Consumer Behavior
Consumer Behavior
INTRODUCTION
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Behaviour
Behaviour, refers to the actions of a system or organism , usually in relation to its
environment, which includes the other systems or organisms around as well as the
physical environment. It is the response of the system or organism to various stimuli or
inputs, whether internal or external, conscious or subconscious, overt or covert, and
voluntary or involuntary.
Biology
In humans, behaviour is believed to be controlled primarily by the endocrine system and
the nervous system. It is most commonly believed that complexity in the behaviour of an
organism is correlated to the complexity of its nervous system. Generally, organisms
with more complex nervous systems have a greater capacity to learn new responses and
thus adjust their behaviour.
Behaviours can be either innate or learned. However, current research in the Human
Microbiome Project points towards a possibility that human behaviour may be controlled
by the composition of the microbe population within a human body.
More generally, behaviour can be regarded as any action of an organism that changes its
relationship to its environment. Behaviour provides outputs from the organism to the
environment
Psychology
Human behaviour (and that of other organisms and mechanisms) can be common,
unusual, acceptable, or unacceptable. Humans evaluate the acceptability of behaviour
using social norms and regulate behaviour by means of social control. In sociology,
behaviour is considered as having no meaning, being not directed at other people and
thus is the most basic human action, although can play a part in diagnosis of disorders
such as autism. Animal behaviour is studied in comparative psychology, ethology,
behavioural ecology and sociobiology.
Behaviour became an important construct in early 20th century Psychology with the
advent of the paradigm known subsequently as "behaviourism". Behaviourism was a
reaction against "faculty" psychology which purported to see into or understand the mind
without the benefit of scientific testing. Behaviourism insisted on working only with
what can be seen or manipulated and in the early views of John B. Watson, a founder of
the field, nothing was inferred as to the nature of the entity that produced the behaviour.
Subsequent modifications of Watson's perspective and that of "classical conditioning"
(see under Ivan Pavlov) led to the rise of operant conditioning or "radical behaviourism,"
a theory advocated by B.F. Skinner, which took over the academic establishment up
through the 1950s and was synonymous with "behaviourism" for many.
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The following are the objective of this project:-
To lay down suggestive measures for the improvements of Konark Cements Sales
performance
To find out satisfaction levels of the dealers towards the Konark cement
RESEARCH METHODOLOGY
Method:
The following are the method chosen for the completion of project and collection of data,
response.
For this a thorough marketing survey was conducted by collecting required data both
primary and secondary. Primary data consists as, secondary data consists of information
that already exists somewhere having been collected for another purpose. The data
collected for this study consists of both primary data and secondary data.
Sources of Data:
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Primary Data:
Primary data was collected with help of questionnaire, an interview with the dealers of
sample size 50.
Secondary Data:
The survey conducted includes only Konark Cement dealers and multi Brand Dealers no any
other brand Specific Dealers.
In the research conducted all the due efforts are made with full effort and diligence but still
their might be some error due to the following reasons:
Human behaviour is too complex to determine. So the information disclosed by them
may not be very accurate.
This research is conducted on a very small sample size, so it might be possible that the
information given by such respondents may not match with the reply of the whole public
of Rourkela and Rajgangpur..
There was a time constraint while conducting the report.
It might be possible that the answers given by the respondents are full of biasness.
Some of the respondents were not willing to reply the questions.
As the questionnaire is in English language, some respondents found it difficult to
understand it, even many refused.
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CHAPTER II
REVIEW OF LITERATURE
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Consumer behaviour
Consumer behaviour is the study of when, why, how, and where people do or do not
buy product. It blends elements from psychology, sociology, social anthropology and
economics. It attempts to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual consumers such as
demographics and behavioural variables in an attempt to understand people's wants. It
also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the importance
of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalisation, customisation and one-to-one
marketing. Social functions can be categorized into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social
choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services in
order to satisfy customers. With that in mind, the productive system is considered from
its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et
al., 2009).
