Different Types of Credit Cards Essay Example for Free

Different Types of recognition peckers EssayINTRODUCTIONIn this assignment, I am doing a particular study about the different types of recognize nibs. A creed neb is a payment account issued to users as a system of payment. It dedicates the cardbe atomic number 18r to pay for goods and services based on the carriers promise to pay for them. The issuer of the card creates a revolving account and grants a line of honorable mention to the consumer (or the user) from which the user displace borrow money for payment to a merchant or as a cash advance to the user. A recognise card is different from a charge card a charge card requires the balance to be paid in full each month. In contrast, credit card game allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which earth-closet be utilize like currency by the ingester of the card. A credit card differs from a charge card also in that a credit ca rd typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date. The size of around credit cards is 85.60 53.98 mm (33/8 21/8 in), conforming to the ISO/IEC 7810 ID-1 standard. Credit cards have an embossed bank card number complying with the ISO/IEC 7812 counting standard.Credit cardsCredit cards now are of sundry(a) types with different fees, interest rates and rewarding programs. When applying for a credit card, it is important to record of their diverse types to know the one best suited to their lifestyle and financial status. Different types of credit cards available by banks and other companies/organizations are concisely described below.Standard Credit CardThis is the most commonly employ. One is allowed to use money up to a certain limit. The account holder has to peak up the amount once the level of the balance goes down. An outstanding balance gets a penalty charge.Premium Credit CardThis has a much high bank account and fees. Incentives are offered in this over and above that in a standard card. Credit card holders are offered travel incentives, reward points, caskful back and other rewards on the use of this card. This is also called the Reward Credit Card. Some examples are airlines frequent flier credit card, cash back credit card, automobile manufacturers rewards credit card. atomic number 78 and Gold, MasterCard and Visa card fall into this category .Secured Credit CardPeople without credit history or with tarnished credit lavatory avail this card. A security deposit is required amounting to the same as the credit limit. Revolving balance is required according to the buying and selling done. The cardholder of a secured credit card is still expected to make regular payments, as with a regular credit card, but should they default on a payment, the card issuer has the survival of the fittest of recovering the cost of the purchas es paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus.This allows building a positive credit history. Although the deposit is in the hands of the credit card issuer as security in the item of default by the consumer, the deposit will not be debited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less(prenominal) than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card.Limited Purpose Credit CardThere is limitation to its use and is to be used only for particular applications. This is used for establishing midget credits such as gas credits and credit at departmental stores. Minimal charges are levied.Charge Credit CardThis requires the card holder to make full payment of the balance every month and therefore there is no limit to credit. Because of the spending flexibility, the card holder is expected to have a higher income level and high credit score. Penalty is incurred if full payment of the balance is not done in time.Specialty Credit CardIt is used for business purposes enabling businessmen to keep their businesses transactions separately in a convenient way. Charge cards and standard cards are available for this. Also, students enrolled in an accredited 4-year college/university course can avail this benefit.Prepaid Credit CardHere, money is loaded by the card holder on to the card. It is like a debit card except that it is not tied up with a bank account. This is directly connected to savings account. The payments from this card can be made until there is balance in the account. Low Interest Rate Credit Cards This credit card is highly useful as they will have low interest rates.Business Credit CardsCredit cards that are specifically for business use only. They give the favor for business owners to have an easy method of keeping and separating personal and business transaction. This credit card is available for businessmen who have large home, small scale or medium scale business to look after. This card is highly useful for facilitating businessmans training programs, travel and entertainment programs.Gold Credit CardGold credit cards are made for higher income groups who also have higher credit rating. It is a status symbol and is considered prestigious. The features of fluent credit cards are Cash bear offal limit is higherCredit limit is higherProvides one Add-on card which can be given to either, spouse, children or parents of the credit card holder Provides many privileges such as travel insurance policy, reward points, cash back offers etc.Platinum or Titanium CardPlatinum or Titanium c ards are similar to gold credit cards but they have few more than additional benefits. The additional features may differ from bank to bank. Few common features are listed below Protection against credit card loss and theft.Protection against online craft transactionsProtection against sickness and injury by an accident.There is no yearly feeSilver Credit CardSilver credit cards are the standard credit cards available and most of the employed people with 4 or 5 years experience can own this type of card. The features of silver cards are Lower membership feesThe applicant need not be a high- salaried person to buy silver card. The interest rate is 0% initially between 6-9 months when transferring account balance from one credit provider to another one. If the credit history of the card holder is good, the credit limit provided will be the same as provided to other credit cards.There are many other types of credit cards interchange in India. Few are mentioned belowRewards Credit C ardThis card has rewards attached to it on based on usage of the card, for e.g. A card may offer 5% discount on fuel, if it is used to buy fuel and gas, or a card may offer cash back quickness if a certain amount is spent through it.Balance Transfer Credit CardThis card is bought to pay outstanding amount of one card with the other. In this too there are cards that offer interest-free time period.List of credit cards provided by the various banksIndian Overseas blaspheme Visa International Credit cardAxis Platinum cardBank of Indias India CardGold International CardCitibank Dinners Club International cardICICI Bank Online cardSyndicate Global Gold Credit CardCorpBank Gold cardVijaya Bank Visa Gold Credit CardHSBC Platinum cardCorpBank Classic cardVijaya Bank VISA Classic International CardHDFC Silver credit cardConclusionHere we discussed about various types credit cards that using for the simplicity in transactions. Many credit cards can also be used in an ATM to withdraw money a gainst the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. As well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the bring in of work-related expenses for taxation and reimbursement purposes.Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks (such as insurance protection, rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or cashback). Some countries, such as the fall in States, the United Kingdom, and France, limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumers credit card being lost or stolen.

Public Sector Productivity

world Sector ProductivityCHAPTER ONEINTRODUCTION1.1 BACKGROUND TO THE STUDY domain domain productiveness is important to the effect of a country. Thornhill (2006) identifies three main reasons why earthly concern sector productivity is crucial. First, the everyday sector is a major(ip) employer of labour. Second, the public sector is a major provider of gains particularly business and social services. Third, the public sector is a consumer of tax resources. To him, changes in the public sector productivity may incur significant implications on the economy. Public sector productivity involves efficiency and outputs as well as effectiveness and outcome (Pritchard 2003, Tolentino 2004). In Kalliolas formulation (2003), at least two points illustrate the issues that make the whole question of public sector productivity a highly contentious one in galore(postnominal) countries. One is whether or not citizens are being provided with what they need. The other question is on how th e services concerned (public servants) make better use of the resources at their disposal. firearm factors such as aging population and increasing healthcare and pension costs add to budgeting pressure, citizens are demanding that governments should be made accountable for what they achieve with the taxpayers capital (Curristine et.al 2007).The issue of productivity and act enhancement in the public sector is nothing new, scholars and practitioners have worked for decades to identify what makes governance productive and effective. Over the years part there have been a variety of studies concerning government worker motivation and productivity, few, if any, studies have focused specifically on state workers perceptions to the highest degree what factors affects their productivity . With to a greater extent than five (5) million workers employed by state governments, any shed light onment in state work fundament productivity could have significant financial and service impact fo r society. Workforce productivity remains a primary element for success in most organizations, including those in government. Knowing what factors influence productivity is a prerequisite to improving surgical operation and at the same time contain exp obliterateiture growth (Haenisch 2012).In fact, the use of the concept of productivity has been intermingled with the concept of performance (Jackson, 1999 Stainer and Stainer, 2000). Researchers have identified each concept in different ways. Productivity of the workers in the public sector is a function of many factors ranging from top direction support, committed personnel at all levels, performance measurement system, employee training, reward structures, community involvement and feedback to correction of budget-management decisions. It is thus important to build up capacities for productivity improvement (Holzer and Seok-Hwan, 2004)Public sector workers have been viewed to be less productive because about 39% of them are not f ully engaged in their jobs, about 54% of them are not satisfied with their jobs, while about 39% of them are somewhat or very likely to make a conjunctive effort to find a new job with another employer in the coming year. (Bond and Galinsky 2006). While some scholars have argued that the solutions to the challenges set about in the Nigerian public service is by decentralization of political power and the responsibilities of sub-national government, others argue that appropriate human resource management practices and increasing the scale of operations will improve efficiency among government workers.On the basis of this therefore, this read aims at investigating issues pertaining to maximum productivity in the public sector will be achieved.1.2 direction OF THE PROBLEM in that respect is significant evidence that productivity advancement in government organizations has not kept pace with the increase found in the nonpublic sector (Haenisch 2012), Nigeria today is regarded as one of the most corrupt nations in the world and to this effect, there have been several civil service reforms which each reform has adjusted or changed several things in the previous reform. The last civil service reform was the Obasanjo civilian Service Renewal Program, 1999-2001. One of the crucial challenges faced by the Obasanjo administration on assuming office on 29th May, 1999 was the issue of how to address the crisis in the public sector (Olaopa, 2008).Aspects of the crisis identified were inefficiency in the deliverance of social services (Olaopa, 2008). Years after these reforms, there seem to be no improvement in the productiveness in the Nigerian public service. It is nevertheless crucial to note that these negative characteristics are still very much rampant in the present Nigerian public sector. These lapses have led to weakening of public institutions, distrust of government by citizens, collapse of infrastructures and a development of a sense of despair amongst th e Nigerian peoplesMoreover, there is significant evidence that productivity advancement in government organizations has not kept pace with the increase found in the private sector and a number of factors still terminus ad quem the success of most attempts to measure or improve productivity (Killefer and Mendonca, 2006). It is imperative to find out those factors that still limit productivity of Nigerias public sector.1.3 interrogation QUESTIONSWhat is the relationship between workers productivity