“A STUDY ON BUYER BEHAVIOUR WITH SPECIAL REFERENCE TO KERALA MINERALS AND METALS

LIMITED (KMML), CHAVARA, KOLLAM”.

Submitted

in partial fulfillment of the requirement for the award for the degree of

MASTER OF BUSINESS ADMINISTRATION

of

MAHATMAGANDHI UNIVERSITY, KOTTAYAM

BY

Mr. VYSHAKH.S

Reg no: 30519

Under the guidance of

Ms. LATHA . K

GIRIDEEPAM INSTITUTE OF ADVANCED LEARNING

KOTTAYAM

( Affiliated to MG University )

Vadavathoor P.O, Kottayam

Kerala pin: 686010, Ph: 0481-2578789

2011-2013

[1]

DECLARATION

VYSHAKH.S

4th semester MBA

Girideepam Institute of Advanced Learning, Kottayam

Reg No : 30519

I VYSHAKH.S, hereby declare that the project report entitled “A STUDY ON BUYER

BEHAVIOUR WITH SPECIAL REFERENCE TO KERALA MINERALS AND

METALS LIMITED, CHAVARA” submitted by me in partial fulfillment of the requirement

for the award of the degree of Master of Business Administration is my original and it has not

been previously formed the basis for the award of any degree, diploma, fellowship or any other

similar titles.

PLACE : VYSHAKH.S

DATE :

[2]

ACKNOWLEDGEMENT

First and foremost, I thank the Almighty God, the light of my life granting me the

strength, courage and knowledge to complete this project successfully. I express my sincere

thanks to Mr.UNNIKRISHNAN (Marketing Manager), KMML, Chavara for granting me

permission to undertake the project work and providing me all valuable information.

I express my profound sense of gratitude to Mr. JERRY JOSEPH (DY. MANAGER),

KMML, Chavara who have directed me through the project and have been a constant source of

information.

I express my sincere thanks to all of the staff of KMML for the guidance rendered in

my study. I am very much obliged to the respondents who have helped me in the collection of

data for my work.

I would like to express my heartfelt thanks to, our Director, Rev. Dr. VARGHESE

KAIPPANADUKKA O.I.C, GIRIDEEPAM INSTITUTE OF ADVANCED LEARNING,

KOTTAYAM for his kind patronage.

I am extremely thankful to our principal Dr.ABRAHAM SEBASTIAN AIKKARA,

GIRIDEEPAM INSTITUTE OF ADVANCED LEARNING, KOTTAYAM for granting me

permission to undertake this project work.

I express my sincere thanks to Ms.LATHA.K, ASSOCIATE PROFESSOR,

Department of Management Studies, GIRIDEEPAM INSTITUTE OF ADVANCED

LEARNING, KOTTAYAM , for the valuable guidance and support to complete the project

successfully.

I take this opportunity to express my deep gratitude to many people without whose co-

operation I could not have successfully completed this project work.

I am extremely thankful to my beloved parents and friends who have directly and

indirectly helped me in some way or the other in bringing out this report successfully.

VYSHAKH.S

[3]

ABSTRACT

The title of the study is “A STUDY ON BUYER BEHAVIOUR WITH SPECIAL

REFERENCE TO KERALA MINERALS AND METALS LIMITED, CHAVARA”.

Buyer behavior is all psychological, social and physical behavior of potential customers

as they become aware of, evaluate purchase, consume and tell other, people about product itself

and services. It is the process where by the individuals or the organization decide what, when,

where, how and from whom to purchase goods and services. Buying decision is more complex.

The purchase decision are based on many factors, such as compliance with product

specifications, product quality, availability or timely supply, acceptable payment and other

commercial terms, cost effectiveness, after sale service and so on.

In 1990 by the German scientist Dr.Schomberg who found traces of monazite in the sand

flakes on the imported coir from Sankarmangalam, Chavara. By 1932, a visionary private

entrepreneur established the F. X. Perira and Sons (Travancore) Pvt. Ltd, the forerunner to

KMML. During the course of time, KMML changed hands three times over. In 1956 it was taken

over by the state government and was placed under the control of the industries department. The

unit was subsequently converted as a limited company in 1972 by the name of “The Kerala

minerals and Metals Limited.” with the following broad objectives.

Optimum utilization of mineral wealth found along the sea coast of Kollam-Alappuzha Districts.

Large scale generation of employment of the state in general.

Overall growth and development of the local area in particular and the state in general.

The objectives of the study are:

To understand the buyer decision process.

To study the factors influencing the buyer behavior of KMML

The type of research used was a descriptive study. Both primary and secondary data was

collected for the study. Total population of the study was the customers of KMML, Chavara;

sample size taken for the study was twenty five. The sampling technique is used is simple

random sampling. The tools used for analysis are Chi-Square test and Percentage Analysis

method.

[4]

From the study the researcher found out that the respondents are satisfied with the quality

of the products provided in KMML. But most of the respondents are not highly satisfied with the

exchange facilities provided to its customers.

The researcher suggested the company to make area wise marketing as most of its

customers is located in the northern region. The company should take appropriate pricing

policies and also should take appropriate steps in maintaining its quality standards and also

recommended to conduct industrial exhibitions to make its customers aware of their product

features, its applications and also the quality of the products offered.

[5]

TABLE OF CONTENTS

Chapter

No.

Title Page

No.

1

1.1 Introduction

1.2 Industry Profile

1.3 Company Profile

1.4 Product Profile

1

9

15

26

2

2.1 Title of the study

2.2 Review of Literature

2.3 Research Methodology

2.4 Objectives of the study

2.5 Limitations of the study

34

34

37

42

42

3

FINDINGS, SUGGESTIONS & CONCLUSIONS

3.1 Findings

3.2 Suggestions

3.3 Conclusions

77

78

79

Bibliography

Appendices

80

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LIST OF TABLES

Table

No.

Title Page

No.

3.1 Table showing gender of respondents. 44

3.2 Table showing age of respondents. 45

3.3 Table showing the quality of the product play an intrinsic part in buying. 46

3.4 Table showing competitive developments change the buying pattern. 47

3.5 Table showing the organization structure is one of the most important factor

in the buying decision.

48

3.6 Table showing the procedure followed by the organization majorly affects

the buying.

49

3.7 Table showing the polices of the organization have a hand in the buying

pattern.

50

3.8 Table showing the supply conditions play a leading role in the buying

behavior.

51

3.9 Table showing the price of the product influences the buying process. 52

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3.10 Table showing the experiences of the participants influences the buying. 53

3.11 Table showing the income of the participants plays a leading role in the

buying pattern.

54

3.12 Table showing the risk bearing attitudes of the participating individual. 55

3.13 Table showing the education level and background of the participants affect

the buying process.

56

3.14 Table showing the political and legal changes will lead to changes in

buying.

57

3.15 Table showing the technology changes lead to changes in buying. 58

3.16 Table showing the personality of the participants plays a crucial role in the

buying process.

59

3.17 Table showing the economic developments influence the buying behavior. 60

[8]

LIST OF FIGURES

Table

No.

Title Page

No.

3.1 Figure showing gender of respondents. 44

3.2 Figure showing age of respondents. 45

3.3 Figure showing the quality of the product play an intrinsic part in buying. 46

3.4 Figure showing competitive developments change the buying pattern. 47

3.5 Figure showing the organization structure is one of the most important

factors in the buying decision.

48

3.6 Figure showing the procedure followed by the organization majorly affects

the buying.

49

3.7 Figure showing the polices of the organization have a hand in the buying

pattern.

50

3.8 Figure showing the supply conditions play a leading role in the buying

behavior.

51

3.9 Figure showing the price of the product influences the buying process. 52

[9]

3.10 Figure showing the experiences of the participants influences the buying.

53

3.11 Figure showing the income of the participants plays a leading role in the

buying pattern.

54

3.12 Figure showing the risk bearing attitudes of the participating individual. 55

3.13 Figure showing the education level and background of the participants

affect the buying process.

56

3.14 Figure showing the political and legal changes will lead to changes in

buying.

57

3.15 Figure showing the technology changes lead to changes in buying. 58

3.16 Figure showing the personality of the participants plays a crucial role in the

buying process.

59

3.17 Figure showing the economic developments influence the buying behavior. 60

[10]

[11]

1.1 INTRODUCTION

Buyer behavior is all psychological, social and physical behavior of potential customers as they

become aware of, evaluate purchase, consume and tell other, people about product itself and

services. It is the process where by the individuals or the organization decide what, when, where,

how and from whom to purchase goods and services. Buying decision is more complex. The

purchase decisions are based on many factors, such as compliance with product specifications,

product quality, availability or timely supply, acceptable payment and other commercial terms,

cost effectiveness, after sale service and so on.

PURCHASING ACTIVITIES:

The industrial purchasing (or buying) activities consist of various phases (or stages) of buying-

decision making process. The importance to be given to the various phases will depend upon the

type of buying (or purchase) situations. The industrial marketers should understand both the

phases of decision making process and the types of buying situations. Robinson, Faris and Wind

developed eight phases of buying-decision process in industrial market in 1967, and called the

process Buy phases.

Buy phases in the Industrial Buying-decision Process:

Buying is an organizational-decision making process. There are eight phases (or stages) in the

buying-decision process, indicating the logical sequence of activities.

PHASES IN BUYING DECISION PROCESS:

i. Recognition of a problem or need.

ii. Determination of the application or characteristics and quantity of needed product.

iii. Development of specifications or description of needed product.

iv. Search for qualifications of potential suppliers.

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v. Obtaining and analyzing supplier proposals.

vi. Evaluation of proposals and selection of suppliers.

vii. Selection of an order routine.

viii. Performance feedback and post-purchase evaluation.

1. Recognition of a Problem (or Need):

The recognition of a problem or need may originate within the buying firm or may also be

recognized by a smart marketer. When the quality of material supplied by the existing supplier is

not satisfactory, or the material is not available when required, or the machine supplied by the

existing supplier breaks down too often, the buying organization recognizes the problem. If an

industrial marketer identifies a problem in the buying organization and suggests how the problem

could be solved, there will be a better possibility of it being selected as a supplier. Consider the

case of a material handling equipment manufacturing company.

The sales executive of a material handling Equipment Company visited a car manufacturing

company in India, and while taking a walk on the shop floor of the car manufacturer, he noticed

a long queue of trucks waiting to unload the incoming components and parts. The operation of

unloading was taking a long time, as it was done in semi-manual way. He studied the operation

and then suggested that he could supply an automatic equipment (that is, Hydroelectric lift-

table), which could reduce the time of unloading substantially.