Consumers go through complex buying behaviour when they are highly involved in a
purchase and aware of significant differences existing among brands. Consumers are
highly involved in a purchase when it is a expensive, bought infrequently, risky and
highly self expensive. Typically the consumer does not know how much the product
category and has much to learn. Ex: A person buying a personal computer may not even
know what attribute to look for.
Sometimes the consumer is highly involved in a purchase but sees little differences in the
brands. The high involvement again is based on the fact that the purchase is expensive,
infrequent and risky. In this case, the buyer will buy fairly because brand differences are
not pronounced. The primarily to a good price or the convenience of purchasing at that
time or place. Ex: carpet, salt, etc.
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Habitual Buying Behaviour
Many products are brought under condition of low consumer involvement and the
absence of significant brend differences. Ex: Salt, consumer has little involvement in this
product category. They go to the store and reach for the brand. There is a good evidence
that consumer have low involvement with most low cost, frequently purchased products.
Some buying situations are characterized by low consumer involvement but significant
brand preferences. Here consumers are often observed to do a lot of brand switching.
Brand switching occurs for the variety rather than dissatisfaction.
Once the consumer has recognised a problem, they search for information on products
and services that can solve that problem. Belch and Belch (2007) explain that consumers
undertake both an internal (memory) and an external search.
Personal sources
Commercial sources
Public sources
Personal experience
The relevant internal psychological process that is associated with information search is
perception. Perception is defined as 'the process by which an individual receives, selects,
organises, and interprets information to create a meaningful picture of the world'
Stage Description
- Selective exposure consumers select which promotional messages they will expose
themselves to.
- Selective attention consumers select which promotional messages they will pay
attention to
- Selective comprehension consumer interpret messages in line with their beliefs,
attitudes, motives and experiences
- Selective retention consumers remember messages that are more meaningful or
important to them
The implications of this process help develop an effective promotional strategy, and
select which sources of information are more effective for the brand.
Information evaluation
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At this time the consumer compares the brands and products that are in their evoked set.
How can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the
functional and psychological benefits that they offer. The marketing organization needs
to understand what benefits consumers are seeking and therefore which attributes are
most important in terms of making a decision.
Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The
marketing organization must facilitate the consumer to act on their purchase intention.
The organisation can use variety of techniques to achieve this. The provision of credit or
payment terms may encourage purchase, or a sales promotion such as the opportunity to
receive a premium or enter a competition may provide an incentive to buy now. The
relevant internal psychological process that is associated with purchase decision is
integration.Once the integration is achieved, the organisation can influence the purchase
decisions much more easily.
To manage the post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after having made a
purchase, the customer should be encouraged that he or she has made the right decision.it
is not effected by advertisement.
External influences
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CHAPTER III
COMPANY PROFILE
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INTRODUCTION
Konark Cement is a brand name of OCL India Limited, the flagship company of the
Dalmia Group. The company is well diversified having interest in Cement and
Refractory. The company was first known as ORISSA CEMENT LIMITED but many
years after its diversification it was named as OCL INDIA LIMITED in the year 1996 to
reflect its multifarious activities .
OCL India Ltd was situated at Rajgangpur in the western part of Orissa during 1950-51
at the request of the Government of Orissa to manufacture super grade cement for use in
the construction of Hirakud Dam. First it was a wet process cement plant and opted for
most modern Dry process further in the year 1989 with 5 stages pre-heater and pre-
calciner technology with a capacity 2 million tonne /Annum. “Konark Cement” popularly
known to be “A NAME CEMENTED TO QUALITY” has been enjoying the market
leadership in Orissa for more than 5 decades.
Apart from this a new plant has been installed in Tangi, 30 km away from Cuttack
known as Kapilas Cement with a capacity of 1 million tonne and with it the total capacity
of Konark Cement raised to 3 million tonne. As the company offers the super grade
cement, this has prompted the company to go in for uninterrupted progress keeping pace
with the technological development till date. The company also sells Konark Cement in
Bihar, Jharkhand, West Bengal and Assam.