and public service effectiveness?How effective are the facilities put in place to enhance productivity in the public sector?How effective are the policies put in place to enhance productivity in the public sector?What are the factors liable for low productivity in the Nigerian public service?How can productivity be enhanced in the Nigerian public service?1.4 OBJECTIVES OF THE STUDYAt the end of this look into, the following will be achievedTo examine the relationship between productivity and public service effectivenessTo examine the effectiveness of the facilities put in place to enhance workers productivity in the public sector.To examine the effectiveness of the policies put in place to enhance workers productivity in the public sector.To examine the factors responsible for low productivity in the Nigerian public sectorTo know how productivity can be enhanced in the Nigerian public service.1.5 search HYPOTHESISH1 There is no relationship between workers productivity and public service effectivenessH2 The facilities put in place to enhance productivity in the public sector are not effective.H3 The policies put in place to enhance productivity in the public sector are not effective.H4 There are no factors responsible for low productivity in the Nigerian public service.H5 Productivity cannot be enhanced in the Nigerian public service.1.6 entailment OF THE STUDYThis explore work is significant in that the reason why the Nigerian public service was established wil l be examined, if the public sector is achieving reasons why it was established, how effective has it been, to what extent it had achieved its purpose and to what extent it is relevant.Also, there have been relatively few researches effectiveness and productivity in the Nigerian cultured Service. What this research attempts to do is to focus on how productive the public sector is and bring it to the enlightenment of the general publicThe significance of this study is to add to general knowledge on the relationship between workers productivity and public service effectiveness in Nigeria.This research is also significant in that it can serve as a source of secondary research for other scholars who will be researching on aspects relating to public service effectiveness and workers productivity.1.7 DELIMITATION OF THE STUDYThe scope of this study is to examine the level of productivity of workers in the public sector. This helps to identify the extent to which workers in the public se ctor carry out their duties and how well they value their positions. The research is limited to the Oyo State Ministry of Information in the fourth republic specifically between 1999 and 2013. And the limitation of this study is seen in that Public sector productivity cannot be quantified.1.8 OUTLINE OF THE STUDYChapter One This chapter is the introduction to the Study of Workers Productivity and Public Service Effectiveness. It highlights the research questions and objectives.Chapter Two This chapter is the Literature Review and hypothetic Framework. It carries the definition of terms the meaning and definition of Productivity, the meaning and definition of Public Service and also the meaning and definition of effectiveness. It also includes reviewing works done by other scholars and theoretical framework.Chapter Three This chapter emphasizes on the historical development of the Nigerian public sector and its unhomogeneous reforms.Chapter Four This chapter is the Presentation and Analysis of data. It also tests the various hypothesis of the research and discusses the research findings.Chapter Five This chapter is the summary, recommendations and conclusion of the work. It summarizes the entire findings of this research.1.9 REFERENCESCurristine, Lonti, Joumard, (2007), Improving Public Sector Efficiency Challenges and Opportunities OECD Journal on Budgeting Volume 7, No. 1 (OECD 2007)Gberevbie, D. et.al (2009), Staff Indiscipline and Productivity in the Public Sector in Nigeria, An International Multi-Disciplinary Journal, Ethiopia Vol. 3 (4),Haenisch, J.P. (2012), Factors Affecting Productivity of Government Workers Kaplan University Wyoming, USAHolzer, M. and Seok-Hwan, L. (2004), Mastering Public Productivity and exertion Improvement from a Productive Management Perspective in Holzer, M. and Seok-Hwan, L. (Eds.) Public Productivity Handbook, 2nd ed,. New York NY Marcel Dekker,Jackson, P.M (1999), Productivity and performance of Public Sector Organization s, International Journal of Technology Management, Vol. 19, No. 7/8 pp. 754-56Mantu, S.N. (1998), Evolution of Nigerian Civil Service The 1988 Reforms, Zaria Gaskiya Corporation Ltd.Ogunrotifa, A.B. (2012), Federal Civil Service Reforms in Nigeria A Case of Democratic Centralism, Radix International Journal of Research in Social Science Vol. 1, Issue 10 (October 2012)Okunade, A. (1987), Public Administration in Nigeria, Ibadan Center for External Studies, University of Ibadan.Olaopa, T. (2008), Theory and Practice of Public Administration and Civil Service Reforms in Nigeria, Ibadan Spectrum Books LimitedOlusanya, G.O. (1975), The Evolution of the Nigerian Civil Service- 1861-1960 The Problems of Nigerianisation, University of Lagos Humanities Monograph Series, No.2.Stainer, A and Stainer, L (2000), Performance in Public Sector a Total Productivity Approach, International Journal of Business Performance Management, Vol. 2, No. 4, pp 263-75Thornhill, D. (2006), Productivity Attainmen t in a Diverse Public Sector paper presented at the Public Seminar on Promoting Productivity in a Diverse Public Sector, Dublin, 21st AprilWey, S.O. (1971), The Structure and Organization of the Public Service, Lagos Cabinet Office February.

Malunggay Bark Extract As A Source Of Electricity

Malunggay verbalize chicken out As A Source Of ElectricityThe 21st century trend is an era in which technologies compel part of human lives. In this age, efforts and time atomic number 18 exhausted by many individuals or groups in localize to create technologies that can be utilise in any human endeavour. Conversely, for most of these innovations and inventions to function, electrical energy is required. In the Philippines, a country that is abreast with technologies, majority of the electricity requirement is inferd from electric violence plants that atomic number 18 run by fossil fuels such as petroleum and coal. Moreover, batteries which are port subject stemma of the said aught are alike in use. However, collectible to rapid increase in technologies that require electricity, some(prenominal) problems arise. At present, since on that point is a huge demand for electricity, fuel required to give in such energy becomes scarce. People have realized that most of proce sses and materials for electricity generation have detrimental effect on the environment and on health of human. Hence, researches are conducted to visualise green (clean, natural, derive from biological source), minuscule cost, and readily available utility(a) source of electricity. In line with this view, Filipinos actively participate to achieve this purpose by introducing malunggay (Moringa oleifera) as an important source of not only nutrition and medicine but of electricity as well.Malunggay is a shoetree that preferably grows in countries with tropic climate such as the Philippines. This tree can be easily propagated since malunggay can be grown from seeds or mature stem cuttings. In the country, this tree is commonly found in house backyard, aligned with perimeter fences, since the edible and nutritious flowers, fruits, and leaves of malunggay are part of the diet of Filipinos. Aside from the nutritional value of some parts of malunggay, all parts of this tree are use d in herbal medicine to cure some diseases. Given that this tree can operate several purposes, malunggay becomes in demand.In light of the discussion of the environmental problems and characteristics of malunggay, a group of researchers conducted a train entitled pack Electricity Malunggay Bark derive as Alternative Source of Electricity, to show that malunggay (Moringa oleifera) speak exclude is a viable alternative source of electricity consequently, providing an environment friendly, inexpensive and accessible source of electricity.At this point in time, since there is a strong desire to improve way of living, great attention is given to technologies. Due to this interest, innovations and inventions which require electricity are continuously developed. Thus, electricity must be continuously generated. On the contrary, most of the processes and materials for electricity generation pose hazards to the environment and human health. Therefore, a clean, low cost, and readily ava ilable source of electricity is needed, a reason that motivated the researchers to engage in this investigatory project.B. Statement of the ProblemThis theatre entitled MOB Electricity Malunggay Bark Extract as Alternative Source of Electricity intends to investigate the feasibility of Malunggay (Moringa oleifera) pare tear as an alternative source of electricity.Specifically, this field of force sought to answer the following questions1. Is there a material difference on the amount of electric potential measurable from liquid corpse of malunggay skin back down dominateed with crude and ethanol utterion?2. Is there a significant difference on the amount of potential metrical from change integrity contrive of malunggay bark extract obtained through crude and ethanol extraction?3. Is there a significant difference on the amount of voltage metric from liquid and gelatine form of malunggay bark extract obtained through crude and ethanol extraction?4. Is there a signifi cant difference on the amount of voltage measured from varying amounts of malunggay bark extract?C. Hypotheses1. Ho There is no significant difference on the amount of voltage measured from liquid form of malunggay bark extract obtained through crude and ethanol extraction.Ha There is a significant difference on the amount of voltage measured from liquid form of malunggay bark extract obtained through crude and ethanol extraction.2. Ho There is no significant difference on the amount of voltage measured from jelly form of malunggay bark extract obtained through crude and ethanol extraction.Ha There is a significant difference on the amount of voltage measured from jelly form of malunggay bark extract obtained through crude and ethanol extraction.3. Ho There is no significant difference on the amount of voltage measured from liquid and jelly form of malunggay bark extract obtained through crude and ethanol extraction.Ha There is a significant difference on the amount of voltage measu red from liquid and jelly form of malunggay bark extract obtained through crude and ethanol extraction.4. Ho There is no significant difference on the amount of voltage measured from varying amounts of malunggay bark extract.Ha There is a significant difference on the amount of voltage measured from varying amounts of malunggay bark extract.D. Significance of the StudyThis study will provide the energy sector in the country a green alternative source of electricity which will reduce the use of materials that have hazardous effects to human and environment. Hence, minimizing occurrences of diseases and slowing the rate of environment adulteration. Furthermore, the positive result of this study could also assure people with inexpensive and accessible source of electricity.Moreover, this study introduces a new application of malunggay, thus, further increasing the demand for this tree. In this effect, farmers in the country could have extra income by providing the needed supply of mal unggay.E. Scopes and LimitationsThe focal point of this study is the feasibility of malunggay (Moringa oleifera) as an alternative source of electricity. In parade to assess the said feasibility, malunggay bark extract obtained through crude and ethanol extraction was utilized. Subsequently, voltage was measured for different set-ups and treatments.However, the researchers were unable to determine the component of the extract answerable for electricity generation since the material was not subjected to chemical analysis. This restriction might be an additional recommendation for future researches.The researchers conducted this study from January 9, 2012 to August 23, 2012. totally experiments and observations were do at JICA laboratory of Sapang Palay National High School.F. Operational Definition of TermsGelatin Powder used to create a firm form of extract. vitamin C Rod -served as the positive electrode (anode) of the external circuit attached to malunggay bark exract.Zinc Plate served as the negative electrode (cathode) of the external circuit connected to malunggay bark extract.Multi-tester used to measure the amount of voltage from malunggay bark extract.CHAPTER IIREVIEW OF RELATED LITERATUREI. IntroductionIn the onset of the 21st century, negative effects of environmental issues such as pollution, ozone depletion, and global warming become notable. Thus, these problems gained the attention of people around the world. Among these negative effects are development and widespread of diseases, development of skin cancer, increase in temperature, heavy rains, heavy floods, strong typhoons, and climate change. In response, organizations are created, and conventions