CONSUMER BUYING BEHAVIOUR

TOWARDS GOLD JEWELLERY

A Project Submitted to 

University of Mumbai for partial completion of the degree

of Bachelor in Management Studies (BMS) Under
the Faculty of Commerce  

By 
RUNITA DENZIL D’SOUZA

Under The Guidance Of

PROF. RUBINA D’MELLO

ST.GONSALO GARCIA COLLEGE

VASAI (WEST)
 2020- 2021

1
 DECLARATION
 

I the undersigned Ms. RUNITA DENZIL D’SOUZA here by, declare that
the work embodied in this project work titled “CONSUMER BUYING
BEHAVIOUR TOWARDS GOLD JEWELLERY” forms my own
contribution to the research work carried out under the guidance of
PROF.RUBINA D’MELLO is a result of my own research work and has
not been previously submitted to any other University for any other
Degree/ Diploma to this or any other University. 
Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography. 
I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct. 
 
 

                                                                                                    

                                                                                             

RUNITA D'SOUZA

Certified by  

PROF.RUBINA D’MELLO

2
 CERTIFICATE

This is to certify that RUNITA DENZIL DSOUZA OF BMS,

BACHELOR OF MANAGEMENT STUDIES Semester VI (2020-2021)
has successfully completed the project on Consumer Buying Behaviour
towards Gold Jewellery under the guidance of Prof. Rubina D’mello.

                                                                                         
PRINCIPAL                                                              (CO-ORDINATOR BMS)
(DR.SOMNATH VIBHUTE)                        
PROF.RUBINA D’MELLO                                                  
    

PROJECT GUIDE                                                     EXTERNAL EXAMINER

(PROF. RUBINA D’MELLO)    

3
 EXECUTIVE SUMMARY

Gold plays a large position in the economy of a country. The main intention of conducting
this research is to study the preference for buying jewellery with special reference to Mumbai
city. The objective of the study is to get near about the consumer buying behaviour and factor
influencing it such as cultural, social, economic factors, brand awareness, and can also be
calculated on the interior parameters such as Popularity of the brand, Trust in the brand,
Impact of any occasions such as Festivals, Birthday, Anniversary, Marriage, Engagement etc.,
Celebrity Endorsement, Promotion, Brand Name, Exhibitions, Launch of new collections,
etc.
Consumer behaviour primarily refers to how and why people make the purchase decisions
they do. Marketers strive to grasp this behaviour so they can better formulate appropriate
marketing stimulus that will result in increased sales and brand loyalty.
The gold market in India is predominantly a market for buying and selling physical gold and
gold in the form of ornaments. The Gold in India serves many functions and wearing it has
several implications. It is considered as a status symbol. India is considered to be the fastest
growing market in the world for gold jewellery. It is valued in India as a savings and
investment vehicle and is the second preferred investment option after deposits and mutual
funds.
The study was based on primary and secondary data. Primary data was collected through
questionnaires i.e. a sample of 50 people comprising both men and women from Mumbai city
of Maharashtra, India is collected by using a convenient sampling method. Secondary data
was collected by books and the internet. The results of the study reveal that consumers have
purchased gold jewellery for the purpose of investment. Purity has been considered as an
important factor influencing the consumers purchase decision followed by Price.

4
 INDEX 

PAGE
SR.NO  PARTICULARS 
NO 
CHAPTER  INTRODUCTION 
1   
1.1 GOLD- METAL & ITS JEWELLERY   6-7
1.2 HISTORY OF GOLD IN INDIA 
   1.2.1 HISTORY USAGE OF GOLD  7-8
   1.2.2 RELIGIOUS & CULTURAL REASONS FOR GOLD OWNERSHIP  8-9
   1.2.3 OTHER CONTEMPORARY REASONS FOR GOLD OWNERSHIP  9-10
1.3 HOW GOLD IS MINED 
   1.3.1 THE LIFE CYCLE  10
   1.3.2 GOLD MINING  11
1.4 CONSUMER BUYING BEHAVIOUR  11-12
12-14
1.5 IMPORTANCE OF UNDERSTANDING BUYING BEHAVIOUR 
14-17
1.6 4 FORMS OF BUYING BEHAVIOUR  
17-22
1.7 FACTORS INFLUENCING BUYING BEHAVIOUR
22-26
1.8  STEPS INVOLVED IN BUYING PROCESS 26-29
1.9  5 MODEL                                                                                               
CHAPTER 
LITERATURE REVIEW  30-31 
2 
CHAPTER  OBJECTIVES OF THE STUDY  
3  3.1 OBJECTIVES 
3.2 SCOPE OF STUDY  32-33 
3.3 LIMITATIONS 
     
  RESEARCH METHODOLOGY   
  PRIMARY RESEARCH   
   4.1 RESEARCH METHOD   
CHAPTER   4.2 SAMPLE SIZE  34-35
4   4.3 DATA COLLECTION METHOD 
 4.4 DATA ANALYSIS TOOL 
 4.5 RESEARCH AREA 
CHAPTER 
  DATA ANALYSIS   36-50 
5 
CHAPTER 
FINDINGS AND RECOMMENDATIONS 
  51-55 
 
6 
CHAPTER  56
CONCLUSION 
7 
CHAPTER 57 
BIBLIOGRAPHY & WEBLIOGRAPHY 
8 

5
 CHAPTER 1  
INTRODUCTION 

 
1.1 Gold – Metal and its Jewellery 

Gold is a precious metal. In India other than remaining Nations, the craze for gold is much
more. In India from Ancient from Birth to death the gold is used in many events of life. The
Business of gold & gold Jewellery selling & buying is not new. The attraction toward gold &
gold Jewellery also increases day by day. The rate of gold also increases. In few years
consumer’s buying behaviour of gold & gold Jewellery increased. For many years the gold
Business sector was handled by traditional Jeweller's. But in the last 10-15 years, many
companies have entered this sector. As per the change in time the look out of consumers and
their preferences toward buying gold Jewellery also changed so it is much more beneficial to
study the consumer Buying Behaviour of gold & gold Jeweller. Gold jewellery is the main
attraction of women. However, which describes why ladies have gold jewellery more.  
1. Sentimental value. 
2. To feel good about self  
3. Exposes Individuality. 
4. Modern & up-to-date 
5. To be cool & Trendy 
6. Make a first impression 
7. Look professional at work 
 8. Make a good impression on opposite sex. 
 9. Display wealth & status. 
In Jewellery there are so many items some of them are ear tops, earrings, rings, necklaces,
bracelets, bangles, mangalsutra (The symbol of Marriage life.) etc. 
As like other product buying by the consumer’s, In the gold & gold jewellery Buying process
there are many factors which affect the buying Behaviour of customer. 
(1) Tradition (2) Ornaments for occasion (3) Price / Investment (4) Status symbol  
(5) Necessity 

6
Scientific Characteristics of Gold - 
(1) The chemical symbol for gold is Au.  
(2) Gold atomic number is 79 and its atomic weight is 196.967 
(3) Gold melts at 1064.43 Centigrade 
(4) The specific gravity of gold is 19.3, meaning gold weight 19.3 times more than an equal
Volume of water.  

1.2 History of Gold in India 

 

     1.2.1     History Usage of Gold  

Silver coins were widely used in India during the reign of the Mauryas 250 BC. The first gold
coins were issued widely during the Gupta dynasty around 250 AD. Interestingly, this period
was also known as the Golden Age. 
On the face of it, every emperor issues coins to accentuate the significance of his rule.
However, there was a more practical reason for Indians to use gold as money. 
India, over the past 4 millennia, was a collection of many thousands of kingdoms and
fiefdoms. Every once in a while, a ruler such as Emperor Chandragupta Maurya appeared on
the scene and was able to consolidate a majority of India. However, no sooner did such an
able emperor pass away than his empire disintegrated. 
"Millions of people in India have capitalized their businesses or farms, or secured their basic
necessities after severe business reversals, by pledging their gold jewellery." 