The progress done by the company from 1951 to till date is mentioned below:-
As after the clinkerization has been started it is been expected that the company would raise
its capacity by 2 million tonne and it would reach to 5 million tonne.
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ISO 90001-2000 Certification
American petroleum Institute Monogram License for Manufacture of Oil Well Cement.
OUR VISION:-
OCL is comparatively old but has always believed in implementing latest technology in
production process and machinery and has been first in many areas in cement industries:-
It was the first company in the country to install auto kiln control system of
U.K.ensuring consistent quality of clinker by avoiding human error in operation.
It has installed world’s largest slag cement grinding vertical roller mill LM56 of
Loesche, Germany for the first time in the world with both inter grinding and inter
mixing facilities as an unique feature. This ensures a tailor made product quality to the
customers as per the quality required by them.
It has been the first to install 16 spout Roto packer packing machine machine in the
world. This ensures accurate weight and faster delivery of cement to the customer.
OCL was the first company in India to manufacture special grade (IRST/40 or 53S) for
railway sleeper in India.
It is the first and only company to achieve API Monogram License in Eastern India and
one among the three companies in the country for production of Oil Well Cement.
OCL is competent in producing varieties of cement and is one of the largest producers of
Portland Slag Cement (Konark PSC). The different types of cement produced are:-
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Ordinary Portland cement.
Portland Slag Cement (PSC).
Special Grade Cement (for RLY sleepers).
Oil Well Cement.
Sulphate Resistance Portland cements (SPRC).
Portland Pozzolana Cement (PPC).
Masonry cement.
ENGROSSED MINES:-
OCL has got its own well equipped mines with rich limestone reserve at laljiberna. The
limestone obtained here is of very good quality which is a good factor in adding to the
quality of the product.
To compete in the market, to reduce the cost of production and to meet the need of an hour,
OCL has installed its own engrossed Thermal Power Plant with the installing capacity of
50MW beside its plant, this helps in uninterrupted production on continuous basis.
LOGISTICS:-
As far as logistics is concerned the plant is well connected with roads in its major marketing
area of the state. The total supply in Orissa is done through Kapilas and in other states the
cement is sent through Rakes to various dumps by the plant in Rajgangpur.
Packaging
It has got the best packaging system. It has a 16 roto packer packing machine which ensures
accurate and faster packaging, which enables in delivering the goods to the customer faster
with less human effort. With the elp of the roto packer the cement is avtomatically filled and
sealed in the bag and is ready for dispatch.
Dispatching
The loading of cement bags in wagons/trucks are automatically done through automated
truck/wagon loader which accurately keeps and counts the bags kept without any human
touch.
And after this the efficient transport nd logistic network helps in delivering the goods in the
market.
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MARKETING REGIONS OF KONARK CEMENT:-
The sale of Konark Cement was first made in Orissa and West-Bengal only but now it has
extended it step to Bihar and Jharkhand through its efficient and eminent marketing
personals. The increasing number of cement companies has led to inane competition in the
market.
The distribution of our cement is done through many sources. The cement is manufactured in
Orissa and is sold in the state through Dealer and Direct sale. The sale of our cement in other
state (west Bengal, Jharkhand and Bihar) is done through Stock transfer.
Stock Transfer:-
The sale in Bihar, Jharkhand and West Bengal is done through the stock transfer. In this
process the cement is produced and sent to various company Dump through Rake’s. The
Handling Agent manages companies godown /Dump and cement marketing is done
under the instructions of companies local office, and the cement is sent to the dealers,
retilers and the direct parties.
Dealer Sale:-
In Orissa the company directly sales the goode to the dealers against there order and
collects the payment from them as per the amount supplied. These dealers either retails
or whole sale the cement various sub dealers appointed by them.
Direct Sale:-
This type of sale is done to very big contractors or the Government institutions. This is
done through tender and in this very bulk supply of cement is done.