and researches are conducted to deal with these issues.Today, as data are continuously gatheredvarious human activities that involve emission of gases, chemicals, and radiations are considered as one of the large contributor to environmental degradation. Such human activities accept genera tion of electricity. However, since electricity is vital in operating technologies which advances human lives, search for clean alternative source of electricity should be conducted to prevent further degradation of the environment.II. Electricity GenerationElectricity is the form of energy that has the highest demand at this point in time. This energy form is required to operate technologies that people created for life-time advancement. Thus, energy industries are in continuous search to supply the needed demand of electricity. Today, there are different sources from which this energy is derived. These sources include fossil fuels (petroleum and coal), thermonuclear energy, hydropower, solar energy, and wind energy. These sources are used to drive turbines in electric power plants which will generate electricity. Electricity generated from these sources is the one supplied in wall sockets of houses and buildings. separate source of electricity is battery, a source that is in p ortable form. (Bose, 2010)In the Philippines, a country that is abreast with technologies, majority of the required electricity is derived from electric power plants that are run by fossil fuels such as petroleum and coal. Moreover, batteries which are portable source of the said energy are also in use. However, emissions from such electric power plants are composed of gases which cause air pollution and contribute to global warming. Likewise, batteries have chemical components that can leak and spoil land, water and air. In addition to these negative effects to the environment, human can also acquire diseases due to said contamination. (Petrina, 2007)III. Green ElectricityPeople are now aware of the harmful effects of conventional electricity generation to human health and environment. Consequently, efforts and time are spent in order to find oneself alternative green clean, natural, biological sources of electricity, an action that would minimize presence of harmful chemicals and gases in the environment. In connection to this notion, researchers have considered different plants, different parts of plants, and organisms as potential source of green electricity. (U.S Environmental Protection Agency, 2012)Basic example of green energy is electricity from fruits and vegetables. Many people, during childhood, have done classroom experiments to derive electricity from lemon and potato. Results of these experiments proved that these materials can generate electricity because juices of fruits and vegetables act as electrolytes which initiate reaction to free and move electrons. (Renico, 2012)On the other hand, some other linkd research was conducted by scientists of Stanford University which harness electricity from algae. The concept behind this project is the process of photosynthesis involved in food production of plants. According to the scientists, in this process, electrons from water are given with high energy by sunlight. These electrons are the one t he scientists captured using electrodes. (Stanford University, 2010)Lastly, researchers of Arizona State University study the possibility for bacteria to generate electricity through the use of a microbial fuel cell (MFC) which contains waste water and bacteria dwelling on the material. In this research, the persons involve relate electricity generation to metabolic activity of bacteria. (Arizona State University, 2008)IV. Malunggay TreeMalunggay (Moringa oleifera) tree, which commonly grows in tropical countries such as Philippines, is characterized by long, straight, white trunks small, green, complicated leaves and seasonal white flowers that yields long pods. This tree propagates easily and does not require much attention. In fact, malunggay seeds or matured stem cuttings can be deep-seated in any kind of soil and does not require regular maintenance. (Asia Green Group, 2012)In the Philippines, malunggay can be found in most household backyards because edible parts of this tree (flowers, pods, and leaves) are part of Filipino cooking. Moreover, these parts of malunggay tree provide people with vitamins and minerals needed by the body. Aside from providing nourishment, this tree also has medicinal value. ground on numerous studies, malunggay contains chemicals that have antibacterial, anticancer, and anti-inflammatory properties. (Fahey, 2005)CHAPTER IIIMETHODOLOGYGathering of Materials/EquipmentsAmong the materials gathered by the researchers were malunggay (Moringa olifera) bark, gelatin powder, ethyl alcohol, filter paper, gloves, brass instrument mask, and old batteries. Equipment as well was borrowed from the school laboratory. These equipments include beakers, reagent bottles, funnel, stirring rod, thermometer, mortar and pestle, alcohol lamp, triple beam balance, strainer, tripod, and wire gauze.Collection of Zinc Plate and Carbon RodResearchers collected old batteries. Subsequently, these batteries were uncovered and electrolyte inside was remove d. Since electrolyte component of battery is composed of slightly toxic chemicals, researcher wore gloves and face mask. In this manner, zinc plates and speed of light rods were obtained.Preparation of Malunggay Bark ExtractA. Crude declinationMalunggay barks were collected and cut into small pieces by the researchers. Afterwards, the barks were placed in a blender. Finally, in order to obtain pure extract, checkd barks were placed in soft cloth and squeezed.B. grain alcohol ExtractionMalunggay barks were collected and cut into small pieces. Then, barks were placed in a blender to mince the material. Next, minced barks were oven-dried for 5 minutes and were pulverized with mortar and pestle. After this process, 100 grams of pulverized bark was placed in a reagent bottle in which 250 ml of ethyl alcohol was poured afterwards. Lastly, extract which was rested for 10 hours for purification purpose was filtered through a funnel with filter paper.Varying the meter of Bark ExtractAmou nt of bark extract obtained through crude and ethanol extraction was varied for each treatment. 5 ml of extract was allotted to intercession I, 10 ml for Treatment II, and 15 ml for Treatment III.Preparation of change integrity bound of Malunggay Bark ExtractIn a beaker, constant volume (5 ml) of water was poured and change to 70oC. When water reaches the specified temperature, constant amount (10 g) of gelatin powder was added into the water. Then, the solution was continuously stirred. Before the solution solidifies, the assigned amount of extract per treatment was poured without lemniscus the stirring process. Material was immediately removed from heat.Measuring potential dropZinc plate and carbon rod were installed to each treatment. From these electrodes, multitester was connected to measure voltage. Measurement was done for five times. Subsequently, voltage measured from each treatment was recorded.METHODOLOGICAL FLOWCHARTGathering of Materials/EquipmentsCollection of Zi nc Plate and Carbon RodPreparation of Malunggay Bark ExtractSet-up 1Liquid Form of ExtractSet-up 2Jelly Form of ExtractCrude ExtractionEthanol ExtractionCrude ExtractionEthanol ExtractionTreatment I 5 ml ExtractTreatment II 10 ml ExtractTreatment III 15 ml ExtractTreatment I 5 ml Extract5 ml Water10 g Gelatin PowderTreatment II 10 ml Extract5 ml Water10 g Gelatin PowderTreatment III 15 ml Extract5 ml Water10 g Gelatin PowderMeasuring Voltage per TreatmentData GatheringTabulation and statistical Analysis of ResultsCHAPTER IVRESULTS AND DISCUSSIONSThe researchers conducted several experiments. Subsequently, data and results obtained from these experiments were recorded in tabulated from in this chapter. After each table of data, interpretations of these results were discussed. In the aid of these interpretations, the researchers could have initial estimation of the hypotheses presented in this paper.Table 1.0Set-up 1Crude vs. Ethanol Method of Extraction(Liquid Form of Extract)Treatm entAmount of ExtractTrialCrude ExtractionEthanol ExtractionVoltage (V)Voltage (V)Liquid Form of ExtractI5 ml11.01.221.61.831.61.841.61.251.61.2II10 ml12.61.222.71.132.71.042.61.052.71.0III15 ml12.71.022.71.032.71.042.71.052.71.0Table 1.0 shows that liquid form of crude bark extract generated higher and more logical amount of voltage than liquid form of ethanol bark extract. In addition, for crude bark extract, amount of voltage increases as amount of extract increases.Table 2.0Set-up 2Crude vs. Ethanol Method of Extraction(Jelly Form of Extract)TreatmentAmount of Gelatin Powder (g)Volume of Water (ml)Volume of Extract (ml)TrialCrude ExtractionEthanol ExtractionVoltage (V)Voltage (V)Jelly Form of ExtractI105512.01.022.01.032.01.242.01.252.01.2II1051011.81.421.81.231.81.441.51.251.21.2III1051512.51.822.51.832.41.842.41.852.51.8Table 2.0 shows that jelly form of extract from crude extraction yielded higher amount of voltage than jelly form of extract from ethanol extraction. However, more uniform voltage reading is obtained from jelly ethanol bark extract than jelly crude bark extract as the amount of extract increases, amount of voltage reading increases.Table 3.0Liquid vs. Jelly Form of Extract(Crude Method of Extraction)TreatmentAmount of ExtractTrialLiquid form of ExtractJelly Form of ExtractVoltage (V)Voltage (V)Crude Method of ExtractionI5 ml11.02.021.62.031.62.041.62.051.62.0II10 ml12.61.822.71.832.71.842.61.552.71.2III15 ml12.72.522.72.532.72.442.72.452.72.5Table 3.0 shows that both form of crude bark extract generated relatively high amount of voltage. Even so, jelly crude bark extract yielded fluctuating amount of voltage as the amount of extract increases.Table 3.1Liquid vs. Jelly Form of Extract(Ethanol Method of Extraction)TreatmentAmount of ExtractTrialLiquid form of ExtractJelly Form of ExtractVoltage (V)Voltage (V)Ethanol Method of ExtractionI5 ml11.21.021.81.031.81.241.21.251.21.2II10 ml11.21.421.11.231.01.441.01.251.01.2III15 ml11.01.821.01.831 .01.841.01.851.01.8Table 3.1 shows that as amount of liquid ethanol bark extract increases, amount of measured voltage decreases. For jelly form of bark extract from ethanol extraction, voltage reading increases, as the amount of said extract increases.CHAPTER VSUMMARY, CONCLUSIONS, AND RECOMMENDATIONSSummaryThis study entitled MOB Electricity Malunggay Bark Extract as Alternative Source of Electricity aspires to prove if malunggay bark extract could be a likely source of electricity and to ascertain if there would be a significant difference when the method of extraction, form of extract, and amount of extract are varied.In order to test the feasibility of malunggay bark extract as alternative source of electricity, the researchers prepared two different set-ups and under each set-up there are terzetto treatments. For the second set-up, amount of gelatin powder and amount of water used in each treatment were controlled. Then, voltage was measured in each treatment per set-up for five times using a multi-tester.The results obtained from different set-ups were analyzed using Two-Factor ANOVA with Replication. The results are summarized as followsOn the first set-up, statistical analysis showed that there is significant difference in the amount of voltage measured from liquid form of malunggay bark extract when method of extraction and amount of extract were varied.On the second set-up, statistical analysis showed that there is significant difference on the amount of voltage measured from jelly form of malunggay bark extract when obtained through different extraction method. Furthermore, statistically significant difference also exists on the amount of voltage reading when the amount of said form of extract was varied.statistical analysis of Tables 3.0 and 3.1 indicate that there is significant difference on the amount of voltage measured when the form of extract and amount of extract were varied.ConclusionBased on the results of statistical analysis and obser vations, the researchers conclude that malungggay bark extract could be a viable alternative source of electricity. Moreover, the people behind this study were able to discover that the 15 ml liquid form of extract obtained through crude extraction yielded the highest and most stable amount of voltage among all the treatments done.RecommendationsIn this study the researchers encountered some hindrances which limited the scope of the investigation. Hence, only test for the feasibility of malunggay bark extract as an alternative source of electricity was conducted. Nonetheless, the study does not end with this objective. There are other factors related to electricity generation in malunggay bark extract that should be considered.Researchers would like to propose the following to other people who consider pursuing this projectFurther increase volume of extract in order to obtain higher voltage reading.Convert the extract in a form that will facilitate easier and more stable voltage mea surement.Subject the extract to chemical analysis to determine the component responsible for electricity generation.Develop a way to harness electricity from the extract.

