INNOVATION PROJECT ON

FACTORS INFLUENCING CONSUMER BUYING

BEHAVIOUR TOWARDS GOLD

Submitted in partial fulfilment of requirement for the award of the

degree of MBA in Business Analytics, 2021-2023

UNDER THE GUIDANCE OF: SUBMITTED BY:

Dr. Pallavi Gupta Jitesh Kadam, 2k21/BMBA/10
Guest Faculty Snigdha Dhupal, 2k21/BMBA/20
MBA – Business Analytics

DELHI TECHNOLOGICAL UNIVERSITY

formerly Delhi College of Engineering
(under Delhi Act 6 of 2009, Govt. of NCT of Delhi)
Accredited with ‘A’ Grade (CGPA 3.22 out of 4.0) by NAAC (1 st Cycle)
ISO 9001:2015 Certified

1
 CERTIFICATE

This is to certify that the Research Project titled as “Factors Influencing Consumers
Buying Towards Gold” is an academic work done by Ms. Snigdha Dhupal and Mr.
Jitesh Kadam submitted in the partial fulfilment of the requirement for the award of
Degree of Masters of Business Administration in Business Analytics at University
School of Management and Entrepreneurship, Delhi Technological University under
my guidance and direction. To the best of my knowledge and belief, the data and
information present by her in the project has not been submitted anywhere.

Signature
Dr. Pallavi Gupta
Guest Faculty

2
 ACKNOWLEDGEMENT

I am neither a research expert nor a trend spotter. I am a management student with

foundations of management principles and theories, who is curious about various
sectors and its latest happenings.
I am highly obliged to Dr. Pallavi Gupta for her invaluable support, guidance and
knowledge that she shared with me thereby aiding me in making this project
successful research.
Definitely, I can’t ignore the technology with internet as the backbone and those
search engines which helped me in building up this research project.
Lastly, I would like to thank the almighty and my parents for their moral and financial
support and my mates with whom I shared my day-to-day experience and received lots
of suggestions that improved my work quality.

Jitesh Kadam, 2k21/BMBA/10

Snigdha Dhupal, 2k21/BMBA/20

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 TABLE OF CONTENTS

S. No. PARTICULARS PAGE No.

Certificate 2
Acknowledgement 3
1. CHAPTER 1: INTRODUCTION 5-13
1.1 Introduction 6
1.2 Objectives of the Study 7
1.3 Review of Literature 8
1.4 Research Methodology 9-12
1.5 Limitations of the Study 13
2. CHAPTER 2: INDUSTRY PROFILING 14-18
2.1 Industry Profiling 15-18
3. CHAPTER 3: ANALYSIS & INTERPRETATION 19-24
OF DATA
3.1 Analysis & Interpretation of the Data 20-24
4. CHAPTER 4: CONCLUSIONS AND 25-26
RECOMMENDATIONS
4.1 Conclusions 26
4.2 Recommendations 26
Bibliography 27-28
Annexures 29-30

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 CHAPTER 1:
INTRODUCTION

5
1.1 Introduction

Gold is rare among metals. But it can be seen everywhere, from jewellery to
technology. Unlike any other metals sometimes gold, the shiny precious yellow metal
creates some emotional attachments among people. Gold also plays a huge position in
the economy of a country .The year 2019 fired up discussions on ‘Gold’, the yellow
metal or rather a costly non-essential item for many in India. Gold’s unique demand
and supply dynamics ensures its role as a true diversifier for investors.

India witnessed a sharp 35 per cent drop in demand for gold in 2020. The country saw
demand for 446.4 tonnes of gold compared to 690.4 tonnes in 2019 as Covid-19-
induced lockdowns and high prices disrupted the business. This is the lowest demand
for gold since 1995. Total jewellery demand in India for 2020 was down by 42 per
cent at 315.9 tonnes as compared to 544.6 tonnes in 2019. The value of jewellery
demand in 2020 was Rs 1.33 lakh crore, down by 22 per cent from 2019 (Rs 1.71 lakh
crore), according to the World Gold Council (WGC). Total investment demand for
2020 was down by 11 per cent at 130.4 tonnes in comparison to 145.8 tonnes in 2019.
In value terms, gold investment demand was Rs 55,020 crore, up by 20 per cent from
2019 (Rs 45,980 crore.