OCL has always given priority to community in which it runs and thought for its
development. It has always worked and have shown its effort in improving the condition
of poor and helpless people of this locality, OCL has undertaken various developmental
activities in Rajgangpur and Lanjiberna. The activities are mainly concerned on areas
like Health, Education, Drinking Water, Games and Sports etc. The activities persued by
OCL are mentioned
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EDUCATION:-
1. Dalmia Vidya Mandir is a school which is its own school with all the hi-tech facilities in
it.
2. The total premises of Dalmia College is constructed by OCL and re-innovation is done
regularly.
3. Constructed Gopabandhu High School, Rajgangpur and many more schools and colleges
are constructed by OCL.
4. Continuing many Literacy programs in different villages nearby.
5. Many scholarship program is also there for the students.
DRINKING WATER :
1. Many Tube wells are sunk in Rajgangpur, Lanjiberna and other surrounding villages
2. Arranged drinking water system in the premises of Bar Association, Rajgangpur .
3. It is donating large sum of money so that ‘Sajal Dhara scheme’ by Govt of India can be
availed in all the villages and people gets safe drinking water.
HEALTH:-
1. Many construction and re-innovation work is carried out at the Govt Hospital
Rajgangpur.
2. Tree plantation is also done to keep the society safe.
3. Various ENT and EYE Camps are conducted by OCL so that the poor people can also
avail good medical check up.
4. Many Ambulances are also provided so that people don’t face difficulty to reach the
Hospital.
5. Many mobile health unit(both homeopathic and allopathic) are availed in the near by
villages to Rajgangpur and Laljiberna.
1. Conduct various Inter-village Football and Hockey Tournament to motivate the villagers
and awards them with various gifts.
2. Organizes various inter-department games like kabbadi, football, volley ball, cricket etc
for its employees.
3. There are many Parks and Fields for rehabilitation.
Besides, OCL has also donated generously to Prime Minister's and Chief Minister's Relief
Fund when natural calamities like cyclone, flood etc struck the Nation
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The Konark Cement has a number of contribution national projects. Some of these
project include :-
Bengal Silver Spring Housing Projects Reserve Bank of India (New Note Press
Ltd Project, Kharagpur).
Steel Authority of India Ltd. (Durgapur SAIL IISCO Steel Plant. (Burnpur).
steel Plant).
Bridge & Roof Co. (I) Ltd. Bengal Peerless Housing Project
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CHAPTER IV
DATA ANALYSIS
&
INTERPRETATION
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DEALER PERCEPTION AND ANALYSIS
No. of Dealers
1-2 brands
2-3 brands
More than 3
12
30
Interpretation:
Interpretation from the above pie chart states that 16% of the dealers maintained 1-2
brands of Konark cement and 24% of the dealer 2-3 brands 60% of the dealers above 3
brands
From the above interpretations it is clear that most of the dealers preferred Konark
cement and they maintained more than 2 brands of Konark cement
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1. Margin Satisfaction of dealers
Respondent
4
16 Satisfied
Average
Not Satisfied
30
Interpretation:
Interpretation drawn from the above pie chart states that 60% of dealer believes that
profit is good and they are satisfied with the margin of Konark cement. 32% of the
dealers believe that Brand Name is the best/safest and margin of Konark cement is
average. 8% of the dealers believe that they are satisfied with the supply, customer
satisfaction but they are not satisfy in the margin in Konark cement
So from the above interpretations it is clear that dealers think that investing their money
in Konark cement will give them good profit margin.
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2. Price of Konark Cement
Respondent
4
17
15 Very High
High
Reasonable
Low
14
Interpretation:
Interpretation drawn from the above pie chart states that 34% of dealer thinks that the
price of Konark cement is very high in the market. 28% of the dealers believe that Brand
name is the best/safest so the price is high. 30% of the dealers believe that cement price
is reasonable in the market and 8% of dealer opinion the Konark cement supply and
brand name leading in the market so its price is low
So from the above interpretations it is clear that dealers think that investing their money
in Konark cement is safe and they are not giving preference to price.