Grey Marketing Activities Within the Software Industry

white-haired Marketing Activities at heart the Softw be IndustryFutureABSTRACTThe inquiry formulate has presented an oerdone pile of the operation at bottom the buttescent commercialises, their functioning, determine structure, the customer nucleotide lastly the arguments in favour, t presentby evaluating - rotter colourise be good?It has as well as focussed on rusty foodstuffs- as a subject of annoyance for the IT players OEMs. Counter-arguments hostile measures ad pick appe ard to combat colorize goods learn in any case been the point of discussion.Over every last(predicate), this human of research is creationness favored in presenting a balanced tantrum of the goods the bads of the color in industry from the perspective of industry players, color entrepreneurs as well as consumers.INTRODUCTION1.1 AIMS To obtain development insights ab break white-haired(a) tradeing activities deep d testify the packet industry.With the befri termination of Journals, case studies secondary research activities throw off light on the present scenario of the colour foodstuffs (consumer tar outwit ating inclination, price etc). The pros cons of white-haired(a)-headed merchandiseing sh solely also be presented to have an equalised view. To k now what be the hostile measures adopted by firms to pr neverthelesst colorize activities.Present cases to depict the snag measures adopted by firms like HP Micro emollient to combat grey foodstuff products. The paper also foc economic consumptions on the initiatives adopted by independent agencies such(prenominal) as AGMA BSA towards grey market activities. Market Penetration Grey MarketsCan grey market ever be an alternative to market sagacity? If yes, to which extent can it be possible? In addition, understanding the thought of escaped riding as a flair for market penetration, as mentioned in the Journal of oblivioussighted letter Venturing (Vol 4). To evaluate Can grey ever b e good?Based on the research underinterpreted, evaluating on that pointby concluding the positives negatives of grey markets. Should they be encouraged? Can they boost an economic scenario of a acres? lastly how effective can they be in increasing gross r even soue of a product?1.2 OBJECTIVESThe methodology that is to be adopted for fulfilment of the above aims is as under Journals, Newsweekly, Internet (secondary research) along with white papers come throughd by firms sh all(prenominal) be the primary(prenominal) sources of tuition for this research. Primary training obtained through interviewing shall be the most vital aspect (it shall be considering not bargonly the consumer perspective towards grey markets its products, unless also of dealers operating inside this arena). finally, the crux of the matter of the research (insights, analysis evaluation) will be presented to obtain a concluding perspective.1.3 GREY MARKET AN NTRODUCTIONMajority of dissemination comp anies are flourishing thanks to distribution ships that shepherd product from a manu eventurer in the end direct them to the consumers through a chain of lawful allocators crossship canal the world. that a ascent mannikin of detrimental market subsists that can cause ignorant customers to buy technology products with untrue warranties, several designed for use in separate countries or worse products consisting counterfeit parts. These practices can erode customer satisf carry through harm soil integrity, causing major(ip) profit contrition for manufacturers.Welcome to the global Grey Market where brand products have been sidetracked from the classical supply point inside a country or are trade into a country with show up the sycophancy or awakeness of the manufacturer. Grey market goods are usually exchange at lesser prices than those pro buzz offd by the legitimate distributors. And the price disparity amongst various legitimate markets customers generates an opportunity for the brokers to procure labelled products at caned prices move them to markets where they can fetch high income.A research get a line by KMPG demonstrates that grey market goods pose a grave challenge to cultivation technology manufacturers their authorised dealers. The study reveals that IT manufacturers are communally losing up to US$5 billion in internet on yearly basis, a figure that is mounting. While the grey market affects many businesses, including automobiles, consumer products, pharmaceuticals, fashion openingories other(a)s, this study shall validate that computers tie in products are the industry segments most affected by grey market actions.1.4 INTRODUCTION TO THE PROBLEM(a) Software CounterfeitingCounterfeiting is amongst the most exigent hassle facing the information technology (IT) industry today. punishable replicas of brand-name high tech products are flooding the marketplace, causing harm to legitimate companies profits and declensi onping their aptitude to invest in research and development (RD). genesis of technology employed to make computers, servers, and a host of high tech productsas well as a escape of regulatory enforcement in exploitation countriesis speeding up counterfeiting. It is now estimated that as much as 10 percent of all high tech products sold globally are counterfeit.(b) forgo Riding A Way To Penetrate Markets? throw in the towel Riding is a term which comes into picture when software package products have been counterfeited. Free-riding was foremost introduced by Tan et al. (1995, 1997) as an alternative explanation for the incidence of grey marketing, whereby grey entrepreneurs are provided with the opportunity to enter money-making markets that are presently supplied by self-aggrandizing firms.However, hostile measures have been interpreted to prevent grey market activities by agencies like AGMA BSA as well as biggies like Microsoft, HP etc. HP is administrating reseller spot chec ks and distie reviews to stamp out(p) the grey market in a variety of regions without being hesitant to exercise the fair play courts a benefitst resellers who breach contr authentic requisites. The firm, at the moment, is taking legitimate action in opposition to one UK reseller for violation of agreement and cautions it has other cases under review. While, Microsoft has collared another plagiarist in the UK for flogging grey software on eBay. The software giant has scored 35,000 in compensation against an internet trader for copyright violations and illegitimately bringing in cut-price American software to atomic number 63.Meanwhile, an agency like business organisation Software Alliance (BSA) is outing bandits by setting a bounty on their heads. The group announced its B kickoff-class honours degree the sound operation which presents $1m to workers who squeal on their companies. Certain firms are trying to launch software which might allow manufacturers detect gross sale s through unofficial mediums.1.5 screen background FOR THE REASERCHThe main reason croupe the proposed research subject is to obtain information on the grey markets the practices that are being carried out. The scope for undertaking the research work is as under intelligence the global phenomenon of grey marketing.Understanding the logistics within grey markets.The precautionary measures adopted by the firms agencies to prevent grey activities.The concept of free riding to pass over markets within the software arena. lastly analysing evaluating the research produced to gather provide insights.1.6 LIMITATIONS TOWARDS THE REASERCHThe possible shortcomings for the proposed research topic are as under universe an unconventional subject for research, obtaining information can be tough.Tracking the right sources of information is a major challenge.Information ga thered through ground research cant be completely relied upon, as it can be manipulative.Information obtained from grey suppliers whitethorn not be fruitful, as they might not set up out precise information about the present scenario Interviewing bulk from companies or firms who are being targeted by grey marketers may prefer to remain low profile on the tour of duty measures they plan to adopt in future.1.7 REASEARCH STRUCTUREThe research has five focus groups (in order to understand the information.)The first chapter assigns an inside view of the topic with its backdrop. It also contains the ordinary objectives which form the foundation for a foc utilise research study. Meanwhile, it also describes how the established purpose will be happen upond and the manner they would provide help. This section gives rationale and sizeableness of conducting this research.The second chapter comprises the prior literature on grey markets, constructed by a range of authors and research workers in earlier years. This would aid to shed light on the pros cons in grey marketing. In addition this chapter prov ides stretch forth cases published in reputed currentsweekly.The third chapter talks about the type of methodology the researcher has employed to achieve the study. It gives out the arguments in favour against of each method in order to gain understanding. Further more, it exemplifies of some important sources which have been accessed to complete the study. Thus, this chapter explains the diametrical techniques to achieve the objectives.The fourth chapter forms the carcass of the thesis as it entails the detailed analysis of the various aspects to establish the objectives. This chapter generates convincing points to support the study.The fifth and the last chapter of the paper summarises all the information gathered, finally, concluding the thesis.1.8 thickset HYPOTHESISTo summarise the above literature in few words, I shall be prefatoryally focusing weather grey markets can influence the sales of a product, thereby helping towards market penetration.Concepts, rather strateg ies, such as free riding shall be looked researched upon to present true to life(predicate) as well as optimistic view towards grey markets, thereby analysing -Can grey ever be good? Can grey goods help in market penetration?LITREATURE REVIEWAlmost exclusively, the existing literature on grey marketing regards the occurrence as a price problem but personal identification numbers short to identify it as a market entry opportunity for start-up entrepreneurs. The grey marketing strategy forms apt for start-up entrepreneurs in view of their resource limitations and the risk of being a first-mover in market development. Within this paper, the researcher shall be focusing on how an entrepreneur can effectively penetrate an established market by adopting suit equal to(p) approaches. This is most favorable for an incumbent trader to accommodate the entrepreneur/grey marketer even if the former could bind the latter out of the market through hostile counter actions.Moorthy (1985) demons trated the game theoretic methodology is most appropriate to investigating the behavior of market participants in such a state. This game theory is being pursued by Lim G.H., Lee K.S., Tan S.J. (Journal of Business Venturing, Jul 2001, Vol 16) to depict the strategic communications between parties concerned in grey markets and to recognise the circumstances under which entrepreneurs can effectively enter these markets.2.1 THE POSITIVES OF GREY merchandiseA study covered by USC marshal Research in fall 2004 by Mark Bergen (Carlson School of Management, Kersi D. Antia (University of West Ontario, London) Shantanu Dutta (Marshall School of Business, University of California) portrays the optimism towards grey markets.According to the paper, grey markets are often an helpful way to react to combative demands, tick off distribution transmit, calve markets, reach un intercepted markets alter the changes in market conditions. Some of the positive aspects of grey markets are being highlighted belowIncremental gross sales Grey markets are favourable if they reach formerly untapped markets. Grey markets also disclose the existence of new markets. cellphone phone manufacturers competing in Malaysia, for instance, find a buying segment keen to pay premium prices for the newest phone gadgetry.Supply restrictions Grey markets are advantageous if they set aside dealers to overcome supply constraints scarcities. For example, IBM relied on the illegal outlets in China to get around government policies requiring the participation of local companies. Rather than make huge investments