Research Methods for Management Project

Report On:
A study of the problems of jewellery
industry and the customer preference of the
brands in comparison to Tanishq

Submitted By:

Abhinav Singh(19PGDM100)
Ayushi Agarwal(19PGDM070)
Sonal Agarwal (19PGDM106)
Srijan Saxena(19PGDM109)
Surbhi Somani(19PGDM073)
Vedika Khetan(19PGDM122)

Date: 02/03/2020
Introduction
Gems and Jewellery plays an important part of many cultures all around the
world. Gems and Jewellery have an essential place in the Indian society and
economy ever since civilization emerged on the Indian soil. Jewellery, is
accounted for about 50 per cent of the total luxury products sold in the country.
India is renowned for handmade jewellery and was one of the first countries to
start making fine jewellery from minerals and metals. Gems and jewellery
industry generates large scale employment, foreign exchange earnings through
exports and value addition. Out of India’s total merchandise exports, around
14% accounted for gems and jewellery in the financial year 2011-12. The
demand in India can be segmented into consumption and investment.
Investment demand for gold is important in India its accounts for about 45
percent of total market demand. Around 57 percent of the investment demand
comes from coins and bars, while the rest comes from jewellery.

The import of gold per year in India and China worth billions of dollars which
accounts for 49% of consumption of gold worldwide. In 2011 total consumption
was 4067 tones in volume and 205.5 billion dollars in value, out of which 55%
was exclusively for gold jewellery. As a matter of fact 933.4 tones of gold was
consumed in 2011 in India of which 500 tones were for gold jewellery, In spite
of the weakening of rupee compared of dollar in the second half of the year. The
demand in China, the world's second largest consumer of gold (769.8 tons),
increased this year by 20%. Approximately 2400 metric tones of gold
production has been done over the past five years. Mainly African countries
account for major volume around 20% of that volume (480MT).

Russia, Botswana and South Africa are the quality producer of diamonds in the
world and for industrial diamond Australia being a major producer. De Beers is
the largest diamond miner in the world. Countries like India, Italy, China,
Thailand and USA dominates the jewellery manufacturing in the global market
which is over $100 billion. Hong Kong is famous for its craftsmanship and skill
labor in jewellery set with precious stones, in particular jewellery mounted with
diamond in 14K and 18K gold. Multi-faceted cut diamond rings combined with
assorted color precious stones are most popular around the world. At present
Indian gems and jewellery sector is unorganized with local players constituting
about 80 percent of the overall market. Consumer preferences in designs,
quality, and material across different regions have historically presented a
challenge for national and organized players to create design-led differentiation.

Demand for consumption and investment is affected by several challenges.

While challenges in talent and skill development, research and technology
adoption, and limited financing options are core to players catering to the
consumption demand for jewellery, an increasing investment demand with
limited supply infrastructure affects the investment side of the market. High
import dependence and regulatory curbs affect both consumption and
investment demand of the market. Hence, the paper discussed the status of the
exports of Indian gems and jewellery industry. In addition, an attempt is made
to identify the problems faced by the exporters, by reviewing various literatures
and provide some suggestions for overcoming these hurdles.

Area of Specialisation
Jewellery Industry, Sales and Marketing
The aim of the study will be to find out the current scenario of Jewellery
Industry in India, itsproblems, and to study Tanishq’s company profile an dits
comparative analysis with the other brands like M.B.Sons, Kalyan Jewellers,
Malabar Jewellers and Indian gem and jewellers.

Objectives
The objectives of the project are:
 To study the factors that cause problem to the industry
 To find out the marketing strategy of Tanishq as a reference.
 To study the consumer behaviour and perception about Tanishq and
getting to know about the insights of people towards jewellery industry.

