Presented at the conference by India Gold Policy Centre at IIM Ahmedabad

Gold & Gold Markets 2020, February 7th and 8th

Venue: India Habitat Centre, New Delhi

Analysis of Consumer behavior: A special reference to gold jewellery purchase

Dr. Aanchal AmitabhSRM IST, Delhi NCR Campus

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• To identify the factors considered while buying unbranded gold jewellery.

• To analyse the factors on the basis of various demographic variables.

Objectives of the study

• Significance to the Industry1. The jewellery retailers would better understand the factors affecting consumer buying behaviour for jewellery and 2. They can reshape their marketing strategies more relevantly focusing on these factors.

• Significance to the Academia1. Learning in the area of Consumer behaviour especially for products like jewellery which are high involvement, high price category and carry a lot of prestige value with them.2. Brand management for a sector which is predominantly unbranded, unorganized and localized in nature; measures to be taken that can considerably break this cliché and prepare the sector for a branded rendezvous.

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Research Methodology

A. Demographic variables

Gender: Female

Age: 18 years onwards

Education: Graduate and Post Graduate

Occupation: Working and nonworking

Socio economic status: upper middle class and above

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Area wise Respondents

AREA NUMBER OF RESPONDENTS PERCENTAGE

DELHI 100 20

NOIDA 125 25

GURGAON 95 19

GHAZIABAD 80 16

MEERUT 100 20

TOTAL 500 100

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Demographic Profile of the Respondents

PROFILE NUMBER PERCENTAGE

Age

18 – 30 years 125 25.0

31 – 40 years 215 43.0

41+ years 160 32.0

Education

Graduate 215 43.0

Post Graduate 285 57.0

Occupation

Non-working 147 29.4

Working 353 70.6

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On the basis of exhaustive literature review and pre testing of thequestionnaire, a total of 20 items were selected for the study.

The items were converted into statements in the questionnaire.

The respondents were asked to rate these items on a five point Likertscale ranging from 1 to 5; 1 denoting strong disagreement, 2disagreement, 3 neither disagreement nor agreement, 4 agreementand 5 denoting strong agreement.

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Factor analysis was done to extract and club the items using Principal Component analysis and Varimax rotation method.

The eight factors were extracted and their factor loadings are indicated in the table.

These extracted factors have been given appropriate nomenclature and presented as the factors considered by consumer while buying unbranded gold jewellery.

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Factors affecting consumer buying behaviour towards gold jewellery (unbranded), identified for the study based on literature review are:

1. Usability

2. Reliability3. Purity of precious

metal

4. Price of precious metal

5. Resale value6. Durability of the

jewellery piece

7. As an investment

8. Accuracy of weight of precious metal

9. Fashion accessory (conspicuous value)

10. Symbol of social status (prestige value)

11. Reflection of lifestyle and personality(self image)

12. Promotion and advertisements of jewelers

13. Emotional satisfaction (materialism)

14. Uniqueness of Design

15. Promotional/discount schemes

16. Location of the outlet

17. Store environment

18. Certification of jewellery

19. Family/friends

20. Flexible payment terms

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FACTORS ITEMS FACTORS LOADING

PLACE DIMENSION

(SHOPPING CONVENIENCE)

Reliability of jeweler is very important while buying jewellery 0.996

Location of the jewellery outlet affects your purchase decision 0.996

Store environment affects your purchase decision 0.996

INDIVIDUAL DIMENSION

You buy jewellery which suits your lifestyles and personality (self image) 0.813

You buy jewellery for emotional satisfaction (materialistic value) 0.804

PRODUCT DIMENSION

You consider usability of jewellery before buying (viz. party wear, office wear,

daily wear etc.)0.438

You consider durability of jewellery while purchasing 0.655

You buy Jewellery for investment purpose 0.575

QUALITY ASSURANCE

Purity of precious metal is very important while buying gold jewellery 0.583

You consider accuracy of weight of precious metal 0.457

You ask for hallmarked or certified jewellery 0.643 10

FACTORS ITEMS FACTORS LOADING

FINANCIAL DIMENSION

Price of precious metal is decisive factor in your purchase decision 0.704

You consider resale or buyback guarantee before buying jewellery 0.583

Flexible payment terms influence your purchase decision 0.464

PROMOTINAL

DIMENSION

Advertisement about jewellery influence your purchase decision 0.580

Your purchase of jewellery is affected by promotional schemes 0.591

You rely on word of mouth of your friends and family to buy jewellery 0.568

DESIGNUniqueness of design is most important factor to affect your purchase

decision0.750

SOCIAL DIMENSION

Jewellery reflects our fashion consciousness (conspicuous value) 0.702

Jewellery worn reflects our social status (prestige value) 0.55711

The eight factors identified above were further analyzed on basis of various demographic variables – education, working status and age for the study.

H0: There is no significant difference between the opinions of two education groups of respondents on the factors considered for buying unbranded gold jewellery.

H0: There is no significant difference between the opinions of two working status groups of respondents on the factors considered for buying unbranded gold jewellery.

H0: There is no significant difference among the opinions of three age groups of respondents on the factors considered for buying unbranded gold jewellery.