7
Even with the big empires, there was always plenty of fighting, and border territories
constantly changed hands. Millions of Indians could, in their lifetimes, expect to be the
subjects of several different rulers and kingdoms. 
Gold, being of high value, could easily be hidden during times of strife, enabling ordinary
citizens to avoid being looted by marauding armies. Further, a gold coin issued by one king
could serve as money under any other king as long as the weight and purity of the issued coin
could be assessed. Therefore, gold was the preferred medium of exchange and store of
wealth. 
The history of dowry in India is almost as old as the Hindu religion itself. Dowry, before the
negative connotations of today, was a gift from the bride's family to a newly married couple.
It was to compensate the groom for the additional expenses he would incur taking care of his
stay-at-home bride and eventually their family. 
Although different commodities were used to pay dowry, gold was the preferred option
simply because it was easily safeguarded and widely accepted. The practice of giving gold
and jewels as dowry continues to this day. 
Another offshoot of the rich tradition of gold in the Hindu religion explains why Indians
mark every auspicious and festive occasion with the purchase of a token amount of gold.
Parents with daughters begin accumulating gold in small quantities yearly on these occasions,
in anticipation of their daughters' weddings.  

1.2.2     Religious and Cultural Reasons for Gold Ownership

  
Much of this desire to acquire gold dates back to the Bronze Age Indus Valley civilization in
which people wore gold jewellery almost 4,000 years ago. 
Gold has a rich tradition in the Hindu epics, the Ramayana and the Mahabharata. It was
associated with the pomp and splendour of the gods and kings who appear in these
mythological stories. The Ramayana, the earlier of the two epics, can be traced back to
around 900 BC, so gold had risen above all other commodities to be associated with power,
prestige, and wealth even back then. 
Let me narrate a short story to illustrate how deeply gold and wealth are ingrained into the
Hindu culture. The world's richest temple, at Tirupati, was built in honour of Sri
Venkateswara, an incarnation of Lord Vishnu. Legend has it that Venkateswara, who was

8
born poor, sought the hand of Princess Padmavati, the incarnate of Vishnu's celestial consort,
Lakshmi. 
Her father decreed that Venkateswara could marry Padmavati only if he possessed wealth
comparable to the king himself. Venkateswara sought a loan of gold and jewels from Lord
Kubera, the Hindu god of wealth. To help Venkateswara repay this loan symbolically, Hindu
devotees donate money at Tirupati to this day. 
This is but one of many thousands of stories from Hindu mythology that involve gods, kings,
and wealth. Generations of Indians reared on these stories have come to associate gold with
mythical qualities.  

1.2.3     Other Contemporary Reasons for Gold Ownership 

The above historical and cultural reasons explain the long-entrenched practice among Indians
of acquiring gold. This practice continued into contemporary times despite India having a
unified currency since 1857, when the British acquired complete control of the country. This
was primarily because of the continued struggles for the average Indian, first under imperial
Britain and then under socialist India. 
Since India's independence, the country has followed a socialist economic policy, with the
government running constant deficits to fund its five-year plans. Needless to say, these plans
have proved very inefficient, resulting in plenty of wastage and constantly increasing prices. 
India's disastrous 1962 war with China severely depleted India's foreign reserves and
removed the backing for the rupee. To prevent a massive flight out of the rupee, the
government established the Gold Control Act in 1962, forbidding private ownership of gold
bullion and mandating the conversion of all private gold bullion into gold jewellery. This
prevented the rise of an alternate currency if the rupee should flounder. 
"Marginal tax rates hit a scarcely believable 95 percent and the rupee's value declined
steadily." 
As with all government intrusions, this law had unintended consequences. Because licenses
were required to hold gold bullion, many goldsmiths not connected to the establishment lost
their livelihoods overnight. The prohibition also gave rise to gold smuggling and a huge black
market in gold, which no doubt claimed many lives and livelihoods. 
Further, in 1969, the Indian government under Indira Gandhi nationalized the banks and
mandated licenses for almost everything. This was the beginning of the "License Raj" in

9
India, which instituted rampant corruption in all levels of the bureaucracy. Since the state
controlled all the banks, loans were made to special sectors just to buy votes. 
The 1970s were an even more tumultuous period politically in India. A state of emergency
was declared from 1975 to 1977, giving almost dictatorial powers to Indira Gandhi. When
democracy was restored in  
1977, Ms. Gandhi was ousted by Morarji Desai. However, the common man still couldn't
catch a break, as marginal tax rates hit a scarcely believable 95 percent and the rupee's value
declined steadily. 
In light of these circumstances, gold was the average Indian's best friend. Due to a ban on
gold, the value of gold in relation to other commodities and the rupee soared. The high
marginal tax rate gave rise to a huge black market. Citizens needed a way to hide and protect
their assets from the taxman, and gold was one of the two asset classes that proved effective
for doing so (the other being real estate). 

1.3     How Gold is mined 

   
    1.3.1 The Life Cycle 

People in hard hats working underground are what often come to mind when thinking about
gold mining. Yet mining the ore is just one stage in a long and complex process. Long before
any gold can be extracted, significant exploration and development needs to take place, both
to determine, as accurately as possible, the size of the deposit as well as how to extract and
process the ore efficiently, safely and responsibly. On average, it takes between 10-20 years
before a mine is even ready to produce material that can be refined. 
      

10
   
   
1.3.2Gold Mining 

Gold mining describes the process of extracting ore – metal-rich rock – from the earth’s crust.
And, as with other minerals, there are a number of geological processes that are involved in
forming these ore deposits.  
Modern gold mining predominantly takes place in areas where there is a significant
concentration of gold-bearing ore (ore body). Today, 60%-70% of the world’s gold
production comes from surface mines, while the remainder is from underground gold mines. 

1.4     Consumer Buying Behaviour – Top 7 Characteristics 

Consumer behaviour is the study of how people buy, what they buy, when they buy and why
they buy. It attempts to understand the buyer decision processes/buyer decision making
process, both individually and in groups. It studies characteristics of individual consumers
such as demographics, psychographics, and behavioural variables. The behavioural pattern of
consumers usually shaped by the nature of the product i.e., luxurious items, commodity
goods, and so on. Marketers strive to grasp this behaviour so they can better formulate
appropriate marketing stimulus that will result in increased sales and brand loyalty. 
1. Bargaining – A trend of bargaining is often found in the behaviour of buyers. They prefer
buying goods by reducing the price as told by the seller. Indian buyers too do not frame
uniform price policy. The trend of bargaining is still in vogue in the Indian markets.  

11
2. Quality vs. Price – Buyers focus on price instead of the variety of the goods. They
therefore, prefer high price goods. A little bit change has come now because the consumers
have now begun purchase of quality goods at a higher price.  
3. Brand or Trademark Consciousness – It is the characteristic of the behaviour of the buyer
that they appear now aware of the brand of items and considers these goods authentic and of
higher quality. 
4. Changing Consumption Patterns – Owing to widespread education, increase in income and
standard of living as also desire for more comforts, the pattern of consumption is now being
changed.
5. Role of Women – The role of women is increasing day to day in the manner of decisions
for purchase. The women do purchase of all kinds particularly in families where the husbands
earn the bread. 
6. Credit and Guarantee – New motives for purchase are getting their way rapidly because of
having credit and guarantee facilities available in the market. Such facilities are developing
trade and commerce. 
7. Complaining – Buyers are gradually being aware of their rights. They have started
exhibiting their complaints through media and the representations before the concerned
authorities and the forums. They can lodge their complaint before consumer forum and thus,
can receive the compensation against the damage/loss so sustained.  

