A CASE STUDY ON PROBLEMS FACED BY THE CUSTOMERS OF ROSTFREI STEELS PRIVATE LIMITED

A CASE STUDY ON PROBLEMS FACED BY THE CUSTOMERS OF ROSTFREI STEELS PRIVATE LIMITED

Consumer Exploitation

Consumer exploitation refers to taking undue advantage of consumers or a group of consumers by the sellers for their own benefit or purpose. Since consumers are large in numbers and are segregated they often find themselves in a weak position especially when there is a complaint regarding a good or service. Sellers never accept the responsibility for selling bad quality goods or any other misappropriation. This is the basis of consumer exploitation. There are various forms through which consumers are being exploited. Some of them are underweighting of goods, poor quality goods, duplicate articles, high prices, artificial scarcity, adulteration and impurity, false claims, lack of safety devices, poor after-sale services, rude behavior, and undue conditions, non-fulfillment of the sales guarantees, misinformation regarding the quality of the product and no timely supply of the goods.

Introduction

Rostfrei, are driven by Customer Oriented approach to providing World Class, Innovative, and Competitive storage solutions. We aim to provide Bulk solid storage and FM Global approved Liquid storage systems on a turnkey basis with our reliability-centered designs and technology. We shall rapidly transform Rostfrei into a truly global company, and outgrow our competitors while adding value to our customers, employees, and shareholders.

Rostfrei Steels with our steadfast commitment and timely delivery of various products like Liquid Storage Tanks and Grain Storage Silos, the company has set a new benchmark. Rostfrei Steel initiated its Indian operations in the year 2004, the company believes in delivering quality based performance with the team of its skilled workers and experienced technicians.

 The company has touched the apex of satisfaction and success with its well-established clientele and has earned expertise in fabricating and engineering steel structures in multiple dimensions. Multifarious services are offered to our revered clientele that includes designing, conceptualizing, manufacturing, supply, installation, erection, and completion.

 Problem - Consumer Exploitation Taken Place In The Tank Producing Company

A lot of customers who have been carrying out business with Rostfrei steels private limited has been complaining about them being exploited in different ways by the company. The customers are unhappy with the behavior of the company and are likely to discontinue their business.

• The major problems faced by the customers are:-

• Low-quality product used during the manufacturing of tanks

• Leakage problems

• Wrongly product delivery

• Overpricing of the product

• Late delivery of the product

• Usage of non-environmental friendly material while building tanks

Problems Faced In Detail

1. Low-Quality Material Used In Manufacturing Tanks

This is one of the most important reasons for the failure of most of the tanks. Many times companies outsource their fabrication to independent fabricators in third world countries. This helps them reduce manufacturing costs. However, they don’t understand that many of these countries don’t have stringent quality regulations. Hence they end up using poor quality materials. Hence a tank built from non-specified material may initially pass the test, but it may not last long while in the application. This way the customers are exploited unknowingly and in the end, it creates dissatisfaction among them as the money spent on the tank becomes worthless.

2. Leakage Problem

A few customers complained that after using the tank for a while there were leakage issues. The usage of low-quality material while manufacturing tanks is ultimately going to create leakage issues in them. It was observed that there were small cracks and holes in the interiors of the tank from which the fluid was coming out. The customers also complained that the material of the GLS tanks started to corrode and rust after a certain period of time. Adding more to it there were dispensing problems observed which again lead to the leakage of fluids from the GLS tanks.

3. Wrong Product Delivery

Complaints were also received regarding the delivery of the wrong product. It was observed that the company had a lot of clients order different types of tanks for different purposes and different fluids. Because of this the company sometimes used to unintentionally switch the product of two different clients and hence the wrong delivery of the product of the delivery took place. It was also noticed that due to time and material constraints the company used different measurements and materials to fulfill and deliver the order on time which ultimately leads to consumer exploitation.

4. Overpricing Of The Product

The customers also felt that the company is charging them unfairly as compared to the other companies and the rates going on in the market. It was also observed that the company was discriminating between their clients while charging for the same product. The customers were highly dissatisfied with the behavior of the company. The customers also observed that the company overpriced their product for their personal gains which ultimately lead to the exploitation of the customers.

5. Late Delivery Of The Product

The customers complained about the delay in the delivery of their product several times. It was observed that though the company was falling short of time and material it was taking new orders from the clients. Hence the machinery used for the building of tanks was overburdened because of which there were wear and tear of machinery. Adding more to it the company was delivering unfinished and low-quality products due to time and material constraints.

6. Usage of Non Environmental Friendly Material While Building Tanks

During that quality control check it was found that the company was compromising with the material used while building tanks. It was observed that the materials used were highly toxic to the environment. Also during the quality control check it was observed that there was no proper waste management done. Harmful contaminated water was released without being treated first. Hence once again it lost its customer's trust.

Analysis

From the above problems which are faced by the customers from the company, it can be analyzed that the customers absolutely not satisfied with the products and the services provided by the company. It is also seen that there is a very high possibility of a company losing its customers and goodwill in society. Hence the company should re-evaluate itself and should take corrective measures in order to have a stronghold over the customers and gain back its reputation in the market.

Remedial Measures To Be Taken

• Consumer protection act 2019

• Discontinuance of unfair practices

• Always search for previous reviews on the product before buying them

• Have a proper warranty and guarantee for the product purchased

• Produce quality products

Remedial Measures In Detail

1. Consumer Protection Act 2019

The consumer protection act 2019 has replaced the consumer with the three-decade-old Consumer Protection Act, 1986. The new Act proposes a slew of measures and tightens the existing rules to further safeguard consumer rights. The Act has a lot of new benefits that will help the consumers fight for their rights. Hence the consumers can always take their complaints to the court with the help of the act and can have justice to themselves.

2. Discontinuance Of Unfair Practices

The consumer can always file a complaint against the unfair practices carried out by the company. Moreover, the company should stop that kind of practice in order to gain the trust of the customer and maintain goodwill in the market. Unfair practices will definitely harm the reputation of the company in the long run.

3. Always Search For Previous Reviews On The Product Before Buying Them

Instead of falling prey to the companies selling low-quality products, the consumer should always look out for previous reviews and complaints against that particular company or the product. The consumer should also compare the companies and products sold by them and then come to a particular decision. This will ensure that all companies maintain good quality standards so that they can have a fair share in the market.

4. Have Proper Warranty And Guarantee For The Product Purchased

The customers should always see to it that they have the proper warranty and guarantee documents for the product. This will at least help them minimize their loses and replace the product if anything happens to it within the given time frame.

5. Produce Quality Products

If the company wants to stay in the market for a longer period of time then it must produce quality products in order to gain customers and have a good reputation in the market. Quality products always attract more customers and there is a positive word of mouth through the customers as well.

Conclusion

If Rostfrei steels private limited wants to stay in the market and gain customers it is very important that it satisfies the customers in all aspects, be it the material used, machinery used, pricing of the product, delivery of the product, etc. No compromise should be made while manufacturing the product. The customers have the power to take the company to new heights as well as lead to its downfall. Hence consumer satisfaction should be given the utmost importance.