International Journal of Reviews and Research in Social Sciences.

6(3): July- September, 2018

ISSN 2347-5145 (Print) Available online at

2454-2687 (Online) www.anvpublication.org
DOI: 10.5958/2454-2687.2018.00025.4
International Journal of
Vol. 06| Issue-03|
July- September 2018 Reviews and Research in Social Sciences

RESEARCH ARTICLE

Attitude of Customers towards Branded and Non-Branded Gold Jewellers -

A Study
Dr. M. Vasan
Assistant Professor of Commerce, A.V.V.M. Sri Pushpam College (Autonomous), Poondi - 613 503, Thanjavur
Dt. Tamilnadu, India.
*Corresponding Author E-mail: m.vasan@yahoo.com

ABSTRACT:
This paper is focused on the attitude of gold buyers towards branded and non-branded jewellers. The objective of
the study is to analyse the reasons for preferring branded and non-branded gold jewellers and satisfaction of
buyers towards gold jewellers. This study will useful to the owners of gold jewellers for understanding the
choices and preferences of buyers, the criteria adopted by buyers in selecting a particular jeweller, in adopting a
suitable pricing strategy, and in devising suitable marketing strategies, so as to serve their customers in a better
way.

KEYWORDS: Gold Purchase, Buyers Behaviour, Attitude of Gold Buyers, Branded Jewellery.

INTRODUCTION: The jewellery sector in India is highly unorganised

In India, gold is considered as a glamorous metal and as having only 4-5 percent share as organized. So, it
a status symbol among the people. It tends to have provides an opportunity to organied gold jewelers can to
religious as well as cultural significance. India is deemed enter into the Indian market. Now there are more than
to be the hub of the global jewellery market. The 15,000 players across the country in this sector. There
Jewellery sector in India plays a significant role in the are about 4,50,000 goldsmiths spread throughout the
economy which contributes around 7 percent in the GDP country. There are numerous of national players who are
and 15.71 percent in India’s total merchandise exports. It engaged in organised sector such as Tata (Tanishq),
is also provides employment to over 4.64 million Peacock Jewelers Private Ltd., Joy Aluklas, etc. Multi-
workers. This sector is contributing in a big way to the national jewellery brands such as Tiffany, Christian
country’s foreign exchange earnings. The average annual Dior, Bvlgari, Harry Winston and Zales are to be entered
consumption of gold in India is between 700 and 800 after the approval the Government. There are numerous
tonnes. factors which motivates the customers to buy branded
jewellery over unbranded jewellery. These factors
includes attractive and innovative designs, better quality,
purity, variety, durability, lightweight, comfortability to
wear, uniqueness, trust, specific product benefits or
shopping experience, status symbol, etc. Hence, these
factors are affecting the behaviour of the customers in
purchasing jewellery. With this background, the present
Received on 08.06.2018 Modified on 18.07.2018
study focused on the attitude of gold buyers towards
Accepted on 08.08.2018 © A&V Publication all right reserved
Int. J. Rev. and Res. Social Sci. 2018; 6(3): 261-266. branded and non-branded jewellery.
DOI: 10.5958/2454-2687.2018.00025.4

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 International Journal of Reviews and Research in Social Sciences. 6(3): July- September, 2018