2. Determination of the Characteristics and Quantity of Needed Product:

Once the problem is recognized within or outside the buying organization, the next phase is how

to resolve the problem. The buying firm will try to answer questions such as: What type of

products or services to be considered? What quantity of the product needed? and so on. For

technical products, the technical departments (R&D, industrial engineering, production, or

quality control) will suggest general solutions of the needed product. For non-technical goods or

services, either the user department or purchase department may suggest products or services,

based on experience and also the quantity required to solve the problem. However, if the

required information is not available internally within the buying organization, the same can be

obtained from the outside sources.

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3. Development of Specifications of Nedded Product:

After the general solutions to the problem is determined in the second phase, the buying

organization, in the third stage, develops a precise statement of the specifications or

characteristics of the product or service needed. During this stage the purchase department takes

the help of their technical personnel, or if required, outside sources such as suppliers or

consultants. Industrial marketers have a great opportunity to get involved at this stage by helping

the buyer organization to develop product specifications and characteristics. It would give a

definite advantage by ensuring that the needed product includes his or her company's product

characteristics and specifications.

4. Search for Qualifications of Potential Suppliers:

In this phase the buying organization searches for acceptable suppliers or vendors. The first step

taken by the buyer is to obtain information on all the available suppliers and then, in the second

step, decide on the acceptable or qualifying suppliers. The search for potential suppliers is based

o the various sources of information like trade journals, sales calls, word of mouth, catalogues,

trade-shows, and industrial directories. The Qualifications of acceptable supplies will depend on

(a) the type of buying organization (i.e.; government undertaking, private sector commercial

organization, or institutions), (b) the buying situation (described subsequently in this chapter),

and (c) the decision making members (also described subsequently in this chapter). However,

generally the factors such as quality of product or service, reliability in delivery, and service are

considered in qualifications of suppliers.

5. Obtaining and Analyzing Supplier Proposals:

Once the qualified suppliers are decided, the buying organization obtains the proposals by

sending enquires to the qualified suppliers. A supplier's proposal can be in the form of a formal

offer, quotation, or a formal bid, submitted by the supplier to the buying organization. It should

include (a) the product specification, (b) price, (c) delivery period, (d) payment terms, (e) taxes

and duties applicable, (f) transportation cost (or fright), (g) cost of transit insurance, and (h) any

other relevant cost or free service provided.

[14]

For technically complex products and services, a lot of time is spent on analyzing proposals in

terms of comparisons on products, services, deliveries, and the landed costs (which includes the

price after discount plus excise duty, sales tax, freight, and insurance).

6. Evaluation of Proposals and Selection of Suppliers:

The buying organization evaluates the proposals of competing suppliers and selects one or more

suppliers. Further negotiations may continue with selected suppliers on prices, payment terms,

deliveries, and so on. The decision makers in the buying organization may evaluate each supplier

on a set of agreed-upon attributes or factors.

7. Selection of an Order Routine:

In this stage, the mechanics of exchange of goods and services between a buyer and a seller is

worked out. The activities include (a) placement of orders (i.e. purchase orders) with the selected

suppliers, (b) the quantity to be purchased from purchased from each supplier, (c) frequency of

order placement by buyers and delivery schedules to be adhered to by the supplier, (d) levels of

inventory needed, (e) follow up of actual delivery to ensure it to be as per delivery schedule, and

(f) the payment terms to be adhered to by the buyer. The user (or indenting) department would

not be satisfied until the supplier delivers the required item as per delivery schedule, and with

acceptable quality.

8. Performance Feedback and Post-purchase Evaluation:

In this final phase, a formal or informal review regarding the performance of each supplier (or

vendor) takes place. The user department gives a feedback on whether the purchase item solved

the problem or not. If not, the members of the decision making unit review their earlier decision

and decide to give a chance to the previously rejected supplier.

[15]

TYPES OF PURCHASES OR BUYING SITUATIONS:

There are three common types of buying situations, called buy classes:

(1) New Purchase (or New Task)

(2) Change in Supplier (or Modified re-buy), and

(3) Repeat purchase (or Straight re-buy)

(1) New Purchase (or New Task):

In this situation the company is buying the item for the first time. The need for a new purchase

may be due to internal or external factors. For instance, when a firm decides to diversify into

new products or services, it necessitates the purchase of a new machine, material, or parts. In the

new purchase situations, the buyers have limited knowledge and lack of previous experience.

Hence, they have to obtain a variety of information about the product, the suppliers, and the

prices and so on. In the new task decision, (a) the risks are more, (b) decisions may take longer

time, and more people are involved in decision making.

(2) Change in Supplier (or Modified Re-buy):

A modified re-buy situation occurs when the organization is not satisfied with the performance

of the existing suppliers, or the need arises for cost reduction or quality improvement. The

change in supplier may also be necessary if technical people in the buying organization ask for

changes in the product specification, or marketing department asks for additional features in the

product to gain some competitive advantage. As a result, search for information about an

alternative source of supply becomes necessary.

Although certain attributes or factors can be used to evaluate supplier, there may be uncertainty

regarding which supplier can best meet the needs of the buying firm. However, the modified

rebuy situation occurs mostly when the buying firms are not satisfied with the performance of

the existing suppliers. Consider the following example:

A large multi-product, multi-location company took a decision to change the existing marketing

research firm because the company was not satisfied with the quality of report submitted by the

[16]

marketing research firm on a chemical product. The company was planning to diversify and was

keen to get the information on competition, potential customers, long-term demand forecasting,

and so on, from the market survey report. However, the information given in the report by the

marketing research firm was vague and inaccurate. The senior executives of the company,

therefore, took a decision to change the supplier.

(3) Repeat purchase (or Straight Re-buy):

This situation occurs when the buying organization requires certain products or services

continuously and when such products or services had been purchased in the past. In such a

situation, the buying organization recorders or places repeat orders with the suppliers who are

currently supplying such items. This means that the product, the price, the delivery period, and

the payment terms remain the same in the reorder, as per the original purchase order. This is a

routine decision with low risk and less information needs, taken by a junior executive in the

purchase department. Generally, the buying firms do not change the existing suppliers if their

performance (on the previously established performance criteria) is satisfactory.

THE BUYGRID FRAMEWORK:

Understanding organizational buying becomes easier if it is divided into different buying phases

and these phases are analyzed under different buying situations (called buy classes).

Robinson have formulated the buy grid framework, which combines three types of buying

situations (buy classes) with eight phases of buying decision process (buy phases). An analysis

of the buy phases in relation to the buy classes gave interesting results, which are summarized

below:

1. All eight phases of the industrial buying process are applicable to a new-task buying situation.

However, in case of modified re-buy and straight re-buy situations, only some of the buy phases

are applicable.

[17]

2. The most difficult buying situation occurs for a new-task in buy phases of problem recognition,

and determination of product characteristics and specification. This is because maximum number

of decision making members and influencers are involved.

3. Modified re-buy situations are not very difficult to handle.

4. Straight re-buy situations are handled in a routine manner.

Short Summary:

The industrial buying process is a function of the technical complexity of the product, the

commercial complexity of the negotiations and behavioral complexity of the human interactions.

A fairly common way of classifying the purchase decision areas is as follows:

(a) Recognition of a need;

(b) Confirmation of the need;

(c) Agreement on specifications;

(d) Recommendations as to the suppliers;

(e) Purchase authorization; and

(f) Placing of the order.

The elements of industrial purchase are used for the purchased item, reasons for purchase

complexity. The study of buyer behavior in industrial firms is focused largely on the selection of

a vendor. Most of these vendor selection studies are centered on the traditional variables of price,

quality, delivery and service. There are four approaches normally followed in vendor selection.

They are total cost approach, cost of quality, categorical plan and weighted plan.

Industrial buying behavior can best be conceptualized as decision making in which both

organizational and individual variables are paramount. The Decision Making Unit (DMU)

consists of individuals who actively participate in the purchase decision making process. All

these decisions are influenced by economic and emotional factors. The characteristics of DMU

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are explained. The buy phases are classified into three categories- New Task, Modified Re-buy,

and Straight Re-buy. New Task describes a buying situation in which the problem encountered is

a new one where information requirements are high and the consideration of alternatives is very

important. Modified Re-buy situation is characterized by an essentially learning problem which

has certain new aspects, but limited importance of considering alternatives. In straight Rebuy

situation, the problem faced is not a new one; information requirements are minimal and there is

no consideration of alternatives.

The industrial buying process might be broken down into eight distinct stages for the purpose of

analysis. The buy grid analytic frame work for industrial buying situation is explained. As an

interdepartmental decision making unit, the buying centre is really an ad hoc coalition consisting

of members with different goals. These differences emanate from both differences in personal

characteristics and in role position. The conflict resolution strategies and the source of power in

conflict resolution are explained. Members of the buying centre approach the selection of a

vendor with uncertainty. Many dimensions of uncertainty exist and include product attributes

such as quality, and vendor attributes such as delivery on time. The basis of this uncertainty is

the lack of perfect information. Alleviation of uncertainty is achieved by several mechanisms.

Throughout the industrial buying process, one or more of the decision makers engage in

information search. The purpose of information is to reduce the uncertainty of the decision

outcomes.

The behavioral theory of the firm states that, when an organization discovers a solution to a

problem by searching in a particular way it will be more likely to react in that way in future for

problems of the same type. Thus, the order in which various alternative solutions to a problem

are considered will change as the organization experience success or failure with alternatives.

The buying centre is defined as members of the organization having face-to-face contact with

others respect to the purchase decision and who realize or perceive both an influence and a

responsibility to a purchase decision. The various blending of organizational and individual goals

are also explained. Most of the decisions are group decisions, and the composition of these

groups characteristically changes from phase to phase. These groups of individuals involved in

the purchase process are called multiple purchase influence groups.

[19]

1.2 INDUSTRY PROFILE:

Titanium Dioxide is one of the top 20 inorganic chemicals of industrial importance. It is

the most important pigment material used. Titanium Dioxide has the highest refractive index

among the known materials and hence it imparts best pigment properties such as hiding power,

opacity etc. Titanium Dioxide is the whitest of the White Pigments. It is used extensively in

paint, paper, plastic and other industries. High purity titanium dioxide is an important electronic

material. First successful attempt to produce relatively pure titanium dioxide from ilmenite ore

was made by Rossi in USA in 1908. The first titanium pigment company which initially

produced composite pigments commenced production at Niagara Falls in 1918. Since those days

and even today USA has been in the vanguard of development of titanium dioxide industry.

