Research Methodology

In simple terms methodology can be defined as, it is used to give a clear cut idea on what the
researcher is carrying out his or her research. In order to plan in a right point of time and to
advance the research work methodology makes the right platform to the researcher to
mapping out the research work in relevance to make solid plans.
More over methodology guides the researcher to involve and to be active in his or her
particular field of enquiry. Most of the situations the aim of the research and the research
topic won‟t be same at all time it varies from its objectives and flow of the research but by
adopting a suitable methodology this can be achieved.

Right from selecting the topic and carrying out till recommendations research methodology
drives the researcher in the right track. The entire research plan is based on the concept of
right methodology.

Moreover through methodology the external environment constitutes the research by giving a
depth idea on setting the right research objective, followed by literature point of view, based
on that chosen analysis through interviews or questionnaires findings will be obtained and
finally concluded message by this research.

INTRODUCTION

As India makes rapid progress in the retail arena, the Indian Jewellery market is
undergoing a gradual metamorphosis from unorganized to organized formats. The jewellery
business in India is estimated to beat Rs. 50,000crores. According to the independent
estimation studies conducted by World Gold Council & Mckinsey, out of the overall market
share, the share of organized jewellery market is less than Rs. 1,000crores. This accounts to
about 2-3 % of the total market share. But given that this is a relatively new segment of the
market, it is poised to grow. Jewellery retailing is moving from a „Storehouse of value‟ to a
„Precious fashion accessory‟. Plain gold is gradually easing its stranglehold on the Indian
consumer psyche to give way to diamonds, platinum and coloured gemstones. The way
jewellery was worn before is undergoing a tremendous change. Traditional designs are
yielding to modern jewellery, heavy gold is giving way to light and simple designs.
Consumers are more quality conscious than ever before. The jewellery market is one of the
largest consumer sectors in the country- larger than telecom, automobiles, and apparel and
perhaps second only to the foods sector. Interestingly, organized retailers have attempted to
understand the market, anticipate social change and strategies appropriately. They have
ceaselessly endeavoured to derive the formulae of “What the consumer wants?”
The young Indian woman who is the prime market for the organized retailers differs
from the traditional jewellery customer in many ways as enumerated below- She is well educated and more in tune with international trends
- Increase in working women with high disposable incomes
- Greater mobility
- Less constrained by traditions

There are several examples of retailers who are drawing in consumers either across a wide swath or a segment of socio-economic classification. Organized retail formats work on transparent policies that are not necessarily available at the traditional jewellery shops. This is evident from the shift from the traditional jeweller to the jeweller with an identity. In addition. follows standardized practices & uniform pricing strategy. This has been the first step towards organized jewellery retailing in India. In a short span of time. Today. organized retailers have successfully implemented a change in the buying pattern of the Indian consumers. organized retailing offers quality products. clearly defined by them. . goods and services offered by any retailer are strongly driven by their identified Target Group.All these reasons and more ensure that the modern Indian woman is looking for jewellery from a perspective different from the past. This shift clearly indicates a change in viewpoint of jewellery as a commodity to brand identification.

To know the knowledge level of customers regarding the jewellery brands available in the market . To study and understand the buying behavior of consumers for branded and non branded jewellery 2. To know the major players of jewellery industry 4.OBJECTIVES 1. To know the marketing strategies used by various jewellery brands to reach customers 7. To find the difference between perceptions. To have an idea about parameters consumer consider while buying jewellery 5. To have knowledge about demographic segments 6. 3. opinion and behavior of branded and nonbranded jewellery buyers.

