SYNOPSIS OF PROJECT

1. Title:

A STUDY ON CHANGING CONSUMER BEHAVIOUR FROM GOLD

JEWELLERY TO DIAMOND JEWELLERY IN JAIPUR

2. Introduction of Concept: Consumer Behavior is a manner that a consumer display while

buying the product or a service. Each and every consumer has his/her own buying behavior that
he displays it during purchase of different products. This behavior displayed by the consumer is
the result of a number of influences which he/she receives from the environment. These
influences can be categorized into four factors viz. Cultural factors, Social factors , Personal
factors and Psychological factors.
1) Cultural Factors
Culture, subculture and social classes are particularly important in buying behaviour.
Culture is the fundamental determinant of a persons wants and behaviour. Each culture
consists of smaller subcultures that provide more specific identification and socialization
of its members. Subculture includes nationalities, religions, racial groups and geographic
regions.

2) Social Factors
In addition to cultural factors a consumers behavior is influenced by such social factors
as reference groups, family and social roles and statuses. A persons reference group
consists of all the groups that have a direct (face to face) or indirect influence on the
persons attitudes or behavior. Groups that have direct influence on a person is called as
membership groups. Some membership groups are also called as primary groups, such as
family, friends, neighbors and coworkers with whom the person interacts fairly
continuously and informally. People also belong to secondary groups such as religious,
professional and trade union groups which tend to be more formal and require less
continuous interaction. Aspirational groups are those a person hopes to join; dissociative
groups are those whose values and behavior an individual rejects. The family is the most
important consumer buying organization in society, and family members constitute the
most influential primary reference group. A person participates in many groups-families,

clubs, organizations. The persons position in each group can be defined in terms of role
and status. A role consists of the activities a person is expected to perform. Each role
carries a status.

3) Personal Factors
A buyers decisions are also influenced by personal characteristics. These include the
buyers age in the life cycle, occupation, economic circumstances, lifestyle and
personality and self concept.
People buy different goods and services over a lifetime. They eat baby food in the early
years, most foods in the growing matured years and special diet in the later years.
Occupation also influences consumption patterns. A blue collar worker may buy work
clothes, work shoes and lunch boxes. A company president may buy expensive suits, air
travel and country club membership.
People from same subculture, social classes and occupation may lead quite different
lifestyles. A lifestyle is a persons pattern of living in the world expressed in activities,
interest and opinions.

4) Psychological Factors
A persons buying choices are influenced by four major factors viz. motivation,
perception, learning, believes and attitudes.

Importance of Consumer Buying Behavior

The study of consumer behavior focuses on how individuals make their decisions to spend their
available resources (time, money, effort) on consumption related items or consumption related
aspects (What they buy? When they buy? How they buy?).It also study of individuals, or
organizations and the processes consumers use to search, select, use and dispose of products,
services, experience, or ideas to satisfy needs and its impacton the consumer and society.
Consumer Buying Behavior in Jewellery Industry