Another important landmark in the history of titanium dioxide was development of

improved method of thermal hydrolysis by Blumenfeld in 1920 in France. The technology was

licensed to a number of companies in Europe as well as in USA. The event that revolutionized

the titanium dioxide industry was the development of Chloride Technology by M/s. Du-pont

around 1959. The chloride technology took the US industry by Stonn and in a short span, most of

the sulphate route plants were closed or replaced by chloride route plants.

In the 1960s and 1970s major investment was made in the titanium dioxide plants in

Europe. M/s Tioxide of UK, M/s Kronos of Germany and M/s. Thann and Mulhouse of France

have emerged as the leading European companies in the field of titanium dioxide. The Japanese

industry has picked up in recent years and the Japanese production has now reached a level of

about 280,000 tones, M/s. Ishihara are the leaders of the Japanese titanium dioxide industry. 5.0

In India the titanium dioxide industry arrived almost with the dawn of independence. First plant

was set-up by the erstwhile State of Travancore in 1950. However, thereafter the growth of the

Indian industry has been rather sluggish. 6.0 The per capita consumption of titanium dioxide in

USA is about 3.4 Kg. The consumption in Asia-Pacific region is about 0.2Kg.The Indian

consumption, however, is extremely low at less than 0.05 Kg. 7.0 Titanium dioxide is produced

and marketed in two grades. These are Rutile and Anatase. Rutile has close packed structure

whereas Anatase has, more open structure. Rutile has higher density, higher refractive index,

and better resistance to chalking and higher hardness. 8.0 Because of high refractive index,

titanh: m dioxide pigments exhibit the highest hiding power. If the hiding power of Rutile is

[20]

placed at 100, that of Anatase is 78. The hiding power of other common pigments such as zinc

sulphate, lithophone, white lead etc. ranges between 39 to 10.

There are three main fields of applications of titanium dioxide. These are:

i) Coatings (paints)

ii) Paper

iii) Plastics

iv) Miscellaneous usages

The percentage of consumption in different sectors varies from country to country. In

USA coatings account for 51%, paper 24%, plastics 14% and other usages 11%. In most

countries, however, the share of the plastic industry is growing in all the countries. Use of Rutile

grade is preferred for applications in paints, plastics. Ceramics, etc. Anatase grade imparts a

bluish tinge and is preferred by the paper industry. Similarly, Anatase grade has less hardness

and is thus less abrasive. Hence Anatase grade is invariably used for delustering of synthetic

textile fibres.

The present (1991) requirement of titanium dioxide in the country is estimated at 47,480

tons. Out of this, about 31,530 tons (or 66.4%) is consumed by the Paint Industry. The Paper and

Plastic industries requirements are about 3,000 and 5,000 tons respectively. The miscellaneous

demand is about 8,000 tons. Out of the total requirements, about 65% is for Rutile grade and

35% for Anatase grade. It is anticipated that the requirements of Rutile grade will increase in the

future at the expense of Anatase grade. The demand determinant sectors namely Paints, Paper

and Plastics are expected to grow at the rate of 7%, 2.6% and 10% in the year upto 2000. The

total demand of titanium dioxide is projected to increase to 61,620 tons by 1995 and 82,890 tons

by the year 2000. This corresponds to growth rate of about 6.9% which seems very reasonable. If

India could make even a small dent in the export market, the total annual requirement of titanium

dioxide will cross 100,000 tons by the year 2000. Presently titanium dioxide is being

manufactured in India by three companies. These are

M/s. Travancore Titanium Products Limited, Trivandrum.

M/s. Kerala Minerals and Metals Limited, Quilon and

M/s. Kolmac Chemicals,Calcutta.

[21]

M/s. TTP are the oldest manufacturer of titanium dioxide in India. They use sulphate

process and their plant has installed capacity of 24,500 tonne. The present production level is

about 10,000 tonne. The technology for the sulphate process was obtained from M/s. Tioxide of

U.K. who are also the equity partners.

M/s. KMML have set-up a plant to manufacture titanium dioxide by chloride process.

The plant has an installed capacity of 22,000 TPY but the production is only around 9,000 TPY.

The technology was provided by M/s. KMCC of USA.

M/s, Kolmac have a small plant at Kalyani near Calcutta and they produce about 1,300

TPY of anatase grade pigment. The technology was developed indigenously. After several years,

the operation of the plant seems to have stabilized now.

The present demand (1991) has been indicated as 47,480 tons whereas the present

production is about 21,800 tons. A new project of 15,000 tons capacity is being pursued actively.

It is anticipated that another project of 15,000 tons shall be set up before the end of the century.

On these assumptions it is projected that the domestic production of titanium dioxide will

increase to 33,800 tons by the year 2000. Correspondingly, the demand shall increase to 61,620

tons and 82,890 tons. This would mean that the present demand supply gap of 25,680 tons will

increase to 27,820 tons by 1995 and 32,180 tons by the year 2000. If a provision is made for

exports then, the gap between demand and availability will exceed 40,000 tons.

These are two distinct technologies used for manufacture of titanium dioxide . These are

Sulphate process and Chloride process. The sulphate process has been in existence for more than

70 years. The process involves the following steps:

i. Digestion of Illmenite or Titania Slag in Sulphuric Acid

ii. Reduction and Crystallization

iii. Hydrolysis

iv. Calcination

v. Dry Milling

The product obtained by sulphate process is usually Anatase which can be further treated to

obtain Rutile. The feed stocks used for sulphate process are mainly ilmenite or titania slag. The

[22]

major disadvantages of the sulphate process is that large quantities of waste products, (about 10-

12 tonnes per tone of finished product) are generated in the form of spent acid and copperas can

be reduced by using titania slag as the feed stock instead of ilmenite.

The chloride process was developed by Du-Pont around 1959. The main process steps are

as follows:

i. Chlorination of Synthetic Rutile or other raw materials.

ii. Purifiacation of titanium tetra chloride.

iii. Oxidation of pure titanium dioxide.

iv. Finishing of raw titanium dioxide.

The main advantages of the chloride process are as follows:

i. Product obtained is Rutile and is of a better quality.

ii. Process is continuous.

iii. The waste products generated are in small quantities.

A technical comparison of the sulphate and Chloride processes indicates that the chloride

process gives a product which is finer in particle size, is low in impurity contents and less waste

products are generated. As a result more and more manufacturers are progressively shifting to

the chloride process. Presently about 55% of the titanium dioxide is produced by sulphate

process. It is anticipated that by 1995, this proportion will drop to 5% or even lower. The

elemental sulphur which is used for manufacture of sulphuric acid,required in the sulphate

process has to be imported in India. The raw material assembly cost for the chloride process. So

far four companies have sourced technology from abroad. M/s TTP obtained sulphate technology

from M/s. Tioxide of U.K. M/s. Tioxide also joined TTP as equity partner. M/s. KMML obtained

technology from KMCC of U.S.A. M/s. Kanoria Chemicals signed an agreement with M/s.

KMCC for technology. However, the project was not implemented. M/s. Prodhvi Industry have

an agreement with Czechoslavakia for provision of sulphate technology. On the pollution

aspects, the Indian industry leaves far to be desired. M/s TTP are presently discharging copperas

and waste acid in the Arabian Sea.

[23]

On the international scene, the titanium dioxide industry is going strong and despite

occasional recession in the market, the industry continues to grow at an average rate of about

2.5%. The industry is dominated by U.S.A., U.K., Germany, France and Japan. About half a

dozen multi-national companies account for more than 60% of the world capacity. A number of

new projects are in pipe line which include Du-Pont ventures in Taiwan, Korea and Brazil,

Kronos project in USA, Tioxide projects in Canada and Au stralia, Projects in Saudi Arabia and

Malaysia, etc. It is anticipated that by the year 1995 the installed capacity will cross 4.0 Million

tonne.

Comparison of 1990 installed capacity and demand for the year 2000 indicates that there

would be a short fall of about 625,000 tonne. Thus additional capacity will have to be created

before the end of the century. This would mean scope for setting up of atleast 10 new projects of

about 60,000 TPY capacity. Despite the plentiful resources of titanium minerals in the country;

the growth of the titanium dioxide industry in India has been constrained mainly because of the

following factors:

i) Non-availability of technology.

ii) Capital intensive nature of the projects.

iii) Complex technology necessitating long gestation periods.

iv) Pollution problems.

The major technology gaps identified are as follows:

i) The Sulphate Technology available in the country is relatively old.Important

development have taken place in the sulphate technology in 1970s after

emergence of the Chloride Technology as a competitor. These developments

are not available indigenously.

ii) Pollution problems in sulphate technology are alleviated by manufacture of a

number of by-products. The by-products technology is well developed in

Japan. This is not available in India.

iii) A number of developments have taken place to overcome the pollution

problems. These developments are also not available in India.

[24]

TITANIUM DIOXIDE MANUFACTURES OF THE WORLD (COMPETITON):

1. Dupont De Nemours co. Willington (USA)

2. Ishihara Sangyo Kaichi Limited, Tokyo (Japan)

3. Rhane Roulene (France)

4. Fletchek Titanium Products (New)

5. Hilton Corporation (SA)

6. Kerr-Mc-Gee Chemicals Corporation (USA)

7. Toifine (Netherlands)

8. Kemera (Finland)

[25]

1.3 COMPANY PROFILE:

Kerala is known as “God’s own country’. Its landscapes hills, beaches, and

backwaters tell a story of its people’s penchants to preserve the nature and beauty. KMML has

today grown into a self-sustained Green company with a commitment to develop and nature the

natural environment, KMML stands for its total quality culture it terms of people, products,

services, workplace safety, energy and environment.

Kerala is also enriched with heavy minerals deposits. The western side of Kerala has the

healing touch of Arabian Sea and the southern part of the southern part of the seashore has been

roar and richest deposits of precious mineral sand. These mineral sand deposits stretch along the

sea coast between two tidal channels “Kayamkulam and Neendakara” which is known as “Black

Gold Mine” of Kerala which is generally known as “Chavara Coast”. The main content of these

sand deposits are Ilmenite Monazite, Zircon, Rutile, and Leucoxene etc.