More of female buyers are inclined towards the new designs introduced by the branded jewelers. 3. 7. 4. gifts. 5. traditional (non-branded) or branded? HYPOTHESIS 1. Buyers make purchases only during some occasion like marriages. The expectations of the buyers from the jewelers remain the same in every situation. The selection of jeweler has significant relation with the geographical location of buyer. The income level of the buyers has significant impact on the type of jewellery purchased by them. The knowledge about the branded jewelers is due to the advertisements floating on air or there are other sources of information also. The price of gold and other precious stones also play a significant role in the purchasing procedure. etc.RESEARCH PROBLEM What kind of jewellery designs are preferred by the consumers. 6. Type of research  Exploratory  Qualitative . 2.

Various tools and techniques of SPSS will be used to analyze or establish relationship between various statements and to prove the hypothesis formulated earlier. working women and men. we reached out to the people at various locations like shopping malls.branded jewellery.METHODOLOGY As a part of the study. median and mode will be helpful in finding the common perception and general liking of respondents towards branded or non. The central tendency techniques like mean. Primary data has been the first and foremost method of data collection and it has been done through a questionnaire. A sample of 50 respondents was randomly selected including students. The raw data collected by questionnaire will be then transferred to SPSS which will help in easily analyzing the collected data and coming to a conclusion about the buying behaviour of consumers. . fun-filled locations and side-by-side approached family members. Respondents of various age groups were included to know the variations in the response as we would like to know does age also play a significant role in the buying behaviour of jewellery. The significance level has been kept at 5 percent to avoid various errors chances. bazaars. relatives and friends for the smooth running of data collection. housewives.

LITERATURE REVIEW G o l d J e w e l l e r y Ma r ke t i n I n d i a Before the liberalization of the Indian economy in 1991. Tiffany and Cartier‟s into the Indian market. The bulk of the jewellery purchased in India was designed in the traditional Indian style. 22 and 24-carat gold. sold 18-carat gold jewellery under the brand name Gili. Titan sold gold jewellery under the brand name Tanishq. gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. As Hallmarking was not very common in India.5 carats to 18 carats as22-carat gold jewellery. These measures led to the entry of foreign players like DeBeers. only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. 855 tons were consumed a year.000 retailers. In 2001. In 1997. According to a survey done by the Bureau of Indian Standards (BIS). single shop operations. In the 1990s. 95% of which was used for jewellery. most gold jewellery advertised in India as 22-carat was of a lesser quality. Jewellery was fabricated mainly in 18. Gitanjali Jewels also started . In 1993. This led to a highly fragmented and unorganized jewellery market with an estimated 100. Over 80% of the jewelers sold gold jewellery ranging from 13. a Mumbai-based jewellery exporter. The abolition of the Gold Control Act in 1992. allowed large export houses to import gold freely Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. while Gitanjali Jewels. India had the highest demand for gold in the world. overseas banks and bullion suppliers were also allowed to import gold into India. under-carat age was prevalent. mostly family-owned. the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act.000 workshops supplying over 350. The late 1990s saw a number of branded jewellery players entering the Indian market.

Carbon and Tribhovandas Bhimji Zaveri (TBZ). who regarded jewellery as an accessory and not an investment. Trendsmith conducted a survey to understand the shifting need. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000 -01 included Intergold Gem Ltd. and to identify new trends and opportunities. there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. However. Cartiers entered India in 1997 in a franchise agreement with Ravissant. Confidence in the local jeweller was the hallmark of the gold jewellery trade in India. The new millennium witnessed a definite change in consumer preferences.The Mumbaibased group. Oyzterbay. Additionally. the average Indian bought jewellery for investment rather than for adornment. launched its collection of diamond and 22 -carat gold jewellery in 1997. the local jeweller catered to the local taste for traditional jewellery.. "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment. Pranda. motivations and aspirations of consumers in the jewellery market. CEO of Trend Smith. Jewellery made of 18-karat gold was not favoured as it was considered a poor investment. since the late 1990s. especially from consumers in the 16 to25 age group. The buyer had implicit faith in his jeweller. Gold Jewellery Becomes Fashion Accessory Till the early 1990s. The research study arrived at the following conclusions: ." In October 2002. Beautiful. A jeweller or goldsmith in a local area had a fixed and loyal clientele.selling 24-carat gold jewellery in association with a Thai company. Su-Raj (India) Ltd. There was a rise in demand for lightweight jewellery. which marketed the Tiffany range of products in India. According to Samrat Zaveri. launched its own range of studded 18-carat jewellery. Dagina.