Prior to the emergence of behavioural finance, the general thinking was that traditional
finance theory is accurate because it states that investors think rationally and make
deliberate decisions, based on various estimations or using economic models.
Traditional finance theory assumes that each person has stable, well-defined
preferences and that agents rationally maximise those preferences. The concept of the
rational man has dominated economics and finance theories for more than 50 years.
The rational man is assumed to be economical, rational, knowledgeable, and skilful in
calculating the probabilities of each alternative, and then to choose the best alternative
that maximizes his utility for the lowest cost (Simon 1955).

Normal investors do not make decisions as a computer program does; they are subject
to cognitive psychology. Normal investors have limitations in processing a
tremendous amount of financial information, thus they rely on heuristics (problem-
solving method that uses shortcuts to produce good-enough solutions given a limited
time frame or deadline). This could lead to bias or less-than-optimal decisions. The
bias decisions made by individuals influence their portfolio performance at the
personal level and at the market level, as well as influence stock prices and the market
(Alsedrah & Noryati, 2014).

The realities and conclusions put forward by prospect and cumulative prospect theory
is that loss aversion, disposition effect, reference point, mental accounting and
behavioural/heuristic biases play important role in shaping the cognitive behaviour of

6
investors in financial market rather than the rationalism provided by the traditional
finance theories. There is a huge psychology literature documenting that people make
systematic errors in the way that they think; they are over confident, they see past
events as having been predictable, they put too much weight on recent experience etc.
this preference may create distortion. The field of behavioural finance attempts to
investigate the psychological and sociological issues that influence investment
decisions making process of individual and institutional investors.

The gold market in India is predominantly a market for buying and selling physical
gold and gold in the form of ornaments. 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. Its consumption is much higher in
India than in other countries. Consumer buying behaviour has changed dramatically in
the past few years and they are being influenced by family, friends, reference groups
and society in general. Indian consumers are becoming more aware and quality
conscious. Understanding the consumers is not an easy task as it is very difficult to
infer what is going on in consumers mind. Hence, this study deals with the purchase
behaviour of jewellery buyers in New Delhi city.

1.2 Objectives of the Study

In general, research objectives describe what we expect to achieve by a project.

Research objectives are usually expressed in lay terms and are directed as much to the
client as to the researcher. Research objectives may be linked with a hypothesis or
used as a statement of purpose in a study that does not have a hypothesis.

Even if the nature of the research has not been clear to the layperson from the
hypotheses, s/he should be able to understand the research from the objectives. Setting
objectives is important for each and every study. Without the determination of the
objectives there is no sense of conducting a study, so there are certain objectives for
each and every study conducted. Some of the objectives of two different studies can be
same but not all the objectives should be same.

The objectives of my studies are as follows:

 To find out the consumers behaviour on purchase of gold jewellery

 To compare the relationship between demographic variable and consumer
behaviour

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1.3 Review of Literature

A literature survey or a literature review in a project report is that section which shows
the various analyses and research made in the field of your interest and the results
already published, taking into account the various parameters of the project and the
extent of the project.

It is the most important part of your report as it gives you a direction in the area of
your research. It helps you set a goal for your analysis - thus giving you your problem
statement.
Once the problem is formulated, the researcher undertakes an extensive
literature survey also known as review of literature connected with the problem. The
literature survey undertaken here includes the papers and different websites from the
internet.

The research project was to examine factors influencing consumer buying behaviour
towards gold like purpose factors and influencing factors.

The new discipline – behavioural finance has begun to develop after gathering enough
information that confirm particular human behaviour which is contrary to traditional
finance theory. Behavioural finance can be defined as “a subject that
attempts to explain the behaviour of investors through psychology” (Baddeley
2012). It attempts to better understand and explain how emotions and cognitive errors
influence investors (Shefrin, 2011).