Consumer buying behavior in jewellery industry can be studied on the

internal parameters such as Popularity of the brand, Trust in the brand, Impact of any occasions
such as Festivals, Birthday, Anniversary, Marriage, Engagement etc., CelebrityEndorsement,
Promotion, Brand Name, Exhibitions, Launch of new collections.
According to a study by JCK Magazine, about 67 percent of all jewellery is a planned purchase,
while the remaining 33 percent is an impulse purchase. When jewellery is a planned purchase,
consumers cite price as the most important factor that determines which piece of jewellery
they are likely to buy.
Jewellery is a type of accessory that includes necklaces, rings, bracelets, watches, andearrings,
etc. Jewellery is being designed for men, women, and children and can be madefrom a variety of
different categories.
Jewelry started about 1,00,000 years ago Began with materials made from bone, teeth ,and shell.
The first known jewelry pieces were worn by the Cro-Magnons about 40,000years ago, These
pieces were made of bone and teeth and were worn as necklaces and earrings to show tribal
membership. Later on incorporated beads, stone & gems. Egyptians were first to use gold and
metals for creating Jewellery, it were considered a symbol of power and wealth.
Gems and jewellery has been used by the Indian civilization since ages for both its aesthetic as
well as investment purposes. Precious metals and stones have been an integral part of the Indian
civilization since its recorded history. India has the distinction of being the first country to
introduce diamonds to the world. The country was also the first to mine, cut & polish and trade
in diamonds. Changing lifestyle and urbanization are also fuelling the growth in the gems
and jewellery industry
India is one of the fastest growing markets for jewellery, growing at the rate of 10.20 percent per
annum over the last five years. today, the Indian consumer market for jewellery is said to be
$13.1 billion, an increase of close to 8 per cent over the previous year.
A study by KPMG says that India is set to realise total jewellery sales of $21 billion by 2010 and
$37 billion by 2015. Currently, out of the eight key world retail markets, the US is number one
accounting for 31 per cent of the jewellery sales. India and China follow with 8.3 and 8.9 per
cent respectively. According to the KPMG study, Indias growing importance in the global
jewellery market is only expected to increase in the future.
The total demand is expected to reach $18.25 billion in 2010 and to $28.28 billion in 2015.
Diamond jewellery consumption in India is estimated to jump by 78 per cent in2010.
The two major segments of the gems & jewellery (GJ) business in India are gold and diamond jewellery.
The GJ industry has an important role in the Indian economy. While a predominant portion of
gold jewellery manufactured in India is for domestic consumption, a large portion of rough,
uncut diamonds processed in the form of either polished diamonds or finished diamond jewellery
is exported. With an estimated consumption of around 800 tonnes during 2007 (including
jewellery consumption), India is the largest consumer of gold in the world. India is also
estimated to hold nearly 14,000 tonnes of gold, accounting for nearly 9% of the worlds Gold in
Indian families remains the Indian brides `

Streedhan , the wealth she takes with her when she marries and which remains hers. Gold jewellery is
the preferred jewellery worn by women in India irrespective of their religious beliefs. Gold
jewellery is very popular among farmers, with an upsurge in gold sales after a good agricultural
season.
Buying of gold is also an important part of every stage of an Indian citizens life at birth,
marriage, construction of home, festivals, religious ceremonies, setting up of new business, and
death. cumulative mine production. A part from its historical religious significance, gold is valued
as an important savings and investment vehicle.
SIZE

India is the largest consumer of gold jewellery in the world

Accounts for about 20% of world consumption
India is the largest diamond cutting and polishing centre in the world, i.e., 60%
The Indian domestic diamond jewellery market was estimated at around Rs. 76 billion
during 2005.
China ranks sixth in the world in terms of diamond jewellery retail value, ahead of India
Which is in seventh place. India ranks third in terms of diamond value, while China holds
the seventh position.
Indian diamond jewellery industry is the third largest consumer of polisheddiamonds
after USA and Japan

Structural Characteristics

The majority of Indias diamond workforce is employed by small units that process
diamonds on a job-lot basis. The number of gold jewellery manufacturing units is put at
0.1 million.
India is the largest diamond cutting & polishing centre in the world, followed by Israel
and employs an estimated 2 million workers serving over 0.45 million gold smiths, and
around million diamond processing units.
India has several well recognised strengths which have made it a significant force in the
global Gems and Jewellery business, like i) highly skilled, yet low- cost labour, and
ii) established manufacturing excellence in jewellery and diamond polishing.

Gold and Jewellery:

This category represents the gold and Jewellery, which is used in the manufacturing of various
ornaments. Indian is the country that is the 9 largest consumer of gold in the world, In the year
2007 gold consumption in India was 850 tons 33% up from the last year.
The Indian Consumer is changing. More aware, more discerning and wanting the best of brands,
this consumer wants it all and is ready to experiment. It is no surprise then that diamonds as a

category has grown tremendously. The past decade has seen a gradual shift towards diamonds.
Diamonds are being perceived as being fashionable, trendy and modern. India as a country has
always been jewellery-centric.
At present, the domestic diamond market is pegged at Rs 12,000 crore and the total jewellery
market in the country is worth Rs 70,000 crore. According to the CARE report on the Indian
gems and jewellery industry, India dominates the diamond processing trade with 11 out of 12
diamonds being cut and polished in India. India also dominates the gold and silver consumption
globally with consumption of about 800 tonnes per annum. The industry provides employment to
1.3 million people. In the global Diamond market, Indian Diamonds account for 55 percent share
in value terms, 80 percent share in caratege(weight) terms and 90 percent share in volume terms.
Today there is an entire range of Diamond in nearly every size, quality and cut.