Problem Statement
There are many difficulties in the field of production, consumption and exports,
but most important one of these are:
 Dependence on imports
 Changing fashion
 Traditional way of crafting
  Labour (Human resource problem)
 Competition from China and other countries
 Transportation problem
 Research and Product development
 Financial Problem

The jewellery industry is losing its market share to other luxury products in the
market. Other products such as luxury mobile phones, handbags, clothing and
even perfumes are winning the race. Even though the prices of Gold, Silver and
other precious metal are increasing, the jewellery industry is still not growing
up to the levels as it should have. Lack of active promotions and advertising of
gems have also contributed to a lesser consumer interest in the market. The
problem is to find out as to why this industry is not being bombarded in the way
it should have or it used to be. The older generation invested a lot in the
jewelleries but the younger generation seems to prefer spending/investing their
money on some other products or markets. What seems to have changed that
such a drastic change have occurred in this industry. The reasons would be
concluded after the study.

Hypothesis
Statistically the null hypothesis is that the adequate capacity is available at
specific airport that will be tested against the alternative hypothesis, that there is
no adequate capacity. The hypothesis will be further reviewed, that is there a
capacity addition requirement against the alternative hypothesis that there is no
capacity addition required.

Management Decision
The management decision is, can the problems be resolved as we progress to a
new decade? What more can be done in order to appease the buyers towards
them. Getting to know the consumer perception and taking the right measures is
what companies have to look into. Whether going the traditional way is the
correct approach or the companies have to change the way the business has to
be done. Taking the corrective measure is the management problem in this
study.
Literature Review
Gold is not just considered as safe mode of future investments, which passes
from generation to generation. A research conducted by Tanishq brought
forward the buying roles of consumers which were categorized in form of
various stages: Initiator where around 64% of women’s says that they got
jewellery as gift once in their life time and maximum times they have received
the same from their family members. Secondly, Influencer Who is influencing
the buying decision who can be for family, friends, and needs. This survey tells
us that none of the women was influenced by their female friends hence they
infer that women play minor role when it comes to influencing her friend in
buying of Jewellery. While talking of Decider the women decide which
jewellery to buy. Hence, the end user would be the decider and finally the
Buyer. In case of married woman buyer is mostly herself or spouse. Whereas in
case of unmarried it is family members. However, we also talk about the User,
where Initiator is mostly the user. I.e. women themselves. Normally problem
recognition takes place in terms of need i.e. big occasions or attraction towards
some particular design. For this information search takes place in terms of
advertisements like elder women in the family etc., then they evaluate the
alternatives based on various factors like trustworthy, price, design, brand name
etc. Some important factors which came up during survey was design, price,
uniqueness, nearness of a particular jeweller, shopping experience etc. A study
on consumer attitude towards gold ornaments states gold is an ultimate love
object to Indians. It has tendency to pass away from one generation to another.
Jewellery designs vary from region to region. A study conducted by Rohna ‘O
Connel states that gold has an emotional feeling in Indian context , as it is called
as “ Streedhan” The Indian bride wealth which she takes with her when she
marries and which remains hers. This helps to give gold an important role in
empowerment of women.

The paper intends to study about the problems and the future prospects of the
Jewellery Industry. The Indian gem and jewellery export industry had its
modern beginning in the 1960s and after that the sector never looked back. This
paper puts forward that the Gems and jewellery exports accounted for 16.44 per
cent of India’s total exports in 2009-2010. The industry provides employment to
around 3.2 to 3.4 million people directly However, gems and jewellery sector is
facing various problems such as dependence on imports, changing fashion,
imbalance growth of products, manual way of crafting, various problems
regarding labourers, financial problems, procedural hardships and
unemployment etc. Even after these problems the future of Indian gems and
jewellery industry is quite promising, as more and more buyers across the world
are turning to India as for their referred source of the quality of gems and
jewellery products. India plays a very significant role in world’s gems and
jewellery market. The size of the Indian jewellery market is the biggest in the
world, second only to the US market, followed by China, Japan and Italy. India
is known to be the largest consumer of gold in the world. Indian designers have
made a mark on the world jewellery scene and got recognition for design
development as well. The growth in gems and jewellery exports is a record
among the major Indian export sectors. India has, in present, largest artisans for
making jewellery in the world. In fact, every village boasts of a family of
goldsmiths, having a very long tradition of jewellery making. But there are
problems ahead, the skilled man power and technology to create and produce
designs for the international markets is the main challenge among others. This
research paper analyses and highlights the various problems, future prospects
and strategies of the gems and jewellery sector particularly with reference to the
exports from India to the rest of the world. Problems with the industry as
discussed in the paper are-Dependence of Imports, Competition threats,
Imbalance growth , Changing Fashion, Unemployment, Financial problems to
name a few. The raw materials for gems and jewellery has special place in this
industry. In India 90 per cent of raw material is imported and its supply is
limited. The raw material is processed and manufactured saleable items to sale
in international market. Rough diamonds as raw material account for more than
50 percent of imports. Although India presently enjoys dominance in the
world’s cut and polished diamonds market, China may emerge as a major rival,
if not in the near future term, certainly in the longer term. Global marketing
requires a changing fashion of gems and jewellery particularly in the context of
very high prices of diamond, gold and silver. Utilization of high technology,
speedy and capable machinery and software has led to the gradual replacement
of manual methods of polishing, manufacturing and designing of gems and
jewellery. While talking of labour we have the lack of training facilities,
unsuitable working and payment conditions. The Indian gems and jewellery
industry is, essentially, a closed family-based sector where the labour force is
not systematically organized.
Research Methodology