The large field can be subdivided into Micro Behavioural Finance (MIBF) and Macro
Behavioural Finance (MABF). MIBF examines the biases (irrationality) of individual
investors’ behaviour and decision-making. On the other hand, MABF attempts to
explain anomalies in the stock market that contradict the efficient market hypothesis
(Pompian 2012). Behavioural finance assumes that not all investors are rational.
Investors are human, thus, the decision made can be influenced by cognitive
psychology and emotion (Aigbovo & Ezuem, 2018). This type of investor represents
most of us, the “normal” investors (Statman, 2014).

However, after a number of experimental investigations, it was noticed that human

decisions often depend on their nature, intuitions, and habits, cognitive or emotional
biases (Kahneman, 2013).

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1.4 Research Methodology

Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in future course of action.

The research has been defined as “A careful investigation or enquiry especially

through search for new fact in any branch of knowledge”.

Methodology is the systematic, theoretical analysis of the methods applied to a field of

study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Typically, it encompasses concepts such as
paradigm, theoretical model, phases and quantitative or qualitative techniques. A
methodology does not set out to provide solutions—it is therefore, not the same as a
method. Instead, a methodology offers the theoretical underpinning for understanding
which method, set of methods, or best practices can be applied to a specific case, for
example, to calculate a specific result.

It has been defined also as follows:

"the analysis of the principles of methods, rules, and postulates employed by a
discipline";
"the systematic study of methods that are, can be, or have been applied within a
discipline";
"the study or description of methods".

The procedure using, which researchers go about their work of describing, explaining
and predicting phenomena, is called Methodology. Methods compromise the
procedures used for generating, collecting, and evaluating data. Methods are the ways
of obtaining information useful for assessing explanation.

1.4.1 Types of Research

 Qualitative Research

Qualitative research is empirical research where the data are not in the form of
numbers. Qualitative research is multimethod in focus, involving an interpretive,
naturalistic approach to its subject matter. This means that qualitative researchers
study things in their natural settings, attempting to make sense of, or interpret,
phenomena in terms of the meanings people bring to them. An interest in qualitative
data came about as the result of the dissatisfaction of some psychologists (e.g., Carl
Rogers) with the scientific study of psychologists such as the behaviourists (e.g.,
Skinner).

9
The aim of qualitative research is to understand the social reality of individuals,
groups and cultures as nearly as possible as its participants feel it or live it. Thus,
people and groups, are studied in their natural setting.

Since psychologists’ study people, the traditional approach to science is not seen as an
appropriate way of carrying out research, since it fails to capture the totality of human
experience and the essence of what it is to be human. Exploring the experience of
participants is known as a phenomenological approach (re: Humanism).

 Quantitative Research

Quantitative research is empirical research where the data is in the form of numbers.

Quantitative research gathers data in a numerical form which can be put into
categories, or in rank order, or measured in units of measurement. This type of data
can be used to construct graphs and tables of raw data.

Quantitative researchers aim to establish general laws of behaviour and phenomenon

across different settings/contexts. Research is used to test a theory and ultimately
support or reject it.

1.4.2 Research Design

Research design is defined as a framework of methods and techniques chosen by a

researcher to combine various components of research in a reasonably logical manner
so that the research problem is efficiently handled. It provides insights about “how” to
conduct research using a particular methodology. Every researcher has a list of
research questions which need to be assessed – this can be done with research design.

 Explanatory Research Design

In exploratory research design, the researcher’s ideas and thoughts are key as it is
primarily dependent on their personal inclination about a particular topic. Explanation
about unexplored aspects of a subject is provided along with details about what, how
and why related to the research questions.

 Conclusive Research Design

As the term suggests, conclusive research is meant to provide information that is

useful in reaching conclusions or decision-making. It tends to be quantitative in
nature, that is to say in the form of numbers that can be quantified and summarized.