to player partnerships with local distributors, IBM off a blind eye to a flood of grey market imports from Hong Kong.Competitive assume of opportunity Competitors will frequently exploit grey markets if they are mercenary companies which do not follow trail shall lose significant market share, position power. This is precisely what happened to Indian-brand manufacturers of PCs. Wi th the evident competition and sales went on at high-end retailers, the actual sales volume that led to economies of scale market penetration took place in the unorganised empyrean, accounting nearly 60% of total market. Several branded PC maker in India, uncared for this market, failing to reach a large unexploited segment of customers whose wants were not being met by the existing channel. Competitors that did sell to this sector have since grown to be key players.Market Segmentation It is at successions complicated to segment market within an existing distribution channel structure. Grey markets permit firms to segment their customer base more profitably than they could if they employ only a constricted base of distributors, customer uncertainty branded dilution that arrives from selling through a multi-channel network of legitimate dealers. IBM used a twofold channel approach to sell profitably in high end markets while simmer down attaining more price responsive consumers with grey market goods this strategy helped the company meet sales targets, breed profits produce sales economies in manufacturing.Channel Management Occasionally it is less expensive to abide grey market activity than to close it entirely. closedown down grey market can be very pricey in terms of management time other resources required sensing breach, register them, communicating them internally with distributors, and grave the lawbreakers. Grey markets may also be a less expensive means to serve small customer sections that do not have access to authorised outlets or customers who do not value the services offered by authorised dealers.Varying market environment In many situations, distribution channels cannot modify adequately to meet new market realities. For example, auto dealers have supply networks in places that are hard to switch. But in an epoch of soft sales, sustained incentives continually growing competition, they are struggling for numbers, even if it means f orgone revenues. With effect, dealers have been more tolerant to grey markets as long as these markets let them to get in touch with a broader set of customers at improved prices.Market Aptitude Companies that reveal grey market activities the causes following them discover about their customers their markets. Since grey markets realise on their own, outside existing supply channels structures, they are frequently driven by influential market forces (such as short supply to a exceptional segment that wants the product) therefore put forward some of the purest forms of market intelligence accessible.2.2 CONS OF GREY MARKETING1. Dilution of exclusivity Perhaps the most instant(prenominal) outcome of grey market is the draining down of exclusive rights to distribute a product. Instead of being the solitary distributor or one of a select few enterprises for delivering a product, the authorised distributor bring into beings merely one of several sources. The consequence is a radi cal drop in margins as nonuple outlets struggle for the same customer. What follows promptly there later is only to be expected loud complaints from the legitimate distributors and calls to the company to do something concerning it2. Free riding But what if a manufacturer turns blind eye or, worse yet, writes off its authorized distributors complaints? While it is improbable that a distributor would split dealing with the supplier in protest, there are several indirect but possibly more insidious ways of reaching the manufacturer. mavin of these is free riding. Free-riding was initially offered by Tan et al. (1995, 1997) as an alternative justification for the event of grey markets. In such situations, authorised traders, dispirited by anemic margins and manufacturers ineffectiveness, begin skimping on the imperative services they loosely offersuch as presale service, consumer awareness education on product features, salesperson training and so onin an attempt to lessen their e xpenses and tot grey marketers price. This approach can weaken the value-added services and activities that often lay at the heart of several enterprises sources of dissimilariation and competitive plan in the marketplace. As one automobile dealer put it, We invest millions in sales and service facilities. Its hard to compete with someone whose only investments are a briefcase and a cell phone. The under provision of services is the death knell of high-end brands, as customers who value service will discard the brand in droves.3. Damage to channel relations Perhaps the prime cost of grey marketing is its impact on the relations and trust amid members of the distribution system. When a manufacturer has made major investments in official channel members or is dependent on one or a few associates (or both), grey markets that force off these relationships can be special(a)ly pricey.Visualise an official supplier that has recently coughed up $2 million to set up a new outlet and its related trappingsall to accomplish its contractual obligations. The manufacturer has guaranteed the dealer that ownership of an exclusive region will more than add up for his venture. Just as the distributor begins to foresee the promised sales, he receives word that the cash cow of the product line is offered down the street at a markdown of 15% to 20% off its own posted price. Frenzied phone calls to the manufacturer are met with empty reassurances or even stony silence. What should the enterprise do? Should it (a) break the price of its grey market opponent, doing whatsoever necessary to cut costs, (b) complain robustly to the manufacturer or (c) seek assistance from the courts, suing whoever appears liable for his current ruthful situation?4. Undermining segmented pricing schemes The spill over from this distribution headache expands with equivalent viciousness to most essential elements of a marketing strategy, including pricing. A basic characteristic of multinational runni ng(a) strategy is the facility to price goods at levels that every local market can bear. As long as a company can fragment each market, it has a winning hand. But globalisation tosses a twist in the works. Tumbling trade barriers, easy availability of information and improved logistic potentials have collectively made the watertight local market a quaint belief these factors also make it easier for grey market operators to flourish.5. Repute and legal liability A manufacturers ability to support its product is taken for granted. In the case of grey market goods, however, the manufacturer loses check over of the product.FOR AN EXAMPLE OF how these five fundamentals can work together, consider the troubles faced by manufacturers of new, high-end IT products. High levels of services are often required to instruct customers on the features and benefits of these products. To really understand type new product features and their functioning with other technologies, it is obligatory for the customers to learn from a salesperson at the retail outlet. To make such services available, the manufacturer time and again needs to develop a relatively elite set of distributors, fostering strong contacts and supporting the distributors actions with subsidies and an opportunity to achieve high margins.Authorised suppliers are chiefly vulnerable to grey markets in this condition. Illegitimate dealers can free ride, allowing other dealers invest in the service and offer the similar products at discredit prices. Budding customers can take what they discover from authorised dealers and hunt for low-service, disdain-price grey markets. The authorised sellers thus face high costs, lessen margins and low sales. Often, the clarification they opt is to provide less service and to be more price competitive. As their margins contract, channel clashes grow, and the dealers start routing customers to competitors products which offer higher margins. The difficulty, then, eventually budges from the authorised distributors and comes to rest on the shoulders of the manufacturer.Below presented are two different cases providing two different perspectives towards grey practices. The first consist of a comparative study amongst countries the pricing structure of the grey goods that are being sold.The second case depicts the current scenario of grey activities in China. The case focuses mainly on the problem of counterfeiting of IT products the safe measures that can be taken to minimise this nuisance.CASE 1BUYING FROM THE GREY MARKETAre you tempted to buy brazen-faced and cheerful goods from the grey market or should you take the authorised route? asks Sean Fleming.Anyone who has visited the US or the Far East will have found themselves going misty-eyed and waxing lyrical on the subject of how cheap things are over there. But you dont have to cross an ocean to see bargains.The difference in the price of new cars in Britain and mainland Europe they are often a s much as 20% cheaper on the continent has many good deal hopping mad.The UKs Director General of Fair employment has concluded the market isnt working, and has now ordered the Monopolies and Mergers Commission to investigate whether or not cartels exist in the car industry.Whatever the cause, people are realising that we must(prenominal) be paying over the odds in the UK for a whole range of goods and services. But do we complain? No, thats not the British way, is it?So that purpose to investigate high prices in the UK will come as music to many peoples ears. Trade and industry minister Stephen Byers says he has identified this as a key obstacle to the concept of a harmonised Europe.If you want proof that things cost more here in the UK, there is plenty of it around. Bureau European des Unions de Consommateurs (BEUC), the European consumers organisation, carried out a survey last year in 52 cities across Europe in which it compared the prices of 400 different products. From th is it produced an ability of the cheapest and most expensive countries.The UK turned out to be the dearest of the 10 countries sampled, with a rating of 124 overall. By comparison, France scored 107, Luxembourg 102 and Germany a rating of 100.Report after report, survey after survey, they all come back with the same result when you compare like-for-like goods, we in the UK are paying more than just about everyone else in the developed world.Sure enough, its the same story with IT equipment both hardware and software. Feel like paying through the nose? No? Thats unfortunate, because the chances are youre going to. at that place is a painfully round-eyed solution to all of this, of course. If stuff is cheaper somewhere else, then go somewhere else to buy it. Plenty of people import cars from Holland and Germany, and even from the Far East, so why not do it with IT?The practice of buying from non-standard, unauthorised outlets is often referred to as buying from the grey market.The grey market is a bit like the morose market, except in this case no ones actually breaking the law just risking the annoyance of original manufacturers.There are big savings to be had from going grey. For example, an IBM PC 300GL, with PII 400MHz chip, 32Mb memory and a 4.2Gb hard drive running Windows 98 would set you back about 814 in the UK, but bought on the European mainland, the same PC will cost you 689. Thats a 15% saving.How about a Cisco 1601CH router? Itll cost you about 779 here and only 649 on the other side of the channel.Mike Almond is business development managing director at ProSource, a company which specialises in finding this shed light on of deal for its customers. Using a combination of overseas contacts and the Net, ProSource keep tracks of international prices on a daily basis. When asked by a customer for a particular product, it can go out and find the best price.Were not saying were better than established channels or that our approach is the right on e for organisations to adopt, but our results speak for themselves. More importantly, we offer an alternative option to our customers. Thats what a free market