So much so that branded jewellery is the new mantra in the market. The focus had shifted from content to design. In addition. . and its increasing growth rates show that before long it will corner a significant share of the jewellery market. • The Indian consumer was willing to experiment with new designs. selling the product that was never really "marketed" in "brand" new ways. 30 brands were launched in 2004. a wide range of new designs became available. The late 1990s and early 2000s. with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT). Some of the companies have even cleverly played on Indian customs and tradition to advertise and establish their brands. having rapidly acquired a niche over the past few years. the growing number of manufacturers needed a retailing platform with global and national reach. In spite of pessimism about the marketability of branded jewellery in a country rooted in buying ornaments from the traditional goldsmith.• The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. several companies have made inroads into the traditional jewellery industry. • The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. Jewellery is now marketed for every occasion. With the retail industry in India burgeoning. All these led to the proliferation of branded jewellery players. even Valentine's Day calls for "a special something [diamond] for a special someone". traditional gold jewellery. • The younger generation was looking at trendy. contemporary jewellery and clearly avoiding heavy. Brand appeal Branded jewellery has found a niche for itself in the tough Indian market.

The review also brings light to the fact that the Indian consumers are price sensitive and hence the branded jewellers cannot charge exuberant prices for the same. The jewellers have to offer designs that are more Indian in their culture rather than aping the west this can be proved by the e. There are also statements like the industry does not cover the entire population making a scope for further growth. A few research reports also help us gauge the changing trends in the jewellery market and the popularity of diamonds. In spite of the economic slowdown experts believe that it will grow at a CAGR of 25%. .g. The number of foreign entrants also pose a challenge to the traditional jewellers and hence we can see that these jewellers also come up with strategies to retain their customers these practices were not prevalent in the market previously. The branded jewellers on the other hand have to adapt strategies to win the trust of their customers and attract new customers. Since the thesis focuses on a comparative study of the popularity of branded v/s non branded jewellery the review helps understand the growth of the retail industry which have leased branded jewellery stores and also the popularity of traditional goldsmith. of Tanishq and should also be affordable.Analysis of Literature Review To draw a conclusion from the above literature review one can observe that there is immense scope for the growth of branded jewellery.

finishing. trust is purely based on consumer Excellent quality. considering the emotional quotient of the consumer No written lifetime guarantee.Difference between Branded and Non-Branded Jewellery BRANDED Name & reputation gives a confidence to the consumer NON-BRANDED Customer can tailor make jewellery according to their preferences It comes with a written lifetime guarantee. sales & low advertising Has a more contemporary stylish and classic outlook. considering the emotional quotient of the consumer No written lifetime guarantee. good selling policies and backup services for jewellery Minimum efforts in packaging. finishing. good selling policies and backup services for jewellery Minimum efforts in packaging. which easily segments itself among the traditional ones. Is usually bulky & traditional Available at multiple outlets Available only in traditional jewellery outlets . sales & low advertising It comes with a written lifetime guarantee. trust is purely based on consumer Excellent quality.