10
It relies on both secondary data, particularly existing databases that are reanalysed to
shed light on a different problem than the original one for which they were constituted,
and primary research, or data specifically gathered for the current study.

 Descriptive Research Design

In a descriptive research design, a researcher is solely interested in describing the

situation or case under his/her research study. It is a theory-based research design
which is created by gather, analyse and presents collected data. By implementing an
in-depth research design such as this, a researcher can provide insights into the why
and how of research.

 Analytical Research Design

Analytical research is a specific type of research that involves critical thinking skills
and the evaluation of facts and information relative to the research being conducted. A
variety of people including students, doctors and psychologists use analytical research
during studies to find the most relevant information. From analytical research, a
person finds out critical details to add new ideas to the material being produced.

Exploratory study is done for the study of consumer preference.

1.4.3 Sources of Data Collection

Data collection is the systematic approach to gathering and measuring information

from a variety of sources to get a complete and accurate picture of an area of interest.
Data collection enables a person or organization to answer relevant questions, evaluate
outcomes and make predictions about future probabilities and trends.
Accurate data collection is essential to maintaining the integrity of research, making
informed business decisions and ensuring quality assurance.
For example, in retail sales, data might be collected from mobile applications, website
visits, loyalty programs and online surveys to learn more about customers.

In a server consolidation project, data collection would include not just a physical
inventory of all servers, but also an exact description of what is installed on each
server - the operating system, middleware and the application or database that the
server supports.

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1.4.4 Data Collection Method

The major source for the data collection for the study is the primary source of
collection of data, i.e., with the help of the questionnaire but at the same time some of
the data collected for the purpose of analysis and interpretation is also collected from
the secondary source of collection of data, i.e., data available on the internet, collected
by some other person for some other study with some similar kind of objective.

The data has been collected in two ways.

1. Primary Data

Primary data are those, which are collected for the first time, and they are original in
character. A suitable combination of Questionnaire techniques. Primary data gives
higher accuracy and facts, which is very helpful for any research and its findings. I
have collected primary data from questionnaire (online forms).

2. Secondary Data

The secondary data are those, which are already collected by someone for some
purpose and are available for the present study. Secondary data was collected from the
websites, and other such sources.

1.4.5 Sampling Plan

 Sampling Design

It includes size of sample and the technique that we use for selecting the different
items from the sample. A sampling design is a definite plan for obtaining a sample
from a given population. It refers to the technique that the researcher adopts in
selecting items for the sample.
It should be ensured in the sampling process itself that the sample selected id the true
representative of the population.

 Sample Size

By sample size we mean that the number of people to be selected to make a sample. A
sample size should be sufficient enough that can serve our purpose of the study. It
should have Efficiency, Flexibility, and Reliability.

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 Sample Size 400
Sampling Unit Individual Persons
Sampling Procedure Simple Random Sampling
Sampling Method Questionnaire
Type of Data Primary
Area of Survey Delhi

1.5 Limitations of the Study

The limitations of the study are those characteristics of design or methodology that
impacted or influenced the application or interpretation of the results of your study.
They are the constraints on generalizability and utility of findings that are the result of
the ways in which you chose to design the study and/or the method used to establish
internal and external validity.

Although sincere efforts have been made to collect the maximum information from the
respondents, but even then the report is subject to some limitations.

The limitations of this study are as follows:

1. Study was confined only to the people of Delhi city. So, the study may not be
justified for all.
2. There is a chance of marking wrong answers or making incorrect choices in the
questionnaire as some of the respondents may have misread the questions.
3. The data and information may not be the good representative of the wider
population.
4. The quality of the data cannot be ascertained.
5. The data may not be specific to the one’s need.
6. Some people did not take interest in providing information so some of them
provides information just as a formality.
7. Lack of time and other resources as it was not possible to conduct survey on a
large scale.