In the year v 1909 Mr. Shaumberg a German Scientist discovered the presence of

monazite and illminite in the black beach sand of Kerala State. The people in the coastal village

of Sankara Mangalam in South Kerala made a living out of fishing and beating Coconut fibre to

make coir. And once when bundles of coir were expected to Germany, it had smears of pasty,

black clay, when, out of curiosity, the clay was analyzed by Dr. Schomberg, it was found that it

contained traces of monazite. The land mark discovery made by the renowned Scientist changed

the face of mineral industry in India.

From the began a tale of opportunities, challenges, excitement, and growth. Inspired by

the vast unending natural resources, KMML came into being and today stands tall among the

public sector undertaking in the state. KMML is today the flagship company in the government

of Kerala with a presence that extends beyond the sleepy coastal villages and making a mark in

international mineral and metal.

[26]

SALIENT FEATURES OF KMML

The Kerala Minerals and Metals Limited, a State Government under taking is

world’s first fully integrated Titanium Dioxide plant.

KMML is India’s only producer of Rutile grade Titanium Dioxide by chloride route.

KMML maintains quality systems as per ISO 9002 – 1994.

KMML is Kerala’s No.1 profit maintaining company from public sector.

Annual turnover of the company is 100 crore.

Exporting aim of KMML is 1000 crore.

ORIGIN OF KERALA MENARALS AND METALS LTD:

In 1932 M/s. F.X. Pereina and Sons (Travancore) Private Ltd. Were the pioneers who

established the first full – fledged minerals separation industry in Chavara area in 1932 for the

purpose of day separation process. These industry mining and separating the mineral sand into

zircon and monazite.

In 1956 the Kerala Government took over the management of a private mineral company

“FX Private Ltd”. From 1956 to 1972 it was run by the Industrial Department of Kerala

Government under the name “Fx P Mineral”. In 1971 the ownership of the company was

transferred to the state Government. The state government realized that the mineral deposit of

Chavara was the richest mineral assets of the state which requires larger exploitation. Thus the

“Fx P Mineral” was taken over by the State Government in 1972 and renamed it was “The

Kerala Minerals and Metals Ltd. (KMML)”.

[27]

KMML is India first and only manufacturer of Rutile” Grade T102. It is the first totally

integrated T102 plant in the world. The products of KMML are marketed under the Brand Name

“KEMOX”. KMML has two units Minerals Separation unit and Titanium Dioxide pigment

plant. The pigment unit was started in 1984 with the technical assistance of Kerr Me Gee

Chemical Corporation. USA. Even though the company has initial technical problem KMML

has been able to make history in the industrial scene in Kerala due to dedicated work of all

section of employees and timely innovations in the technologies. KMML is using chloride

Technology.

KMML is popularly known as “Titanium Complex”. KMML is only “Zero Debt”

industry in Kerala.

LOCATION OF KMML:

KMML is located at Sankaramangalam near Chavara, Kollam town 85 km north to

Thiruvananthapuram District very near to NH 47 and to the sea coast about 285 acres in area.

KMML has a wide reputation and it is a social responsible company with an eco-friendly image.

KMML has won National Acclaim for its impressive performance. The KMML is now

popularly known as the “Titanium Complex”.

PLANT CONSTRUCTION:

The Tio2 pigment construction was started in the year 1979 and commissioned in Dec.

1984. Total capital cost was Rs. 105 cores. The paid up capital of Rs. 27 cores has been fully

contribution by Govt. of Kerala. The balance requirements have been financed as long term loans

by financial institution such as IDBI, LIC, SBT, SBI etc.

[28]

COMPANY VISION:

“KMML” be a world class producer of mineral sand based value added products

COMPANY MISSION:

To become a nodal agency for promoting and establishing mineral based or industries in

the state, value addition, effective and controlled exploitation of Tio2 pigment.

To develop adequate supply base for the services and utility for development of the

pigment based industries.

To create more awareness about corporate social responsibilities for chemical industries.

To become the leader in controlling green house gas emission so as to promote the

concept of the green earth.

RECOGNITIONS AND AWARDS:

Honored consecutively in the second year (2003-2004) with the Capexil Award.

Received Bharatyer Udyog Ratan Award (2002 – 2003).

Best State Level Public Sector Stall Award sponsored by the Indian Institute of Metals

Delhi at the fifth international trade face and seminar held at Pragathi Maidan during

2004.

International gold medal quality of production and efficiency of the company by the

forum Kerala Temper Global Rating in UK in 2003.

Special Export Award for exceptional performs by comical and allied products exports

promotion council sponsored by Ministry of Council.

[29]

Energy Conversion Award 1999 in appreciation for the outstanding achievement towards

Energy Conversation and Management.

International Global Award 2003 for the quality and efficiency awarded by the

International Export Council.

Marketing Campaign Award 2003 for the best marketing campaign by Asia pacific

coating.

FACT MKK NAIR Memorial productivity Award during the year 1999 – 2000.

2000 – 2001

2001 - 2002

A business organization has to perform a number of activities in order to run itself; in

functional form of departmentalization and organization group functions or activities into

primary departments. The application of functional form of departmentalization means grouping

activities into department of production, marketing human resource development and finance.

The various departments of KMML are:

Marketing Department

Personnel and Administrative Department

Finance Department

Production Department

Material Department

Fire and Safety Department

Maintenance Department

Project Department

Data Processing Department

Research and Development Department

Utility Department

[30]

Production Department:

The Organization is basically a production oriented one and the production

department has the position among other departments and all the departments play just auxiliary

role to it. The department is divided into various sections and each section has its one identity.

Personnel Department:

This department is concerned with the man power management of the company

and headed by the Joint General Manager (Personnel and Administration).

Financial Department:

It is entrusted with the financial matters of the company. This department

headed by General Manager (Finance)

Marketing Department:

KMML has monopoly in the marketing of Titanium Dioxide but at present at the

company faces some marketing problems. This is because of the imported policy of the Central

Government. This department is headed by the Joint General Manager (Marketing).

Fire and Safety Department:

Fire and safety is the main department of KMML. It manages the processing of

giving security to the employees by giving successful training and giving license to employees

and machines. The details of the accident are stored in a special data base and handle this

section with a most care.

MARKETING DEPARTMENT:

[31]

Marketing is the functional area an organization that is responsible for determining the

actual goods and services offered to the customer. KMML has a monopolistic nature in Titanium

Dioxide Pigment. It is a public limited company that stands as a leader in the production in

Titanium Dioxide. The company has large number of customers all over India and from outside.

The Marketing Department is engaged in selling company’s products. There is no separate sales

department and the marketing department also keeps details report about their customer,

products, product group, contract, dispatch and payment.

FUNCTIONS OF MARKETING DEPARTMENT

1. Grading:

The products of the company are sold on the basis of grades. Quality is the basis of

grading the products. Six grades to Titanium Dioxide are produced and it is further graded into

A, B and C

2. Packing and labeling:

Packing has become a potent marketing tool. Well designed packages a potent marketing

tool. Well designed packages can create convenience and promotional value. In KMML

Titanium Dioxide packed in walled paper bags. There are chances for dispute in weight of

consignment; in such cases weight recorded in bridge is taken as final.

3. Selling:

KMML sell its product directly to its customers and stockiest the company through the

country appoints the stockiest. The stockiest must purchase a minimum of 150 mega tone of

Titanium Dioxide annual at the price fixed by the company and should order of 7.5 mega tone.

The stockiest in turn sell Titanium Dioxide pigment to their area wise retailer and final

consumer.

4. Dispatching:

After receiving the order from the stockiest, the marketing department manages the

execution of order by way of dispatching.

For dispatching the goods the following formalities are to completed by the customers.

[32]

Payment

Transportation and insurance

For dispatching of goods payment must be made in the form of Demand Draft or Cheque.

Demand Draft should be drawn from any schedule bank or by irrevocable sight letter or credit.

In order to complete in the global market, now the company has declared a credit scheme of 60

days to its selected major customers. For parties availing credit discount, rate shall be reduced at

the rate of 1% per month of the credit availed.

The various document and registers to be prepared for dispatching goods are as follows.

1. Order Register:

The order received is entered in the register. It shows receiving order, name of the party,

grades of the product, payment of the cash and also reveals the destination and transporters

name.

2. Delivery note:

This document is prepared by dispatch section of marketing department and is prepared

before the goods are dispatched. The delivery note has to be maintained in triplicate and stolid

be serially numbered.

(a) Delivery Chelan:

It contains the details about the goods, name of carriers, lorry receipt number, gate pass

and date of dispatch.

(b) Invoice:

This is prepared by the finance department and submitted to the marketing department. It

shows the name of the customers.

MARKET STRATEGY

[33]

Market Strategy decides the success at the business unit level which in turn decides the

total corporation’s success. The linkage between the market strategy and overall corporate

success is indeed direct and vital since the marketing objective is the purpose of marketing

strategy. It is the only logic that market strategy takes its direction from marketing objectives of

the firm.

MARKETING MIX OF KMML

Marketing Mix is the term and used to describe the combination of the inputs which

constitutes the core of the company’s marketing system.

They are:

a) Product

b) Price

c) Place

d) Promotion

Product:

At present KMML product six grades of Titanium products. They are:

KEMOX RC 800

KEMOX RC 800 PG

KEMOX RC 813

KEMOX RC 822

KEMOX RC 802

KEMOX RC 808

The other products are:

Monazite

Silliminite

Zircon

Leucoxene

[34]

Titanium

Titanium Tetra Chloride

Iron Oxide Bricks

Price:

Price is the only element in the marketing mix which produces revenue, all other

elements represent costs. Now a day KMML pricing and price competition is the problem facing

by the marketing executives. Since KMML is monopolistic in nature, company has to face much

competition from outside market and its pricing is based on import market price, quality,

quantity and many other factors.

Place:

Marketing channel decisions among the most important decision that management faces.

A company’s channel decisions directly affect every other marketing decisions depends on how

much persuasion training and motivation the dealer needed.

All the grades of Titanium Dioxide pigment come under the category of industrial goods .

Titanium Dioxide is mainly used in paints industry, printing industry, etc., the customers of the

KMML can be divided into three. They are:

Major Customers

Stockiest

Other Customers

Major Customers

Asian paints

Corlass Nerolac

Berger Paints

Finolex

Shalimar Paints

ICI India Ltd.

Jenson and Nicholson

Snowcem Chemicals

[35]

Hindustan Latex & Resins

Billaspur Industries

Mega Meditex

Camlin

Stockiest:

KMML has appointed stockiest in various parts of the country in order to sell Rutile

grade of Titanium Dioxide. At present KMML have 44 stockiest. They are located in various

parts of the country. The duly of the stockiest is that they will store the various grade of pigment

of KMML and will supply to end users.