should deliver, Almond says.Its not difficult to find this stuff. Some manufacturers will discount heavily in particular countries to make in-roads into that market. We can use those markets to buy products back cheaper.There is, of course, a catch buy your outfit from another country and the manufacturers indorsement is invalid when you get home.No warranty means no technical support, no helpline advice and certainly no upgrades. Some manufacturers are so aggravate at the thought of people saving money like this that they will not just refuse support they will also claim the law is being broken. This is despite the fact that Europe is now a single(a) market.Phil Humphries is head of IT services at Surrey Police and it is no surprise that hes extremely sleepless about ending up on the wrong side of the law, whether statu tory or a manufacturers warranty rule.As part of his forces year 2000 project, a luck of equipment has been replaced, at the same time as migrating to Windows NT. He may have seen lots of expensive equipment being bought, but Humphries is not tempted by the lure of the grey market.I am aware that some of the things we use could be bought cheaper overseas by using the grey market, but I dont think the differences are as great as they used to be, he says. Apart from which, the hassle factor would be enough to put me off.This is an important factor for many people. All too often you dont know just what youre buying and who you are buying it from. In the event of a problem, can you be sure youll be able to get hold of them? Humphries said.But theres more to it than that. Saving money on initial capital outlay may have its attractions, but Humphries feels this is a short-term gain had at the expense of time-consuming term success.We are moving away from a situation where we are buying boxes. Now we want to deal with a partner which can offer the right support we need from start to finish.Most of the bargain-basement IT offers that crop up in the small ads will be for software. Adverts purporting to have US versions of Microsoft Office at less than half price are plum commonplace. David Gregory, Microsoft UKs customer legal licensing manager, warns there is more to these offers than meets the eye.He explains Our biggest problem with people using unauthorised sources is that the overtake majority of this software is counterfeit. It will be passed off as being from the US, but in about 90% of cases it is pirated. The private serial number on the product tells us where that product was bought or if it is a copy.Finding anyone with IT purchasing responsibility who will admit to using the grey market is difficult, although one IT manager confided anonymously Most of our procurement has to go through a centralised process. However, some stand-alone projects are bough t on an ad-hoc basis and thats when buying on the cheap becomes a viable option.But why is any of this stuff priced so much higher in the UK in the first place? Almost all the major manufacturers operate different pricing policies in different countries, but few can explain why the UK gets clobbered quite so comprehensively.As furthermost as Microsoft is concerned, Gregory says The majority of software originates from the US and there are certain unavoidable costs incurred when taking that software into other territories local support services, wording support, translating documentation and so on. Not to mention currency fluctuations.But with the worlds foremost software vendor moving toward shipping single every-language versions of its products, this position is set to become obsolete.On the hardware front, the worlds number one in PCs, Compaq, also varies prices between the countries that it sells to.David Petts, Compaq UK commercial unit business manager, explains Local prici ng exists because different markets have different patterns of economic behaviour. In Europe, Compaq prices are set by the companys European HQ in Munich, and individual countries are then able to fix their own prices within a given range.So, if one were to charge at the top end of the range and another charged at the lower end, you could, in theory, see material price differences, he says.Why the UK is hit hardest by these price differentials is obviously a difficult subject for manufacturers to discuss candidly.One source within a major hardware company begrudgingly admits Lots of things are cheaper in the US and Japan. Its the way of the world people just need to face up to it.So, there you have it put up and shut up. If you dont put up, and instead succumb to the grey market, your warranties wont work.However, there are ways to get around the warranty issue. In the case of Compaq, any warranty in operation in the UK will also cover the rest of Europe and vice-versa. You can bu y Compaq kit in Holland, for example, and not have to worry about your warranty.ProSources Almond explains that it is important to keep geography in mind when venturing into the grey market.Manufacturers will claim warranties are not valid, but under EC law there is nothing to stop you buying things from any other EC country.If we have a customer that is very sensitive about maintaining the warranties, well be careful to only buy from within the right region, he says.In the case of IBM, things are even more straightforward good old Big Blue offers global support on all its products, so it doesnt government issue if you bought your ThinkPad in Durban but you live in Doncaster.A long-standing champion of the grey market is Cirencester-based RBR Networks, Ciscos largest European distribution partner. Before getting its Cisco accreditation in October 1997, RBR was something of a thorn in Ciscos side. It was doing so much business in grey-market Cisco product that in the end the company had to be brought into the fold.RBR marketing director, Jos White, takes a fairly pragmatic view of the subject. He does, however, prefer the term second sourcing to grey market he believes it doesnt sound so grubby. Using second sourcing, we could make a healthy margin and still sell cheaper than most of the competition, says White.It has to be up to the manufacturer to make it worth everyones while to use the authorised channels, he adds.Manufacturers cannot but try and ban this sort of thing and it is definitely not on for them to throw their weight around, threatening everyone by saying that their licences are invalid and they may be breaking the law.It comes as no surprise that a manufacturer such as Compaq is against the use of the grey market. It has nothing toGrey Marketing Activities Within the Software IndustryGrey Marketing Activities Within the Software IndustryFutureABSTRACTThe research work has presented an enlarged view of the operation within the grey markets, the ir functioning, pricing structure, the customer base lastly the arguments in favour, thereby evaluating -Can grey be good?It has also focussed on grey markets- as a subject of annoyance for the IT players OEMs. Counter-arguments hostile measures adopted to combat grey goods have also been the point of discussion.Overall, this piece of research is being successful in presenting a balanced view of the goods the bads of the grey industry from the perspective of industry players, grey entrepreneurs as well as consumers.INTRODUCTION1.1 AIMS To obtain information insights about grey marketing activities within the software industry.With the help of Journals, case studies secondary research activities shed light on the present scenario of the grey markets (consumer targeting inclination, pricing etc). The pros cons of grey marketing shall also be presented to have an equalised view. To know what are the hostile measures adopted by firms to prevent grey activities.Present cases to d epict the preventive measures adopted by firms like HP Microsoft to combat grey market products. The paper also focuses on the initiatives adopted by independent agencies such as AGMA BSA towards grey market activities. Market Penetration Grey MarketsCan grey market ever be an alternative to market penetration? If yes, to which extent can it be possible? In addition, understanding the concept of free riding as a way for market penetration, as mentioned in the Journal of Business Venturing (Vol 4). To evaluate Can grey ever be good?Based on the research undertaken, evaluating thereby concluding the positives negatives of grey markets. Should they be encouraged? Can they boost an economic scenario of a country? lastly how effective can they be in increasing sales of a product?1.2 OBJECTIVESThe methodology that is to be adopted for fulfilment of the above aims is as under Journals, Newsweekly, Internet (secondary research) along with white papers provided by firms shall be the ma in sources of information for this research. Primary data obtained through interviewing shall be the most vital aspect (it shall be considering not only the consumer perspective towards grey markets its products, but also of dealers operating within this arena). finally, the crux of the research (insights, analysis evaluation) will be presented to obtain a concluding perspective.1.3 GREY MARKET AN NTRODUCTIONMajority of distribution companies are flourishing thanks to distribution channels that shepherd product from a manufacturer eventually direct them to the consumers through a chain of legitimate distributors across the world. But a mounting quite detrimental market subsists that can cause ignorant customers to buy technology products with untrue warranties, several designed for use in other countries or worse products consisting counterfeit parts. These practices can erode customer satisfaction harm brand integrity, causing major profit attrition for manufacturers.Welcome to the global Grey Market where branded products have been sidetracked from the authorised supply channel within a country or are imported into a country without the approval or awareness of the manufacturer. Grey market goods are usually sold at lesser prices than those proposed by the legitimate distributors. And the pricing disparity amongst various legitimate markets customers generates an opportunity for the brokers to procure labelled products at discounted prices move them to markets where they can fetch high income.A research study by KMPG demonstrates that grey market goods pose a grave challenge to information technology manufacturers their authorised dealers. The study reveals that IT manufacturers are communally losing up to US$5 billion in profits on yearly basis, a figure that is mounting. While the grey market affects many businesses, including automobiles, consumer products, pharmaceuticals, fashion accessories others, this study shall validate that computers r elated products are the industry segments most affected by grey market actions.1.4 INTRODUCTION TO THE PROBLEM(a) Software CounterfeitingCounterfeiting is amongst the most exigent problem facing the information technology (IT) industry today. Illegal replicas of brand-name high tech products are flooding the marketplace, causing harm to legitimate companies profits and dropping their aptitude to invest in research and development (RD). Multiplication of technology employed to make computers, servers, and a host of high tech productsas well as a lack of regulatory enforcement in developing countriesis speeding up counterfeiting. It is now estimated that as much as 10 percent of all high tech products sold globally are counterfeit.