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 CHAPTER 2:
INDUSTRY PROFILING

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India's obsession with gold is well known around the world. To most Western
commentators, this obsession seems irrational, and Indian people seem like incurable
gold bugs.
However, on closer examination, gold ownership in India is neither excessive nor
irrational. In fact, when religious, cultural, and historical perspectives are considered,
India's appetite for gold seems rather matter of fact indeed. Nonetheless, it is not lost
on any Indian worth his or her salt that gold is the asset that best protects wealth and
freedom.
When my father, a pediatric surgeon, wanted to buy land to construct his clinic and
supplement his meager government income, he purchased the land by mortgaging my
mother's jewelry. Similarly, millions of people in India have capitalized their
businesses or farms, or secured their basic necessities after severe business reversals,
by pledging their gold jewelry. As we shall see below, were it not for gold, the average
Indian's lot through history could've been a lot worse.

India's Per Capita Gold Holdings

India's private gold ownership is difficult to determine accurately. However, several
websites, such as Gold Eagle, estimate the total private gold holdings to be about
15,000 metric tons. Compared to that figure, the Indian government owns a negligible
360 metric tons of gold.
Given that total gold mined in history is about 160,000 metric tons, India's stake then
amounts to 9.6 percent of the world's total gold stock. In contrast, India accounts for
just over 17 percent of the world's population. Therefore, India's large gold ownership
is just a function of its large population, and its per capita gold ownership is well
below average.
However, there can be no doubting Indians' desire to own this metal. Demand from
India consumes some 20–25 percent of the world's annual gold output.

Religious and Cultural Reasons for Gold Ownership

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Much of this desire to acquire gold dates back to the Bronze Age Indus Valley
civilization, in which people wore gold jewelry 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 splendor 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 honor of Sri
Venkateswara, an incarnation of Lord Vishnu. Legend has it that Venkateswara, who
was 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.

Historical Usage of Gold

Silver coins were widely used in India during the reign of the Mauryas circa 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 jewelry."
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

16
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.[1]
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.

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
jewelry. 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.

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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 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).
One last reason why extensive gold holdings are prudent in today's context is the
paltry level of insurance provided to bank deposits. A fractional reserve banking
system is inherently insolvent and needs government insurance to prevent a run on
deposits. In India, the amount covered under deposit insurance is just Rs100,000,
which is only $2,170. In contrast, federal deposit insurance in the United States was
recently increased from $100,000 to $250,000.
To put things in perspective, Rs100,000 is about 5 months rent for a decent, three-
bedroom apartment in Bangalore, whereas $250,000 US is four or five year's worth of
living expenses for a couple in Chicago, including a mortgage or rent. In other words,
Rs100,000 is an insignificant sum of money.

18
 CHAPTER 3:
ANALYSIS AND
INTERPRETATION OF
DATA

19
Demographic Profile of the Consumers

Factors No. of Consumers Per cent

Male 81 20.2
Gender
Female 319 79.8
Less than 25 46 11.4
26-35 76 19
Age (in years) 36-45 159 39.8
46-55 100 25
Above 55 19 4.8
Married 347 86.8
Marital Status
Unmarried 53 13.2
No formal education 20 5
Educational School Level 159 3938
Qualification College level 126 31.4
Professional 95 23.8
Students 26 6.5
Professional 60 15
Occupational Status Salaried 109 27.2
Business 67 16.8
Unemployed 138 34.5
Less than 250000 171 42.8
Annual Family 250001 – 500000 129 32.2
Income (INR) 500001 -750000 59 14.8
750001 and above 41 10.2
Less than 5000 232 58
Monthly Savings
5001 – 10000 106 26.5
(INR)
Above 10000 62 15.5
Total 400 100

The above table indicates the general profile of the 400 consumers who have
purchased gold jewellery. About 79.8 % of the respondents are female, 39.8 % of the
respondents are between 36-45 years of age, 86.8 % of them are married, 39.8 of them
are educated upto school level, 34.5% of them are unemployed. 42.8% of the
consumers earn less than Rs. 2,50,000 annually and save less than Rs.5,000 for a
month.

