * tion (when certain secondhand goods are auctioned). ing by samples: It is not unusual for a buyer to ask for an certain items before buying. For example, when we buy sweets or savouries we do ask for samples. In some cases, the conformity of the sample to the bulk needs to be checked. Buying by description: Manufacturers of furniture items usually ee make available catalogues showing different models to enable their . customers to choose. They also make furniture as per the ___ description and specification given by their clients. (vi) Contract buying: Manufacturers who require regular supply of raw } ‘materials often enter into long-term contracts with the suppliers. The suppliers provide certain quantity of such materials at a certain price for a longer period of time. (vii) Scheduled Piping: This kind of buying is done by two business units where the output of one is the input of another. For example, there may be an agreement between a manufacturer of paper and a = manufacturer _of notebooks by which the former will supply the , latter certain quantity of paper at regular intérvals. By this practice they help each other. (viii) Period buying: This refers to the practice of buying at_regular "intervals. For example, most of us buy the p our our kitch in the beginning of each month. We usually buy from a particular provision store and the order is placed either in person or ‘over telephone. ‘Subhiksha’, a popular departmental store has also introduced ‘Internet net, Shopping’. ‘season, These are called seasonal goods. are demanded during Deepavali. The demand for ei more during Pongal. Books and notebooks are in Pin the begining of the academic. yea. te oan raincoats is more during rainy season.example, we may buy the sources and Keep. oy materials from d different sources | Be, yaoees from different m ers.of proper storage may not allow of eget g function. e perishable nature of certain goods (fruits and vegetables) may ide scope for assembling. -goods have a tendency to become outdated quickly. Keeping os of such goods may only result in loss. Example: Electronic goods. - oa iv) Exce! stock only results in blockage of capital. The quality of certain goods deteriorates with the efflux of time. They may have to be discarded once their expiry date lapses. Example: Medicines. 3. Selling ie The process of transferring ownership of goods from the - seller to the buyer is what is known as selling. Selling starts_ after_production. The _ Philosophy of selling is (‘profit maximisation’? The steps involved in selling may be briefly stated as follows: @ Finding a buyer. @) There shall be an agreement between the seller and the buyer on the quantity, quality, price, place of delivery and time of delivery of Be pueoeds and/also the mode of payment. ba The contract of sale provides for certain conditions and warranties be fulfilled by the seller. For the breach of conditions and Bets; the seller, the buyer may initiate legal action. ract of sale does not end with the seller giving delivery of and the latter making payment for the same. In o_provide consi pos and aahcapacities. CLASSIFICATION OF TRANSPORT e modes of transport have been classified into three ly land transport, sea transport and air transport. ik LAND TRANSPORT f divided into road transport and rail transport. lorries, trucks, buses, etc., are the means of road ts of road transport are given below: fs economical. % ‘ ) Damage to goods is generally much Jess in road transport le, It can reach the actual access even to the common man. only option, if goods are to be delivered within a particular . if door delivery is to be given by a dealer. ‘gt ee 5 sia place of loading and loading.goods, there will be variations between ‘The size, shape, colour and taste of two or or beetroot will not be the same. This happens ys a crucial role in agricultural production. The s is controlled by nature. Therefore, agricultural goods d. Such goods can only be segregated and divided shape, colour and so on. This process is what is sation and grading is able to determine the right price according to the e by description as well as by sample. ) different classes of buyers. Days the price the product deserves. In the absence of mn and grading he may pay more for a low grade. d to market a graded product are less. lot of. information about the market. Such important decisions. Information is