Primary data-In this project the Primary data has been collected with the help
of questionnaires to 63 respondents. (The questionnaire has been attached at the
end of the annexure).

Secondary data- Secondary data in the project include data from “Reserve
Bank of India Bulletin” issued monthly by RBI World Bank websites and the
World Gold Council website.

Correlation- Is used in this study to find out till what degree the factors like
Inflation prospects, buyer’s behaviour, suppliers factors and the demand of gold
for jewellery have a negative or positive effect on the price of gold.

Mean Test- Mean Test is done to find out the mean of the different factors
affecting the price of jewellery and the different factors of the jewellery
showrooms.

Sampling Unit- Sampling unit is the unit used for sampling. The population
should be divisible into a finite number of distinct, non-overlapping units, so
that each member of the population belongs to only one sampling unit. In this
study sampling units are students, working professionals, business and others.

Sampling Frame- Sample Frame are those individuals or organizations from

which one selects the actual sample for the survey. Ideally, the sample frame is
the same as the target population.

Types of Variables

INDEPENDENT VARIABLES
 Level of Technology used in the industry
 Channel used in supply chain
 Staff competencies in Supply Chain
 Cost of Gem (both imported/exported)
 Transportation
  Product Innovation

DEPENDENT VARIABLES
 Cost of Storage
 Prices of the jewellery
 Labour usage
 Type of gems to be sold in the market

MODERATING/MEDIATING VARIABLES
 Customers and their demand
 Communication channels
 Warehouse Management

CONTROLLED VARIABLES
 Location
 Companies internal environment
 Weather
 Infrastructure
 Government regulations

CONFOUDNING VARIABLES

 Inventory Control Management

 Data Management (Information)
 Cost Management
 Supply chain operations
 Outsourcing
 Logistics challenges

INTERVEINING VARIABLES
 Efficiency of the customer services
 Fashion trends in the country
 Research and Development
 Competitors from other countries
 Coordination and cooperation of suppliers
 SPM (Supplier performance management)
Research Analysis

Descriptive Statistics
Mean Std. Deviation Analysis N
Age 1.14 .618 63
Gender 1.37 .485 63
Occupation 1.56 .876 63
Your net family income per 2.13 .833 63
year
Please chose the locality you 1.03 .177 63
live
Frequency of buying 2.29 .888 63
jewellery
Expenditure on jewellery in a 2.68 1.202 63
year
What jewellery items do you 7.40 4.995 63
generally prefer
Which brand do you 3.65 2.742 63
generally prefer
Purpose of purchasing the 1.56 1.104 63
jewellery
Rate the price factor while 3.52 1.134 63
purchasing jewellery
Rate the brand name factor 3.40 1.171 63
while purchasing jewellery
Rate the reliability factor 3.86 1.203 63
while purchasing jewellery
Rate the resale value factor 3.67 1.244 63
while purchasing jewellery
Rate the promotional offer 2.87 1.251 63
factor while purchasing
jewellery
Considering the price aspect 3.19 2.468 63
which brand you prefer
Considering the reliability 2.71 2.303 63
factor which brand you prefer
Considering the brand name 2.59 2.298 63
aspect which brand you
prefer
Considering the promotional 2.70 2.373 63
offer which brand you prefer
Considering the resale value 3.02 2.420 63
aspect which brand you
prefer
Which source of finance 2.21 .513 63
would you prefer while
purchasing jewellery
Who is decision maker for 1.68 .981 63
purchasing jewellery in your
family
Rate the availability of 3.59 1.131 63
showroom
Rate the proximity of the 3.13 1.264 63
showroom
Rate the brand value of the 3.59 1.227 63
showroom
Rate the knowledge of 3.65 1.297 63
salesman in the showroom
Does a dealership close to 1.97 .761 63
your home affects your
choice of buying
Scheme which attracts you 3.21 1.439 63
during the purchase of
jewellery