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Factors Influencing to Purchase Gold Jewellery

Factors No. of Consumers Per cent

Investment 318 79.5
Purpose Fashion 82 20.5
Gift 30 7.5
Disposable income 57 14.6
Easy finance 86 22.1
Past Experience 18 4.6
Influencing Necessity 141 36.2
Factors Comfort wearing 72 18.5
Social status 57 14.6
Customized jewelleries 14 3.6
Whenever gold price falls 108 27.7

The above table reveals that, majority of the consumers purchase gold jewellery for
the purpose of investment and necessity is the main factor influencing them to
purchase gold jewellery.

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Demographic Factors and Frequency of Jewellery Purchase

Chi square test is applied to find the significant association between frequency of
jewellery purchase and Demographic factors

H01: “There is no significant association between Demographic Factors and

frequency of gold jewellery purchase”

H02: “There is significant association between Demographic Factors and frequency of

gold jewellery purchase”

Chi square test reveals that, there is no significant association between gender, age,
marital status, educational qualification with frequency of jewellery purchase and
there is significant association between occupational status, monthly income and
monthly savings with frequency of purchase.

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Purchase Behaviour of the Consumers

Consumers have been asked to rate their level of agreement regarding the statements
relating to purchase of jewellery. These statements reflect the purchase behaviour of
the consumers. The consumers have been asked to express their opinion on a five-
point Likert scale given as Strongly Agree to Strongly Disagree. The ratings were
assigned as Strongly Agree – 5, Agree – 4 etc. to Strongly Disagree – 1 for all the
statements. These ratings indicate that, higher the rating more is the level of
agreement. Mean ratings are found out for each item and are displayed in the
following table.

Descriptive Statistics - Purchase Behaviour of Consumers

S.
Statements
N. N Minimum Maximum Mean S. D.
1 I buy jewellery even when
there is an increase in price 400 1 5 3.0550 1.2291
2 I prefer to buy jewels
because it is easy to sell in
case of emergency 400 1 5 3.8350 0.9618
3 I always love to go for
buying jewels 400 1 5 3.5800 1.0277
4 I have strong interest in
jewellery 400 1 5 3.5325 1.0328
5 I like self-selection while
shopping 400 1 5 3.5750 1.1347
6 I believe high price means
high quality 400 1 5 2.9175 1.1955
7 I always purchase what my
friends/relatives purchase 400 1 5 2.6400 1.2667
8 I like to suggest the shops for
my friends 400 1 5 3.5175 1.0404
9 Using jewellery helps me
expressing personality 400 1 5 3.4775 1.0110
10 I prefer to purchase
jewellery, when offered with
free gifts 400 1 5 3.1200 1.1017

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11 Promotional offers do not
influence me in purchase of
jewellery 400 1 5 3.3700 1.0516
12 I buy jewels only during
“special sale” or "festive
seasons" 400 1 5 3.2175 1.0758
13 Location of the shop is more
important than the products
for me. 400 1 5 3.1100 1.1516
14 I don't mind coming to the
shop which is located far
away from my home 400 1 5 3.4150 1.1318
15 I would always prefer to go
for buying jewels in shops
with large space 400 1 5 3.3350 1.1296
16 I usually do lot of comparing
prices when I go for
shopping jewels 400 1 5 3.5550 0.9997
17 I will always buy jewels
from a particular shop only 400 1 5 3.5950 1.0386
18 I enjoy taking chances in
buying jewels from
unfamiliar shops 400 1 5 2.9525 1.1974
19 Display of product in store
attracts me to buy jewellery 400 1 5 3.1725 1.2068
20 The showroom’s
advertisement encourages me
to visit the store 400 1 5 3.3050 1.0582
21 Advertisement for the store
room gives all the
information about the
jewellery 400 1 5 3.3525 1.0845
22 The celebrity used in the
advertisement makes me
buying the product 400 1 5 2.9950 1.2881

The above table shows that, consumers purchase jewellery because it is easy to sell in
case of emergency (highest mean rating 3.835) followed by their preference to
purchase from a particular shop. The lowest mean rating is given by the consumers for
their opinion on high price means high quality. Hence, it is inferred that, most of the
consumers purchase gold jewellery because it helps them at the time of emergency.