1.5     Importance of Understanding Buyer Behaviour 

Understanding consumers buying behaviour is one of the elements that help in achieving
marketing goals, without this understanding it makes gaining more customers difficult
especially in today’s competitive world. It also helps when customers will buy more from
business. Their buying behaviour is one of the elements which must be understood for a
better view about the customer profile. Customers base their buying decisions on both
rational and emotional reasons.  
They will look at a category on a rational basis, e.g., wanting an accountants’ tax service,
they then decide, especially for repeat customers on the brand. Getting customers to have an
emotional attachment to a particular brand is one of the keys to keeping them loyal. As well it
is one of the key factors in gaining referrals and recommendations. When businessman is

12
looking for making a marketing strategy it makes it easier to select the best strategy when
these all important aspects about the buying behaviour are changed.  
 
The following points speak out the importance of understanding buyer behaviour:  

1. Customer Needs Satisfaction: 

Organizations should offer a marketing mix that satisfies the marketing needs. Every
customer is looking for satisfaction from a particular product or service which he is buying in
exchange for a certain amount of money. So, buyers are always expecting something more
from the supplier and hence suppliers must opt for balance between ideal sale and practical
aspect because ultimately every extra service provided over and above the normal practice is
resulting in increase in cost of product. 
Hence these factors of customer satisfaction must be cleverly handled in such a way that
equally satisfies both the parties of transaction, i.e., buyer and seller. 

2. Marketing Mix Development: 

Customers’ response to marketing mix keeps changing. Better understanding of the factors
that influence consumers helps organization development appropriate marketing mixes.  
Audio CD market was very huge in India before a decade, but now, it has almost vanished
like thin air. Now many websites have the facility of listening to the latest songs as well as all
types, genres of songs online free of cost, so no single buyer will buy expensive audio CDs
except for some exceptions.  
But the general trend is important which is now rapidly declining audio CDs and moving to a
new world of online music experience. Even the latest TV shows and Movies are widely
watched over the internet either on YouTube or some other live streaming websites. Hence
before developing marketing mix thorough study must be made regarding latest updates in
the market.  

 3. New Market Opportunities: 

Unsatisfied needs motivate customers to buy. By understanding buyer behaviour, marketing
can locate new market opportunities. Now, anyone having an internet connection can
purchase any product from rupees 5 to rupees 5 lakh in less than 5 minutes. So, failure of
local dealers in providing required service often motivates customers to look for different
avenues which are very easily available. 

13
Customers now analyse specifications, quality, and cost of product before purchasing a
product. If he is unsatisfied with one seller then thousands of other sellers selling the same
product are ready at his doorstep to fulfil his buying needs.  

4. Target Market Selection: 

Behaviour is an important variable for market segmentation. By understanding buyer
behaviour, organizations can effectively segment the market.  

5. Efficient Resource Use: 

By understanding buyer behaviour, organizations can make efficient use of marketing
resources. They can focus their marketing efforts in a meaningful way so as to perform
various marketing duties from the overall management process with greater efficiency. If a
seller exactly knows the customer requirements his resources will be saved to a greater extent
than without knowing customer behaviour and his tendency of purchasing. With the
understanding of his buying pattern, resources can be effectively utilized.  
It will be a self-destructive initiative for a business organization to neglect buyer behaviour in
deciding marketing mix for its product. Importance of buying behaviour is thus beyond
negligence. 

1.6     4 Forms of Buying Behaviour

 
Four forms of purchasing or buying behaviour are normally observable among
consumers: 
1. Complex 
2. Dissonance reducing  
3. Habitual 
4. Variety seeking. 

Form # 1. Complex Behaviour: 

This behaviour occurs when customers get very much involved in the purchase, and acquaint
themselves with brands and quality differences. 
This behaviour normally occurs in three steps: 

14
(i) Firstly, the buyer develops beliefs about the product. 
(ii) Secondly, attitudes or willingness to accept get developed in the buyer.  
(iii) Thirdly a well thought out choice is made. 
This applies to costly products about which not much is known to the consumer in the early
stages. This is probable when a person wants to buy a PC or a Laptop. There are too many
product features to consider and compare, especially if the buyer is unfamiliar with
computers and their peripherals. 
Marketers must quickly grasp the fact that the customer is getting highly involved. 
They must try to: 
(i) Support the buyer in his/her information gathering, 
(ii) Support customer in the assessment actions by providing complete information on
comparing product features, 
(iii) Highlighting product benefits, 
(iv) Promoting the firm’s reputation and 
(v) Try to influence the buyer through mutual friends, previous buyer. 
Retailers of products in which high involvement is normal, must understand consumer
education, and the manner in which he/she gathers information on the product. Strategies to
assist the buyer in helping him/her to learn about product attributes and their relative
importance, and the way in which the firm’s brand fulfils the consumer’s requirements will
be needed. 
In such cases, personal meetings with the buyer, print media presented in a simple form, and
regular projection of benefits will have to be adopted by the retailer. 

Form # 2. Dissonance Reducing Behaviour: 

Sometimes, in spite of high involvement, the buyer may find it difficult to differentiate
between brands. 
High involvement occurs when the product to be purchased is: 
(i) Costly, 
(ii) Needed infrequently, and 
(iii) The purchase is viewed as a high risk. 
The buyer will go around to collect data, but on not making much headway with
comprehending the data, will decide quite hastily based on price or customer convenience. In
other words, the customer does not know much about the product category. 

15
After the purchase, the customer may experience some regret, on realizing more about the
product, and its weak spots. He/she might hear about the comparative advantages of other
brands. This regret is also known as ‘dissonance’, which may develop new beliefs and
attitudes among customers. 
If there is too much of regret, then beliefs, contrary to those earlier, may appear in the
customer. Retailers have to make customers stick to their brands, and must take precautions
(or dissonance reducing steps) to make sure that the information they supply will not result in
a change of beliefs. 

Form # 3. Habitual Behaviour: 

For many products, we never think and apply our minds while making purchases. The best
example is groceries. We have fixed brands, tried and accepted through years of purchasing
experience. When we buy now, we rarely get involved, and we pick the same brand from
habit. 
It is now known from research that the habit and low involvement emerges out of low cost
and frequent purchasing. The decision sequence of belief, attitude and behaviour is avoided
in such cases. Nor is extensive information seeking followed. 
There are mistaken views of this type of behaviour that this is a form of brand loyalty. Brand
loyalty emerges from considerable thinking and analysis of product features, which is in fact
high involvement. In the case depicted above, the involvement is rather low. It is a sort of
habit, which is dominant. The buying is quick and passive. The buying behaviour first starts
from brand beliefs and passive learning. 
Retailers use low price and promotion to create such low involvement habits. 
Experienced retailers have four strategies for attempting to convert low involvement
products into one of high involvement: 
(i) The first is to try to link the product to some involving issue. Some examples are a number
of toothpastes with gum protection, a cooking oil brand with reducing cholesterol, and a
detergent with complete removal of food stains. 
(ii) The second strategy is to link the product to a personal issue or situation, like a cup of a
certain tea with removing stress and tiredness after a session of hard work. Another example
is a cream for removing backaches. 
(iii) The third is often used in India. This refers to using advertisements to evoke strong
emotions, like a deodorant, which attracts a long line of girls like the pied piper, or the
capacity of a clothes washer to be ‘magical’ in washing stains from clothes. 

16
(iv) The fourth is a well-used strategy, to add features to a normal good. An example is the
ability to clean clothes (normal), and also soften the surface (added). 