LITERATURE REVIEW: world’s gold is in India’s possession. Gold is not just a

Jain (2013) found that female customers are becoming mere investment for Indians. It is intertwined into the
more aware about branded jewellery. Berad et al. (2015) fabric of the Indian culture, traditions and religious
have identified that design, price, purity, image, variety, beliefs. It is also considered as a status symbol which
display, service, promotion and offers, family and useful in measuring the wealth of a person in the society.
friends are the major factors influencing purchase The branded gold jewellery division occupies a
decision of gold jewellery. Hence, most of the significant share in the total jewellery market. It is due to
respondents were prefer to buy in branded jewellery. the most of the Indian buyers still considers jewellery as
Gomathy and Devi (2015) have examined that maximum an investment. The attitudes and perceptions of buyers of
number of buyers are aware about branded jewellery. gold jewellery as drastically changed. Most of the Indian
Rawal (2015) has examined gold buyers are prefer to jewellery buyers are getting more and more trend
select branded jewellery products from the branded conscious. In this changing scenario, well-defined,
shops. Ramachandran and Karthick (2014) found that strategic marketing policies are need for creating brand
branded jewellery products have a unique style and more image among the people.
varieties compared with the unbranded jewellery. The
study conducted by Jyothi and Babu (2014) and Raju There is limited number of researches carried out to
and Kumar (2013) have identified that gold purity, discover the gold jewellery in particular the branded gold
varieties, brand image, service quality, advertisement, jewellery which falls under organized sector. 85 percent
brand familiarity, promotional schemes, offers, celebrity of the gold jewellery is still conquered by unorganised
endorsement are the major factors which affect the gold jewellery sector. Thus this study analyses the
behaviour of the buyers. Asha and Christopher (2014) various perceptional aspects of gold buyers which
identified that majority of the customers purchase gold influence in purchasing the branded gold jewellery and
jewellery in the occasion of marriages, anniversaries, thereby help to design a suitable market strategies to
birthdays, festivals and offers. Vadra and Malhotra promote the sale of branded gold jewellery. Based on the
(2014) examined that the buying behaviour was highly aforesaid issues, the following research questions have
influenced by jewellery designs in the branded been probed:
showrooms. Walia et al. (2013) identified the factors • What is the basis for selection of gold jeweller?
which inspire the consumer to buy in the branded • What is the level of the satisfaction of buyers towards
jewellery such as quality, status, buy back schemes, gold jewellers?
certification of gold and zero installment schemes.
OBJECTIVES OF THE STUDY:
IMPORTANCE OF THE STUDY: The study has been carried out with the following
The Erode city is witnessed the rapid growth in the field objectives:
of handmade jewellery in the past many decades. Now, i) To know the criteria for selection of gold jewellers.
this city is facing a cut-throat competition and challenge ii) To identify the reasons for preferring branded and
from the branded jewellery. This is further boosted by a Non-branded gold jewellers.
few local manufacturers and traders initiating the iii) To measure the statisfaction level of buyers towards
concept of retail branding. Thus, the need has arisen to gold jewellers.
conduct a perception study of buyers on branded RESEARCH METHODOLOGY:
jewellery to measure the future of this line of business The descriptive research method is used to analyse the
and also to study the future of direction and strategies consumer preference for branded gold jewellery over
being adopted by the existing traders to face the unbranded gold jewellery. Both primary and secondary
completions from the branded jewellery. Hence, the sources of data have been used. A well-structured
outcome of this study will be of immense help to the questionnaire used to collect the required data from the
owners of gold jewellers in understanding the choices respondents. The questionnaire comprises gold
and preferences of buyers, the criteria adopted by buyers consumption pattern, reasons for purchasing from non-
in selecting a particular jeweller, in adopting a suitable branded gold jewellers and level of satisfaction towards
pricing strategy, and in devising suitable marketing preferred gold jeweller. The secondary data has been
strategies, so as to serve their customers in a better way. collected from the books, journals, web portals, etc. The
sample size of 140 respondents conveniently selected to
STATEMENT OF THE PROBLEM: collect the necessary data from the gold purchasers in
Gold is a time tested asset. Even when the price Erode City. The data collected from the respondents
increases, people never hesitated to purchase it. Gold has have been coded and tabulated to suit the requirement of
been traditionally the desired asset for Indians. India is the study. Statistical Packages for Social Sciences
being the world’s second largest gold jewellery market. (SPSS) have been used for analysing the data. The
According to World Gold Council, about 10 percent of
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 International Journal of Reviews and Research in Social Sciences. 6(3): July- September, 2018