Customers:

KMML has more than 250 customers in different parts of India

Production:

KMML is the sole manufacturer of Rutile grade of Titanium Dioxide in India. Hence

there is no much competition in the world market. KMML makes advertisement in trade

journals, industrial news, magazines, etc., advertisement is also given in the news paper while

appointing stockiest.

1.4 PRODUCT PROFILE:

KMML always maintains high standards of perfection, achieving technical excellence in every

phase of production. Catering to strict guidelines, KMML offers a wide range of products for

[36]

quality conscious customers. Our products go

into the manufacture of a variety of products

used in everyday life. Dress materials, facial

creams, tablets, newsprints, wood paints,

emulsions, enamels, plastics, tooth paste,

rubber products, cosmetics, and printing ink

– All contain titanium dioxide. Believe it;

you need our products to brighten your life.

The various products of KMML are:

KEMOX RC 800

[37]

Titanium Dioxide Pigment (Rutile)

KEMOX -RC 800

KEMOX - RC 800 PG

KEMOX - RC 802

KEMOX - RC 804

KEMOX - RC 808

KEMOX - RC 813

KEMOX - RC 822

Titanium Tetra Chloride

Ilmenite

Rutile

Leucoxene

Zircon

Sillimenite

Monazite

Iron Oxide Bricks

Application

Kemox RC 800 is recommended for printing inks, high gloss coatings, industrial

coatings, low abrasivity pigment for letter press gravure polyamides and exterior applications

where maximum chalk resistance is not required.

KEMOX RC 800 PG

General Description

Kemox RC 800 PG is a low oil absorption, medium durable alumina treated plastic grade

rutile pigment produced by the chloride process. It has high tinting strength and excellent

dispersion property. RC 800 PG exhibits comparatively low abrasivity.

Application

Kemox RC 800 PG finds application in plastic requiring a blue white high dispersion

TiO2. Other areas of application are powder coating, polyethylene films and vinyl sheet goods. It

is used in most other common plastic/ rubber floor like applications.

KEMOX RC 802

General Description

Kemox RC 802 is a multi purpose superior performance rutile titanium dioxide pigment

produced by the chloride process. It is surface treated with alumina and silica. RC 802 has good

opacity and weathering property. It has high gloss and is easily dispersible.

Application

[38]

Kemox RC 802 is recommended for both interior and exterior applications. This is

recommended for architectural and industrial paints-both solvent and water based.

KEMOX RC 808

General Description

Kemox RC 808 IS chloride process rutile dioxide pigment surface treated with alumina,

zirconia and silica. It is designed to a universal grade suitable for multipurpose applications

where outstanding optical properties, very good gloss retention and chalk resistance are required.

Kemox RC 808 gives high gloss, haze free finishes and high brightness. It is easily dispersed and

has high tinting strength and produces clean shades in tints.

Application

Kemox RC 808 is recommended for automotive, industrial and architectural finishes. It is

also recommended for oil coating, radiation cured finishes, emulsion paint systems powder

coating, water borne coatings and printing inks. It can also be used for letter-presses gravure,

polyamides and other inks where low abrasive pigments are required.

KEMOX RC 813

General Description

Kemox RC 813 is a highly treated rutile pigment produced by the chloride process. It is

surface treated with alumina and silica. It has highest dry hiding properties. KEMOX RC 813 has

the highest durability in exterior weathering. I t has excellent dispershibility.

Application

Kemox RC 813 can be used in both interior and exterior low gloss and flat paints and

coatings- both solvent and water based. It finds applications in interior flat wall paints, exterior

low gloss or flat house paints, low gloss maintenances paints, low gloss or flat chemical coating

etc. KEMOX RC813 can be described as a universal pigment for all coating formulated at higher

percentage pigment volume concentrations.

[39]

KEMOX RC 822

General Description

Kemox RC 822 is a silica alumina and organic treated titanium dioxide pigment produced

by the chloride process. It has the highest degree of gloss and tint retention properties in exterior

film applications. It is characterized by an optical balance of high initial gloss, ease of dispersion,

pacifying power and exterior weathering properties.

Application

Kemox RC 822 is recommended for interior and exterior enamels and lacquers for

industrial and architectural purpose.

TITANIUM TETRA CHLORIDE

General Description

Titanium tetra Chloride (synonym – Tickle) is produced as an intermediary product in the

production of rutile grade titanium dioxide pigment. It is colorless to pale yellow liquid.

Titanium Tetra Chloride reacts violently on contact with water and expands to 1600 times its

liquid volume on exposure creating smoke screen and thereby necessitate careful handling.

Application

Titanium Tetra Chloride is exclusively used in the manufacture of Titanium dioxide pigment,

Titanium sponge/metal. Titanium salts, Butyl titanate and Titanium oxy-chlorides.

ILMENITE

Ilmenite is a weakly magnetic titanium-iron oxide mineral which is iron-black or steel-gray. It is

a crystalline iron titanium oxide (FeTiO3) with a hexagonal crystal system and a metallic luster.

The majority of the Ilmenite mined is used as a raw material for pigment production. Raw

Ilmenite is processed in various phases to arrive at the white pigment that is available to us as

Titanium Dioxide (TiO2), which finds use in our every day life.

RUTILE

[40]

Rutile is a mineral composed primarily of titanium dioxide, TiO2. Rutile is the most

common natural form of TiO2. Rutile has among the highest refractive indices of any known

mineral and also exhibits high dispersion. Natural rutile may contain up to 10% iron and

significant amounts of niobium and tantalum.

Rutile, when present in large enough quantities in beach sands, forms an important constituent of

heavy mineral sands ore deposits. Finely powdered rutile is a brilliant white pigment and is used

in paints, plastics, papers, foods, and other applications that call for a bright white color.

Titanium dioxide pigment is the single greatest use of titanium worldwide. Nanoscale particles of

rutile are transparent to visible light but are highly effective in the absorption of UV light. Hence,

they are used in sunscreens to protect against UV induced skin damage.

Small rutile needles present in gems are responsible for an optical phenomenon known as

asterism. Asteriated gems are known as "star" gems. Star sapphires, star rubies, and other "star"

gems are highly sought after and often more valuable than their normal equivalents. Rutile is

widely used as a welding electrode covering.

KMML is India’s first and only manufacturer of Rutile Grade Titanium dioxide by chloride

process.

LEUCOXENE

Leucoxene is a fine granular alteration product of titanium minerals. It varies in colour

from yellow to brown.

It is not a valid mineral species and consists mainly of rutile or anatase. It is observed in some

igneous rocks and iron ore deposits as the result of the alteration of ilmenite, perovskite, or

titanite.

ZIRCON

Zircon is the most important ore of the rare element hafnium, which is often present in

considerable quantities in zircon.

Zircon is a very popular gemstone, and gems of all different colors are cut from Zircon. Zircon

crystals are also popular among mineral collectors, especially collectors specializing in crystals.

[41]

Minerals like Zircon, which is mined from the beach sands, is used in the development of nuclear

technology.

SILLIMANITE

KMML’s Pigment Production Plant produces the finest sillimenite from naturally occurring

minerals / ores.

MONAZITE

The mineral monazite is a reddish-brown phosphate containing rare earth metals and an

important source of thorium, lanthanum, and cerium. Because of the presence of thorium within

monazite, it can be radioactive. Due to the alpha decay of thorium and uranium, monazite

contains significant amount of helium, which can be extracted by heating.

Applications

KEMOX RC 822 from KMML is a multiple application pigment, which is in great demand in

the world market. We also produce other grades of Titanium Dioxide pigments like RC 800 PG,

RC 800, RC 802, RC 813, RC 822 and RC 808. Minerals like Zircon and Monazite are used in

the development of Nuclear Technology. We manufacture Iron oxide bricks from the waste Iron

Oxide, which is used for building purpose.

The KMML Titanium pigments are reputed for their high degree of gloss, tint retention

capacities and ease of dispersion.

Following are some of the major / common applications of the products that we manufacture:

TITANIUM DIOXIDE PIGMENT(RUTILE)

Paints

Printing Inks

Plastic

Paper

LEUCOXENE

Welding electrodes

Titanium Dioxide pigment

Titanium Tetra Chloride

Titanium Compounds

[42]

Rubber

Textiles

Ceramics

MONAZITE

Rare earth industry

Nuclear technology

TITANIUM TETRA CHLORIDE

Titanium Dioxide Pigment

Titanium Dioxide Pigment

Titanium salts

Butyl Titanate

Titanium Ox chlorides

RUTILE

Welding electrodes

Titanium compounds

Titanium Dioxide Pigment

Titanium metal/sponge

Titanium Tetra Chloride

ILMENAITE

Synthetic Rutile

Titanium Tetra Chloride

Ferro Titanium alloys

Welding electronics

Titanium Dioxide pigment

Titanium salts

ZIRCON

Ceramics

Foundries

Refractories

Zirconium Chemicals

Zirconium metals

Nuclear technology

SILLIMANITE IRON OXIDE BRICKS

[43]

High temperature refractory

Ceramic industry

As building Material

2.1 TITLE OF THE STUDY:

The title of the study is “A Study on Buyer Behavior with special reference to Kerala Minerals

and Metals Limited, Chavara”

2.2 REVIEW OF LITERATURE:

The topic of consumer behaviour is one of the massively studied topics by the researchers and

marketers in the past and still being studied. Researchers show different reasons as to why

consumer behaviour has been the topic of many academics and researchers. One of the common

views is that understanding consumer behaviour has become a factor that has a direct impact on

the overall performance of the businesses (Kotler and Keller, 2012). Another view suggests that

understanding consumer behaviour has become crucial especially due to fierce competition in

retail industry in the UK and worldwide (Lancaster et al, 2002). This chapter will introduce some

other areas of research background of consumer behaviour addressing the works

of researchers and marketers. Moreover, consumer decision making process, in particular, five

stages of consumer decision making process will be discussed in detail.

It is worth noting that consumer buying behavior is studied as a part of the marketing and its

main objective it to learn the way how the individuals, groups or organizations choose, buy use

and dispose the goods and the factors such as their previous experience, taste, price and branding

on which the consumers base their purchasing decisions (Kotler and Keller, 2012).

One of such studies of consumer buying behaviour has been conducted by Acebron et al (2000).