Lydia. . Volatile markets and unstable economic conditions have also added to it. The first major gold strike in the United States occurred in a small north Georgia town called Dahlonega. Otago. One of the salient features about the gold is that a single gram of weight is not at all wasted since its exploration. Central America. gold has emerged as an important mean for investments also. Australia. and its value has been used as the standard for many currencies in history. It has been rounding in different hands in one or the other way. Further gold rushes occurred in California. During the 19th century. Black Hills. Important locations famous in the name of gold are Red sea in Saudi Arabia.INTRODUCTION Gold has long been considered the most desirable of precious metals. Peru and Columbia. value. North Carolina in 1803. Rosia Montana in Transylvania. in Spain. Colorado. India‟s diversified religious customs and rituals have helped to the high demand for gold. Gold has been used as a symbol for purity. Las medullas. A huge description is available in the Egyptian Hieroglyphs. and Klondike. where it is largely used for jewellery together with investment. Romania. much of the gold mined throughout history is still in circulation in one form or another. gold rushes occurred whenever large gold deposits were discovered. Because of its historically high value. Today. But India is the largest consumer of gold. royalty. China is largest producer followed by South Africa. The first documented discovery of gold in the United States was at the Reed Gold Mine near George Ville. It may be the first metal used by humans and was valued for ornamentation and rituals. The history of gold starts from 2600BC. Witwatersrand.

Australian Lunar Calendar Series. Alloys with lower cartage. pure gold being designated as 24k. typically 22k. The gold content of gold alloys is measured in carats (k). 14k or 10k. and both may be used to produce police and other badges. contain higher percentages of copper.APPLICATIONS In various countries. melting point. Austrian Philharmonic and American Buffalo. Fourteen carat gold-copper alloy is nearly identical in color to certain bronze alloys. Modern collector/investment bullion coins are typically 24k. 18k gold containing 25% copper is found in antique and Russian jewellery and has a distinct. Jewellery: Because of the softness of pure (24k) gold. copper cast. yielding a redder color. creating rose gold. 18k. in coinage and in jewelry. Copper is the most commonly used base metal. Blue gold can be made by alloying with iron and Blue gold can be made by alloying with iron and purple gold can be made by alloying with aluminum. gold is used as a standard for monetary exchange. color and other properties. for hardness. Canadian Gold Maple Leaf. although rarely done except in . although the American Gold Eagle and British gold sovereign continue to be made at 22k. Gold Kangaroos. Australian Gold Nugget. on historical tradition. Pure gold is too soft for ordinary use and is typically hardened by alloying with copper or other base metals. altering its hardness and ductility. The world wide used coins are American Gold Eagle. or other base metals or silver or palladium in the alloy. British Gold Sovereign. though not dominant. it is usually alloyed with base metals for use in jewelry. As a medium of monetary exchange: Gold coins intended for circulation from 1526 into the 1930s were typically a standard 22k alloy called crown gold.

Nobel Prize and other competitions and honors award a gold medal to the winner. Other uses  Salts and radio scopes of gold are used in pharmacology.3% nickel. atomic experiment and other electrical equipments. 5.  Olympics.  Gold threads are used in embroidery. White 18 carat gold containing 17. flakes or dust is used in some gourmet foodstuffs.  Gold is used in dentistry as crowns and permanent bridges. White gold alloys can be made with palladium or nickel. .specialize jewelry. Blue gold is more brittle and therefore more difficult to work with when making jewelry.5% zinc and 2.2% copper is silver in appearance. sweets and drinks as decorative ingredient. Fourteen and eighteen carat gold alloys with silver alone appear greenish-yellow and are referred to as green gold.  Gold leaf.  Gold has been used for electrical wiring in some high energy applications.

 India‟s gem and Jewelry Exports Promotion Council (GJEPC) is aiming at turning India into an international diamond trading centre. Hence.  India is emerging as world‟s largest trading centre of gold with a target of US$16 set for 2010.OVERVIEW OF GOLD INDUSTRY IN INDIA  India is the largest consumer of gold in the world followed by China and Japan. if India‟s gems and jewelry sector is to substantially increase exports. scope for further growth in diamond exports is limited. In value terms.  There are 13 bullion importing bank in India. . The main reason why India has not made a dent in jeweler exports market is the existence of government restrictions in their domestic jewelry industry in the preeconomic liberalization era.  India‟s imports an average of 18000 bars a day. If the gold jewelry exports are to be encouraged.  India dominates the world‟s cut and polished diamonds (CPD) market. about 70% of the total demand and the balance is being sourced to indigenous output and metal recycled from old jewelries.  Since India is already enjoying 80-85% of the world CPD market.  Surat contributes 90% of India‟s total diamond exports.  India‟s domestics branded jewelry market is estimated at Rs 600-700crores. the best lies in the jeweler sub sector. it would be necessary to allow bulk imports of gold which would have to be converted to jewelry and then exported. the country accounts for approximately 55% of global polished diamond market and nearly 9% of the jewelry market.