Form # 4. Variety Seeking Behaviour: 

There are some products in which involvement during buying is very low, but they become
significant later, during or after initial consumption. Some examples are condiments. We
might shift from Bedekar to Priya to Mother’s pickles just because we need a change of taste
once in a while. Or a consumer may shift toothpastes frequently for not very significant
reasons. The customer is probably seeking variety. 
The strategies depicted by different retailers are- reminder advertising, or significant presence
on shelves, or stealing customers by price reduction or projecting special and new qualities of
competing products. 
Compaq Computers, a multinational hardware firm, captured the market by drastically
reducing prices, and maintaining a low-price level for two years. Reducing commissions to
the very minimum possibly created the low prices. When they had more than 50% of the
country’s market they reverted to normal prices. 
The problem is that a retailer has to keep a close watch on the early behaviour of the
customer to classify or categorize him/her. Once categorized, the dealing with the customer
has to be according to strategies of a standard kind, derived from experience. The customer
can depict complex, dissonance reducing, variety seeking and habitual behaviour. 
Most groceries have very little brand differences and are bought with little involvement.
Personal clothing demands some involvement, but can become habitual. The costly product
will require involvement, and the buying is very carefully considered. Variety seeking is
normally indicative of low involvement. 

1.7     Factors Influencing:  Personal, Social, Cultural and

Psychological Factors
 
Buying behaviour is a process. Potential customers are subjected to various stimuli. The
customer is regarded as a black box as we cannot see what is going on in his mind. He
responds to the stimuli or inputs and may purchase some product or service of interest to the
marketing management. The model of buyer behaviour is stimulus-response model. Response
may be a decision to purchase or not to purchase. 

17
Under the systems view of buyer behaviour, we have- 1. Inputs, 2. Processing, 3. Outputs, 4.
Feedback loop. The objective of the process is, of course, expected satisfaction or service. 
Inputs include buying power, marketing mix and other factors. Buying power is the ability to
participate in the exchange activity. Marketing mix is the marketing effort in product, price,
promotion and distribution appeals. Promotion appeals are through advertising, salesmen,
reference groups and sales promotion. 
Other inputs are- interpersonal influences, interpersonal influences and other environmental
factors. Intra-personal influences are reflected in motivation, perception, learning, attitudes
and personality of buyers. Interpersonal influences are represented by family, social class,
reference groups and culture. Other environmental influences are general economic
conditions, pending legislation, fashion trends, and technological advances. 
Outputs are buyer’s attitudes, opinions, feelings, and preferences as affected by the buying
process and buyer’s actions such as patronage, brand or store loyalty, positive or negative
influences upon other potential buyers. Purchasing responses are- choice of product, brand,
dealer, quantities, etc. 
Consumer behaviour analysis is useful in estimating the potential size of a market, in market
segmentation, in locating preferred trends in product development, in finding out attributes of
alternative communication methods and in formulating the most favoured marketing mix to
secure favourable buyer’s response in purchase and repurchase of products.

 
1. Personal Factors: 
The behaviour of consumers is also influenced by personal characteristics such as: 
i. The buyer’s age, 
ii. Occupation, 
iii. Economic situation, 
iv. Lifestyle, 
v. Personality, and 
vi. Self-concept. 
i. Age: 
People change the goods and services that they buy over their lifetime. Tastes in food,
clothes, furniture, and recreation are often age related. Young people generally go after trendy
motorcycles, expensive watches, branded shirts, designer sunglasses, sports shoes, etc. 

18
ii. Occupation: 
A person’s occupation affects the goods and services bought. Blue-collar workers tend to buy
more rugged work clothes, whereas white-collar workers buy more business suits. Marketers
try to identify the occupational groups that have an above-average interest in their products
and services. A company can even specialize in making products needed by a given
occupational group. Thus, computer software companies will design different products for
brand managers, accountants, engineers, lawyers, and doctors. 
iii. Economic Situation: 
A person’s economic situation will affect his or her product choice. The availability of easy
credit, for example, has prompted many consumers to buy homes, expensive cars, white
goods, etc. Marketers of income-sensitive goods generally pay close attention to trends in
personal income, savings, and interest rates. If economic indicators point to a recession,
marketers can take steps to redesign, reposition, and re-price their products—all in sync with
the market signals. 

iv. Lifestyle: 
Lifestyle is the pattern of living that is often expressed in a person’s activities, interests, and
opinions. A company may choose to target a particular lifestyle group—such as college
students—with a particular product offering— such as – blue jeans—and use advertising that
is in sync with the values and beliefs of this group. For example, Airtel used the tagline ‘Har
Ek Friend Zaroori Hota Hai’ trying to woo the youth of today. 
v. Personality: 
Each person’s distinct personality influences his or her buying behaviour. Personality refers
to the unique psychological characteristics that lead to relatively consistent and lasting
responses to one’s own environment. Personality is usually described in terms of traits such
as – self-confidence, sociability, defensiveness, adaptability, etc. 
Personality can be useful in analysing consumer behaviour for certain products or brand
choices. For example, coffee marketers have discovered that heavy coffee drinkers tend to be
high on sociability Thus, to attract customers, Starbucks and other coffeehouses create
environments in which people can relax and socialize over a cup of steaming coffee. 

19
vi. Self-Concept: 
We generally buy goods and services that best reflect our self-image. Marketers of passenger
cars, motor cycles, branded clothing, leather products, jewellery, etc., use the concept of the
self to good advantage. 

2. Social Factors: 
Man is a social animal. His behaviour is greatly influenced by peers, relatives, neighbours,
and friends. Often a product fails or succeeds in the marketplace due to the influence
exercised by these people. These groups exercise a strong influence on the lifestyles and
buying patterns of the members. The importance of group influence varies across products
and brands. It tends to be strongest when the product is visible to others whom the buyer
respects. 
Manufacturers of products and brands subjected to strong group influence must figure out
how to reach opinion leaders—people within a reference group who, because of special
skills, knowledge, personality, or other characteristics, exert influence on others. Many
marketers try to identify opinion leaders for their products and then direct their marketing
efforts toward them. In other cases, advertisements can simulate opinion leadership, thereby
reducing the need for consumers to seek advice from others. 
Purchases of products that are bought and used privately are not much affected by group
influences because neither the product nor the brand will be noticed by others. Family
members can strongly influence buyer behaviour. The family is found to be the most
important buying organization in society, and it has been researched extensively. Marketers
are interested in the roles and influence of the husband, wife, and children on the purchase of
different products and services. 
Husband-wife involvement varies widely by product category. Of course, buying roles
change with evolving consumer lifestyles. Children may also have a strong influence on
family buying decisions such as – buying a car. In the case of expensive products and
services, husbands, and wives often make joint decisions—such as – buying a home. 

3. Cultural Factors: 
These factors include the social heritage of the society. Every consumer’s beliefs, morals,
laws, customs traditions, habits etc., form part of the cultural factors. MNCs must understand
the cultural factor before setting up base in any country. For example, Mc Donald’s cannot
afford to sell beef burger in India. 

20
The Indian Culture as It Stands Today: 
The Indian society is known to follow conformity to traditions, spiritualism, respect for
elders, education etc., but following change has been experienced in the recent past – 
i. Women have joined the workforce in a big way. 
ii. This has led to increased use of luxury and time saving gadgets etc. 
iii. Health and fitness consciousness has been observed, which has led to a large number of
gym and fitness chains. 
iv. There has been a shift from spiritualism to materialism and back to spiritualism and yoga. 
v. There are more nuclear families than joint families. 