The aim of the study was to analyze the impact of previous experience on buying behaviour of

fresh foods, particularly mussels. In their studies the authors used structural equation model in

order to identify the relationship between the habits and previous experience on the consumer

buying decision. Their findings show that personal habits and previous experience on of the

consumers have a direct impact on the consumers’ purchase decision in the example of

[44]

purchasing fresh mussels. They also found that the image of the product has a crucial impact on

the purchasing decision of the consumer and further recommended that the product image should

continuously be improved in order to encourage the consumers towards purchasing.

Another study conducted by Variawa (2010) analyzed the influence of packaging on consumer

decision making process for Fast Moving Consumer Goods. The aim of the research was to

analyze the impact of packaging for decision making processes of low-income consumers in

retail shopping. A survey method has been used in order to reach the research objectives. In a

survey conducted in Star Hyper in the town of Canterville 250 respondents participated. The

findings of the research indicate that low-income consumers have more preferences towards

premium packaging as this can also be re-used after the product has been consumed. Although

the findings indicate that there is a weak relationship between the product packaging and brand

experience. However, it has been proven by the findings of the research that low-income

consumers have greater brand experience from the purchase of ‘premium’ products when

compared to their experience from purchasing ‘cheap’ brand products.

Lee (2005) carried out study to learn the five stages of consumer decision making process in the

example of China. The researcher focuses on the facts that affect the consumer decision making

process on purchasing imported health food products, in particular demographic effects such as

gender, education, income and marital status. The author employed questionnaire method in

order to reach the objectives of the research. Analysis of five stages of consumer decision

making process indicate that impact of family members on the consumer decision making

process of purchasing imported health food products was significant.

The author further explains this by the fact Chinese tradition of taking care of young and old

family members have long been developed and marriage is considered to be extremely important

in Chinese tradition. This reflects in the findings of the study that the purchase of imported

health food products made by a person for the people outside the family is declined significantly

by both male and female Chinese after they get married.

Five Stages Model of consumer decision making process has also been studied by a number of

other researchers. Although different researchers offer various tendencies towards the definitions

of five stages, all of them have common views as they describe the stages in similar ways. One

[45]

of the common models of consumer decision making process has been offered by Blackwell et al

(2006). According to him, the five stages of consumer decision making process are

followings: problem/need recognition, information search, evaluation of alternatives, purchase

decision made and post-purchase evaluation.

Each stage is then defined by a number of researchers varying slightly but leading to a common

view about what each stage involves. For example, according to Bruner (1993) first stage, need

recognition occurs when an individual recognizes the difference between what they have and

what they want/need to have. This view is also supported by Neal and Questel (2006) stating that

need recognition occurs due to several factors and circumstances such as personal, professional

and lifestyle which in turn lead to formation of idea of purchasing.

In the next stage, consumer searches information related to desired product or service (Schiffman

and Kanuk, 2007). Information search process can be internal and external. While internal search

refers to the process where consumers rely on their personal experiences and believes, external

search involves wide search of information which includes addressing the media and advertising

or feedbacks from other people (Rose and Samouel, 2009).

Once the relevant information about the product or service is obtained the next stage involves

analyzing the alternatives. Kotler and Keller (2005) consider this stage as one of the important

stages as the consumer considers all the types and alternatives taking into account the factors

such as size, quality and also price.

Backhaus et al (2007) suggested that purchase decision is one of the important stages as this

stage refers to occurrence of transaction. In other words, once the consumer recognized the need,

searched for relevant information and considered the alternatives he/she makes decision whether

or not to make the decision. Purchasing decision can further be divided into planned purchase,

partially purchase or impulse purchase as stated by Kacen (2002) which will be discussed further

in detail in the next chapters.

Finally, post-purchase decision involves experience of the consumer about their purchase.

Although the importance of this stage is not highlighted by many authors Neal et al (2004)

argues that this is perhaps one of the most important stages in the consumer decision making

[46]

process as it directly affects the consumers’ purchases of the same product or service from the

same supplier in the future.

The most noteworthy writers that serve as academic advocates of The Five Stage Model of

consumer decision making include Tyagi (2004), Kahle and Close (2006) Blackwell et al.

(2006), and others.

It is important to note that The Five Stage Model is not the only model related to consumer

decision-making, and there are also a range of competing models that include Stimulus-

Organism-Response Model of Decision Making developed by Hebb in 1950’s, Prescriptive

Cognitive Models, The Theory of Trying (Bagozzi and Warsaw, 1990), Model of Goal Directed

Behaviour (Perugini and Bagozzi, 2001) and others.

2.3 RESEARCH METHODOLOGY:

According to Clifford woody “research comprises defining and redefining problems

formulate hypothesis or suggested solution , collection and organising and evaluating data,

making deduction and reading conclusion ,and; last carefully testing the conclusion to

determining whether they fit the formulating.

Research is an art of scientific investigation. It is a common way of search for

knowledge. One can also define research as a scientific and systematic search for pertinent

information on a specific topic. In fact research can also be thought as careful investigation

especially through search for new facts in any branch knowledge.

Research design

Research design is a master plan or model for the conduct of formal investigation survey;

it is the specification of methods and procedures for accruing the informatics needed for solving

the problem.

“A research design is the arrangement of conditions for collection and analysis of data

manner that’s aim to combine relevance to the research purpose with economy procedure”

Research design is the conceptual structure.

[47]

Research methodology

Research methodology is a way to systematically solve the research problem. It is

necessary for the researcher to know not only the research method or technique but also the

methodology. Research methodology is the description, explanation and justification of various

methods of conducting research, with in which research is conducted.

The type of research descriptive study. Primary sources of data will be collected through

using structured questionnaires with 5-point scale method. Secondary sources of data will be

magazines, files, records etc of the organization. The total population of employees in KMML is

around two thousand. The researcher has taken sample unit as employees in Marketing

Department and sample size as twenty. The sampling technique used for this study is random

sampling. The tools used for analysis are Chi-Square test and Percentage Analysis Method.

2.3.1 SOURCRES AND METHOD OF DATA COLLECTION:

The sources of data are;

PRIMARY DATA

SECONDARY DATA

PRIMARY DATA:

The source by which data are collected originally for ascertaining purpose is called

primary source. The data collected from primary source are named primary data. The data

mainly based on primary data. The primary data is collected through structured questionnaire.

For collecting data, questionnaire has been distributed to all the respondents.

Questionnaires

The questionnaire is the medium of communication between the investigator respondents.

Or it is a medium for obtaining information by a list of well frame questions. The success of an

investigator depends on the framing of questionnaire.

SECONDARY DATA:

[48]

The source of data is said to be secondary when the data to be used are published

another organization. The data obtained from secondary source are called secondary data.The

required secondary data for the present study have been collected from books, magazines,

journals, previous reports and internet.

TOOLS FOR DATA COLLECTION:

Structured Questionnaire: Structured questionnaire are those questionnaires, in which

there are definite, concentrate and pre-determined questions. The questions are presented with

exactly in the same wording and in the same order to all respondents.

STATISTICAL TOOLS FOR ANALYSIS:

The tools used for analysis are;

Simple Percentage Analysis Method

Chi-Square Method

2.3.2 SAMPLE DESIGN:

Sampling may be defined as the process of obtain the information about an entire

population by examining only a part of it. If any investigation, if data are collected only from a

repetitive part of the universe. We may say the data are collected by sampling.

Population Definition: Successful statistical practice is based on focused problem definition. In

sampling, this includes defining the population from which our sample is drawn. A population

can be defined as including all people or items with the characteristic one wishes to understand.,

the goal becomes finding a representative sample (or subset) of that population.

Total population of buyers of KMML in the world is considered as the universe.

Sampling Frame: The frame used is the buyers details in KMML Annual reports.

Sample Unit: The researcher has taken the customers(Asian paints, Berger paints, Shalimar

paints etc) of Kerala Minerals And Metals ltd, Chavara as the sample unit.

[49]

Sampling Technique: The sampling technique used for the study is CONVENIENCE sampling.

Sample Size: The number of sampling unit selected from the universe to form a sample is

called sample size. The sample size of the study is twenty five customers.

Sampling Plan : The questionnaire method is used for the collection of data. The questionnaire

is the medium of communication between the investigator respondents. Or it is a medium for

obtaining information by a list of well frame questions. The success of an investigator depends

on the framing of questionnaire.

Selecting The Sample : For the collection of data the respondent has contacted the buyers by

using the mailed questionnaire method.

2.3.3ORGANISATION OF DATA

Organization of data is the arrangement of physical records of a data set In here the

collected data is organized properly.

Editing - The process of checking and adjusting responses in the completed questionnaires

for omissions, legibility, and consistency and readying them for coding and storage. Purpose of

Editing is for consistency between and among responses, for completeness in responses– to

reduce effects of item non-response. To better utilize questions answered out of order. To

facilitate the coding process.

Coding - The process of identifying and classifying each answer with a numerical score or

other character symbol. The numerical score or symbol is called a code, and serves as a rule for

interpreting, classifying, and recording data.  Identifying responses with codes is necessary if

data is to be processed by computer. The numerical score or symbol is called a code, and

serves as a rule for interpreting, classifying, and recording data.

[50]

Classification - The process of arranging things in groups or classes according to their

resemblances and affinities and gives expression to the unity of attributes that may subsist

amongst a diversity of individuals”. The raw data, collected in real situations and arranged

haphazardly, do not give a clear picture. Thus to locate similarities and reduce mental strain we

resort to classification. Classification condenses the data by dropping out unnecessary details. It

facilitates comparison between different sets of data clearly showing the different points of

agreement and disagreement.

Tabulation - Tabulation may be defined as the systematic presentation of numerical data in

rows or/and columns according to certain characteristics. It expresses the data in concise and

attractive form which can be easily understood and used to compare numerical figures. Before

drafting a table, you should be sure what you want to show and who will be the reader. The

advantages of a tabular presentation over the textual presentation are: (i) it is concise;

(ii) there is no repetition of explanatory matter; (iii) comparisons can be made easily; (iv) the

important features can be highlighted; and (v) errors in the data can be detected.

2.3.4 PRESENTATION OF DATA

The researcher presents data with the help of bar diagrams

Bar diagrams

Simple bar diagram can be drawn either horizontal or vertical base. Bars on horizontal

base are more common. A bar diagram is simple to draw and easy to understand business and

economics, bar diagram is widely used.

2.3.5ANALYSIS OF DATA

Data analysis is a body of methods that help to describe facts, detect patterns, develop

explanations and test hypothesis. It is used in all of the sciences. It is used in business, in

administration, and in policy.