reference groups. social class and many other factors that are both internal and external to us. friends. both individually and in groups. and behavioral variables in an attempt to understand people's wants. we also consume and buy these products according to our needs. social and cultural background and our age and family cycle. when they buy and why they buy. personality. self concept. beliefs. how we buy. What we buy. It attempts to understand the buyer decision processes/buyer decision making process. specialty goods or industrial goods. what they buy. and society in general. . These can be consumable goods. preferences and buying power. It blends elements from psychology. It also tries to assess influences on the consumer from groups such as family. sociology. our attitudes. It studies characteristics of individual consumers such as demographics. Consumer behavior is the study of how people buy. We consume things of daily use. durable goods. where and when we buy. values motivation.CONSUMER BEHAVIOR All of us are consumers. in how much quantity we buy depends on our perception. anthropology and economics. psychographics.

FACTORS INFLUENCING CONSUMER BEHAVIOR The factors that influence consumer behavior can be classified into internal factors and external environmental factors. The individual determinants that affect consumer behavior are:  Motivation and involvement  Attitudes  Personality and self concept  Learning and memory  Information processing The external influences or factors are:  Cultural influences  Sub-cultural influences  Social class influences  Social group influences  Family influences  Personal influences  Other influences . to influence the decision process. but percolate or filter through the individual determinants. External factors do not affect the decision process directly.

TOOLS TO STUDY CONSUMER BEHAVIOUR It is important to marketer to regularly study buyer behaviour. The different tools available to him or her are: SURVEYS This is the most common technique used in studying consumer behaviour. It also provides the marketer with valuable information on the target market. It involves the use of questionnaires. PROJECTIVE TECHNIQUES To throw the customer off his or her conscious level and to get know sub-conscious-level responses. . The problem with survey methodology is that it gives to marketer only conscious response of the customer. This provides valuable information on his or her product or brand and about the customer‟s lifestyle and self concept. projective techniques like word association. picture association and thematic appreciation tests have been used. Different scaling techniques are used to measure consumer attitudes. FOCUS GROUP DICUSSIONS This is another qualitative technique used to assess how customers perceive the product and use situations.

birthday gifts. The respondents under the study were highly co-operative and we came out with wonderful results about their perception and the behaviour. On the contrary. fashionable jewellery is the rage nowadays and acquires a status symbol in their minds. . Fall in the prices of gold and silver also affect the seasonal buying behaviour of the consumers. it is not a problem for the business class. Respondents stated that they make most of the purchases when there is any special occasion like marriage. The following graph helps in understanding the results. reliable. The results show that the price of gold plays an important role in the purchasing procedure. One of the findings of the study also indicates the seasonal buying behaviour of the jewellery.ANALYSIS OF THE DATA COLLECTED After analysis the data collected. we have come a conclusion that the jewellery market in India is changing rapidly and the buying behaviour of people is changing accordingly. festivals. People also look for the convenience while visiting the store and this is the reason why some people today also visit non-branded jewellery shops for making purchases as they easily approachable. The rising prices of gold are one of the main factors that affect the purchase for a middle class family. anniversaries. they are indifferent in buying jewellery irrespective of the prices. designs and the brand. Branded jewellery players will continue to face lot of competition from local jewellers. etc.e. prices are negotiable and also they have a long term relationship with them. The consumers buying behaviour shows a shift from content to design in jewellery i.