(b) Free Riding A Way To Penetrate Markets?Free Riding is a term which comes into picture when software products have been counterfeited. Free-riding was first introduced by Tan et al. (1995, 1997) as an alternative explanation for the incidence of grey mar keting, whereby grey entrepreneurs are provided with the opportunity to enter money-making markets that are presently supplied by big firms.However, hostile measures have been taken to prevent grey market activities by agencies like AGMA BSA as well as biggies like Microsoft, HP etc. HP is administrating reseller spot checks and distie reviews to stamp out the grey market in a variety of regions without being hesitant to exercise the law courts against resellers who breach contractual requisites. The firm, at the moment, is taking legal action in opposition to one UK reseller for violation of agreement and cautions it has other cases under review. While, Microsoft has collared another plagiarist in the UK for flogging grey software on eBay. The software giant has scored 35,000 in compensation against an internet trader for copyright violations and illegitimately bringing in cheap American software to Europe.Meanwhile, an agency like Business Software Alliance (BSA) is outing bandit s by setting a bounty on their heads. The group announced its Blow the Whistle operation which presents $1m to workers who squeal on their companies. Certain firms are trying to launch software which might allow manufacturers detect sales through unofficial mediums.1.5 SCOPE FOR THE REASERCHThe main reason behind the proposed research subject is to obtain information on the grey markets the practices that are being carried out. The scope for undertaking the research work is as underUnderstanding the global phenomenon of grey marketing.Understanding the logistics within grey markets.The precautionary measures adopted by the firms agencies to prevent grey activities.The concept of free riding to penetrate markets within the software arena. lastly analysing evaluating the research produced to gather provide insights.1.6 LIMITATIONS TOWARDS THE REASERCHThe possible shortcomings for the proposed research topic are as underBeing an unconventional subject for research, obtaining inform ation can be tough.Tracking the right sources of information is a major challenge.Information gathered through ground research cant be entirely relied upon, as it can be manipulative.Information obtained from grey suppliers may not be fruitful, as they might not give out precise information about the present scenario Interviewing people from companies or firms who are being targeted by grey marketers may prefer to remain low profile on the preventive measures they plan to adopt in future.1.7 REASEARCH STRUCTUREThe research has five focus groups (in order to understand the information.)The first chapter offers an inside view of the topic with its backdrop. It also contains the customary objectives which form the foundation for a focused research study. Meanwhile, it also describes how the established purpose will be achieved and the manner they would provide help. This section gives rationale and importance of conducting this research.The second chapter comprises the prior literature on grey markets, constructed by a range of authors and researchers in earlier years. This would aid to shed light on the pros cons in grey marketing. In addition this chapter provides live cases published in reputed newsweekly.The third chapter talks about the type of methodology the researcher has employed to achieve the study. It gives out the arguments in favour against of each method in order to gain understanding. Furthermore, it exemplifies of some important sources which have been accessed to complete the study. Thus, this chapter explains the different techniques to achieve the objectives.The fourth chapter forms the body of the thesis as it entails the detailed analysis of the various aspects to establish the objectives. This chapter generates convincing points to support the study.The fifth and the last chapter of the paper summarises all the information gathered, finally, concluding the thesis.1.8 SUMMARY HYPOTHESISTo summarise the above literature in few words, I sha ll be basically focusing weather grey markets can influence the sales of a product, thereby helping towards market penetration.Concepts, rather strategies, such as free riding shall be looked researched upon to present realistic as well as optimistic view towards grey markets, thereby analysing -Can grey ever be good? Can grey goods help in market penetration?LITREATURE REVIEWAlmost exclusively, the existing literature on grey marketing regards the occurrence as a pricing problem but falls short to identify it as a market entry opportunity for start-up entrepreneurs. The grey marketing strategy forms apt for start-up entrepreneurs in view of their resource limitations and the risk of being a first-mover in market development. Within this paper, the researcher shall be focusing on how an entrepreneur can effectively penetrate an established market by adopting suitable approaches. This is most favorable for an incumbent trader to accommodate the entrepreneur/grey marketer even if th e former could compel the latter out of the market through hostile counter actions.Moorthy (1985) demonstrated the game theoretic methodology is most appropriate to investigating the behavior of market participants in such a state. This game theory is being pursued by Lim G.H., Lee K.S., Tan S.J. (Journal of Business Venturing, Jul 2001, Vol 16) to depict the strategic communications between parties concerned in grey markets and to recognise the circumstances under which entrepreneurs can effectively enter these markets.2.1 THE POSITIVES OF GREY MARKETINGA study offered by USC Marshall Research in fall 2004 by Mark Bergen (Carlson School of Management, Kersi D. Antia (University of West Ontario, London) Shantanu Dutta (Marshall School of Business, University of California) portrays the optimism towards grey markets.According to the paper, grey markets are often an helpful way to react to competitive demands, control distribution channels, fragment markets, reach unexploited markets alter the changes in market conditions. Some of the positive aspects of grey markets are being highlighted belowIncremental Sales Grey markets are favourable if they reach formerly untapped markets. Grey markets also disclose the existence of new markets. Cell phone manufacturers competing in Malaysia, for instance, discovered a buying segment keen to pay premium prices for the newest phone gadgetry.Supply restrictions Grey markets are advantageous if they permit dealers to overcome supply constraints scarcities. For example, IBM relied on the illegal outlets in China to get around government policies requiring the participation of local companies. Rather than make huge investments to fake partnerships with local distributors, IBM turned a blind eye to a flood of grey market imports from Hong Kong.Competitive need of opportunity Competitors will frequently exploit grey markets if they are lucrative companies which do not follow trail shall lose significant market share, position power. This is precisely what happened to Indian-branded manufacturers of PCs. With the evident competition and sales went on at high-end retailers, the actual sales volume that led to economies of scale market penetration took place in the unorganised sector, accounting nearly 60% of total market. Several branded PC maker in India, uncared for this market, failing to reach a large unexploited segment of customers whose wants were not being met by the existing channel. Competitors that did sell to this sector have since grown to be key players.Market Segmentation It is at times complicated to segment market within an existing distribution channel structure. Grey markets permit firms to segment their customer base more profitably than they could if they employ only a constricted base of distributors, customer uncertainty branded dilution that arrives from selling through a multi-channel network of legitimate dealers. IBM used a twofold channel approach to sell profitably in high end markets while still attaining more price responsive consumers with grey market goods this strategy helped the company meet sales targets, spawn profits produce sales economies in manufacturing.Channel Management Occasionally it is less expensive to abide grey market activity than to close it entirely. Shutting down grey market can be very pricey in terms of management time other resources required sensing breach, filing them, communicating them internally with distributors, and punishing the lawbreakers. Grey markets may also be a less expensive means to serve small customer sections that do not have access to authorised outlets or customers who do not value the services offered by authorised dealers.Varying market environment In many situations, distribution channels cannot modify adequately to meet new market realities. For example, auto dealers have supply networks in places that are hard to switch. But in an epoch of soft sales, sustained incentives continually growing co mpetition, they are struggling for numbers, even if it means forgone revenues. With effect, dealers have been more tolerant to grey markets as long as these markets let them to get in touch with a broader set of customers at improved prices.Market Aptitude Companies that reveal grey market activities the causes following them discover about their customers their markets. Since grey markets materialise on their own, outside existing supply channels structures, they are frequently driven by influential market forces (such as short supply to a particular segment that wants the product) therefore put forward some of the purest forms of market intelligence accessible.2.2 CONS OF GREY MARKETING1. Dilution of exclusivity Perhaps the most instant outcome of grey market is the draining down of exclusive rights to distribute a product. Instead of being the solitary distributor or one of a select few enterprises for delivering a product, the authorised distributor becomes merely one of sev eral sources. The consequence is a radical drop in margins as multiple outlets struggle for the same customer. What follows promptly thereafter is only to be expected loud complaints from the legitimate distributors and calls to the company to do something concerning it2. Free riding But what if a manufacturer turns blind eye or, worse yet, writes off its authorized distributors complaints? While it is improbable that a distributor would split relations with the supplier in protest, there are several indirect but possibly more insidious ways of reaching the manufacturer. One of these is free riding. Free-riding was initially offered by Tan et al. (1995, 1997) as an alternative justification for the event of grey markets. In such situations, authorised traders, dispirited by anemic margins and manufacturers ineffectiveness, begin skimping on the imperative services they generally offersuch as presale service, consumer awareness education on product features, salesperson training and so onin an attempt to lessen their expenses and match grey marketers price. This approach can weaken the value-added services and activities that often lay at the heart of several enterprises sources of differentiation and competitive plan in the marketplace. As one automobile dealer put it, We invest millions in sales and service facilities. Its hard to compete with someone whose only investments are a briefcase and a cell phone. The under provision of services is the death knell of high-end brands, as customers who value service will discard the brand in droves.3. Damage to channel relations Perhaps the prime cost of grey marketing is its impact on the relations and trust amid members of the distribution system. When a manufacturer has made major investments in official channel members or is dependent on one or a few associates (or both), grey markets that rip off these relationships can be particularly pricey.Visualise an official supplier that has recently coughed up $2 million to set up a new outlet and its related trappingsall to accomplish its contractual obligations. The manufacturer has guaranteed the dealer that ownership of an exclusive region will more than add up for his venture. Just as the distributor begins to foresee the promised sales, he receives word that the cash cow of the product line is offered down the street at a markdown of 15% to 20% off its own posted price. Frenzied phone calls to the manufacturer are met with empty reassurances or even stony silence. What should the enterprise do? Should it (a) match the price of its grey market opponent, doing whatsoever necessary to cut costs, (b) complain robustly to the manufacturer or (c) seek assistance from the courts, suing whoever appears liable for his current remorseful situation?4. Undermining segmented pricing schemes The spill over from this distribution headache expands with equivalent viciousness to most essential elements of a marketing strategy, including pricing. A basic chara cteristic of multinational operational strategy is the facility to price goods at levels that every local market can bear. As long as a company can fragment each market, it has a winning hand. But globalisation