The primary data collected from the respondents are analyzed using statistical tools. The

data of analysis were collected from 25 respondents who are the buyers of KMML. Sample

percentage statistical tool is used to analyze the collected primary data. The researcher has used

the following tools for analyzing and interpreting the data.

[51]

Diagrams & Graphs

Simple percentage method , Equation = No. of respondents x 100

Total

2.3.6 PERIOD OF STUDY:

The period of study is limited only for a period of 45 days commencing from the month

of June.

2.3.7 INTERPRETATION OF DATA

Valid interpretations are drawn from the data collected, through data organization and

analysis using statistical tools.

2.4 OBJECTIVE OF THE STUDY:

The objectives of the study are;

To understand the buyer decision process.

To study the factors influencing the buyer behavior of KMML.

To determine if there is any relationship between age of the buyer and quality of the

product in buying decision process.

To determine if there is any relationship between age of the buyer and competitive

developments in buying decision process.

To determine if there is any relationship between age of the buyer and organization

structure in buying decision process.

2.5 LIMITATIONS OF THE STUDY:

The organization can be studied only within the prescribed time limit.

Due to the monopolistic nature of the company, no comparative study was possible.

The tools used for analysis is limited.

[52]

Personal bias is there as the information is collected through questionnaire method.

2.6 CHAPTER SCHEME

Chapter

No.

Title Page

No.

1

1.5 Introduction

1.6 Industry Profile

1.7 Company Profile

1.8 Product Profile

1

9

15

26

2

2.1 Title of the study

2.2 Review of Literature

2.3 Research Methodology

2.4 Objectives of the study

2.5 Limitations of the study

34

34

37

42

42

3

FINDINGS, SUGGESTIONS & CONCLUSIONS

3.1 Findings

3.2 Suggestions

3.3 Conclusions

77

78

79

[53]

Bibliography

Appendices

80

Table 3.1

Table showing gender of respondents

Particulars No. of Respondents Percentage

Male 19 76

Female 6 24

Total 25 100

Source: survey data

Figure 3.1

Table showing gender of respondents

[54]

Male Female0

10

20

30

40

50

60

70

80

Percentage

Percentage

INFERENCE

From the above table it is inferred that 76% of the respondents are male and 24% are female.

Table 3.2

Table showing age of respondents

Particulars No. of Respondents Percentage

Between 20-30 8 32

Between 30-40 8 32

40 and above 9 36

Total 25 100

Source: survey data

Figure 3.2

Figure showing age of respondents

[55]

Between 20-30 Between 30-40 40 and above30

31

32

33

34

35

36

37

Percentage

Percentage

INFERENCE

From the above table it is inferred that 32% of the respondents are in between the age of 20-30,32% in between 30-40 and 36% above the age of 40.

Table 3.3

Table showing the quality of the product play an intrinsic part in the buying.

Particulars No. of Respondents Percentage

Strongly Agree 22 88

Agree 3 12

Neutral 0 0

Disagree 0 0

Strongly Disagree 0 0

Total 25 100

Source: survey data

[56]

Figure 3.3

Figure showing the quality of the product play an intrinsic part in the buying

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

80

90

100

Percentage

percentage

INFERENCE

From the above table it is inferred that 88% of the respondents strongly agree that the product quality is affecting the buying and only 12% of the respondents just agree with this view point.

Table 3.4

Table showing competitive developments change the buying pattern.

Particulars No. of Respondents Percentage

Strongly Agree 10 40

Agree 8 32

Neutral 2 8

Disagree 5 20

Strongly Disagree 0 0

Total 25 100

Source: survey data

Figure 3.4

[57]

Figure showing competitive developments change the buying pattern.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

45

percentage

percentage

INFERENCE

The above table shows that the competitive developments affect the buying. About 40% of the respondents strongly agree to the statement,32% agree to the statement, whereas 20% disagree to the statement and 2% have no opinion to it.

Table 3.5

Table showing the organization structure is one of the most important factors in the buying decision.

Particulars No. of Respondents Percentage

Strongly Agree 8 32

Agree 10 40

Neutral 2 8

Disagree 5 20

Strongly Disagree 0 0

Total 25 100

Source: survey data

Figure 3.5

[58]

Figure showing the organization structure is one of the most important factors in the buying decision.

Strongly Agree Agree Neutral Disagree Strongly Disagree0

5

10

15

20

25

30

35

40

45

percentage

percentage

INFERENCE

The above table shows the organization structure is one of the important factors in the buying decision. About 40% of the respondents agree to that statement,32% strongly agree, whereas 20% disagree to the statement and 8% have no opinion to it.

Table 3.6

Table showing the procedure followed by the organization majorly affects the buying.

Particulars No. of Respondents Percentage

Strongly Agree 5 20

Agree 10 40

Neutral 2 8

Disagree 8 32

Strongly Disagree 0 0

Total 25 100

Source: survey data

Figure 3.6

[59]

Figure showing the procedure followed by the organization majorly affects the buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

45

percentage

percentage

INFERENCE

From the above table it is inferred that 40% of the respondents agree the above statement, 32% disagree, 20% strongly agree and 8% have no opinion to this statement.

Table 3.7

Table showing the policies of the organization have a hand in the buying pattern.

Particulars No. of Respondents Percentage

Strongly Agree 4 16

Agree 12 48

Neutral 4 16

Disagree 5 20

Strongly Disagree 0 0

Total 25 100

Source: survey data

Figure 3.7

[60]

Figure showing the policies of the organization have a hand in the buying pattern.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

percentage

percentage

INFERENCE

From the above table it is inferred that 48% of the respondents agree the above statement,20% disagree, 16% strongly agree and 16% have no opinion to this statement.

Table 3.8

Table showing the supply conditions play a leading role in the buying behavior.

Particulars No. of Respondents Percentage

Strongly Agree 5 20

Agree 9 36

Neutral 9 36

Disagree 2 8

Strongly Disagree 0 0

Total 25 100

Source: survey data

Figure 3.8

[61]

Figure showing the supply conditions play a leading role in the buying behavior.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

percentage

percentage

INFERENCE

36% of the respondents agree to the statement ‘ the supply conditions will affect the buying’ ,36% are neutral, 20% strongly agree and also 8% of the respondents are disagree the statement.

Table 3.9

Table showing the price of the product influences the buying process.

Particulars No. of Respondents Percentage

Strongly Agree 21 84

Agree 4 16

Neutral 0 0

Disagree 0 0

Strongly Disagree 0 0

Total 25 100

Source: survey data

[62]

Figure 3.9

Figure showing the price of the product influences the buying process.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

80

90

percentage

percentage

INFERENCE

84% of the respondents strongly agree that the price of the product will influence the buying and 16% agree with this statement.

Table 3.10

Table showing the experience of the participants influence the buying.

Particulars No. of Respondents Percentage

Strongly Agree 4 16

Agree 10 40

Neutral 3 12

Disagree 5 20

Strongly Disagree 3 12

Total 25 100

Source: survey data

[63]

Figure 3.10 Figure showing the experience of the participants influence the buying.

INFERENCE

On the statement ‘the experience of the participants influences the buying’ 40% of the respondents agree, 20% disagree, 16% strongly agree , 12% strongly disagree and the remaining 12% have no opinion.

Table 3.11

Table showing the income of the participants plays a leading role in the buying pattern.

Particulars No. of Respondents Percentage

Strongly Agree 12 48

Agree 8 32

Neutral 0 0

Disagree 5 20

Strongly Disagree 0 0

Total 25 100

Source: survey data

[64]

Strongly Agree Agree Neutral Disagree Strongly Disagree0

5

10

15

20

25

30

35

40

45

percentage

percentage

Figure 3.11

Figure showing the income of the participants plays a leading role in the buying pattern.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

percentage

percentage

INFERENCE

On the statement ‘income will affect the buying’, 48% of the respondents, supported strongly, 32% just agree with this statement while 20% disagree with the statement.

Table 3.12

Table showing the risk bearing attitudes of the participating individuals.Particulars No. of Respondents Percentage

Strongly Agree 5 20

Agree 16 64

Neutral 0 0

Disagree 4 16

Strongly Disagree 0 0

Total 25 100

Source: survey data

Figure 3.12

[65]

Figure showing the risk bearing attitudes of the participating individual.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

percentage

percentage

INFERENCE

About the statement ‘the risk bearing attitudes of the participating individual, 64% of the respondents agree with it ,20% strongly agree with it while 16% disagree with the the statement.

Table 3.13Table showing the education level and background of the participants affect the buying process.

Particulars No. of Respondents Percentage

Strongly Agree 4 16

Agree 16 64

Neutral 0 0

Disagree 5 20

Strongly Disagree 0 0

Total 25 100

Source: survey data

[66]

Figure 3.13Figure showing the education level and background of the participants affect the buying process.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

percentage

percentage

INFERENCE

From the statement 64% of the respondents are agree the statement,20% are disagree ,and 16% strongly agree the statement.

Table 3.14

Table showing the political and legal changes will lead to changes in buying.

Particulars No. of Respondents Percentage

Strongly Agree 4 16

Agree 12 48

Neutral 2 8

Disagree 5 20

Strongly Disagree 2 8

Total 25 100

Source: survey data

[67]

Figure 3.14Figure showing the political and legal changes will lead to changes buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

percentage

percentage

INFERENCE

From the above statement, 48% of the respondents agree the statement,20% disagree , 16% strongly agree, and 8% strongly disagree ,while 8% have no opinion about the statement.

Table 3.15

Table showing the technology changes lead to changes in buying.

Particulars No. of Respondents Percentage

Strongly Agree 3 12

Agree 11 44

Neutral 2 8

Disagree 6 24

Strongly Disagree 3 12

Total 25 100

Source: survey data

[68]

Figure 3.15 Figure showing the technology changes lead to changes in buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

45

50

percentage

percentage

INFERENCE

For the above statement ,44% of the respondents agree the statement,24% disagree 12% strongly agree, 12% strongly disagree and 8% have no opinion about the statement.

Table 3.16

Table showing the personality of the participants plays a crucial role in the buying process.

Particulars No. of Respondents Percentage

Strongly Agree 4 16

Agree 8 32

Neutral 4 16

Disagree 7 28

Strongly Disagree 2 8

Total 25 100

Source: survey data

[69]

Figure 3.16

Figure showing the personality of the participants plays a crucial role in the buying process.