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Silver d. Once a year d. Ring b. Name: _____________________ Age: _____________________ Sex: _______________________ Marital Status: _______________ Contact Info: _________________ Kindly answer the following questions: 1. How frequently do you purchase jewellery (on an average)? a. You mostly purchase jewellery as/ for? a. Once every six months c. Only on special occasions e. Others.To understand the behaviour pattern and preference of consumers towards branded jewellery. Necklace c. Please specify_____ . Gold b. Specify______ 6. For personal use c. Earring e. Others specify ___________ 4. Platinum c. on what occasions) do you wear jewellery? a.Branded Jewellery Market Research Questionnaire Objective . What jewellery items/ pieces do you generally purchase? a. When (i. Daily b. Once a month b. Are you an out-going person? Or you call people home? ______________ 7. Do you wear jewellery?? Y/N 2. Bracelet d.e. Other pleases specify. As a gift b. Others. _____________ 5. Do you prefer any specific designer/brand/jeweller? __________ 8. What material/ metal do you prefer most? a. ________________ 3. Other specify. How many times in a day do you change jewellery? 2.

Neither Satisfied or Dissatisfied c. Satisfied b. Have you bought any branded jewellery? Yes/ No 13. Duty-free store e. The prices are negotiable. I can buy the products on credit. Helpfulness of Staff/Attention to My Needs b. Wide Selection of Merchandise f. How satisfied were you with your last jewellery item purchased? a. Cost c. using a scale where 1=Very Important to 5-Not Important a. c. how important are these Factors. Through Internet. what do you value the most? a. Do you buy jewellery for gifting purpose? Yes/ No 12. Convenience of Store c. Pleasant environment for shopping 11. Mail Order or TV Shopping f. If local retailers. Low priced. . When choosing a store to shop for jewellery and/or watches. apart from MRP d. Where do you prefer to buy the jewellery from (for gifting)? a) Branded Store b) Family Jeweller 14. such as Tanishq. Other 10. Uniqueness d. Brands Carried e. Branded Jewellery Store. The store is located near my house. Knowledge of Sales Staff/Information Provided h. Gitanjali. Specialty Fashion Shop or Boutique b. Quality of Merchandise d. e. The retailer is very reliable as I have been dealing with him since a long time. Dissatisfied 16. Locally-Owned or Family Jewellery Store c. Craftsmanship b. In what kind of store did you purchase your last jewellery item? a. Good Prices for Merchandise g. and so is easily approachable. what factors affect this decision (one or more)? a.9. Gilli d. When was your last purchase made?________________ 15. Trust in the Store j. Other Types of Stores 17. When buying jewellery. b.

The jewellery is certified 19. 22. From where did you get the knowledge of this store/ brand? a. The quality of the products is excellent c. Since a very long time. Before making any jewellery purchases. I can choose from a wide variety of designs b. Never 23. They provide good exchange offers. Are you aware of the various jewellery brands available in the market? Yes/ No 20. e. Schemes launched by the store. Sometimes d. How long have you been making your purchases of jewellery from this store/ brand? a. b. If brands. Do you plan to shift or change the source of purchasing jewellery from : 1 – Local Retailers to Brands 2 – Brand to Local Retailers . b. what are the factors responsible for this choice (one or more)? a. Rarely e. do you compare the designs and prices of the same between the branded showrooms and the local dealers? a.18. Recommendations from Friends / Relatives. The stores are easily accessible as they have their outlets at many places. From past 5 to 10 years c. c. Always b. d. I recently started visiting this store / brand. Often c. Pamphlets 21. almost always.

CONCLUSION To conclude the overall responses of the customers for branded jewellery is good. there is some kind of promotion activities required to hold the present customers and make new customers. The overall performances in all areas are satisfactory. Further. salesman responsiveness. . price etc has satisfactorily influenced consumer behaviour. ornaments designs. During the study it was found that the following factors such as making charges.