24
 CHAPTER 4:
CONCLUSION &
RECOMMENDATIONS

25
Conclusion

In India, gold always has been preferred more than just a precious metal. It is part of
our culture and an inseparable part of our belief system. The study has concluded that,
most of the consumers are female as jewellery is mainly preferred and worn by
women consumers. 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.

26
Bibliography

1. Srinivas Rao, Padma charan sahu, Sathya priya and Deepa (2014), “A study of
customers’ attitude and behaviour on purchase of gold jewellery in Chennai city”.
International Journal of Research in Management and Technology, vol.4, no.1, 54-60.

2. Richa Misra and Gaurav khatri (2012), “Consumer buying behaviour for branded
and non-branded jewellery in India”, an unpublished thesis, Delhi.

3. Deepa and Natarajan (2013). “A study on customers’ attitude and behaviour on

jewellery purchase in salem district”, International Journal of Research in Commerce
and Management, Vol no.4, Issue No.2, 137-142.

4. Balaji and Maheswari, “A Paradigm shift in the buying behaviour of Indian towards
gold jewellery – A theoretical approach with reference to the growth of branded
retailers”, Indian Journal of Applied Research, Vol – 4, Issue -2, Feb 2014, 11-13.

5. Kumar and Varadaraj (2013), “A study on buying behaviour of women customers’

towards jewellery products with special reference to Tirupur City”, an unpublished
thesis, Bharathiar University.

6. Sasirekha (2011), “A study on consumers’ buying behaviour of hallmark jewellery

in Erode town”, an unpublished thesis, Bharathiar University

27
Annexure

Questionnaire

1. Name -

2. Gender -
 Male
 Female
 Transgender

3. Age -
 Less than 25
 26-35
 36-45
 46-55
 Above 55

4. Marital Status -
 Married
 Unmarried

5. Educational Qualification –
 No Formal Education
 School Level
 College Level
 Professional Level

6. Occupational Status –
 Student
 Professional
 Salaried
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 Business
 Unemployed

7. Annual Family Income (INR) –

 Less than 2,50,000
 2,50,001 – 5,00,000
 5,00,001 – 7,50,000
 7,50,001 & above

8. What factors influence you to purchase gold jewellery?

Purpose:
 Investment
 Fashion
 Gift

Influencing Factors:
 Disposable Income
 Easy Finance
 Past Experience
 Necessity
 Comfort Wearing
 Social Status
 Customized Jewelleries
 Whenever Gold Price Falls

9. How often you like to purchase?

 Whenever I feel
 Once in a year
 Whenever need arises
 Special occasions

10. How you prefer to buy jewelleries?

 Readymade ornaments
 Place an order
 Both

11. According to following statements rate your level of agreement:

29
Strongly agree – 5
Agree – 4
Undecided – 3
Disagree – 2
Strongly disagree – 1

օ I prefer jewellery even when there is an increase in price

օ I prefer to buy jewels because it is easy to sell in case of emergency
օ I always love to go for buying jewels
օ I have strong interest in jewellery
օ I like self-selection while shopping
օ I believe high price means high quality
օ I always purchase what my friends/relatives purchase
օ I like to suggest the shops for my friends
օ Using jewellery helps me expressing personality
օ I prefer to purchase jewellery, when offered with free gifts
օ Promotional offers do not influence me in purchase of jewellery
օ I buy jewels only during special sale or festive seasons
օ Location of the shop is more important than the products for me
օ I don't mind coming to the shop which is located far away from my home
օ I would always prefer to go for buying jewels in shops with large space
օ I usually do lot of comparing prices when I go for shopping jewels
օ I will always buy jewels from a particular shop only
օ I enjoy taking chances in buying jewels from unfamiliar shops
օ Display of product in store attracts me to buy jewellery
օ The showroom ’s advertisement encourages me to visit the store
օ Advertisement for the store room gives all the information about the jewellery
օ The celebrity used in the advertisement makes me buying the product

30