4. Psychological Factors: 
A person’s buying choices are further influenced by four major psychological factors: 
i. Motivation, 
ii. Perception, 
iii. Learning, and 
iv. Beliefs and attitudes. 
i. Motivation: 
A person has many needs at a given point of time. Some are biological needs—which compel
a person to buy water, bread, biscuits, etc., to reduce discomfort arising out of hunger. Others
are psychological needs—arising out of a need for recognition, respect from others,
belongingness, etc. Psychologists have proposed a number of theories outlining human
behaviour conditioned by powerful needs that compel a person to take appropriate actions
almost immediately. 
A person has many needs at any given time. According to Abraham Maslow, a person’s needs
may be arranged according to a hierarchy— physiological, social, love, esteem and
self-actualization needs—from the most pressing to the least pressing. A person tries to
satisfy the most important need first. When that need is satisfied, it will stop being a
motivator and the person will then try to satisfy the next most important need. 
For example, starving people (physiological need) will not take an interest in the latest
happenings in the art world (self-actualization needs), nor in how they are seen or esteemed
by others (social or esteem needs), nor even in whether they are breathing clean air (safety
needs). But as each important need is satisfied, the next most important need will come into
play. 

21
ii. Perception: 
Perception is the process by which people select, organize, and interpret information to form
a meaningful picture of the world. People can form different perceptions of the same stimulus
because of three perceptual processes – selective attention, selective distortion, and selective
retention. People are exposed to a great number of stimuli every day. 
For example, the average person may be exposed to more than 1,500 advertisements in a
single day. It is impossible for a person to pay attention to all these stimuli. Selective
attention—the tendency for people to screen out most of the information to which they are
exposed—means that marketers have to work especially hard to attract the consumer’s
attention. 
iii. Learning: 
When people act, they learn. Learning describes the changes in an individual’s behaviour
arising from experience. Learning theorists say that most human behaviour is learned. An
individual learns from past experiences that unbranded items do not last longer and so,
decides to go after only branded goods. He may, therefore, decide to buy a Parker pen instead
of a pen manufactured by local producers. 

iv. Beliefs and Attitudes: 

By way of doing and learning, people acquire beliefs and attitudes. These, in turn, influence
their buying behaviour. A belief is a descriptive thought that a person has about something.
Buying behaviour differs greatly for a tube of toothpaste, a tennis racket, an expensive
camera, and a new car. Marketers have to take care of the beliefs and attitudes of customers
toward products and put everything in place while trying to deliver value/satisfaction to their
customers. 

1.8     Steps Involved in Buying Process 

Buyer behaviour involves a mental process as well as physical activity. The buying behaviour
and purchase decisions need to be studied thoroughly to understand, predict and analyse
critical market variations. Buyer is a riddle; highly complex entity wants to satisfy his
innumerable needs and desires. 
The five steps involved in consumer buying process are described briefly: 

22
Step # 1. Problem Recognition: 
Problem recognition results when a buyer recognizes a difference of sufficient magnitude
between perceived benefits and actual benefits derived from a product or service. The buying
process starts when the buyer recognizes a problem or need. The consumer began to feel a
problem in the form of a certain need or desire. 
The needs can be triggered either by internal stimuli like hunger, thirst etc., or by external
stimulus generally referred to as a sign or cue. Depending on the intensity of the want, the
person will try to fulfil the unsatisfied want. 

Step # 2. Information Search: 

Information is to know about a service, attributes of service, prices, and stores and so on.
Search may be categorized in four categories- pre-purchase, ongoing, internal and external.
An aroused buyer may or may not search for more information. If the buyer's derivative is
strong and the desired service to satisfy the need is easily available then he or she may not
search for more information. 
The extent of search activity depends upon the strength of derive, the amount of information
the buyer already has, the ability to obtain additional information, the importance or value
given to gathering additional information and the satisfaction buyers get from information
search. Buyers engage in both internal and external information search. Internal search
involves the buyer identifying alternatives from his or her memory. For certain low
involvement services, it is very important that marketing programs achieve “top of mind”
awareness. 
For high involvement services, buyers are more likely to use an external search. A
compensatory decision involves the buyers “trading off” good and bad attributes of a service.
The amount of fort a buyer puts into searching depends on a number of factors such as the
market, number of competitors, differences between brands, service characteristics,
importance of services and situational characteristics. 

Step # 3. Evaluation of Alternatives: 

Evaluation involves those activities undertaken by the buyer to compare alternatives carefully
on the basis of certain criteria, alternative solutions to market related problems etc. The
marketers are interested in knowing how the buyer processes information to arrive at brand

23
choice. There is no single evaluation process used by the buyers or even one consumer in all
purchase decisions. 
Categories of Evaluation of Alternatives in Product/Services: 
The first concept is we assume buyers view a product/service based on certain attributes. 
Second concept is the buyer likely to have a predetermined notion or a set of brand beliefs
about where each brand stands on each attribute. The marketers must not conclude that the
salient attributes are the most important ones. Some of them may be salient because the buyer
has just been exposed to a commercial message mentioning them or has had a problem
involving them, hence making these attributes “top of the mind”. Furthermore, non-salient
attributes might include some that the buyer forgot, but their importance would be recognized
when mentioned. 
Third, the buyer is likely to develop a set of brand beliefs about where each brand stands or
each attribute. The set belief held about a particular brand is known as the brand image. 
Fourth, the “buyer is assumed to have a utility function for each attribute. The utility function
describes how the buyer expects service satisfaction to vary with different levels of each
attribute. 
Fifth, the consumer arrives at attitude (judgment, preferences) towards the brand alternatives
through some evaluation procedures. 
Buyers have been found to apply different evaluation procedures to make a choice among
multi- attribute objects. Some alternative decision process used by buyers to evaluate
alternatives are- Expectancy model, Ideal brand model, Conjunctive model, Disjunctive
model, Lexicographic model, Determinance model etc. 

Step # 4. Purchase Decisions: 

Purchase decision is a consumer commitment for a product. It is the terminal stage in the
buying decision process that completes a transaction. In case a consumer is buying a product
for the first time, then from the behavioural viewpoint it may be regarded as a trial. The
consumer will repeat the purchase only where he is satisfied with its performance. 
Actual purchasing process of buyer seeking to build a better understanding of how buyers
make their purchases. In the decision evaluation stage, the consumer forms preferences
among the brands in the choice set. The consumer may also form a purchase intention and
lean towards buying the most preferred brand. However, factors can intervene between the
purchase intention and the purchase decision. 

24
There are certain factors which may come in the way of his/her purchase intention and
purchase decision: 

(a) The attitude of others – By others we mean people who are close to the buyer and their
reaction or attitude towards the purchase intention of the prospect. 
(b) The unanticipated situational factors – These factors may influence the purchase intention
such as transfer to another place, priority given to another purchase etc. The more intense
the other person negativism and the closer the other person are to the policyholder, the more
the consumer will revise downward his/her purchase intention. The purchase intention is also
influenced by unanticipated situational factors. The buyer forms a purchase intention on the
basis of such factors as expected family income, expected benefits from the service. 
When the buyer is about to act, unanticipated situational factors may erupt to change the
purchase intention. Thus, preferences and even purchase intentions are completely reliable
predictions of purchase behaviour. Many purchases involve certain risks. A buyer develops
certain routines for reducing risk such as decision avoidance, information gathering from
friends and preferences for national brand names and warranties. 
A buyer who decides to execute a purchase intention will be making up to five purchase
decisions- brand decision, vendor decision, quantity decision, timing decision and
payment-method decision. 