statistical tools such as Description Statistics, Table 4: Type of Gold Jewellery Purchased
Friedman’s test, K-means cluster analysis and Chi- Type of Jewellery Always Sometimes Never Total
Stud /Earrings 11 77 52 140
square test have been used to analyse and interpret the Bangles / Bracelets 14 73 53 140
data. Finger rings 26 62 51 140
Necklace / Chains 67 46 27 140
GOLD PURCHASE PATTERN OF BUYERS: Coins 12 25 93 140
In this section, gold purchase pattern of buyers is Others 20 65 55 140
analysed with respect to their amount invested in gold,
frequency of purchase, influencer in the purchase The type of gold jewellery preferred by the respondents
decision, reasons for purchasing gold, type of gold shows that majority of the buyers have purchased finger
jewellery purchased, criteria for selection of gold rings, followed by stud/ earrings, coins,
jewellery, preferred gold jewellery and reasons for bangles/bracelets and necklace/ chains (Table - 4).
preferring a particular gold jeweller. Table 5: Criteria for Selection of Gold Jewellery
Table 1: Amount Invested in Gold Variables Mean Std. Mean x2 Test Sig
Deviation Rank
Amount Invested in Gold Frequency Percent
Quality of 3.66 1.227 3.84 28.418 .000
Below 1,00,000 29 20.71
gold
1,00,001-2,00,000 46 32.9
Workmanship 3.51 1.226 3.40
2,00,001- 3,00,000 45 32.1
Comfort of 3.85 1.229 4.01
Above 3,00,000 20 14.28
wearing
Total 140 100.0
Price 3.41 1.275 3.37
Antique value 3.31 1.270 3.19
The amount invested in gold by the respondents depicts Trendy 3.34 1.301 3.20
that 32.9 percent have invested 1,00,001-2,00,000, 32.1
percent have invested between 2,00,001-3,00,000, The result of Friedman’s Chi-square test shows that there
20.71 percent invested less than 1,00,000 and 14.28 is a significant difference found in the criteria for
percent have invested more than 3,00,000 in gold selection of gold jewellery (P=<0.05). The mean rank
(Table - 1). revealed the fact that the comfort of wearing, quality of
gold, workmanship, price, trendy and antique value are
Table - 2: Frequency of Purchasing Gold
the prime factors considered at the time of selecting gold
Frequency of Purchase Frequency Percent
Monthly 11 7.9 jewellery (Table - 5).
Yearly 66 47.1
Occasionally 63 45.0 GOLD PURCHASERS’ PREFERENCE TOWARDS
Total 140 100.0 BRANDED AND NON-BRANDED JEWELLERS:
Buying preference is a process, wherein various
Frequency of purchasing gold revealed that the 47.1 available mutually exclusive alternatives for buying are
percent of the respondents have been purchasing gold evaluated by the buyers. It can generally be made by the
once in a year followed by 45 percent have been respondents after thoroughly scrutinizes the pros and
purchasing occasionally and 7.9 percent have been cons of each alternatives. Keeping in mind, preferred
purchasing once in a month (Table - 2). jeweller, reasons for preferring a particular jeweler,
Table 3: Reasons for Gold Purchase sources of information about gold jewellers, and
Reasons Frequency Percent satisfaction towards preferred gold jeweller have been
Marriage 30 21.4 taken into consideration.
Gift 19 13.5
Investment 25 17.8
Table 6: Preferred Gold Jeweller
Personal aspiration 20 14.0
Preferred Jeweller Frequency Percent
Status 28 20.0
Branded 82 58.57
Festival 18 12.8
Non-branded 58 41.42
Total 140 100.0
Total 140 100.0
The reasons for purchasing gold indicates that 21.4
percent of the respondents have purchased gold for Most of the gold purchasers (58.57 percent) have
marriage, 20 percent have purchased gold on auspicious preferred to purchase from branded gold jewellers and
occasions like family functions, Akshayathirudhi, etc., 41.42 percent of the gold purchasers have preferred non-
17.85 percent have purchased gold for investment Branded gold jewellers (Table - 6).
purposes, 14.28 percent have purchased gold for their
personal aspiration, 13.5 percent have purchased gold for
gifting to friends and 12.85 percent have purchased gold
during festival occasions (Table - 3).