For a sample of 63 respondents, the highest standard deviation came out to be

4.995, which is the kind of jewellery a buyer wants to buy. The higher deviation
mean that there is no particular choice of jewellery that a buyer prefers. There is
a significant deviation in the purchasing behaviour of the people. The highest
mean value is 7.40, which is again depicting the buyer’s behaviour.
Correlation Matrix

Con
sider
Rate ing
Wha the Rate the
t Rate relia Rate the price Consi
jewel Whic Rate the bility the promo aspe dering
Plea lery h Purp the brand facto resale tional ct the
se Freq Expe item bran ose price name r value offer whic reliabi
Your chos uenc nditu s do d do of factor factor while factor factor h lity
net e the y of re on you you purch while while purc while while bran factor
family locali buyi jewel gene gene asing purcha purch hasi purch purch d which
incom ty ng lery rally rally the sing asing ng asing asing you brand
e per you jewel in a prefe prefe jewell jewelle jewell jewel jewell jewell prefe you
year live lery year r r ery ry ery lery ery ery r prefer
Cor Your net 1.000 -.247 -.290 .508 .166 .112 -.025 .031 .063 -.030 .088 .078 .200 .129
rela family income
tion per year
Please chose -.247 1.000 .352 -.255 -.234 .190 .239 -.004 .094 .098 .196 .019 .208 .181
the locality
you live
Please chose -.290 .352 1.000 -.125 -.346 -.078 .066 -.103 .013 -.067 .044 -.025 .196 .167
the locality
you live
Frequency of .508 -.255 -.125 1.000 .161 .054 .086 .053 .194 .113 .133 .273 .336 .153
buying
jewellery
Expenditure .166 -.234 -.346 .161 1.000 .107 .138 .099 .077 .061 -.041 .037 -.036 .010
on jewellery
in a year
Which brand .112 .190 -.078 .054 .107 1.000 .209 -.028 -.107 -.103 -.205 -.126 .653 .561
do you
generally
prefer
Purpose of -.025 .239 .066 .086 .138 .209 1.000 -.249 -.136 -.036 -.145 -.275 .109 -.013
purchasing
the jewellery
Rate the price .031 -.004 -.103 .053 .099 -.028 -.249 1.000 .594 .635 .572 .594 .021 .009
factor while
purchasing
jewellery
Rate the .063 .094 .013 .194 .077 -.107 -.136 .594 1.000 .716 .579 .662 -.027 -.143
brand name
factor while
purchasing
jewellery
Rate the -.030 .098 -.067 .113 .061 -.103 -.036 .635 .716 1.000 .744 .534 -.007 -.056
reliability
factor while
purchasing
jewellery
Rate the .088 .196 .044 .133 -.041 -.205 -.145 .572 .579 .744 1.000 .480 -.032 -.073
resale value
factor while
purchasing
jewellery
Rate the .078 .019 -.025 .273 .037 -.126 -.275 .594 .662 .534 .480 1.000 .118 .032
promotional
offer factor
while
purchasing
jewellery
Considering .200 .208 .196 .336 -.036 .653 .109 .021 -.027 -.007 -.032 .118 1.000 .708
the price
aspect which
brand you
prefer
Considering .129 .181 .167 .153 .010 .561 -.013 .009 -.143 -.056 -.073 .032 .708 1.000
the reliability
factor which
brand you
prefer
Considering .146 .192 .075 .133 .022 .594 -.061 .146 -.004 .072 -.009 .195 .771 .782
the brand
name aspect
which brand
you prefer
Considering .183 .254 -.096 .079 .130 .571 -.040 .132 .090 .019 -.051 .030 .561 .545
the
promotional
offer which
brand you
prefer
Considering .215 .150 -.055 .068 .110 .672 .015 .079 .038 .051 -.041 .075 .691 .629
the resale
value aspect
which brand
you prefer
Which source -.213 -.073 .116 -.232 -.045 -.177 .051 -.161 -.085 -.004 .008 -.160 -.121 -.263
of finance
would you
prefer while
purchasing
jewellery
Who is -.068 .338 .236 -.073 -.122 .264 .151 -.167 -.197 -.176 -.167 -.217 .139 .409
decision
maker for
purchasing
jewellery in
your family
Rate the .159 .067 -.122 .116 .209 -.058 -.175 .662 .588 .644 .577 .464 .098 .035
availability of
showroom
Rate the .184 .054 -.004 .282 .189 -.085 -.098 .595 .488 .511 .468 .602 .183 .201
proximity of
the showroom
Rate the .068 .136 -.186 .205 .082 -.139 .077 .494 .700 .604 .416 .449 -.117 -.111
brand value
of the
showroom