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3. Quality of Konark Cement
50
45
40
35
30
25 46 Series1
20
15 26 28
10
5
0 0
Excellent Good Average Bad
Series1 26 46 28 0
Interpretation:
The interpretation drawn from the above Column chart states that the 26% dealers accept
that its quality is excellent in the market. 46% of dealer’s said that the quality of cement
is good and 28% of the dealers said that the quality is average.
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So it is very clear from the above in interpretations that Konark cement show strong
presence in terms quality in the Orissa market.
50
45
40
35
30
Respondent
25
Percentege
20
15
10
5
0
Excellent Good Average Bad
Interpretation:
The interpretation drawn from the above pyramid chart states that the Konark cement’s
advertisement is very poor and as per 6% of the dealer’s opinion it is excellent, 16% of
the dealer’s opinion it is good and 32% dealers said that it is average and 46% shown bad
impression in the Konark cement’s advertisement.
So it is very clear from the above interpretations that Konark cement advertising is very
low in Orissa.
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5. Mode of Purchase
On Telephone or by E- 32 64
mail
Sales Representative 14 28
Total 50 100
100%
90%
80%
70%
60% Percentage
50% Respondents
40%
30%
20%
10%
0%
On Phone or E-mail Sales Representative Directly by the Dealer
Interpretation:
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The interpretation drawn from the above cone chart states that the purchase of Konark
cement is done by different methods. As per 64% dealers opinion the purchase of Konark
cement is done by the telephone ordering or E-mail and 28% of the dealers are
purchasing through Sales representative and 8% of dealers directly by the dealer of
company .
So it is very clear from the above interpretations that Konark cement purchasing mode is
running by the telephone or E-mail.
TV / Radio 9 18
Boards/Holdings 14 28
Newspaper/Magazine 8 16
Wall Paintings 19 38
Total 50 100
Respondent
9
19
TV / Radio
Boards/Holdings
Newspaper/Magazine
Wall Paintings
14
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Interpretation:
The interpretation drawn from the above pie chart states that the Konark cement
advertisement is done by different modes. As per 18% dealers’ opinion advertisement is
done through TV & Radio, 28% dealer’s said through Holdings boards, 16% dealers said
that the advertisement is done through newspaper/magazine and 38% dealers opinion by
the wall paintings
So it is very clear from the above interpretations that Konark cement advertising can be
improved but the advertising in wall paints its effective.
Percentage
Konark Cement 1 25 50
ACC 2 10 20
Ultratech Cement 3 5 10
Lafarge Cement 4 6 12
Birla Ambuja 5 4 8
Total 5 50 100
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Chart Title
80
70
60
50
40 PERCENTAGE
30 RESPONDANTS
20
10
0
t C t t t
en AC en en en
em m m m
kC Ce Ce Ce
r ch ge rla
na ate f ar Bi
Ko tr La
Ul
Interpretation:
The interpretation drawn from the above Column chart states that as per 50% of dealers
opinion there is prompt supply of Konark cement , 20% of ACC cement ,10% of
Ultratech Cement, 12% Lafarge cement and 8% Birla Ambuja cement.
So it is very clear from the above interpretations that \ Konark cement is in first position
in its supply
8. What is the availability of different brands of the cement? (Rate the ranks)
Konark Cement 1 30 60
ACC 2 10 20
Ultratech Cement 3 3 6
Lafarge Cement 4 3 6
Birla Cement 5 4 8
Total 5 50 100
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60
60
50
40
30 Respondents
Percentage
20
20
8
10 6 6
0
Konark Cement ACC Ultratech CementLafarge Cement Birla Cement
Interpretation:
The interpretation drawn from the above Cylinder chart states that as per 60% of dealers
opinion the supply of Konark brand is better, 20% of ACC cement, 6% of Ultratech
Cement, 6% Lafrage cement and 4% Ambuja cement.
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90
90
80
70
60
45
Easy
50
Difficult
40
30
20
10
0
Respondents Percentage
Interpretation:
The interpretation drawn from the above column chart states that the 90% of dealer’s
opinion the Konark brands is easily available and the 10% dealer’s opinion is that it is
difficult to get in the market.