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Table 7: Reasons for Purchasing Gold from Branded Jewellers The preferred jeweller for purchasing gold indicates that
Variables Mean Std. Mean x2 Sig. 22.1 percent have preferred Tata Gold, 21.4 percent have
Deviation Rank Test
Reliability 3.96 1.079 4.33 26.446 .000 preferred Joy Alukkas, 17.9 percent have preferred AVR
Competitive 3.83 1.112 4.19 Swarna Mahal, 14.3 percent have preferred Malabar
price Gold and 13.6 percent have preferred Kalyan Jewellers
Goodwill 4.34 .828 5.22 and 10.7 percent selected in other show rooms (Table -
Advertisement 4.17 1.079 4.90 9).
Reasonable 3.85 1.314 4.38
wastage and
Making charges Table 10: Sources of Information about Gold Jewellers
Wide range of 3.87 1.168 4.28 Sources of Information Frequency Percent
collections Friends / Relatives 52 37.1
Brand image 3.89 1.245 4.34 News papers and Magazines 48 34.3
Quality 3.84 1.248 4.37 Radio / Television 20 14.3
Hoardings and Banners 20 14.3
Total 140 100.0
The result of Friedman’s Chi-Square test shows that
there is a significant difference (P=<0.05) found in the
In the various sources of information, friends and
reasons for purchasing gold from the branded jewellers
relatives (37.1 percent) constitute a major source of
(Table - 7). Goodwill is a major reason for buying gold
information, followed by Radio/ Television, hoardings
from the branded jeweller (Mean Rank= 5.22), followed
and banners and newspapers and magazines (Table - 10).
by advertisements (Mean Rank=4.90), reasonable
wastage and making charges (Mean Rank=4.38), quality
BUYERS’ SATISFACTION WITH GOLD
(Mean Rank=4.37), brand image (Mean Rank=4.34) and
JEWELLERS:
competitive price (Mean Rank=4.19).
Satisfaction is a person’s feeling of pleasure or
Table 8: Reasons for Purchasing Gold from Non-branded
dissatisfaction and whether the buyer is satisfied after
Jewellers purchase depends upon the performance of products in
Variables Mean Std. Mean X2 Sig. relation to expectations of the buyers. If the performance
Deviatio Rank Test is not up to the expectations, the buyer is dissatisfied. If
n
the performance matches the expectations, the buyer is
Able to order 3.84 1.148 3.76 13.90 .000
designs 9 satisfied. If the performance exceeds the expectations of
according to my a buyer is highly satisfied or delighted. The level of
desire satisfaction of gold buyers might be varied with products
Free from taxes 3.57 1.067 3.37 and services offered by the Jewellers. In this connection,
Hereditary 3.83 1.193 3.72
bonding non-parametric Friedman’s test has been used to find out
Better Payment 3.39 1.273 3.11 the significant difference in the buyers’ satisfaction with
terms of local gold Jewellers.
Jewellers
Low making 3.56 1.337 3.50 Table 11: Buyers’ Satisfaction towards Gold Jewellers
charges Variables Mean Std. Mean X2 Sig.
Deviation Rank Test
The result of Friedman’s Chi-Square test shows that Wide range of 3.64 1.415 5.48 37.175 .000
there is a significant difference (P=<0.05) found in the collections
Wastage and Making 3.36 1.288 4.58
reasons for purchasing from non-branded gold jewellers charges
(Table - 8). The prime reason for purchasing gold from Exchange offers 3.81 1.256 5.55
the non-branded jewellers is buyers can able to order Discounts and free gifts 4.14 .941 6.29
designs according to their desire (Mean Rank=3.76), Store atmosphere 3.63 1.153 5.07
followed by hereditary bonding (Mean Rank=3.72), low Purity and Quality of 3.98 1.028 5.86
gold
making charges (Mean Rank=3.50) and free from taxes Salesman responsiveness 3.68 1.183 5.14
(Mean Rank=3.37). Price 3.91 1.065 5.58
Service quality 3.89 1.145 5.69
Table 9: Preferred Gold Jewellers Advertisement 3.96 1.082 5.76
Gold Jewellers Frequency Percent
Malabar gold 20 14.3
The result of Friedman’s Chi-Square test shows that
Tata Gold 31 22.1
Kalyan jewellers 19 13.6 there is a significant difference (P=<0.05) found in the
Joy Alukkas 30 21.4 buyers’ satisfaction towards gold Jewellers (Table - 11).
AVR Swarna Mahal 25 17.9 The mean ranks revealed the fact that the buyers are
Others 15 10.7 more satisfied with discounts and free gifts (Mean
Total 140 100.0 Rank=6.29) followed by purity and quality of gold
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(Mean Rank=5.86) and price (Mean Rank=5.58). The (P=<0.05). Hence, the null hypothesis is rejected.
buyers are more dissatisfied with wastage and making Therefore, it is concluded that there is an association
charges (Mean Rank=4.58). found between preferred gold Jeweller and level of
satisfaction (Table - 14).
CLASSIFICATION OF PURCHASERS’
SATISFACTION TOWARDS GOLD JEWELLERS: CONCLUSION:
In this section the classification of different type of The branded Jewellery segment occupies only a meagre
clusters based on attitude of gold purchasers towards share of the total Jewellery market in India. Today, the
jewellers. K-means cluster analysis is applied to identify branded Jewellers are spread throughout the country,
heterogeneous groups of gold purchasers. This analysis meeting the demands of the consumers from all parts of
is helpful to identify the different groups of gold the country. The study proved that goodwill, reasonable
purchasers with homogeneous qualities. wastage and making charges, reliability, quality, brand
image, advertisement, wide range of collections and
Table 12: Level of Satisfaction with Gold Jewellers competitive price are the base for the selection of
Level of Satisfaction Frequency Percent
Medium 38 27.1
branded store. The study findings will explicitly serve as
High 65 46.5 an eye-opener for the gold jewellers to understand the
Low 37 26.4 attitude of the buyers.
Total 140 100.0
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