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NS - Not Significant ** Significant at .01 level

FACTORSGraduate (N=215) PG (N=285)

t value p valueMean SD Mean SD

PLACE DIMENSION 4.32 0.79 4.02 1.12 3.29** .001

INDIVIDUAL

DIMENSION2.90 0.58 2.71 0.62 3.47** .001

PRODUCT

DIMENSION3.46 0.66 3.41 0.69 0.70NS .483

QUALITY

ASSURANCE3.33 0.81 3.35 0.70 0.20NS .841

FINANCIAL

DIMENSION3.28 0.63 3.27 0.62 0.23NS .818

PROMOTINAL

DIMENSION3.22 0.72 3.25 0.73 0.35NS .721

DESIGN 3.05 1.00 2.98 0.93 0.70NS .483

SOCIAL DIMENSION 2.87 1.00 2.90 1.00 0.32NS .743

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• In case of Place and Individual Dimensions there is a significant difference between Graduates and Post Graduates

• There is no significant difference in the mean values of Product Dimension, Quality Assurance, Financial Dimension, Promotional Dimension, Design and Social Dimension.

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NS- Not significant

FACTORSNonworking (N=147) Working (N=353)

t-value p value

Mean SD Mean SD

PLACE

DIMENSION4.19 0.91 4.13 1.04 0.64NS .517

INDIVIDUAL

DIMENSION2.85 0.58 2.77 0.63 1.25NS .210

PRODUCT

DIMENSION3.37 0.65 3.46 0.69 1.24NS .216

QUALITY

ASSURANCE3.39 0.70 3.32 0.77 0.947NS .344

FINANCIAL

DIMENSION3.26 0.64 3.28 0.62 0.217NS .828

PROMOTINAL

DIMENSION3.21 0.80 3.25 0.69 0.513NS .608

DESIGN 3.01 1.06 2.98 0.92 0.974NS .331

SOCIAL

DIMENSION3.02 0.90 2.83 1.09 1.83NS .068

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• It can be fairly concluded that there is no significant difference between the opinions of two working status groups of respondents on the factors considered for buying unbranded gold jewellery.

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NS- Not significant * Significant at .05 level ** Significant at .01 level

FACTORS

A1 (N=125) A2 (N=215) A3 (N=160)

A1 v/s A2 A1 v/s A3 A2 v/s A3

F

Value

p Value

M

E

A

N

SD

M

E

A

N

SD

M

E

A

N

SD

PLACE DIMENSION3.

901.05 4.12 1.07 4.41 0.81 - * * 9.94** .000

INDIVIDUAL DIMENSION2.

720.61 2.90 0.65 2.74 0.56 * - * 4.15** 0.01

PRODUCT DIMENSION3.

340.72 3.36 0.62 3.61 0.70 - * * 8.18** .000

QUALITY ASSURANCE3.

220.77 3.34 0.77 3.45 0.70 - * _ 3.46* 0.03

FINANCIAL DIMENSION3.

080.70 3.28 0.64 3.43 0.51 * * * 11.38** .000

PROMOTINAL

DIMENSION

3.

250.77 3.30 0.71 3.16 0.71 - - - 1.67NS 0.19

DESIGN3.

040.87 3.15 1.00 2.82 0.98 - - * 5.43** .005

SOCIAL DIMENSION2.

931.12 2.93 0.99 2.80 1.04 - - - 0.85NS 0.43

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• Place dimension, Individual dimension, product dimension, financial dimension and design have shown highly significant differences, followed by Quality Assurance.

• There is no significant difference in the mean value of promotional and social dimensions.

• For Quality Assurance there is significant difference only in case of A1 and A3. All the three groups report this factor to be important.

• Financial Dimension there is significant difference within all the three age categories. Financial dimension is important factor but among the groups older age group holds it to be more important .

• Design is important factor for two younger age categories A1 and A2.

It is less important for oldest age group A3.

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ConclusionThe factors considered while buying unbranded gold jewellery are

1. Place Dimension provides Shopping Convenience to the customer. This factor comprises of three variables viz., Reliability of jeweller, Location of the jewellery outlet and the store environment. Reliability indicates trust in a particular retailer; location is definitely a matter of convenience to the customer and the store environment is created by tangibles, store displays, in store temperatures and ambience as well as knowledgeable staff, this adds on to shopping pleasure and convenience of the customers.

2. Product Dimension includes variables like usability and durability of jewellery and investment oriented purchase. These are directly linked to the functional utility of the product.

3. Financial Dimension has three component variables of price of metal, resale or buyback guarantee and flexible payment terms. The three components are related with the price customer has to pay for the jewellery product hence termed as financial dimension.

4. Promotional Dimension includes advertisements, promotional schemes and word of mouth.

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5. Quality Assurance includes three variables accuracy of weight and purity of precious metal and certification; accuracy of weight and purity of precious metal (gold) together they are indicators of quality of jewellery product and assurance about the quality comes by way of hallmarking or third party certification.

6. Design is a single component factor of uniqueness of design.

7. Individual Dimension has two component variables self image and materialistic value. Self image is linked to lifestyle and personality while materialistic value refers to emotional satisfaction drawn by buying a valuable product. These two variables are more governed by the attitude of a person, which is an internal attribute in itself rather than external influences.

8. Social Dimension includes conspicuous value and prestige value. Conspicuous value is reflected in terms of fashion consciousness and also jewellery is conspicuously consumed product. Prestige value reflects the social status and jewellery is a product which is linked with one’s social status also.

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To conclude finally

In the Indian scenario there is an existence of huge primary demand for the gold and gold jewellery but endeavours have to be made at developing the selective demand by individual players whether branded or unbranded.

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Thank you..

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