Rate the .101 .119 -.094 .042 .146 -.053 -.223 .499 .475 .577 .626 .380 .071 .025
knowledge of
salesman in
the showroom
 Does a -.172 -.232 .181 .042 -.209 .134 -.017 -.036 .032 .030 -.165 .047 .106 .142
dealership
close to your
home affects
your choice of
buying
Scheme .045 -.090 -.249 -.064 .110 -.026 .028 -.127 -.126 -.104 -.096 -.129 .016 -.147
which attracts
you during
the purchase
of jewellery
Your net .025 .011 .000 .097 .192 .422 .405 .311 .408 .246 .273 .058 .158
family income
per year
Please chose .025 .002 .022 .033 .068 .030 .488 .232 .223 .062 .443 .051 .078
the locality
you live
Frequency of .011 .002 .164 .003 .273 .304 .211 .459 .301 .367 .423 .062 .096
buying
jewellery
Sig. Expenditure .000 .022 .164 .104 .337 .250 .340 .064 .189 .149 .015 .004 .115
(1- on jewellery
tail in a year
ed) What .097 .033 .003 .104 .202 .141 .219 .273 .319 .376 .388 .389 .469
jewellery
items do you
generally
prefer
Which brand .192 .068 .273 .337 .202 .050 .413 .202 .210 .054 .163 .000 .000
do you
generally
prefer
.422
Purpose of .030 .304 .250 .141 .050 .024 .144 .388 .129 .015 .199 .461
purchasing
the jewellery
.488
Rate the price .405 .211 .340 .219 .413 .024 .000 .000 .000 .000 .434 .473
factor while
purchasing
jewellery
 .459
Rate the .311 .232 .064 .273 .202 .144 .000 .000 .000 .000 .418 .132
brand name
factor while
purchasing
jewellery
.189
Rate the .408 .223 .301 .319 .210 .388 .000 .000 .000 .000 .478 .332
reliability
factor while
purchasing
jewellery
.376
Rate the .246 .062 .367 .149 .054 .129 .000 .000 .000 .000 .403 .284
resale value
factor while
purchasing
jewellery
.163
Rate the .273 .443 .423 .015 .388 .015 .000 .000 .000 .000 .179 .402
promotional
offer factor
while
purchasing
jewellery
.199
Considering .058 .051 .062 .004 .389 .000 .434 .418 .478 .403 .179 .000
the price
aspect which
brand you
prefer
.473
Considering .158 .078 .096 .115 .469 .000 .461 .132 .332 .284 .402 .000
the reliability
factor which
brand you
prefer
.487
Considering .127 .066 .281 .150 .434 .000 .318 .126 .288 .471 .063 .000 .000
the brand
name aspect
which brand
you prefer
.443
Considering .076 .022 .227 .269 .155 .000 .379 .152 .241 .346 .407 .000 .000
the
promotional
offer which
brand you
prefer
 .375
Considering .045 .121 .335 .297 .195 .000 .454 .269 .385 .347 .279 .000 .000
the resale
value aspect
which brand
you prefer
.106
Which source .047 .284 .182 .034 .363 .082 .347 .104 .254 .488 .474 .173 .019
of finance
would you
prefer while
purchasing
jewellery
.139
Who is .297 .003 .032 .284 .170 .018 .119 .095 .060 .084 .095 .043 .000
decision
maker for
purchasing
jewellery in
your family
.394
Rate the .106 .302 .171 .183 .050 .327 .085 .000 .000 .000 .000 .000 .222
availability of
showroom
Rate the .075 .337 .487 .013 .069 .255 .223 .000 .000 .000 .000 .000 .075 .057
proximity of
the showroom
Rate the .298 .144 .072 .054 .260 .138 .275 .000 .000 .000 .000 .000 .180 .193
brand value
of the
showroom
Rate the .214 .175 .232 .373 .126 .340 .040 .000 .000 .000 .000 .001 .289 .422
knowledge of
salesman in
the showroom
Does a .089 .034 .078 .373 .050 .148 .447 .388 .400 .407 .099 .359 .204 .134
dealership
close to your
home affects
your choice of
buying
Scheme .363 .242 .025 .309 .196 .419 .413 .161 .163 .209 .227 .158 .450 .124
which attracts
you during
the purchase
of jewellery
Positive correlation is a relationship between two variables in which both
variables move in tandem—that is, in the same direction. A positive
correlation exists when one variable decreases as the other variable decreases,
or one variable increases while the other increases.
In the above correlation matrix , the highest positive correlation exists of the
value of 0.771 between the two variables identified “Considering the price
aspect which brand you prefer?” and “Considering the brand aspect which
brand you prefer?”