Strongly Agree Agree Neutral Disagree Strongly Disagree0

5

10

15

20

25

30

35

percentage

percentage

INFERENCE

From the above statement, 32% of the respondents agree the statement,28% disagree 16% strongly agree,16% neutral with the statement while 8% strongly disagree with the statement.

Table 3.17

Table showing the economic developments influence the buying behavior.

Particulars No. of Respondents Percentage

Strongly Agree 4 16

Agree 10 40

Neutral 3 12

Disagree 8 32

Strongly Disagree 0 0

Total 25 100

Source: survey data

[70]

Figure 3.17Figure showing the economic developments influence the buying behavior.

Strongly Agree Agree Neutral Disagree Strongly Disagree0

5

10

15

20

25

30

35

40

45

percentage

percentage

INFERENCE

On the statement ‘the economic developments influences the buying behavior’, 40% of the respondents agree the statement,32% disagree , 16% strongly agree, while 12% have no opinion about the statement.

1- Chi- square test to find the relationship between age and quality of the product in buying decision.

Age Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

20-30 7 1 0 0 0 8

30-40 7 1 0 0 0 8

40-50 8 1 0 0 0 9

[71]

Total 22 3 0 0 0 25

STEP 1 : Frame null hypothesis

There is no significant relationship between age of the buyer and the quality of the product in buying decision.

STEP 2 : Selection of statistical tool

Chi square is the best tool for this problem.

O=observation value

E=expected value

E=row total * column total /grand total

O E

7 7.04 2.272

1 .96 .001

0 0 0

0 0 0

0 0 0

7 7.04 2.272

1 .96 .001

0 0 0

0 0 0

0 0 0

8 7.92 1.56

1 1.08 .005

[72]

0 0 0

0 0 0

0 0 0

Total 6.111STEP 3 : Calculation of table value of chi square

Degree of freedom=(r-1)*(c-1)

= (5-1)*(3-1)

=8

Here table value is 15.507

STEP 4 : Comparison of table value of chi square & calculated value of chi square

Here calculated value of chi-square (6.111) is less than the table value (15.507) of chi square so hypothesis is accepted.

STEP 5 : Conclusion( Inference )

Calculated value of chi-square is lesser than table value of chi-square, so that the hypothesis is accepted. So it can be concluded that there is no significant relationship between age of the buyer and quality of the product in buying decision.

[73]

2- Chi-Square test to find the relationship between the age of the buyer and competitive developments in buying decision.

Age Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

20-30 2 2 2 2 0 8

30-40 4 3 0 1 0 8

40-50 4 3 0 2 0 9

Total 10 8 2 5 0 25

STEP 1 : Frame null hypothesis

There is no significant relationship between age and competitive developments in buying decision.

STEP2 : Selection of statistical tool

Chi square is the best tool for this problem.

O=observation value

E=expected value

E=row total * column total /grand total

[74]

O E

2 3.2 0.45

2 2.56 0.122

2 0.64 2.89

2 1.6 0.1

0 0 0

4 3.2 0.2

3 2.56 0.075

0 0.64 0.64

1 1.6 0.225

0 0 0

4 3.6 0.044

3 2.88 0.005

0 0.72 0.72

2 1.8 0.022

0 0 0

Total 5.493STEP 3 : Calculation of table value of chi square

Degree of freedom=(r-1)*(c-1)

= (5-1)*(3-1)

=8

Here table value is 15.507

STEP 4 : Comparison of table value of chi square & calculated value of chi square

Here calculated value (5.493) <table value (15.507) of chi square. So the hypothesis is accepted.

STEP 5 : Conclusion( Inference )

Calculated value of chi-square is lesser than table value of chi-square, so that the hypothesis is accepted. Therefore it can be concluded that there is no significant relationship between age and competitive developments in buying decision.

[75]

Age Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

20-30 2 2 2 2 0 8

30-40 3 4 0 1 0 8

40-50 3 4 0 2 0 9

Total 8 10 2 5 0 25

3-Chi square test to find the relationship between impact of age and organization structure in buying decision.

STEP 1 : Frame null hypothesis

There is no significant relationship between age and organization structure in buying decision

STEP2 : Selection of statistical tool

Chi square is the best tool for this problem.

O=observation value

E=expected value

E=row total * column total /grand total

O E

[76]

2 2.56 0.122

2 3.2 0.45

2 0.64 2.89

2 1.6 0.1

0 0 0

3 2.56 0.075

4 3.2 0.2

0 0.64 0.64

1 1.6 0.225

0 0 0

3 2.88 .005

4 3.6 0.044

0 0.72 0.72

2 1.8 0.022

0 0 0

Total 5.493

STEP 3 : Calculation of table value of chi square

Degree of freedom=(r-1) *(c-1)

= (5-1)*(3-1)

=8

Here table value is 15.507

STEP 4 : Comparison of table value of chi square & calculated value of chi square

Here calculated value (5.493) <table value (15.507) of chi square so hypothesis is accepted.

STEP 5 : Conclusion( Inference )

Calculated value of chi-square is lesser than table value of chi-square, so that the hypothesis is accepted. So it can be concluded that there is no significant relationship between age and organization structure in buying decision.

3.0 FINDINGS, SUGGESTIONS AND CONCLUSIONS:

[77]

3.1 FINDINGS:

From the above table it is inferred that,

76% respondents are male and 24% are female. 32% of the respondents are in between the age of 20-30, 32% in between 30-40 and 36%

above the age of 40.

Majority of the respondents strongly agree the product quality is affecting the buying

pattern.

40% of the respondents strongly agree the competitive developments will influence

change the buying pattern.

40% of the respondents agree the organization structure is one of the most important

factors in the buying decision.

40% of the respondents agree the procedure followed by the organization majorly affects

the buying.

48% of the respondents agree the polices of the organization have a hand in the buying

pattern.

36% of the respondents agree the supply conditions play a leading role in the buying

behavior.

Majority of the respondents strongly agree the price of the product influences the buying

process.

40% of the respondents agree the experience of the participants influence the buying.

48% of the respondents strongly agree the income of the participants plays a leading role

in the buying pattern.

64% of the respondents agree the risk bearing attitudes of the participating individual.

64% of the respondents agree the educational level and background of the participants

affect the buying process.

44% of the respondents agree the technology changes lead to changes in buying.

32% of the respondents agree the personality of the participants plays a crucial role in the

buying process.

40% of the respondents agree the economic developments influence the buying behavior.

3.2 SUGGESTIONS:

[78]

As the company is only following the policy of providing trade discounts to its

customers, the company should provide more discounts to its customers which helps the

company in maximizing its sales turnover.

Since the majority of the customers say the product quality have greater influence the

buying behavior, so the company should take necessary steps in maintaining its quality.

If the company provides credit facilities to its customers, the turnover of the company can

be maximized.

Being an industrial product the company can conduct industrial exhibitions for making

customers aware of the product features, its applications and its quality.

3.3 CONCLUSION:

[79]

Kerala Minerals And Metals Ltd has surpassed most of its adverse condition. Today it is

among the leading manufacturing of Tio2 with the increase in capacity it is not for that KMML

will stand apart from its other competitors. As the customers are based abroad no personnel

contact could be achieved. Bringing more to your everyday life, KMML touches you in

numerous ways. Be it the dress you wear, the cosmetics you use, the medicines you take, the

paints you decorate your home with or the utility plastic products, our products are there. Eco-

friendly & socially committed, it is the only integrated Titanium Dioxide facility having

mining, mineral separation, synthetic rutile and pigment-production plants.

From the study the researcher found out that the respondents are satisfied with the quality of

the products that Kerala Minerals and Metals Limited offer and its price. But still they can

improve in some aspects for their overall efficiency. If this can be achieved then the company

can make great success in the future period.

BIBLIOGRAPHY

[80]

1. Kothary C.R, Research Methodology, New Delhi, Wiley Eastern ltd. Second edition,

1990

2. Kotler Philip, Marketing Management, New Delhi, Prentice Hall of India Pvt. Ltd,

The Millennium Edition, 2000

3. Carl Me Daniel, Jr. Contemporary Marketing Research, New York, West Publishing

Company, Third Edition, 1996

4. R. Panneerselvam , Research Methodology, PHI Learning Pvt. Ltd., 2004

5. Geoffrey Walford , Doing Educational Research, Published July 24th 1991 by

Routledge (first published June 6th 1991)

6. M. C. Cant, J. W. Strydom, C. J. Jooste, P. J. du Plessis, Marketing ManagementJuta and

Company Ltd, 2009

7. From annual reports of KMML,Chavara.

8. From brouchers of KMML,Chavara.

Websites:

www.scribd.com

www.kmml.com

www.inorganicchemicals.co.in

APPENDIX

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“A STUDY ON BUYER BEHAVIOUR WITH SPECIAL REFERENCE TO

KERALA MINERALS AND METALS LIMITED, CHAVARA”.

1. NAME …………………………………………………………………………….

2. SEX Male Female

3. AGE Between 20 and 25 Between 25 and 45 45 and above

4. NATURE OF ORGANISATION

Private Public Corporate

5. The quality of the product plays an intrinsic part in the buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

6. Competitive developments change the buying pattern.

Strongly Agree Agree Neutral Disagree Strongly Disagree

7. The organization structure is one of the most important factor in the buying

decision.

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Strongly Agree Agree Neutral Disagree Strongly Disagree

8. The procedure followed by the organistion majorly affects the buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

9. The polices of the organization have a hand in the buying pattern.

Strongly Agree Agree Neutral Disagree Strongly Disagree

10. The supply conditions play a leading role in the buying behavour.

Strongly Agree Agree Neutral Disagree Strongly Disagree

11. The price of the product influences the buying process.

Strongly Agree Agree Neutral Disagree Strongly Disagree

12. The experience of the participants influences the buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

13. The income of the participants plays a leading role in the buying pattern.

Strongly Agree Agree Neutral Disagree Strongly Disagree

14. The risk bearing attitudes of the participating individual affect the buying

pattern.

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Strongly Agree Agree Neutral Disagree Strongly Disagree

15. The education level and background of the participants affect the buying process.

Strongly Agree Agree Neutral Disagree Strongly Disagree

16. The political and legal changes will lead to changes in buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

17. Technology changes lead to changes in buying.

Strongly Agree Agree Neutral Disagree Strongly Disagree

18. The personality of the participants plays a crucial role in the buying process.

Strongly Agree Agree Neutral Disagree Strongly Disagree

19. The economic development influence in the buying behavior.

Strongly Agree Agree Neutral Disagree Strongly Disagree

20. Any other suggestions please specify………………………………………………...

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