Step # 5. Post Purchase Behaviour: 

It refers to the behaviour of a consumer after the purchase and use of products; it originates
out of consumer experience regarding the use of the product and is indicated in terms of
satisfaction. This behaviour is reflected in repeat purchases or discontinuation from further
purchase. If product use experience indicates satisfaction, they repeat purchases will occur,
otherwise not. 
Once the buyer makes a decision to purchase a product or service there can be several types
of additional behaviour associated with that decision such as decisions on service uses and
decisions on services related to the item purchased. The marketer’s job continues even after
the service is bought especially since he has to learn a lot from the post purchase behaviour
undertaken by the buyer. This will be indicative of whether the buyer is experiencing post
purchase satisfaction or not. 
Post Purchase satisfaction- The level of satisfaction experienced by the buyer after his
purchase will depend on the relationship between his expectations about the service and

25
performance of the service. After purchase of a service a buyer may detect a few. Some
buyers will not want the flawed services whereas others will be indifferent to the flaw and
some may even see the flaw as increased cost of the service. The buyers post purchase
actions will provide necessary feedback to the marketers as to whether he/she is satisfied or
dissatisfied with the product or service acquired. 
A satisfied buyer will act as an informal word of mouth for the firm whereas a dissatisfied
buyer will react in an entirely different manner. 
Post purchase action- The satisfaction or dissatisfaction with the service will determine
subsequent performance of the service in the market. If the buyer is satisfied then he will
exhibit a higher probability of repeat purchase of the service. The satisfied buyer will also
tend to say good words about the service. Whereas a highly dissatisfied buyer will not buy
the service again and spread negative words about service and company. 

1.9     Consumer Buying Behaviour- 5 Models 

Owing to rapid growth of population and countless things in the market, it has now become
difficult to know the buyer behaviour. 
Several data and the theories pertaining to behaviour are therefore resorted and it requires
time and money both. It is easy to know when, how, what and where from the buyer does
purchase but why does he buy is difficult to know. Different models or theories have been
developed so as to know the motive of the buyer for any particular item. 
Some important models are as under: 

1. Economic Model: 
A renowned economist Marshall has propounded this model. It presumes that man is an
economic and rational person and does act under self-motive. He wants maximum
satisfaction by putting at stake his minimum means. He therefore, wants to buy at a
competitive price, such item easy to operate, durable, beautiful, well designed and of good
quality. 
A number of items exist before a man and he has to select one or several items out of them.
Hence, solution  

26
problems through rational approach are expected. This principle is based on – (i) A man
makes efforts to gain more satisfaction from the limited means (ii) He is known to the
optional sources and – (iii) He does expenses rationally. 
The sellers have not recognised this principle. As per their opinion, it is based on
imaginations and does not describe broadly the buyer behaviour. However, this principle has
not lost significance. Industrial buyers always follow this principle. 
Secondly, this model or principle is normative and not descriptive at all. It explains that – (i)
Sale will increase in proportion to the price is reduced, (ii) Reduction in the price of
substitutes will subdue the price of goods proportionately, (iii) It will be considered that along
with increase in real income, the sale of concerned good will enhance provided that the item
is not of inferior quality and (iv) Sale will rise with the efforts of promotion made for the
same. 
However, the quantum of sale is not affected merely by the economic elements. This
principle does not talk about priority of the items and their brands. Further, the habits of the
consumer, his tendencies, thinking etc., has no place in this principle. It is therefore said that
this principle is appropriate only for a particular field and it has no application for all other
fields alike. 

2. Learning Model: 
This principle is based on psychology and Pavlovian, a Russian Psychologist had laid it
down. It is based on the concept that human behaviour at the most is influenced by the
learning. Pavlovian has explained this model after experiments made on a dog. 
He used to call his dog by switching on a bell while offering food. A long practice had made
a thorough change in the habit of the dog and he would come with ringing of a bell
irrespective of food given or not. Subsequently, this very experiment was made on other
animals and ultimately, man was chosen for it. Stimulus response model was then developed
and represented. 
This model is based on four concepts: 
(i) Motive – It is called necessity or motive. It rises from within and inspires to act. 
(ii) Stimulus is meant by those weak passions that rise from within or from the atmosphere
and build when, why, and where. 
(iii) Response is meant by the human reaction against the stimulus. This reaction does not
find uniform in a man always and these are felt on the basis of his previous experience. 

27
(iv) Re-Stimulus – If the response is proper, a trend of repetition is found when the same
stimulus appears. For example, housewives buy each time the same brand of tea leaves until
their stimulus changes. 
This principle is not perfect in itself but lucrative when applied in the marketing. It explains
the necessity of quality in goods so that stimulus as to re-buy the brand is retained. 

3. Psychoanalytic Model: 
This principle is also based on psychology and propounded by Fried. He says that every child
comes into the world with certain natural necessities. For example, passion for copulation. If
he cannot satiate his passion and begins to consider himself alone in the world but still, he
depends on the world. 
He develops other means for the satisfaction of his needs but puts a check on his motives
owing to guilty conscience and shame so that nothing could happen wrong to the social
assumptions. However, the basic needs still remain within him. This friction and fatigue
make his behaviour more complex. Owing to these stimuli, a man sometimes does an
eccentric behave but he himself even remains unknown to the reason for such behaviour. 
This theory or model of Fried has been slightly modified by his followers and culture as also
bio conscious was added with it. Thus, a man comes in the world not only to meet sex related
needs but several other basic needs also. Power, being sovereign, safety etc., are the main
needs out of them. 
This principle is an important principle for marketing. It tells that the real motives of
man inspire him for buying an item and from a particular shop. Motives can render good
concepts for exploration, advertisement and packaging. 
The appeals based on fear, dreams and hopes can be utilised in the form of purchase appeals. 

4. Socio-Psychological Model: 
This model is based on socio-psychology and propounded by Weblon. He says that a major
part of economic consumption does not inspire from usual necessities or satisfactions and it is
motivated by the honour in society as man is the social being. His necessities and behaviour
are changed according to the existing members in a group. 
Weblon says that a section of society prefers comfort and this class is followed by others. For
example, if a neighbour buys a T.V., his next dweller also buys the same however after some
days. 

28
This model is important when we analyse it from the angle of marketing. It tells that the
culture, subculture, and section of society and a particular community have a great influence
on human beings. In order to frame a proper programme for marketing, it is must for a seller
to know the demand effective levels of society for the concerned items. 

5. Organizational Model: 
This model rests on organization and propounded by Hobbes. It is therefore called an
organisational model of Hobbes. The buyer of an organization does not buy the item for his
use but for reproduction or distribution and seldom buy beyond their organization. 
There are two concepts in vogue about the manner of decision making by the buyers-(i) Some
sellers buy the best item under influence of the cost, type, service and quality on the basis of
their rational motive. While, (ii) certain sellers buy the items on the basis of their personal
motive. 
Such buyers actually make purchases under both influences. He says that a man naturally
proceeds to maintain his interests and for increasing the same. However, this trend may wage
a war resulting enmity of a man with another. Every person joins others due to the fear of
such war and looks after the interests of his own and that of the organization. 
This model actually works on the basis of rational selection while sending goods, rendering
service, fixing price etc. Personal motives are given less importance in it. 
 