tosses a twist in the works. Tumbling trade barriers, easy accessibility of information and improved logistical potentials have collectively made the watertight local market a quaint belief these factors also make it easier for grey market operators to flourish.5. Repute and legal liability A manufacturers ability to support its product is taken for granted. In the case of grey market goods, however, the manufacturer loses control of the product.FOR AN EXAMPLE OF how these five fundamentals can work together, consider the troubles faced by manufacturers of new, high-end IT products. High levels of services are often required to instruct customers on the features and benefits of these products. To really understand quality new product features and their functioning with other technologies, it is obligatory for the customers to learn from a salesperson at the retail outlet. To make such services available, the manufacturer time and again needs to develop a relatively elite set of distributors, fostering strong contacts and supporting the distributors actions with subsidies and an opportunity to achieve high margins.Authorised suppliers are chiefly vulnerable to grey markets in this condition. Illegitimate dealers can free ride, allowing other dealers invest in the service and offering the similar products at lower prices. Budding customers can take what they discover from authorised dealers and hunt for low-service, lower-price grey markets. The authorised sellers thus face high costs, shrinking margins and low sales. Often, the clarification they opt is to provide less service and to be more price competitive. As their margins contract, channel clashes grow, and the dealers start routing customers to competitors products which offer higher margins. The difficulty, then, eventually budges from the authorised distributors and comes to rest on the shoulders of the manufacturer.Below presented are two different cases providing two different perspectives towards grey practices. The first consist of a comparative study amongst countries the pricing structure of the grey goods that are being sold.The second case depicts the current scenario of grey activities in China. The case focuses mainly on the problem of counterfeiting of IT products the preventive measures that can be taken to minimise this nuisance.CASE 1BUYING FROM THE GREY MARKETAre you tempted to buy cheap and cheerful goods from the grey market or should you take the authorised route? asks Sean Fleming.Anyone who has visited the US or the Far East will have found themselves going misty-eyed and waxing lyrical on the subject of how cheap things are over there. But you dont have to cross an ocean to see bargains.The difference in the price of new cars in Britain and mainland Europe they are often as much as 20% cheaper on the continent has many people hopping mad.The UKs Director General of Fair Trading has concluded the market isnt working, and has now ordered the Monopolies and Mergers Commission to investigate whether or not cartels exist in the car industry.Whatever the cause, people are realising that we must be paying over the odds in the UK for a whole range of goods and services. But do we complain? No, thats not the British way, is it?So that decision to investigate high prices in the UK will come as music to many peoples ears. Trade and industry minister Stephen Byers says he has identified this as a key obstacle to the concept of a harmonised Europe.If you want proof that things cost more here in the UK, there is plenty of it around. Bureau European des Unions de Consommateurs (BEUC), the European consumers organisation, carried out a survey last year in 52 cities across Europe in which it compared the prices of 400 different products. From this it produced an index of the cheapest and most expensive countries.The UK turned out to be the dearest of the 10 countries sampled, with a rating of 124 overall. By comparison, France scored 107, Luxembourg 102 and Germany a rating of 100.Report after report, survey after survey, they all come back with the same result when you compare like-for-like goods, we in the UK are paying more than just about everyone else in the developed world.Sure enough, its the same story with IT equipment both hardware and software. Feel like paying through the nose? No? Thats unfortunate, because the chances are youre going to.There is a painfully simple solution to all of this, of course. If stuff is cheaper somewhere else, then go somewhere else to buy it. Plenty of people import cars from Holland and Germany, and even from the Far East, so why not do it with IT?The practice of buying from non-standard, unauthorised outlets is often referred to as buying from the grey market.The grey market i s a bit like the black market, except in this case no ones actually breaking the law just risking the annoyance of original manufacturers.There are big savings to be had from going grey. For example, an IBM PC 300GL, with PII 400MHz chip, 32Mb memory and a 4.2Gb hard drive running Windows 98 would set you back about 814 in the UK, but bought on the European mainland, the same PC will cost you 689. Thats a 15% saving.How about a Cisco 1601CH router? Itll cost you about 779 here and only 649 on the other side of the channel.Mike Almond is business development manager at ProSource, a company which specialises in finding this sort of deal for its customers. Using a combination of overseas contacts and the Net, ProSource keep tracks of international prices on a daily basis. When asked by a customer for a particular product, it can go out and find the best price.Were not saying were better than established channels or that our approach is the right one for organisations to adopt, but our results speak for themselves. More importantly, we offer an alternative option to our customers. Thats what a free market should deliver, Almond says.Its not difficult to find this stuff. Some manufacturers will discount heavily in particular countries to make in-roads into that market. We can use those markets to buy products back cheaper.There is, of course, a catch buy your kit from another country and the manufacturers warranty is invalid when you get home.No warranty means no technical support, no helpline advice and certainly no upgrades. Some manufacturers are so inflamed at the thought of people saving money like this that they will not just refuse support they will also claim the law is being broken. This is despite the fact that Europe is now a single market.Phil Humphries is head of IT services at Surrey Police and it is no surprise that hes extremely cautious about ending up on the wrong side of the law, whether statutory or a manufacturers warranty rule.As part of his forces year 2000 project, a lot of equipment has been replaced, at the same time as migrating to Windows NT. He may have seen lots of expensive equipment being bought, but Humphries is not tempted by the lure of the grey market.I am aware that some of the things we use could be bought cheaper overseas by using the grey market, but I dont think the differences are as great as they used to be, he says. Apart from which, the hassle factor would be enough to put me off.This is an important factor for many people. All too often you dont know exactly what youre buying and who you are buying it from. In the event of a problem, can you be sure youll be able to get hold of them? Humphries said.But theres more to it than that. Saving money on initial capital outlay may have its attractions, but Humphries feels this is a short-term gain had at the expense of longer term success.We are moving away from a situation where we are buying boxes. Now we want to deal with a partner which can offer th e right support we need from start to finish.Most of the bargain-basement IT offers that crop up in the small ads will be for software. Adverts purporting to have US versions of Microsoft Office at less than half price are fairly commonplace. David Gregory, Microsoft UKs customer legal licensing manager, warns there is more to these offers than meets the eye.He explains Our biggest problem with people using unauthorised sources is that the overwhelming majority of this software is counterfeit. It will be passed off as being from the US, but in about 90% of cases it is pirated. The individual serial number on the product tells us where that product was bought or if it is a copy.Finding anyone with IT purchasing responsibility who will admit to using the grey market is difficult, although one IT manager confided anonymously Most of our procurement has to go through a centralised process. However, some stand-alone projects are bought on an ad-hoc basis and thats when buying on the chea p becomes a viable option.But why is any of this stuff priced so much higher in the UK in the first place? Almost all the major manufacturers operate different pricing policies in different countries, but few can explain why the UK gets clobbered quite so comprehensively.As far as Microsoft is concerned, Gregory says The majority of software originates from the US and there are certain unavoidable costs incurred when taking that software into other territories local support services, language support, translating documentation and so on. Not to mention currency fluctuations.But with the worlds foremost software vendor moving toward shipping single every-language versions of its products, this position is set to become obsolete.On the hardware front, the worlds number one in PCs, Compaq, also varies prices between the countries that it sells to.David Petts, Compaq UK commercial unit business manager, explains Local pricing exists because different markets have different patterns of economic behaviour. In Europe, Compaq prices are set by the companys European HQ in Munich, and individual countries are then able to fix their own prices within a given range.So, if one were to charge at the top end of the range and another charged at the lower end, you could, in theory, see material price differences, he says.Why the UK is hit hardest by these price differentials is obviously a difficult subject for manufacturers to discuss candidly.One source within a major hardware company begrudgingly admits Lots of things are cheaper in the US and Japan. Its the way of the world people just need to face up to it.So, there you have it put up and shut up. If you dont put up, and instead succumb to the grey market, your warranties wont work.However, there are ways to get around the warranty issue. In the case of Compaq, any warranty in operation in the UK will also cover the rest of Europe and vice-versa. You can buy Compaq kit in Holland, for example, and not have to worry abo ut your warranty.ProSources Almond explains that it is important to keep geography in mind when venturing into the grey market.Manufacturers will claim warranties are not valid, but under EC law there is nothing to stop you buying things from any other EC country.If we have a customer that is very sensitive about maintaining the warranties, well be careful to only buy from within the right region, he says.In the case of IBM, things are even more straightforward good old Big Blue offers global support on all its products, so it doesnt matter if you bought your ThinkPad in Durban but you live in Doncaster.A long-standing champion of the grey market is Cirencester-based RBR Networks, Ciscos largest European distribution partner. Before getting its Cisco accreditation in October 1997, RBR was something of a thorn in Ciscos side. It was doing so much business in grey-market Cisco product that in the end the company had to be brought into the fold.RBR marketing director, Jos White, takes a fairly pragmatic view of the subject. He does, however, prefer the term second sourcing to grey market he believes it doesnt sound so grubby. Using second sourcing, we could make a healthy margin and still sell cheaper than most of the competition, says White.It has to be up to the manufacturer to make it worth everyones while to use the authorised channels, he adds.Manufacturers cannot simply try and ban this sort of thing and it is definitely not on for them to throw their weight around, threatening everyone by saying that their licences are invalid and they may be breaking the law.It comes as no surprise that a manufacturer such as Compaq is against the use of the grey market. It has nothing to