Negative correlation is a relationship between two variables in which one

variable increases as the other decreases, and vice versa. In the above
correlation matrix , the highest negative correlation exists of the value of -.025
between the two variables identified “Purpose of buying the jewellery?” and
“Family Income?”

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .653
Bartlett's Test of Sphericity Approx. Chi-Square 1023.003
df 378
Sig. .000

The Kaiser-Meyer-Olkin is the measure of sampling adequacy, which varies

between 0 and 1. The values closer to 1 are better and the value of 0.6 is the
suggested minimum. In our test it is coming out to be .653 which means sample
is adequate and we can proceed with the given data.

The Bartlett's Test of Sphericity

Taking a 95% level of Significance, α = 0.05 The p-value (Sig.) of .000 < 0.05,
therefore the Factor Analysis is valid

The Bartlett test of Sphericity is the test for null hypothesis that the correlation
matrix has an identity matrix. Taking this into consideration, these tests provide
the minimum standard to proceed for Factor Analysis.
 Total Variance Explained
Extraction Sums of Squared
Initial Eigenvalues Loadings
Component Total % of Variance Cumulative % Total % of Variance
1 6.015 21.481 21.481 6.015 21.481
2 4.636 16.557 38.038 4.636 16.557
3 2.386 8.522 46.560 2.386 8.522
4 2.004 7.157 53.717 2.004 7.157
5 1.839 6.567 60.284 1.839 6.567
6 1.315 4.696 64.980 1.315 4.696
7 1.184 4.227 69.207 1.184 4.227
8 1.067 3.811 73.018 1.067 3.811
9 .983 3.511 76.530
10 .843 3.011 79.541
11 .767 2.740 82.281
12 .623 2.226 84.507
13 .595 2.124 86.631
14 .522 1.865 88.496
15 .486 1.737 90.233
16 .432 1.542 91.774
17 .409 1.462 93.236
18 .331 1.183 94.419
19 .283 1.012 95.432
20 .259 .924 96.355
21 .217 .774 97.129
22 .186 .663 97.792
23 .166 .593 98.385
24 .153 .546 98.931
25 .110 .391 99.322
26 .086 .306 99.628
27 .058 .207 99.835
28 .046 .165 100.000
 Total Variance Explained
Extraction Sums of
Squared Loadings Rotation Sums of Squared Loadings
Component Cumulative % Total % of Variance Cumulative %
1 21.481 5.841 20.860 20.860
2 38.038 4.571 16.325 37.185
3 46.560 1.923 6.868 44.053
4 53.717 1.876 6.702 50.755
5 60.284 1.831 6.540 57.294
6 64.980 1.618 5.778 63.072
7 69.207 1.502 5.365 68.437
8 73.018 1.283 4.581 73.018
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