 

29
 CHAPTER 2 
LITERATURE REVIEW
  
 
 
Too many studies have been conducted in the area of consumer buying behaviour towards
gold jewellery. The following are the review of literature taken for the study; 

● N Bhuvanesh Kumar and M Kunguma Thiviya (2014)- A study on customer

behaviour towards gold jewellery purchase with reference to Pollachi Thaluk‟, says that
quality is measured as the essential factor deciding gold purchase. And respondents feel
that pricing and generosity is poor in all the jewels purchase, they rate brand image to be
extremely poor where else outstanding for design and when concerned to quality it has
identical number of respondents to think its poor and also very good.  
● Jojo K Joseph (2014) in his study -Consumer behaviour in the gold jewellery
market of Kerala, identifies that though advertisements given by gold jewellers are
obliging in positioning the retailer in the market, the advertisements do not have a
noteworthy positive power on any of the respondent categories in deciding their purchase
behaviour. Also, the respondents who are occupied in agriculture and business have
adopted an unconstructive stand about the power of advertisement on their gold purchase. 
● Mimnun Sultana, Parag Jafar Siddique and Saiful Islam (2015) in their study-
Factor Analysis of Consumer Behaviour in Jewellery Business: An Empirical Study on
Bangladesh, identifies three major factors drive the customers when they purchase gold
jewellery are operational and marketing, perceived quality, and service ability and
conformance. Also, the customers prefer to buy plain gold instead of other fancy jewellery
items  
● C Gomathy and N Yesodha Devi (2015) in their study- Consumer behaviour in
purchase of Gold Jewellery –An analytical study, reveals that Consumers have purchased
gold jewellery for the purpose of investment and most of the consumers purchase gold
jewellery because it helps them at the time of emergency.  
● According to Asha, K. & Christopher, S. E. in their research, “A study on the
buying behaviour of customers towards branded and non-branded gold jewellery”

30
 examined that a large number of the public purchase gold jewellery for the marriages in
their family, anniversaries, birthdays and religious festivals.  
● Deepa, S., & Natarajan, M. (2013). A study of customers' attitude and behaviour on
jewellery purchase in Salem district. 
●  Bhuvaneswari, G. G. & Muthupandi, M. (2015). Buying behaviour of women
towards gold ornaments in Madurai district. International Journal of Advance Research in
Computer Science and Management Studies, 3(7). 
● Krishnan, A., & Nandhini, M. (2017). Consumers brand preference and purchase
intention towards gold jewellery with special reference to school teachers in Kottayam
District.  
●  Kumar, S., & Varadaraj, D. S. (2013). A study on buying behaviour of Women
Customer’s towards Jewellery Products with Special Reference to Tirupur City. Indian
Journal of Applied Research 

 
                                       
31
     CHAPTER 3 
OBJECTIVES OF THE STUDY 
 
 

3.1     Objectives 

The overall objective of this study is to analyse the consumer behaviour towards gold
jewellery.

The following are the objectives: 

● To determine whether gold price hike influence their purchasing decision 
● To determine the purpose to purchase gold jewellery 

● To determine the factors leading customers to purchase gold jewellery  

3.2     Scope  

1. The study would help to understand the Consumer Buying behaviour towards gold
jewellery with respect to the Mumbai region.
2. Future study on other working classes and other states.
3. The study would help jewellers to find out the consumer preference.
4. The study would help the retailers to know what are the consumer preferences and
what strategies should they adapt to grab the market.
5. It will help study the market potential available in this particular region based on
the customer taste, habits and standard of living of the people living there.
6. Also help to understand cultural and interpersonal influences on consumption.

 
 

32
3.3    LIMITATIONS OF THE STUDY 

1. The survey was conducted within the limited time frame; so, few shortcomings may be
expected.
2. The respondent’s personal bias may be another factor, which is uncontrollable.  
3. The finding of the survey is strictly based on the responses of the respondents. It is difficult
to find the euthenics to be true, so we are assuming them to be true.
4. It was a bit of difficult to explain the adult respondents about how to fill the questionnaire
also how to respond through Google forms and it took time for data collection.
5. Since the survey is based on a sampling method, it does not disclose the character of the
entire customer.
6. Buying factor varies according to season, festivals and other occasions and the age of the
individual also play important role to decide buying preferences.
7. From the consumer’s perspective fashion designs and trends are always changeable in
search of new innovation that can be reflected in the change of demand and
buying preferences.

33
   CHAPTER 4 
RESEARCH METHODOLOGY  

 
 This study is based on both Primary and Secondary data
 
 
4.1 Research Method -
 
Primary data:
They were the main source of data collection. The method of collection of primary data is
direct personal interview through a structured questionnaire

Secondary data:
It is the information that already exists.
The sources from which the secondary data was collected –
● Management books
● Internet
● Various publication books
● Relevant websites

 
Convenient sampling method was used for the purpose of this study. It is the method where
data from a conveniently available pool of respondents is collected. These respondents were
readily approachable to be a part of the this research survey

4.2     Data Collection tool  

Questionnaire
Primary data was obtained by survey through questionnaire. A self designed questionnaire is
applied for gathering the responses from the customers. The questionnaire contains questions
on the facets about their demographic and socio-economic background, influencing factors,
various characteristics and other associated facets.
 

34
4.3     Data Analysis Tool 
I’ve used Google forms as an instrument for my survey. The questions were designed keeping
all the objectives in the mind.
Different descriptive statistical tools have also been used using Microsoft Excel for data
analysis purposes.

4.4 Data Presentation

The data after analyzing has been presented in tabular form followed by pie chart format.
Also a short explanation is given along with the pie chart.

4.5     Research Area 

The study area for the research was Mumbai. It is a densely populated city on India’s west
coast and also the largest city of the country. All the respondents were in and around this area.
 

4.6     Sample size 

It is not possible to study the whole population, since it is necessary to obtain representative
samples from the population to understand its characteristics 
The number of respondents taken for this study is 50 
Sampling units comprises of both men and women   

35
 CHAPTER 5 
DATA ANALYSIS   
 

Gender Profile

No of respondents

Male 23

Female 27

From the above data it is known that,

⮚ 54% of the respondents are female

⮚ 46% of the respondents are male

36
 Age Profile

No of respondents

18-30 years 23

31-45 years 17

45 years and above 10

⮚ About 46% of the respondents fall under the age group of 18-30 years.
⮚ 34% of the respondents belong from the age group of 31-45 years, and
⮚ 20% of the respondents are 45 years and above

37
 Demographic Profile - Income

No. of respondents

Less than 25,000 23

25,000 – 50,000 16

Above 50,000 11
 

From the above data it is found that

⮚ 46% of our respondents have an income less than 25,000 per month
⮚ 32% of our respondents have an income between 25,000 to 50,000 per month
⮚ While 22% of our respondents income is above 50,000 per month

38
Q. The right time to buy Gold
 

No. of respondents

After expenses cost 6

Gold price is down 44

From the survey it is found that,

⮚ 12% of the respondents buy gold from the money that’s left once all the
household expenses is done
⮚ 88% of the respondents buy gold only when the gold price goes down

39
 Q. Preferred mode of payment

No. of respondents

Cash 35

Credit card 15

From the above data it is known that,

⮚ 70% of the respondents prefer cash for the payment while purchasing gold jewellery
and
⮚ Only 30% of the respondents use their credit cards for the payment purpose

40
 Q. Type of purchase

No. of respondents

Planned purchase 38

Impulsive (Unplanned) purchase 12

From the above data it is clear that,

⮚ While purchasing gold, about 76% of the respondents make prior decisions about
purchasing gold jewellery. Thus according to 76% of these respondents the purchase
of gold is a planned purchase.
⮚ The rest 24% do not waste time on deciding whether to buy gold or not. Thus these
24% fall under the category of impulsive (Unplanned) purchase buyers.