So it is very clear from the above interpretations that Konark cement is first in Orissa,
and the availability of Konark cement is easy.
Brand Name 10 20
Market 11 22
Profitability
Sales Service 7 14
Supply of Goods 8 16
Customer 8 16
Satisfaction
Schemes and 4 8
Rewards
Others 2 4
Total 50 100
Interpretation:
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The interpretation drawn from the above bar chart states that the 20% of dealer’s opinion
the Konark brands attracts, the 22% dealer’s opinion it’s profitability attracts, 14% sales
and service, 16% supply of goods, 16% customer satisfaction, 8% of dealers opinion they
give rewards and schemes and 4% of others facility and services.
So it is very clear from the above interpretations that Konark cement is attract by
customers and dealers also in the market.
11.Is your company providing better schemes and rewards on achieving the
target?
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Interpretation:
The interpretation drawn from the above cylinder chart states that the 60% of dealer’s
opinion the Konark brand is attracting and they are giving the rewards and schemes on
achieving their targets, sales. The 40% dealers opinion is that they are not giving any
rewards and schemes
So it is very clear from the above interpretations that Konark cement is attracting by
giving rewards and schemes to dealer
CHAPTER V
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FINDINGS,
SUGGESTIONS & CONCLUSION
During the course of my study information is obtained mainly through interaction with
dealers personally .
Major Competitors: Major Competitors of Konark Cement are ACC, Ultratech Cement,
Lafarge, Birla Ambuja Cement.
Fast in Work: It was found that Konark cement delivers its consignment faster.
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Gift Offers: Konark constantly keep their dealers entertaining with gift offers.
Average Margin: it was found that average margin in Konark cement is high as compare
to other brands.
Discount: Very good discount is given to Dealers on bulk Purchase than other brands.
Quality: Among Quality Konark Cement Finds its First Place.
Price: Even in pricing Konark Cement and ACC are least and most Preferred by
customers.
Packaging: The packaging of Konark Cement is good.
Advertising: Advertising Policy of Konark Cement is not good.. Once Painting of
banner Hoarding, Wall are done then never taken care or repainted. Most of the add and
worn out. They do only News Paper Advertisement.
The following are the ways; Konark Cement Factory is prompting their sales
SUGGESTIONS
The company should maintain healthy relationship with the dealers by making frequent
visits and helping the in solving the problems faced by them. Letters of Appreciation
most be given.
The company has to welcome the new ideas, various schemes from the dealers for the
improvement of Konark cement. Since they known the requirement of customer.
The company should regularly conduct meetings with dealers and masons and should
give some gift offers to boost sales.
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Credit period should be increased and discount should be introduced in bulk purchase.
Now-a-days television is being watch by not only urban people but also remote people.
So the company must give the more advertisement in Local channel television, which
will give more awareness to the people.
The pricing strategy and margin should be competitive with other brands.
Regular market survey is required to analyze the present market conditions and the
actions of competitive.
The company has to give advertisement in theaters also. (I.e. still and motions ads) it will
also give more awareness to the people.
CHAPTER VI
APPENDIX
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APPENDIX-1
QUESTIONNAIRE
1. Name :
2. Address :
3. Are you satisfied with the Margin of Konark cement Yes/No?
Satisfied
Average
Not Satisfied
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4. What is your opinion on price of Konark cement?
Very High
High
Reasonable
Low
Excellent
Good
Average
Bad
Excellent
Good
Average
Bad
TV/Radio
Boards/Holdings
Newpapers/Magazines
Wall Painting
On telephone or E-mail
Sales representatives
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9. Which brand cement is giving prompt supply in the market ?
Konark
ACC
Ultratech
Lafrage
Birla
Konark
ACC
Ultratech
Lafrage
Birla
Easy availability
Difficult
Brand name
Market profitability
Sales service
Supply of goods
Customer satisfaction
Others
13. Is the company providing better schemes and rewards on achieving the target ?
Yes
No
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APPENDIX – 2
BIBILIOGRAPHY
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