The Indian diamond industry has the world's largest cutting and polishing industry, employing
around 800,000 people (constituting 94 per cent of global workers) with more than 500 hi-tech
laser machines. The industry is well supported by government policies and the banking sector
with around 50 banks providing nearly $3 billion of credit to the Indian diamond industry. The
Gems & Jewellery Promotion Council is India's certification authority. The government's Central
Board of Excise and Customs has banned the import or export of rough diamond shipments,
which are not accompanied by a Kimberley Process certificate launched in Switzerland.
Certification for quality diamonds and jewellery has given a fillip to exports and has resulted in
greater acceptance of Indian products in the world market.
There are different segment in Diamond jewellery i.e Diamond perfectly blends with Ruby,
Tahitian, Pearl and Gold. This study gives an overview about the different segment where
Diamond jewellery market in India is concentrated and also helps in understanding the 4Cs i.e
Cut, Colour, Carat, Clarity of the Diamond jewellery.

The report gives insight about the consumer buying behaviour and the factor which influences it
such as cultural factor, social factor, personal factor and psychological factors. It discusses about

the six steps of the consumer buying decision and also explains the internal and external
parameter of the jewellery industry.

As we can see that Diamond jewellery is growing at higher space and even the recession could
not affect the growth of the diamond jewellery there is a need to study the consumer buying
behaviour in diamond jewellery industry. In the past decade more than 40 brands of diamond
jewellery has been launched by the players in the diamond market.

3. Rationale of Study: The main purpose of conducting this research is to study the
preference of the diamond jewellery over the gold jewellery. An attempt has also being made to
study their preference about the different combination of metal and stone with the diamond
jewellery. An effort has also been made to understand the buying pattern. Since diamond
jewellery industry is booming the report will also provide the information about what sort of
promotion activity influences the purchases of diamond jewellery. The study would also help
to company to find out the consumer preference and their buying behavior towards gold and
diamond jewellery. This study will help to opine a new perspectives for company. And further it
will be able to provide a guideline for future research work.

4. Scope for Study: This study will help the company to know about the buying behavior
which varies according to season, festivals and other occasions and the age of the individual also
play important role to decide buying behaviour, From the consumers perspective fashion
designs and trends are always changeable in search of new innovation that can be reflected in the
changed demand and buying preference.
The study would help to understand the Consumer Buying behavior toward a product

5. Research Design: Descriptive research

It is used to describe characteristics of a population or phenomenon being studied. It does not
answer questions about how/when/why the characteristics occurred. Rather it addresses the
"what" question (what are the characteristics of the population or situation being studied? The
characteristics used to describe the situation or population are usually some kind of categorical
scheme also known as descriptive categories. Often the best approach, prior to writing
descriptive research, is to conduct a survey investigation. Qualitative research often has the aim
of description and researchers may follow-up with examinations of why the observations exist
and what the implications of the findings are.

6. Objective of the Study:

1) To study and understand the buying behavior of consumers for gold and diamond
jewellery.
2) To find the difference b/w perception, opinion and behaviour of gold and diamond
jewellery buyers.
3) To have an idea about parameters consumer consider while buying jewellery.

7. Universe: Jaipur
8. Sample size: 200-250(approx.)

9. Sampling Methodology: Judgmental Sampling

Judgmental sampling is a non-probability sampling technique where the researcher selects
units to be sampled based on their knowledge and professional judgment.
This type of sampling technique is also known as purposive sampling and authoritative sampling.
Purposive sampling is used in cases where the specialty of an authority can select a more
representative sample that can bring more accurate results than by using other probability
sampling techniques. The process involves nothing but purposely handpicking individuals from
the population based on the authority's or the researcher's knowledge and judgment.

10. Tools of Data collection: Questionnaire

11. Analysis Plan: Pie charts/Graphs