On the basis of Varimax Rotation with Kaiser Normalisation, 8 factors have

been extracted. Each factor is constituted of all those variables that have factor
loadings greater that 0.5. 28 variables are clubbed into 8 factors. 8 factors
extracted from 28 variables used in the study. These 8 factors explained
73.018% of the variability performance of Jewellery Industry. This explains
approximately 3/4th of variability.

The scree plot graphs the Eigenvalue against the each factor. We can see from
the graph that after factor 8 there is a sharp change in the curvature of the scree
plot. This shows that after factor 8 the total variance accounts for smaller and
smaller amounts.

Rotated Component Matrix

Component
1 2 3 4 5 6 7 8
Rate the availability of .853
showroom
Rate the reliability factor .850
while purchasing
jewellery
Rate the brand name .825
factor while purchasing
jewellery
Rate the brand value of .776
the showroom
Rate the resale value .775
factor while purchasing
jewellery
Rate the price factor .769
while purchasing
jewellery
Rate the knowledge of .758
salesman in the
showroom
Rate the proximity of the .745
showroom
Rate the promotional .711
offer factor while
purchasing jewellery
Considering the brand .889
name aspect which
brand you prefer
Considering the resale .877
value aspect which
brand you prefer
Considering the price .850
aspect which brand you
prefer
Considering the .818
promotional offer which
brand you prefer
Considering the .814
reliability factor which
brand you prefer
Which brand do you .791
generally prefer
Gender .838
Purpose of purchasing .793
the jewellery
Expenditure on .816
jewellery in a year
Your net family income .692
per year
Frequency of buying .708
jewellery
What jewellery items do -.704
you generally prefer
Please chose the -.452 .492
locality you live
Scheme which attracts -.656
you during the purchase
of jewellery
Who is decision maker .633
for purchasing jewellery
in your family
Occupation .577
Does a dealership close .887
to your home affects
your choice of buying
Age .511
Which source of finance .830
would you prefer while
purchasing jewellery

The above matrix gives the correlation of the variables with each of the
extracted factors. Usually, each of the variables is highly loaded in one factor
and less loaded towards the other factors. To identify the variables, included in
each factor, the variable with the value maximum in each row is selected to be
part of the respective factor. The values have been highligtened in each of the
rows to group the 28 variables into 8 core factors.

Thus, after rotation, Factor 1 accounts for 20.86% of the variance; Factor 2
accounts for 16.32% of the variance; Factor 3 accounts for 6.86% of the
variance; Factor 4 accounts for 6.70% of the variance. Factor 5 accounts for
6.540% of the variance. Factor 6 accounts for 5.778% of the variance. Factor 7
accounts for 5.365% of the variance. Factor 8 accounts for 4.58% of the
variance. All the 8 factors together explain for 73.018% of the variance in
performance of jewellery industry.
Conclusions of Factor Analysis

The Factor Analysis has thus identified 8 core factors that affect the
performance of the Jewellery industry. They can be categorized as under:
 Availability of showroom
 Reliability Factor
 Brand Name
 Brand Value
 Resale Value
 Price
 Knowledge of Salesman
 Proximity of showroom

Sources
 Singaravelu K. and Subhashini K., “ Economic analysis of Indian gems
and jewellery industry without shopping experience of consumers”,
International Journal of Business and Administration Research Review,
2(16), 2016, 103-107.
 HKTDC research, 2017.- http://m.hktdc.com/business-
news/article/Hong-Kong-Industry-Profiles/Jewellery-Industry-in-Hong-
Kong/hkip/en/1/1X000000/1X001DFI.htm
 IBEF Report 2017- https://www.ibef.org/industry/gems-jewellery-
india.aspx