41
Q. Description of purchase

No. of respondents

Ring 13

Earring 6

Chain 15

Necklace 5

Pendants 3

Bracelets 3

Gold set 0

Mangalsutra 2

42
The above chart reveals that,

⮚ 28% of the consumers purchase finger rings on the frequent basis

⮚ 13% of the consumers purchase earring
⮚ 32% of the consumers purchase gold chains
⮚ Only 11% of the consumers purchase necklace
⮚ 6% of the consumers purchase pendant
⮚ 6% of the consumers purchase bracelet and
⮚ None of the consumer purchase gold set
⮚ 4% of the consumers buy Mangalsutra

43
 Q. Does gold price influence your purchase decision?

No. of respondents

Strongly agree 31

Disagree 2

Neutral 17

From the data it is known that,

⮚ 62% of the consumers strongly agree that the gold price influence their purchase
decision
⮚ While 4% of the consumers disagree and
⮚ 34% of the consumers couldn’t really decide whether the gold price does affect their
decision

44
Q. Purpose of purchase

No. of respondents

Investment 27

Marriage 6

Gift to Friends/Relatives 5

Status symbol 3

Household use 3

For kids 6

45
From the survey it is clear that,

⮚ 54% of the consumers purchase gold as their future investment and asset
⮚ 12% of the consumers purchase gold for the marriage purpose
⮚ 10% of the consumers buy gold to gift it to their close friends or relatives
⮚ 6% of the consumers purchase gold jewelry as they feel buying gold will help them
gain a status symbol in the society
⮚ 6% of the consumers purchase gold for the household purpose
⮚ 12% of the consumers purchase gold for their kids

46
Q. Purchase occasion

No. of respondents

Akshaya Tritiya 2

Diwali/Christmas/Eid 20

Bonus/Financial gain 12

Baby birth 2

Wedding 10

Anniversary 4
 

47
The above data reveals that,

⮚ 4% of the consumers purchase gold on the auspicious occasion of Akshaya Tritiya

⮚ 40% of the consumers purchase gold during the festive season of Diwali, Christmas,
Eid respectively
⮚ 24% of the consumers purchase gold when they receive bonus or during financial gain
⮚ 4% of the consumers buy gold to gift it when a baby is born
⮚ 20% of the consumers purchase gold during the wedding season
⮚ 8% of the consumers purchase gold to gift it to their significant other as their wedding
anniversary gift

48
Q. Factors that leads you to purchase gold

No. of respondents

Brand name 3

Advertisement 1

Price 18

Design 8

Word of mouth 1

Purity 19

From the data it is known that,

49
⮚ 6% of the consumers buy gold jewellery from a well known and a reputed
company. Thus the brand name is what pulls them and leads them to purchase
gold
⮚ Only 2% of the consumers are influenced by advertisements to purchase gold
⮚ 36% of the consumers purchase gold depending upon the gold price
⮚ 16% of the consumers purchase gold on the basis of the design of jewellery
⮚ Only 1% of the consumers are influenced by their friends or relatives in order
to buy gold. Thus word of the mouth isn’t much a stronger reason to buy gold
⮚ 38% of the consumers purchase gold on the basis of its purity

50
 CHAPTER 6 
FINDINGS & RECOMMENDATION  

 
 

FINDINGS:

46% 54%

70% of the respondents prefer cash for

the payment purpose

Consumer’s (54%) main purpose to

purchase gold is for investment

51
 According to 76% of the respondents, the
purchase of gold is a planned purchase

(According to 88% of the respondents)

Majority of the consumers believe that the right
time to buy gold is when the gold price is down

38% of the respondents agree

that purity is that factor which
leads them to purchase gold

52
 Majority of the consumers (30% of the
respondents) purchase gold chain

Most of the consumers (40% of the

respondents) purchase gold during the festive
season

53
62% of the respondents strongly agreed
that gold price influence their purchase
decision 

54
RECOMMENDATIONS 

1. Introducing more attractive cash discounts schemes to the customer may enhance
the sale of gold. 
2. Giving schemes like EMIs and offers to the customers at special occasion
like Diwali/Christmas/Eid and wedding seasons. 
3. It is found from the study that most of the respondents are more conscious in the
quality of gold. Clarity and Quality of gold is an important factor influencing the purchase
of the customers which make them to evaluate the gold purity between one shop and
another. Since the quality has a direct influence on buying behaviour the jewellery retailers
can improve the quality by reducing the other metals which are mixed with gold. 
4. Introduce more attractive designs, latest fashion of gold to the customer. 
5. Conducting customer surveys very often could review changes in taste and
attributes of customers.
6. Giving attractive advertisements through the media like online, television,
newspaper, radio, magazine.
7. Most of the respondents look forward to good customer service from the jewellery
shops. They feel that their view and ideas must be given importance at the time of
purchase. Hence the Traditional jewellery shops can improve their service by
providing satisfactory information to their customers relating to their purchase.
Giving immediate attention by receiving them quickly, recognize the need of the
particular product and helping them to choose the correct one makes the Branded
jewellery becomes more preferable by the customers

55
 CHAPTER 7
CONCLUSION

Today’s market is consumer oriented and the importance is given to the consumers.

From the above study we have concluded that the benefits of buying gold jewellery are many
in number. Gold has resale value and this creates gold of great profit and of great asset value
to buy. Gold is foremost on the list of investments and value. In the maximum parts of the
world, gold holds a very essential value in several cultures since it is a symbol of
achievement, power and wealth. In India, gold tends to have religious as well as cultural
importance.

It is also found that investment is the main purpose behind the purchase of gold jewellery
among the people. Festival seasons have experienced the maximum sale, that means the
traditional approach still continues in certain aspects and it is where the maximum number of
consumers prefer shopping. The Jewellery retail sectors have to adopt some sales promotion
strategies which will improve the sales of the Jewellers in their shop and increase the
awareness of the Jewellery retail shops. Jewellery retail sectors have to build a better
relationship with their customers for better sales. A well planned advertisement with more
focus on purity and quality with more focus on celebrity can increase the brand name and will
attract more customers towards particular gold jewellery.

I as a researcher has gained more knowledge and experience in the field of research and it
will be even helpful for future researcher activities is a possibility for the further research in
the same field

56
 CHAPTER 8
BIBLIOGRAPHY AND WEBLIOGRAPHY

https://www.gold.org/about-gold
https://mises.org/library/gold-indias-capital-asset-through-history
https://www.businessmanagementideas.com/consumer-behavior/consumer-buying-beha
viour/20969
http://www.jetir.org/papers/JETIR1812A58.pdf
https://www.researchgate.net/publication/338253061_Factors_Affecting_Consumer_Bu
ying_Behaviour_towards_Gold_Jewellery
http://www.jctjournal.com/gallery/78-dec2019.pdf
https://www.researchgate.net/publication/334597440_Factor_Analysis_of_Consumer_B
ehaviour_in_Jewellery_Business_An_Empirical_Study_on_Bangladesh
https://www.iima.ac.in/c/document_library/11_Sruthy%20Madhavana3e3.pdf?uuid=22
00641e-be0a-4259-b42d-212b93db215c&groupId=62390
https://www.researchgate.net/publication/331869688_Buying_Behavior_of_Consumers_
towards_Gold_Jewellery_in_Madurai_District_Tamilnadu
https://www.researchgate.net/publication/340261083_Attitude_of_Customers_towards_
Branded_and_Non-Branded_Gold_Jewellers_-_A_Study

57
 Annexure

1. Gender :
Male Female
2. Age :
18-30 years 31-45 years 45 years and above
3. Monthly income :
Less than 25,000 2 5,000-50,000 Above 50,000
4. Right time to buy gold?
After expenses cost Gold price is down
5. Preferred mode of payment?
Cash Credit card
6. Type of purchase?
Planned purchase Impulsive (Unplanned) purchase
7. Description of purchase
Ring Earring Chain Necklace
Pendant Bracelet Gold set Mangalsutra
8. Does gold price influence your purchase decision
Strongly agree Disagree Neutral
9. Purpose of purchase
Investment Marriage Gift to Friends/Relative
Status symbol Household use for kids

58
10. Purchase occasion

Akshaya Tritiya Diwali/Christmas/Eid Wedding

Bonus/Financial gain Baby birth Anniversary

11. Factors that leads you to purchase gold

Brand name Advertisement Price

Design Word of mouth Purity

59
60